July BNC Venture Capital Luncheon

I had an opportunity to drop by the ITA for the first half of the BNC Venture Capital meeting today and watch the first two presenters:

Zota Green Tea Soda

Given the recent success of drink companies like Izze Soda (bought by Pepsi in 2006 for something like $75 million, which was about 3x revenue) and Honest Tea (40% bought by Coca Cola in 2008 for about $40 million, giving a valuation of greater than 4x revenue), it seems like beverages companies are being started in garages almost as often as web start-ups these days. The production side can be easily outsourced (in fact many of the new bev cos all use the same bottler up in Minnesota, Cold Springs), so what the current batch of bev entrepreneurs are really challenged with is (a) coming up with great flavor profiles, (b) setting up distribution (i.e. sales and marketing), and (c) figuring out how to stand out from the crowd. Not easy tasks...

Anyway, I think Zota is off to a good start. They are a bit too early / too small for my firm to invest in at this point, but if you are looking to get involved with and invest in a beverage company, I would take a serious look at them. I tried their product today, and gotta say that it was really, really good. My only problem with the product is that it is really more akin to green tea pumped up with some (lots of?) sugar water, as compared to something like Izze that gets its sweetness from real fruit juice. It just seems that people going for "natural" and "organic" green tea benefits won't want to load up on so much sugar (but I could be wrong). However, then again, it was actually very tasty...

J. L. Powell

J. L. Powell has the kind of clothes that most guys only wish they could wear (i.e. afford). It is really, really nice stuff. If you currently shop at Brooks Brothers, and you want to take it up a notch or two, go shop at J. L. Powell. Check 'em out...they primary sell through their catalog, but also sell online and through their flagship store in Michigan. And they are also raising money, so if you really like the product, you could also be an investor. Not only do I really dig the clothes, but when you go to the web site, all the model shots appear to actually be the founder Josh Powell himself (how's that for livin the brand?).

Thanks to Len Bland and the BNC for setting up the meeting...and also to the ITA for hosting. Len's format for these meetings is first the entrepreneurs pitch to the group, and then they leave the room so the group can discuss...and then Len brings the entrepreneur back for the room to share their thoughts. It is a nice way to practice your pitch and get some good feedback.