This proposal is for a one-time grant to kickstart Boring, a Web3 beverage brand created by the Ape community, and the first-ever beverage brand built by a DAO. From the start, 10% of the brand will be set aside for the community.
Our goal is to drive attention to ApeCoin and the entire ecosystem by providing something that everyone can enjoy: delicious beverages. Boring is intended to be an extension of the APE community and a powerful tool to bring awareness to $APE.
This is an intentionally community-driven experience. Our aim is not only to create a brand for the community but to co-create it with the community. We are enthusiastic about transparency and education, and we are committed to establishing a platform where members can learn the precise steps involved in launching a CPG brand. Theres currently not many resources that provide sufficient detail on the challenges that entrepreneurs will face, and we are eager to fill that gap. We will provide thorough weekly updates and break down each step to keep our members informed all within the ApeCoin WG0 discord.
Our first product lineup is Boring Energy.
Our vision for Boring’s first product is an energy drink that is low in sugar, great in flavor, and high in energy. Think of it as a less fitness-focused version of Celsius. It is important to note while we can create almost any style of beverage, we believe an energy drink would make the best first product. If members express a desire for other beverage types, say, Boring Tea, we will expand in the future if there is enough community interest.
To start we will produce 4 different SKUs. Original, and 3 additional flavors, each chosen by the ApeCoin community. 1 of which being ApeCoin exclusive. We would love if members could vote on our current Flavor snapshot. Although this will not be the official flavor poll, the feedback will provide our formulator with a current idea of the possible direction. Flavor Poll
Below is a deck for you busy Apes, and a video where you get to meet the two baboons behind all this madness. So sit back, relax, and maybe pour yourself a cocktail… you’re gonna need it!
Christian (Author): CEO and Co-founder of Boring.
I began working in the restaurant industry at an early age where I quickly climbed the ladder to management roles. I discovered I had a leadership talent and decided I wanted to run my own business instead of managing others. In my early 20s, I focused on security trading where I experienced both successes and a few setbacks, I ultimately decided to diversify my investments, dipping my toes into crypto, and real estate, and starting my businesses which I manage to this day. After taking a deep dive into Web3 and NFT technology, I became fascinated with the idea of merging it with real-world consumer products.
Chris: COO and Co-founder of Boring.
I am a former sales director at a large beverage manufacturer and the current COO of Boring. Prior to that, I spent five years as a rescue swimmer in the Navy, where I learned the discipline to believe that anything is possible. After leaving the Navy, I earned both my undergraduate and master’s degrees, working as a bartender and rugby coach to pay my way through school. I then worked for a liquor company, eventually becoming a sales representative for a large territory in Pennsylvania. More recently, I have been involved in manufacturing national brands and working with celebrities to develop their own beverages. In early 2020, I became interested in the world of cryptocurrency and have been exploring ways to incorporate NFTs into my passion for beverages. My ultimate goal is to build a community of like-minded beverage enthusiasts who can benefit from my experience and knowledge, and perhaps even be inspired to start their own beverage brands.
Currently, NFT communities lack a unified voice to reach individuals who are not native to the space. Beverages have the potential to assist in bridging this gap. The Boring brand will serve as a tool for onboarding, allowing us to introduce and demonstrate Ape culture while also blurring the line between Web 2 and 3. One of our goals is to increase awareness of $APE and the Ape Community by entering the Consumer Packaged Goods (CPG) market. While NFTs are currently popular among those in Web3, beverages can be enjoyed by anyone, regardless of whether they are part of Web3 or Web2, young or old. Even if someone is not familiar with BAYC or the ApeCoin DAO, they can still appreciate a can of Boring and discover our community in the process.
We aim to highlight the remarkable potential of the Ape Community and the DAO. We have a strong conviction that this community stands out for its exceptional strength, innovation, and creativity. We see no better way to do this than by building a consumer packaged goods brand together. We are thrilled to showcase to the world the amazing possibilities that can arise when individuals with a shared vision come together. For us, this is what makes this space so amazing.
One of Borings goals is to be partially owned by the DAO. Currently the DAO cannot receive profits or equity. Below, we’ll explore some workarounds we have in mind. However, please note that if and when the DAO is able to hold equity, the transfer of equity can occur at that time.
