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Keep the Wine Flowing: A Case Study

 

Situation:
Free Flow Wines, a private-equity backed company founded in 2009, is the industry pioneer in premium wine on tap, offering keg leasing, filling, logistics and canning services which enables the hospitality industries to move to a greener, fresher and better way to serve wine by the glass. Representing more than 250 wine brands in kegs, they were poised for rapid growth. With comprehensive and fast-moving expansion plans, they needed a lender who understood their unique characteristics and who could pivot with them as they seized opportunities.

Solution:
Veritas began working with Free Flow Wines in 2016, conducting its due diligence to understand the business and the unique collateral Free Flow needed to capitalize on in order to grow.  In short order, Veritas provided a $9 million credit facility to fund growth. Within the first year of the loan, Veritas adjusted to the changing model and approved an acquisition and a new canning line.

VERITAS Advantages:

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“Finding a debt partner who was able to understand our complex business model and support our aggressive growth was critical. The Veritas team worked hard to understood our needs and provided a very unique financing package around complex assets.”
— Jordan Kivelstadt, Co-Founder & CEO

Result:
Free Flow Wines is well-positioned for success. They have opened a new filling station in New Jersey that also serves as an east coast hub; grown their fleet of reusable stainless steel kegs; expanded their service offering to include canning; and introduced an equipment leasing program to help hospitality and restaurant operators finance the cost of wine-on-tap draft systems.

“Since our first meeting with Jordan and his team, their passion for building the premium wine on tap market was obvious. We are pleased to provide this market leader with the financial certainty they need to unlock opportunity.”
— Mark Seigel, President, Veritas Financial Partners

About Veritas Financial Partners

Veritas Financial Partners is a specialty finance firm that provides $2 – $20 million senior secured credit solutions to businesses across various industries. Veritas serves entrepreneurs, management teams and private equity sponsors by delivering the flexible, responsive capital needed to achieve their goals. As an affiliate of an investment fund with $2.5 billion in assets under management, Veritas benefits from a substantial long-term capital base.

About Free Flow Wines

Free Flow Wines is the pioneer of premium wine on tap, delivering the world’s leading wine brands to the taps of restaurants and venues nationwide. Free Flow’s keg leasing, filling, logistics and canning services have allowed the wine and hospitality industries to move to a more sustainable way of offering consumers the freshest, best tasting glass of wine. Founded in 2009, Free Flow has more than 250 wine brands in keg, from wineries throughout the U.S., New Zealand, Argentina and Europe. Their customers' wines are offered in keg and can formats at a variety of restaurants, premium hotels, retail stores, sports and entertainment venues across the U.S. Free Flow Wines has locations in Napa, California, and Bayonne, New Jersey. You can find them online at FreeFlowWines.com, on Twitter, Facebook, Instagram and Flickr @FreeFlowWine.

Evan Nadler
Senior Vice President
(312) 809-0757
enadler@vfpfinancial.com
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Mark Seigel
President
(561) 405-4008
mseigel@vfpfinancial.com
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David Bueno
Vice President
(215) 717-7259
dbueno@vfpfinancial.com
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Tony Liobis
Vice Chairman & Chief Credit Officer
(561) 405-4003
aliobis@vfpfinancial.com
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