About Gaucho Group Holdings

Gaucho Group Holdings, Inc. (GGH), through its subsidiaries, invests in, develops, and operates real estate projects in Argentina. GGH operates a hotel, golf and tennis resort, vineyard and producing winery in addition to developing residential lots located near the resort. In 2016, GGH formed a new subsidiary, Gaucho Group, Inc. and in 2018, established an e-commerce platform for the manufacture and sale of high-end fashion and accessories. In February 2022, the company acquired 100% of Gaucho Development S.R.L (GD), through InvestProperty Group, LLC and Algodon Wine Estates S.R.L., which is an Argentine real estate holding company. In addition to GD, the activities in Argentina are conducted through its operating entities: InvestProperty Group, LLC, Algodon Global Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties II S.R.L., and Algodon Wine Estates S.R.L. Algodon distributes its wines in Europe under the name Algodon Wines (Europe). Gaucho - Buenos Aires Gaucho - Buenos Aires is a luxury leather goods and accessories brand, with a strategic focus on growing its e-commerce business, that is the result of more than a decade's investment in Argentina's heart and soul, featuring luxury products that merge the traditional Gaucho style with a modern twist, infused with uniqueness and modern Buenos Aires glamour. With Gaucho - Buenos Aires, GGH adds a high-end leather goods, accessories, and home decor e-commerce sector to its collection of luxury assets. The company's e-commerce platform is able to process and fulfill orders in the United States and internationally. Gaucho - Buenos Aires connects buyers with some of Argentina's best creative talents that harness the country's unique heritage and artisanship of products, such as woven fabrics, leather goods, and precious metal jewelry. Products GGI's Gaucho - Buenos Aires primarily sells what Argentina is well known for: leather goods and accessories, all defining the style, quality, and uniqueness of Argentina. Gaucho - Buenos Aires's fully optimized e-commerce platform (www.GAUCHO.com) offers a commercial line of designer clothing, with an emphasis on leather goods accessories, including leather jackets, branded hoodies, t-shirts, polo shirts, and ponchos. In the first quarter of 2022, Gaucho launched its home and living decor collection, Gaucho Casa, which challenges traditional lifestyle collections with its luxury textiles and home accessories rooted in the singular spirit of the gaucho aesthetic. Using the highest-quality natural materials ethically sourced from countries that are pioneers in the field of eco production, such as New Zealand, Iceland, and of course, Argentina, each piece within the line embodies the rarefied heritage of Buenos Aires and its deep-rooted connection to artisanship. Fragrances: Homme (Men), Femme (Women), Vamos Sport (Unisex) The fragrance collection of Gaucho - Buenos Aires was created by Firmenich, the world's largest privately-owned company in the fragrance and flavor business. It has created many of the world's best-known perfumes that consumers the world over enjoy each day, including Giorgio Armani, Hugo Boss, Ralph Lauren, Kenzo, and Dolce & Gabbana. Gaucho - Buenos Aires has three fragrances ready for packaging, including a men's fragrance Homme, a women's fragrance Femme, and a unisex fragrance Vamos Sport. Gaucho - Buenos Aires Trademarks The company filed a U.S. Trademark Application (Serial No. 87743647) for the Gaucho - Buenos Aires in January 2018, and in February 2019, the U.S. Patent and Trademark Office issued a Notice of Allowance for this mark. This application covers goods and services, such as apparel, leather accessories and other products, jewelry, cosmetic fragrances, and home goods. The company intends to promote Gaucho - Buenos Aires so that its name and logo collectively become a recognizable trademark with international appeal. Within six months of the Notice of Allowance date, or August 12, 2019, the company was required to file a satisfactory Statement of Use if use has occurred, or file for an extension of time. The mark was then in use with some of the goods, but not others. As a result, on August 6, 2019, the company filed to divide the application for the goods that were in use for which a Statement of Use was filed, and filed an Extension Request in the existing application for the remaining goods. As the mark was put into use with other of the remaining goods, the company filed Statements of Use on August 12, 2020 and August 12, 2021. On April 28, 2020, and October 20, 2020, and October 12, 2021, the trademarks were officially registered with the United