# Hervé Financial Model Luxury cannabis-infused edibles brand (French-themed macarons + patented Le Mirage hard-candy dispenser), raising growth capital to expand across North America. - Canonical: https://finamodel.com/startups/herve - Excel download: https://finamodel.com/startup-models/herve.xlsx - Category: Consumer/DTC - Model type: SaaS ARR / Valuation - Geography: Currently Nevada (Las Vegas); expanding to OR, MI, CA, CO + Canada under NDA; initial discussions in 8 additional states; National CBD/hemp market targeted [DECK slides 22, 24]. ## About the company Hervé is a luxury cannabis-edibles brand built around French-inspired macarons and its patented Le Mirage hard-candy dispenser. Launched in February 2020, it seeks premium positioning through product design, packaging, and quality in a regulated consumer category. The company primarily sells through wholesale cannabis dispensaries in Nevada, while planning expansion to Oregon, Michigan, California, Colorado, Canada, and a national CBD or hemp channel. It was raising $3 million of growth capital, so geographic rollout and compliance are material assumptions. The model is a regulated CPG P&L built from retail doors, SKU velocity, wholesale price, COGS, excise taxes, distributor economics, and marketing. State launches, production capacity, retailer sell-through, and repeat purchase determine growth and margin. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - **Hervé Signature Macarons**: French macarons, 10 mg THC each, 3 per box (30 mg/box), 3 flavors (Raspberry, Chocolate, Salted Caramel), 23K gold-brushed, handmade, almond flour, gluten-free. - **Le Mirage dispensing system**: Patented (US Patent App 62/986,166 + Industrial Design Patent) hard-candy edible dispenser styled as a lipstick/lip balm. Holds 5-piece insert, doseable, resealable, refillable, child-resistant, hygienic. Insert flavors are vegan, gluten-free, 2 cal/serving, no added sugar, beet-derived sweetener, room-temp stable. - Both product lines are positioned as the only luxury cannabis edible brand; commanded Forbes, High Times, Business Insider, Marijuana Business Daily coverage organically. - Awards: Jack Herer Global Cannabis Awards US Cup Dec 2020 - Best New Edible of 2020 (Macarons) and Best Hard Candy of 2020 (Le Mirage). ## Market - 15 US states + DC have recreational marijuana laws; 38 states + DC have medical marijuana laws. - No explicit TAM/SAM/SOM dollar figures provided in deck. - Deck references the "luxury edibles" sub-category as "largely untapped" and positions Hervé as first-mover. - CBD/hemp national market cited as an additional addressable channel (online, retail, hotels, vending, pop-up) with no size figure given. ## Revenue model - **Primary channel**: Wholesale to dispensaries (B2B). Retailer applies ~2.5× markup. - **Pricing**: Hervé avg $0.63/mg THC (vs. Premium Chocolates $0.33, Premium Gummies $0.32). Some SKUs command up to $1.07/mg at dispensary shelf. - **SKU count**: 4 Le Mirage SKUs, plus macaron SKUs (3 signature + 2 special edition at time of deck). - **Le Mirage gross margin (wholesale)**: 60% on 2-pack inserts. - **Overall blended gross margin**: 75%. - **Licensing (future)**: Royalty model for Le Mirage technology to third-party licensees; Hervé retains exclusive rights to supply dispensers + insert molds. Not included in 2021 forecasts per deck. - **CBD/Hemp (future)**: DTC online, national retail, hotels, vending, kiosks. - **Collaborations (future)**: Co-branded limited-edition Le Mirage with cannabis brands; distribution through partner channels. ## Traction & metrics - Launched Feb 14, 2020 in Las Vegas, NV. - ~750 boxes sold in week 1 at Planet 13 alone. - Dispensary count: Launch=10 → Pandemic low=3 → End Nov 2020=29 → End 2020=32. - +290% dispensary footprint growth since launch; +970% since pandemic low. - Revenues trending up MoM "despite a 97% drop in tourism to Nevada" - no absolute revenue figures disclosed. - Avg sales per SKU (from chart, slide 17): Hervé ~$2,000/SKU (4 SKUs), Premium Chocolates ~$4,500/SKU (9 SKUs), Premium Gummies ~$1,500/SKU (6 SKUs). - Overall gross margin: 75%. - Le Mirage 2-pack insert gross margin: 60%. - Retailer markup: ~2.5×. - Launch media reach: 43.9M impressions; 673,000 social media views. - By late 2020–early 2021: 77M+ total media impressions; 34M online reads in last 4 months; 60+ celebrity/influencer posts; 18.84% social engagement rate; 400% social media follower