Boring has the potential to become the preferred beverage for Web3 enthusiasts, NFT collectors, traders, and other related audiences, much like how G-Fuel targets the gaming industry. We believe that there are opportunities for sponsoring IRL events, establishing influencer ambassador programs, and collaborating with some of the top artists in this field.
The U.S. non-alcoholic beverage market was valued at $225 billion in 2022, with the energy drink segment valued at $23.9B in the same year. It is projected to grow at an annual rate of 8.3% from 2023 to 2030. While it is a challenging market, Boring with the backing from the Ape community has the potential to make waves in it, especially since the majority of energy drinks are consumed by men between 18 and 34, which mirrors the current demographic of NFTs.
Driving Traffic: All cans and packs will include a QR code that encourages customers to discover more about the Ape Ecosystem. These codes can also link to other websites, such as Yuga resources, Opensea, and more.
Product for All: It’s no secret that NFTs have not yet reached the masses. Web2 natives either don’t understand them or view them as a scam. We want to change that by building a product that can blend into the world of Web2 and serve as a gateway to the world of Web3. A beverage is a perfect tool for achieving this. Anyone can crack open a can and enjoy it, and once we win them over with a great product, they’ll want to learn more about the community that built it.
Powered by ApeCoin: This is the slogan that will be used on each of our products, website, and other promotional materials.
Boring strives to be an extension of the ApeCoin community, so Ape ownership is crucial to us. That’s why from the start 10% of our brand will be owned (sort of) by the community. While we understand that the current DAO structure doesn’t allow for receiving profits or ownership in a company, we’ve come up with several possible solutions. Our team is dedicated to ensuring that part of the brand is set aside for the community. (Note: A community wallet will probably be used initially, however when and if the DAO becomes able to accept equity, it may switch to that structure in the future.)
DAO LLC: In some states, such as Wyoming, a DAO can register as an LLC. This approach would enable the DAO LLC to legally hold a percentage of the Boring business. You can learn more about this concept here.
NFT Royalty: We were inspired by the idea after learning about how the producer of Rihanna’s song, “B*tch Better Have My Money,” sold royalties to 300 NFT holders, each receiving 0.0033% of the song’s streaming royalties (read more here). Accordingly, Boring could create an NFT representing 10% ownership of the brand, which would receive royalties, possibly for licensing the ApeCoin logo. The NFT should then be held in a wallet controlled by an ApeCoin DAO.
Community wallet: This is perhaps the simplest solution. Our team would create a wallet that would receive 10% of profits. We will then open a Snapshot and let $APE holders vote on how we should use the funds. For instance, we could use them to build a new DAO-chosen product, offer members a complimentary six-pack, or donate the funds to charity on behalf of the DAO. These are just a few examples. Also we love the idea of a multisignature wallet which perhaps trusted DAO Stewards can hold the keys to.
Exclusive Crypto Payment: ApeCoin will be the exclusive cryptocurrency payment method accepted by Boring. While we will accept traditional payment methods such as credit cards, no other crypto payment options will be available.
$APE Discounts: To encourage the use of ApeCoin, we will offer discounts on all online orders when checking out with $APE. For example, you could receive “15% off your entire order when paying with $APE.”
Loyalty Program: This is currently in the early concept phase. However, we want ApeCoin to play a role in the brand’s loyalty program. We are in talks with a few individuals within the community to work on the integration.
$APE Subscriptions: We are also exploring implementing $APE subscriptions in the near future. The new ERC4337 feature allows a wallet to pay for subscriptions with cryptocurrency; this would allow users to set up monthly deliveries of Boring using $APE.
ApeCoin Exclusives: $APE holders will have access to exclusive flavors and products, all token-gated by ApeCoin.
(above: example of a community artist’s artwork being showcased on the bottom of the pack)
Developed by the Community: One of our objectives is to utilize one of the greatest aspects of this space, community! Holders of $APE will have a voice within the brand, unlike any other beverage brand before us. We will involve the community in critical decisions, as the community as a whole will be one of our partners. By holding $APE, you will have a direct say in important brand decisions, such as new products and flavors, partnerships, and more.