States Patent and Trademark Office. Argentina Activities GGH, through its wholly-owned subsidiary and holding company, InvestProperty Group (IPG), identifies and develops specific investments in the boutique hotel, hospitality, and luxury property markets and in other lifestyle businesses, such as wine production and distribution, golf, tennis, and real estate development. GGH also operates hotel, hospitality, and related properties and is actively seeking to expand its real estate investment portfolio by acquiring additional properties and businesses in Argentina, or by entering into strategic joint ventures. Using GGH's fine wines as its ambassador, its mission is to develop a group of real estate projects under its ALGODON brand with the goal of developing synergies among its luxury properties. Cobranding and Strategic Alliances GGH has been associated or co-branded with several world-class luxury brands including Relais & Châteaux, Veuve Clicquot Champagne (owned by Louis Vuitton Moët Hennessy), Nespresso, Porsche, Chanel, Hermès, Art Basel, and Andrew Harper Travel. Gaucho Casa Residences As Gaucho - Buenos Aires continues to expand its recognition on a domestic and international basis, another area that the company can potentially create value and scale is by licensing its brand to commercial, and residential real estate developments. Examples of such co-branded developments include: Aston Martin Residences in Miami, Bulgari Resort and Residences Dubai, Fendi Chateau Residences in Bal Harbour, Residences by Armani Casa in Miami, Mercedes House in New York, as well Porsche Design Tower in Sunny Isles Beach. These fashion houses and automobile manufactures license their brand's unique styles and unmistakable names to real estate developers, in an effort to create business opportunity. The mutually beneficial model could be a medium through which Gaucho - Buenos Aires makes its imprint on the global market. By using the company's distinct style - employing fine leathers, metals, and natural stones - in the design and construction of such a project, Gaucho - Buenos Aires could add intrinsic value to the parties involved. Gaucho Casa Gaucho Casa is a home and living decor brand, owned and operated entirely by GGI, which operates as a sub-brand nestled under Gaucho - Buenos Aires. Using high-quality natural materials sourced from countries that are pioneers in the field of eco production, such as New Zealand, Iceland and, of course, Argentina, each piece within the line embodies the rarefied heritage of Buenos Aires and its deep-rooted connection to artisanship. Gaucho - Kids Collection The company envisions the possibility of a designer baby and kids' clothes collection at Gaucho - Buenos Aires, so that parents who love its brand can treat their children to a luxury line of fun, Gaucho-inspired clothing for kids. It envisions building this line around the idea of creating comfy, well-made garments that allow kids to be creative in the way they dress. Popup Shops Popup shops are a popular trend that can be a low cost means of creating a temporary store front focusing on spreading brand awareness, communicating brand values, collecting customer data, and providing personalized experiences. This can also provide a way for Gaucho - Buenos Aires to build a relationship with customers in person, while driving conversion on more cost-effective digital channels. The company envisions popup shops in the U.S. cities, such as Aspen, Austin, Dallas and Houston, Miami, Los Angeles, New York City, Berlin, and Barcelona. With popup shops, the company can work with local PR companies to get the word out, as these opportunities are typically promoted via direct mail, PR and digital marketing efforts, as well as word of mouth and strategic geographic positioning. It also anticipates installing a popup shop during the summer season in Punta Del Este, Uruguay, which is a popular vacation spot for wealthy Argentines and other Latin Americans. The ALGODON Brand GGH has developed the ALGODON brand, which is inspired by both the Cotton Club days of the Roaring 20's and the distinctive style and glamour of the 50's Rat Pack when travel and leisure was synonymous with cultural sophistication. GGH is looking to attract attention and upscale demographic visitors to the ALGODON properties and to round out the brand experience in various other forms, including music, dining, wine, sports, and apparel, by marketing themes that highlight active lifestyles and the pleasures of life. Specific Investment Projects GGH has invested in two ALGODON brand properties located in Argentina. The first property is Algodon Mansion, a Buenos Aires-based