Why ROAG’s Strategy Seems So Attractive to Investors

Agave parryi closeup

Rogue One, a vertically integrated tequila company, is using its expertise in tequila manufacturing and sales to grow a firm that could quickly make the watchlist of many investors.

Through its vertical integration strategy, ROAG maintains control over its intellectual property, quality of its products, and the care of its customers and consumers. By integrating three key areas of the tequila supply chain into its operations, ROAG can manage costs and increase efficiencies as well.

ROAG’s Three Key Strategic Components

450,000 owned or leased agave plants

  • By growing their own agave plants, ROAG has direct access and control to the core ingredient of its tequila product.
  • Rather than relying on outside suppliers and hoping they have maintained the plant and can supply it on time, ROAG keeps it all in house.
  • By owning the plants, ROAG also has the option of selling or leasing them out to other buyers for a premium.

Manufacturing its Own Tequila

The next logical step in its strategy, ROAG creates its own tequila. As a matter of fact, ROAG owns four premium spirit brands, including its Armero tequila.

A strong brand can do wonders for a company’s exposure.

Selling under three unique channels

The Armero brand tequila is not the only channel ROAG uses to sell its homegrown tequila.

Rogue One (OTCMKTS: ROAG) uses three methods of delivery for its tequila.

First, as we mentioned, is its Armero Tequila—the established, in-house brand of tequila ROAG promotes and sells itself.

Second, by marketing its tequila via private label and bulk purchase options, ROAG opens itself up to more business-to-business customers and, ultimately, more consumers.

In partnering with other brands to be their behind-the-scenes private label tequila provider, ROAG is putting more of its tequila in the glasses of drinkers.

Even drinkers who are not familiar with Armero brand tequila are paying for ROAG’s tequila. What a win!

Finally, the third unique sales channel for ROAG is hospitality.

Through its Santo Coyote restaurants, ROAG is able to market the Armero Tequila it makes. Not only Armero, but the award-winning restaurants are excellent vessels for ROAG to push its other spirit brands, and even the private label brands it supplies.

In addition to the Santo Coyote restaurants, ROAG has built its first tequila-themed boutique hotel, wherein guests are given a truly unique experience, including access to ROAG’s premium spirit brands.

Surely, ROAG seems to have built a robust sales operation.

ROAG as an Investment

What does this vertical integration strategy mean for investors?

When done well, which ROAG purports to do, this kind of strategy lowers costs, increases the bottom line, and can ultimately put more money into the pockets of investors.

With a stock price currently sitting at $.0048, investors in ROAG are able to gain access to a large number of shares for relatively low cash output.

Even for those still on the fence about an investment in ROAG, adding the company’s ticker to your watchlist could keep the company top of mind as it charges forward.

Will you be adding ROAG to your watchlist?

This article is part of a sponsored investor education program