Expansion within: We aim to provide opportunities for community members to get involved in various aspects of the business. We want to hire artists, marketers, web designers, sales teams, and more from within the APE community before ever outsourcing. As an example, artistic members will be invited to design the carton artwork, open a community poll to choose their favorite design and pay the winning artist. For us, this is what makes Web3 so special, and by utilizing ApeTalent we can streamline this process. (Note: some positions such as marketers, sales team, etc will come at a later date when the brand is ready to expand.)
Let’s Learn Together: Boring aims to support growth through community experiences, education, and experimentation. We will be sharing detailed weekly production updates and providing the community with Q&A opportunities with industry experts and successful CPG founders, we want to create a community that not only participates in the whole process but also learns, in detail, what it takes to launch a CPG brand.
(concept not an offical collaberation)
Artist Collaborations: Boring will always remember its digital art roots. We’ll be collaborating with talented artists in the space to release Limited Editions collaboration products, each of which will come with an exclusive free-to-claim digital collectible. Above is an example of a collaboration with the artist Pure Acid.
Collect: Collectibility is at the core of this space. We aim to keep our community engaged and excited by releasing new Limited Edition drops, while also rewarding those who collect each drop. For instance, collecting all 8 LE digital collectibles from this year will grant you access to the super limited “Golden Can” case, which gives you a chance to win a Mutant Ape NFT (this is just an example, not an official announcement).
Sub-Community Collaborations: Collaborations don’t have to be limited to artists. There are many fantastic sub-communities within the APE ecosystem that we would be thrilled to work with in order to release limited editions.
We will be launching an ambassador program, and community members with platforms such as streamers, Twitter Spaces hosts, social media influencers, newsletters, and magazines will be welcome to apply. As an example, readers of The Bored Ape Gazette can use the code “apegazette” to receive a 10% discount on their order. More benefits to come.
There will be many new terms once we dig into manufacturing. But part of what makes this special is the learning experience throughout the whole process. By the end, the community will be beverage experts, maybe.
- Batch Sheet - A document that outlines the procedure for making a commercial batch of a beverage. It starts with a formula and scales it for mass production using the batch sheet that can be universally repeated in any facility. There is no set format for a batch sheet, but it contains specific instructions for adding, mixing, and processing the ingredients of a beverage to fit a certain tank volume. A batch sheet helps ensure that a consistent product is created each time it is produced.
- Case - A package of 24 beverages that can then be divided into 4, 6, 8, or 12 packs.
- CPG - Consumer Packed Goods - a term used in the industry for products that customers use up and replace frequently. Examples of consumer packaged goods include food, beverages, cosmetics, and cleaning products.
- Dieline - The measured artwork and information used for all printable packaging, such as can labels and packaging.
- Formulation - A mixture of ingredients prepared to create a specific flavor profile.
- Formula Commercialization - The process of preparing the formula into batching instructions and creating the nutritional panel.
- MVP - Minimal Viable Product - an early, basic version of a product that meets the minimum requirements for use but can be adapted and improved in the future, especially after customer feedback.
- Recipe Development - The creation of a commercial recipe that can be scaled and replicated anywhere.
- SKU - (pronounced “skew”), short for stock-keeping unit, is used by retailers to identify and track inventory or stock.
- Shrink Sleeves - A shell of a label that goes over the Brite can (aka naked can) and has all of the artwork on it. It gets heated in a steam tunnel and looks like it is printed on the can.
- Taste Development - The process of developing a beverage into a scalable recipe that tastes exactly like the desired flavor profile. Typically, multiple rounds are done to dial in the taste profile.
- **3PL (Third-Party Logistics)**They handle order fulfillment and shipping of products to the end user.
WG0 Discord: By bringing together those who want to participate in one place, we not only share each step with complete transparency but also educate them on what it takes to build a real-world consumer product.
Twitter Spaces: Get updates, ask questions, and listen to special guests from successful CPG founders and industry experts.
QR Codes: The codes will provide links to the ApeCoin DAO and other important links (Yuga sites/Opensea).
E-mail: We understand that not everyone can make spaces, and keeping up with all your discords can be challenging. That’s why we’ll have an email newsletter breaking down what’s happening. Staying in the loop should be easy!
Web store token integration: From exclusive ApeCoin gated products to ApeCoin payment discounts. Shopify token-gated commerce integration, and Coinbase Commerce for Crypto payments.
- Community Poll (2 weeks) - Open poll where members will decide what 3 other flavors Boring produces first. After that, we can start the formulation of each flavor.