growth. - 5 potential partners under NDA across new markets. - 13M unique views on Thrillist (Feb 2021) mentioned. ## Unit economics - Overall gross margin: 75% (blended, all products). - Le Mirage 2-pack inserts: 60% gross margin at wholesale. - Retailer markup: ~2.5× (implying retail price is 2.5× Hervé's wholesale price). - Hervé avg price/mg: $0.63 vs. competitors at $0.32–$0.33 - premium ~2× on $/mg. - Max dispensary shelf price recorded: $1.07/mg. - Automation efficiencies flagged as upcoming cost reduction driver. ## Competition / moat - Competitors referenced: "Premium Gummies" and "Premium Chocolates" (unnamed nationally recognized brands). - Hervé moat: (a) Patented Le Mirage dispensing system (4 patents) - not easily replicable; (b) First-mover in luxury cannabis edibles sub-category; (c) State-ratified equipment, SOPs, packaging and shelf-stability certifications built up in Year 1; (d) Strong press/media flywheel (Forbes, High Times, Business Insider, Marijuana Business Daily); (e) Room-temp-stable inserts - compatible with all current US & Canadian cannabis edible markets. - No direct luxury-cannabis edible competitor named. ## Team & funding ask / use of funds - **Co-founder**: Sébastien Centner (named in executive summary sign-off). - No further team slide or bios present in deck. - **Funding ask**: $3 million growth round. - **Use of funds / horizon**: 24 months of expansion. - Launch in 4–5 new cannabis markets - Expand into national CBD/Hemp market - Develop Le Mirage licensing model - Form brand collaborations - Implement manufacturing automation - Leverage media for brand growth --- ## Recommended financial model - **Archetype + why**: Multi-revenue-stream cannabis CPG P&L with state-by-state market rollout module. Primary model is a wholesale CPG revenue build (SKUs x dispensaries per state x sell-through rate x wholesale ASP) with separate revenue streams for (a) existing Nevada ops, (b) new state launches, (c) national CBD/hemp channel, and (d) licensing royalties. This is an operating company with real (growing) revenues, strong gross margins, and a clearly staged expansion plan - a standard 3-statement operating forecast is appropriate. Not an M&A or SPAC deck. - **Forecast horizon & granularity**: 5-year forecast (mentioned "5-year financial forecast" in deck executive summary). Monthly granularity for Year 1–2 (capital deployment + market launches); annual summaries for Years 3–5. - **Key drivers & assumptions**: - Nevada dispensary count: 32 at end of 2020; growth rate to full market - Wholesale ASP per box/unit: $0.63/mg × 30 mg = ~$18.90/macaron box implied; Le Mirage 2-pack implied from 60% GM and COGS - Gross margin - Macarons: - Gross margin - Le Mirage inserts: 60% - Gross margin - blended: 75% - New market launch timing: - Dispensaries per new market ramp: - Sell-through velocity per dispensary per SKU per month: - CBD/hemp channel revenue: - Licensing revenue: Explicitly excluded from 2021 forecast per deck; - OpEx: COGS (manufacturing labor, ingredients, molds, packaging); S&M (PR/influencer); G&A; automation capex in Year 1–2 - Automation capex: - Fundraise: $3M at close; no valuation / equity terms disclosed - **Scenarios (Base / Bull / Bear - which variables flex)**: - Base: 4–5 new markets in 24 months, CBD/hemp Year 2, licensing Year 3 - Bull: Faster state rollouts (6+ states, MSO partnership accelerates), licensing deal signed in Year 1, automation reduces COGS → GM expands to 80%+ - Bear: 1–2 new markets only in 24 months (regulatory delays, partner issues), CBD/hemp deferred, licensing not signed; Nevada revenue growth constrained by lack of tourism - **Required sheets / outputs**: 1. Assumptions dashboard (all drivers in one place, flagged DECK vs. ASSUMED) 2. Revenue build - by state/channel: Nevada | New States (one tab per state or cohort) | CBD/Hemp | Licensing 3. COGS & gross margin build - by product line (Macarons vs. Le Mirage inserts) 4. OpEx schedule (S&M, G&A, automation capex) 5. P&L (monthly Y1–Y2, annual Y3–Y5) 6. Cash flow & runway (critical - $3M raise, 24-month horizon; must show burn and when breakeven) 7. Balance sheet (simplified; needed to track cash) 8. Scenario toggle (Base / Bull / Bear) 9. KPI summary: dispensary count by state, avg revenue per dispensary, GM%, EBITDA%, cash runway ## Frequently asked questions ### Is the Hervé financial model free? Yes. The Hervé model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.