luxury boutique hotel that opened in 2010 and is owned by IPG's subsidiary, The Algodon - Recoleta S.R.L. (TAR). The second property, owned by Algodon Wine Estates S.R.L., is a Mendoza-based winery and golf resort called Algodon Wine Estates, consisting of 4,138 acres, which was subdivided for residential development and expanded by acquiring adjoining wine producing properties. Algodon Mansion The company, through TAR, has renovated a hotel in the Recoleta section of Buenos Aires called Algodon Mansion, a six-story mansion (including roof-top facilities and basement) located at 1647 Montevideo Street, a tree-lined street in Recoleta, one of the most desirable neighborhoods in Buenos Aires. The property is approximately 20,000 square feet and is a ten-suite high-end luxury hotel with a lounge/living room area, a patio area featuring a glass ceiling and fireplace, and a private wine tasting room. The property also includes a rooftop that houses an open-air lounge and terrace pool. Each guest room is an ultra-luxury two-to-three room suite, each approximately 510-1,200 square feet. Recoleta is Buenos Aires' embassy and luxury hotel district and has fashionable boutiques, high-end restaurants, cafes, art galleries, and opulent belle epoque architecture. Algodon Wine Estates Algodon Wine Estates S.R.L. (AWE) is 4,138-acre area located in the Cuadro Benegas district of San Rafael, Mendoza, now known as Algodon Wine Estates. The resort property is part of the Mendoza wine region nestled in the foothills of the Andes Mountain range. This property includes a winery (whose vines date back to the mid-1940's), a 9-hole golf course, tennis, restaurant and hotel. The estate is situated on Mendoza's Ruta del Vino (Wine Trail). The 4,138-acre property has an impressive lineage, both in terms of wine production and golf, and features structures on the property that date back to 1921. Algodon Wine Estates features Algodon Villa, a private lodge, that has been fully restored and refurbished to its original farmhouse design of adobe walls and cane roof. The lodge offers three suites, a gallery for private gatherings, a living area that may also serve as a dining and conference room, swimming pool, and adjacent vine-covered picnic area. The Algodon Villa offers five-star service and is situated for vacationing families, business conferences, retreat travelers, golfing companions, or wine route globe trekkers. Algodon Wine Estates has also recently completed the construction of a new lodge which lies adjacent to the original one. Algodon Fine Wines Algodon Wine Estates contains a vineyard with 290 acres of vines. Over 60 acres have been cultivated since the 1940's, and approximately 20 acres. The property produces eight varieties of grapes, including Argentina's signature varietal, Malbec, as well as Bonarda, Cabernet Sauvignon, Merlot, Syrah, Pinot Noir, Chardonnay, and Semillon. In an effort to increase distribution of its wines, Algodon Wine Estates is working with a number of importers operating in some of the world's chief markets for premium wines. In Europe, Algodon Wine Estates warehouses its wines in Amsterdam for central distribution to clients in Germany and in the U.K. through Condor Wines (www.condorwines.co.uk), which works with regional distribution partners throughout the U.K., such as hotel and restaurant chains, regional and national brewers, pub companies, wholesalers, and wine merchants. In the United States, Algodon Fine Wines is available for sale online at Sherry-Lehmann.com (which ships to 39 states), at Sherry-Lehmann's iconic retail store in New York City, at Spec's Wines, Spirits and Finer Foods retail stores in Texas, and Wally's Wine & Spirits retail store located in Los Angeles. GGH's Fine Wine's Malbec has been featured on the esteemed wine lists of West London's The Fat Duck, a Michelin 3-Star Restaurant, and arguably the U.K.'s most famous eatery, as well as London's Restaurant Gordon Ramsay, A Michelin 3-Star Restaurant, also the exclusive London wine club, 67 Pall Mall, and the exclusive wine list of Buenos Aires' fine dining restaurant, Parrilla Don Julio, one of Argentina's most high-profile eateries. AWE uses microvinification (barrel fermentation) for its premium varietals and blends. Microvinification is commonly used in France, but is uncommon in Argentina, and Algodon Wine Estates is one of the few wineries in the country to implement this specialized process. In the third quarter of 2020, Algodon Fine Wines launched e-commerce websites in both the U.S. and Argentina. In September 2020, Algodon Fine Wines announced the launch of an e-commerce initiative servicing patrons in Argentina, at