Dolph Lundgren offers shares in his vodka brand
Rocky IV star Dolph Lundgren has launched an equity crowdfunding campaign for his vodka brand Hard Cut, with a target of raising US$2 million.
Lundgren launched Hard Cut in March this year with his wife, Emma Krokdal, after five years putting the brand together.
Since then, the brand has reached 150 retail stores in California and 190 on-trade accounts, mostly in Los Angeles. It has also launched in New York, with Florida and Texas soon to follow.
So far, Hard Cut has been self-funded by the actor and Krokdal. Lundgren says the investment from the crowdfund – launched on Start Engine – will be used for nationwide expansion, sales, marketing, products and inventory. At the time of publishing, it had raised more than US$250,000.
Lundgren estimates the crowdfund will run until December. “We have a loose target of about US$2m,” he said, adding that the campaign could end early if the Hard Cut team decide they have enough money or want to raise money differently.
The company is exploring distribution partnerships to support a potential 300-plus outlet expansion across Florida, Texas and the Midwest. Additionally, as the brand hits more than 300 US retail locations, it will scale production to meet demand.
Funds will also be used for marketing, which would include targeted campaigns that could leverage Lundgren’s star power in Hollywood.
Speaking to The Spirits Business, Lundgren explained: “To expand the business, you need capital. The alternatives are either I keep putting up the cash myself, or we find a venture capitalist or a financier to come up and offer us a bigger cheque – we’ve actually had some offers.
“But if you do that, usually you have to get up some control. You have to either give up board seats or control of the direction of the company. I didn’t want to do that.”
Lundgren also sees crowdfunding as a way to build a community around Hard Cut. “You’re bringing in regular, everyday people and giving them a chance to invest in the company with a much lower minimum, and not just for accredited investors. You create a following of people who end up liking your product and helping to promote your product. It’s a win-win for us.”
Lundgren added that it took six months to complete the compliance process and get the SEC to regulate the crowdfund.
The brand has also partnered with Potomac Growth to support the crowdfund. The campaign will run on Meta and YouTube, giving people information on how to invest.
Those buying shares will gain various investment incentives and bonuses. These include time-based perks, mid-campaign perks and amount-based perks.
Amount-based perks begin with a signed Hard Cut bottle, or a personalised video message from Lundgren himself. At the higher end of investment (between US$50,000 and US$100,000), perks include a private lunch with Lundgren in LA or NY, a personal training session at Gold’s Gym California with Lundgren, or even a cameo appearance in one of his upcoming movies.
Controlled growth
Right now, Hard Cut is focusing on the US, but Lundgren, who is from Sweden, suggests that next year the brand may look into Scandinavia.
While Hard Cut has sold out its first batch of vodkas (around 70,000-80,000 bottles) and signed distribution partnerships with BevMo, Total Wine and Southern Glazer’s, Lundgren contends that the brand will grow at a controlled pace. “We’re trying not to get above our skis,” he said.
Hard Cut is made with American potatoes from Idaho, which makes the process more expensive and labour-intensive than with grain vodka. It also needs to ferment for longer – for five days, rather than two.
Lundgren says just 1% of vodkas in the US are made with potatoes. Even if this makes things harder, he is steadfast in his belief that potatoes make the best base. “It gives a creamier taste with the best results,” he said, “especially if it’s an overproof vodka like ours. The potato taste is magnified, and gives it this sweet, smooth flavour, heightened by the higher alcohol percentage.”
Lundgren bottles Hard Cut at 45% ABV, higher than the usual 40% ABV for standard vodka. On the brand’s crowdfunding page on Start Engine, it states: “After years of watching the vodka industry chase low-proof and diluted, flavoured trends, Lundgren saw an opportunity to bring back authenticity, flavour and craftsmanship to the market.
“Walk into any liquor store and you’ll find shelf after shelf of the same thing – many standard 80-proof (40% ABV) vodkas that have been diluted down to the point where they barely have character.”
Speaking to The Spirits Business earlier in the summer, Lundgren said he felt the vodka category had become “a little boring”, a stance he remains firm on.
“The vodka space is not very interesting right now,” he said. “It’s a bit stale compared to Tequila, gin and whisky. We think we have a new personality and the best-tasting vodka – I think we can shake up the marketplace.
“We want people to be part of it, and to give them an opportunity to be part of our movement.”
Related news
Spy X Vodka makes bid for global success
