How it started

“I started BrüMate at 21 with a passion for creating and a belief that innovation is at the core of every great brand. I saw an enormous opportunity in the drinkware and cooler categories and set out a mission to build a brand that was truly different.” Dylan Jakobs

Dylan Jacob went from a warm beer at a party to growing sales to $20 million in just two years with no full-time employees and no investment.

This impressive feat is just the beginning of the company’s success story.

After building a small team, Jacob was able to scale the company to over $100 million in revenue in just five years.

Want to know how Jacob achieved such impressive growth in such a short period?

How it's going

That old saw about building a better mousetrap surely applies to Dylan Jacob, founder and “chief drinking officer” of Brumate, whose mousetrap turned out to be a container that keeps your beer or wine at the perfect temperature while you’re on the go.

Dylan Jacob owns 100 percent of Brumate, the company he founded in 2016. "When I first turned 21, I discovered that warm alcohol was the worst, setting off on a journey to find a solution for keeping my favorite adult beverages at the perfect temperature," Jacob writes on the Brumate website. "With just an idea and a dream, I concocted a plan to shake up the drinkware industry and change the way you enjoy your favorite adult beverages for the better."

To get an idea of just how good a mousetrap Jacob built, consider his sales numbers since starting his company in 2016 in Denver. That year he did $270,000, but bear in mind that was in two months because he launched in November. In 2017, Brumate did $2.1 million. In 2018, it did almost $20 million, and last year Brumate brought in $36 million.

Even better, Jacob, 25, owns the company 100 percent, although he’s getting ready to raise $10 million in venture capital as part of a planned global expansion. All from what amounts to a fancy stainless steel insulated beer cozy, although the line has since expanded exponentially into wine and spirits.

"We don't do water bottles or coffee mugs," Jacob said. "Everything is crafted around building a better drinking experience. That's what allowed us to grow so quickly. No one else makes what we do."

The Rapid Rise of BrüMate

A TimelineThe company we are talking about is Brumate, a DTC eCommerce player dedicated to drinking coolers.

In just a few short years, Brumate has experienced rapid growth and success in the market.

From its humble beginnings as a rough sketch on a piece of paper to (reportedly) generating over $100 million in revenue in 2021, the company has come a long way.

Here’s what a condensed timeline looks like with the benefit of hindsight.

December 2015: The SparkA warm beer at a Christmas party led 21-year-old Dylan Jacob to sketch possible solutions.

Early 2016: A First AttemptThe initial product was the Hopsulator, a 16oz craft beer cans cooler.Dylan designed some prototypes with a local engineer and convinced a nearby brewery to carry the product before spending $3k on 100 units for their locations.

November 2016: A Breakout HitDissatisfied with the manufacturing costs for the Hopsulator, Dylan came up with a 2nd product. The Winesulator was a similar product for wine, but it turned out to be faster and cheaper to manufacture (so Dylan proceeded to mould without prototypes!).After photoshopping images into Facebook ads, the Winesulator was launched to over 7,000 pre-launch signups. This led to ~$250,000 in sales in the last 2 months of 2016!

2017: Year TwoDespite being the sole employee until mid-2017, Dylan finished the year with $2.1m in sales.A significant hurdle was often being out of stock and unable to keep up with demand due to delays in shipping from factories in China.2018 and 2019: Scaling UpEnded 2018 (Year Three) with sales of just under $20m.Ended 2019 (Year Four) with $36m in annual sales.2020 onwards: The Pandemic OpportunityIn recent years, sales have exploded to over $100m in 2021, driven by the increased online spending as the pandemic forced many of us indoors.

Revenue

Financial Performance ExaminedSince Brumate is privately held, its finances are not publicly available.

Sales RevenueHowever, Dylan has described the following sales figures in various interviews:

2016 – $250,0002017 – $2,100,0002018 – $20m2019 – $36m2020 to 2022 – $100mBut what good is sales revenue without understanding how much profit is generated?

Gross MarginsIt turns out that Brumate’s gross margins are relatively predictable, except for spend on paid advertising. Ad spending is one of the company’s most significant growth drivers, and deciding how much to spend is the most critical factor in profitability.

Gross margins before ad-spend are ~59%, meaning subtracting the cost of goods sold, shipping, and fulfilment from the top-line sales revenue number.

Ad Spend: The Primary Cost and Growth DriverOnce ad spending is accounted for, Dylan mentions he hits between 35% and 45% gross margins. We couldn’t find any references to other fixed costs.

Ad spending can provide a 3 to 4X return on investment and even up to 6X ROAS over the

Conclusion

Dylan Jacob's journey with Brumate serves as an inspiration to aspiring entrepreneurs. It reminds us that with passion, determination, and a commitment to excellence, it is possible to turn an idea into a thriving business. As Brumate continues to revolutionize the drinkware industry, we eagerly await what the future holds for this innovative company. Cheers to Dylan Jacob and the Brumate team for their remarkable achievements and the unforgettable drinking experiences they continue to create.