When Moonlight Meadery of Londonderry, N.H., found a national distributor for its award-winning mead (wine made with honey), it needed an injection of capital to meet the anticipated demand.
The obstacle
The company was profitable, had excellent gross profit margins, and was poised for rapid growth, but lacked the collateral most lenders needed. Also, Moonlight’s request for capital was based on its projected earnings, but the bank was only comfortable examining past performance.
Why VFG made this investment
Vested for Growth examined Moonlight's projections, its management, and the new distribution agreement, and considered the company an excellent investment. The management team was excellent, and willing to embrace their investor as a trusted advisor, increasing the chances of success for all involved. VFG created a royalty investment that Moonlight could repay from future earnings.
The result
Since VFG’s investment in 2012, Moonlight has continued to win awards and has been embraced by consumers across the country. The company also exports its mead, bringing a new product category to the forefront of wine and craft brew enthusiasts everywhere.
Links
Moonlight Meadery website
Press release: Vested For Growth invests in Londonderry-based Moonlight Meadery
News article: Londonderry's Moonlight Meadery secures investment as sales expands
Profile in Business NH Magazine
