Rogue One has a unique position in the premium spirits market. The acquisition of Human Brands made the firm more vertically integrated than ever. As it manages and controls its own supply chain, it is looking to grow one of the more attractive sales channels: private label tequila opportunities.
In July 2021, Rogue One Inc (OTCMKTS: ROAG) announced the acquisition of premium spirit manufacturer Human Brands. Since then, Human Brands has been leading the charge to turn its customers from consumers into tequila barons through private label and bulk production.
Tempted by Tequila
Noticing changing consumer habits in the alcohol and spirits industry, Human Brands International was launched with the goal of capitalizing on these industry-wide changes by focusing on the tequila market.
Rogue One CEO Joe Poe Jr. said of the firm’s acquisition, “Our goal is to create long term value for our shareholders by adding immediate value to our bottom line. Human Brands meets and exceeds all of the qualifications that we were looking for in our first acquisition as Rogue One, Inc.”
According to the firm’s website, “the Company’s core foundation is built upon its bulk tequila production and agave operations. The Company currently has supply contracts with well-known tequila brands, distilleries, celebrities, athletes and restaurant groups.”
Human Brands focuses on five key areas to support that core foundation:
· Agave
· Bulk Tequila Production
· Brand Development
· Import/Export
· Hospitality
Hospitality Improves Tequila Brand Awareness
Perhaps the most unexpected part of its operations, Human Brands specializes in hospitality through its tequila-themed boutique hotel, Museo. Not only does this destination hotel provide a unique experience to the guest, but it also serves as venue for the sale of Human Brands’ and ROAG’s premium spirit brands.
By stocking Museo’s bar’s shelves with Armero and other brands within the Human Brands/ROAG family, Human Brands is able to sell to a captive audience and provide a more deeply branded and authentic guest experience.
Making Tequila Barons
As was mentioned at the beginning of this article, Human Brands and Rogue One are ready to develop the next generation of tequila barons. Using its existing business operations (agave, bulk tequila production, brand development, and import/export), the company is using a well-known strategy to create tequila barons.
Allowing customers to private label Rogue One/Human Brands’ tequila as their own, ROAG is getting more of its tequila on bar shelves and in liquor cabinets. Saving firms the trouble of starting their own tequila manufacturing plant, ROAG provides new tequila brands with everything they need—from the agave to the bottling—taking out the middle man and a ton of work.
Private label and bulk buyers are able to take ROAG’s product, bottle it under their own name, and sell it as their own.
All In on Human Brands
ROAG has seemingly found a strong fit in Human Brands. Since this acquisition seems to have worked, is there a chance ROAG takes aim at other firms, in an effort to become an even stronger “Ground to Glass” tequila company? According to CEO Joe Poe Jr., “We will continue to seek acquisition opportunities involving uniquely positioned companies and brands that will be supported by our current underlying business activities but our immediate objective is to make direct investments into the growth of each facet of the Human Brands platform.”
This article is part of a sponsored investor education program