- Formulation (8-12 weeks) - The second longest aspect of the project. Relaying the flavor profiles to the food scientist and going through multiple trails until it is the perfect palate pleaser.
- Tasting Samples (3-4 weeks, included in the formulation total time) - Rounds of samples sent to the team and select DAO members. Once all formulation flavors are approved, commercialization will begin. Nutritional information, label claims, and batching instructions will be curated so that any manufacturer can replicate the recipe exactly.
- Commercialization ( 1 day) - Preparing the recipe for reproduction, getting the nutritional facts and testing completed, in some cases registering the product.
- Artwork (4 weeks) - Designs for the cans and the cartons need to be created and fitted on the dielines that will match the size of the container exactly. Having all items line up will require some back and forth and adjustment.
We understand the importance of branding, and that is why we are investing significant time and effort into creating branded materials that align with the Boring brand. The branded materials refer to the custom packaging that will be wholly unique to Boring Beverages. Procurement is another critical aspect of Phase 2. We will work with suppliers to procure all necessary items for the project, including raw materials, packaging, ingredients, cans, lids, trays, and more. Most branded materials are done simultaneously.
- Shrink Sleeve Production (4-6 weeks) - Production begins once the artwork is on dielines and approved.
- Carton (4-6 weeks) - Similar process to shrink sleeves. After the art is approved, production will begin.
- Procurement of Ingredients & other materials (4-6 weeks) - We will start placing orders for raw ingredient materials and work with vendors to get packaging, cans, lids, and trays ordered in time for the projected run date.
- Pre-Production (2 weeks)- All raw materials and ingredients must be present at the facility two weeks before production. Once they have arrived, a production slot and time will be assigned. The formula will be reviewed for any possible issues or difficulties.
- Production Day (1-2 days)- Production will take one to two days. Before production begins, we will taste each of the batches for approval. Once approved production will begin. We will invite a handful of community members to oversee production and taste the first batch!
- Post-Production - WIP (Work in Progress) will come to room temperature, and samples will be sent to Quality Assurance for testing. Loose cans will then be packed into 4, 6, or 8-pack boxes, placed in a 24-pack tray, and shrink-wrapped. The cans will be stacked on pallets and wrapped for transportation.
Finally, the product will be shipped to 3PL for order fulfillment.
Total Fixed: $64,328
$3000: Web Design
$2,800: Shrink Sleeving
$2945: Carton Plate Fee
$1583: Carton Prep Fee
Total Fixed: $64,328
Total Variable Production Costs: $73,273
Tolling (production cost)-$15,686
$137,600 ($68,800 USDC and $68,8000 equivalent in APE at the time)
ApeCoin logo usage for QR code on can labels and packs and Exclusive flavor label
- Post Grant: Our proposal is the request for a one-time grant to establish the brand. We plan to operate like any other start-up company, with the grant providing the necessary support to kickstart the brand.
- Alcohol Extensions: We are capable of producing alcoholic beverages, but we believe that non-alcoholic options are more feasible as a first product due to shipping restrictions and other concerns. However, if the community expresses interest in alcoholic beverages, we will certainly consider producing them in the future.
- Expansion: It’s no secret that beverage brands, like any business, require capital to grow. To become a recognized brand worldwide, we will need to raise funds when the brand is ready. However, we want to keep this brand as APE-owned as possible. Therefore, we will propose all capital raises to the Ape Community before ever considering outside investors. At this point, we hope the legality of for DAOs are more clear and that it can legitimately hold equity. ApeCoin DAO— ApeCoin Holders— Yuga asset holders— Outside investors.
- In-store distribution: Boring will begin selling online direct to consumers. In-store distribution will come later but it does offer a significant opportunity to drive traffic to the ecosystem. Getting into stores isn’t an easy task. Fortunately, our COO Chris has excellent connections in the industry that can make it easier for us to get into stores. Sadly, the beverage space is more about who you know than what you know. Nevertheless, we do have some amazing people we can work with when the time comes.
- Global Brand: We recognize that the Ape ecosystem is a community with global reach. While Boring will first be introduced in the United States, we aim to expand to other countries, starting with Canada. Whether we export or produce smaller batches outside of the US initially, our objective is to establish Boring as a brand with worldwide recognition.