AlgodonWines.com.ar. The e-commerce store sells and ships Algodon wines direct from its San Rafael, Mendoza winery to consumers living in Argentina. This debut is part of an expanded effort to rollout the brand's premium Malbec-based wines, as well as the rest of the Algodon portfolio of award-winning varietals and blends. In September 2020, Algodon Fine Wines also launched an e-commerce initiative servicing the United States, with the backend warehousing and fulfillment provided by the California-based distributer VinPorter Wine Merchants, at AlgodonFineWines.com. The e-commerce store, powered by VinPorter, links to a virtual storefront showcasing the Algodon wines distributed in the U.S. This debut is part of an expanded the U.S. rollout for Premium Malbec-based wines, as well as the rest of the Algodon portfolio of award-winning varietals and blends. In addition to the Algodon Fine Wines site powered by VinPorter, Algodon wines are also available throughout the U.S. both in-store and online at such retailers as Spec's, Sherry-Lehmann, The Noble Grape and Wine-Searcher.com (among others). Algodon's premium wines have received a number of top awards and ratings from the world's foremost tasting competitions, including Gold Medals from the prestigious Global Masters Wine Competition, including master sommeliers. Algodon's Black Label Reserves represent the best selection from Algodon with 100% microvinified blends whose low yield produces full concentration of fruit and flavor. Algodon's complete portfolio of fine wines is available in wine bars, wine shops, restaurants and hotels in Buenos Aires, Mendoza, Germany, Switzerland, Guernsey, the U.K., the Netherlands, and the United States. Algodon Wine Estates - Real Estate Development AWE has acquired a total of 4,138 acres of contiguous real estate surrounding its project in Mendoza, Argentina. This land was purchased with the purpose of developing a vineyard-resort and attracting investment in second or third homes for the well-to-do from around the world. GGH is marketing portions of the property to be developed into luxury residential homes and vineyard estates. The estate's master plan features a luxury golf and vineyard living community, made up of six distinct village sectors, with 610 home sites ranging in size from 0.2 to 2.8 hectares (0.5 to 7 acres) for private sale and development. The development's village sectors have been designed and named in accordance with their characteristic surroundings and landscape: the Wine & Golf Village, the Polo & Equestrian Village, the Sierra Pintada Village, The North Vineyard & Orchard Village, The South Vineyard & Orchard Village, and the Desert Vista Village. The development is located fifteen minutes from both the local airport and city center. In April 2019, GGH announced that it reached an agreement with Compass Real Estate to market and sell home sites at Algodon Wine Estates. Compass Real Estate (www.compass.com) is set to revamp Algodon Wine Estates' marketing and global sales initiatives by utilizing its network of 7,000 agents and over 1,000 employees. GGH is developing lots for sale to third party builders and is not engaged in any construction activity. As of December 31, 2022, fifty-one lots had been sold. The company has closed on the sale of 35 lots. There were approximately 300 lots that remained unsold as of March 31, 2023. Strategy GGH continues to implement its growth and development strategy that includes a luxury boutique hotel, a resort estate, vineyard and winery, the sale of high-end fashion, leather goods and accessories, and a large land development project, including residential houses within the vineyard. The company's strategy is the desire to follow in the footsteps of global leading luxury brands, such as Chanel from Paris, Burberry from London, Tom Ford from New York, and Gucci from Milan, and to establish Gaucho as 'the Spirit of Argentina' representing Buenos Aires. Acquisitions On February 3, 2022, the company, through its subsidiaries, acquired 100% of Gaucho Development S.R.L. As of March 28, 2022, the company acquired the remaining 21% of Gaucho Group, Inc. (GGI). Government Regulation With respect to the company's clothing line, pursuant to the Federal Trade Commission, clothing exported from Argentina to the U.S. must have a label that contains the country of origin and the composition of the item. History The company was founded in 1999. It was incorporated in 1999. The company was formerly known as Algodon Wines & Luxury Development Group, Inc. and changed its name to Algodon Group, Inc. in 2018. Further, it changed its name to Gaucho Group Holdings, Inc. in 2019.