Starco Brands, Inc.

What they do

Starco Brands licenses products from The Starco Group, Inc. (TSG), a related-party manufacturer, and acquires brands with established products. It acts as marketer of record for several brands, including Winona Pure popcorn and sauce sprays and Whipshots vodka-infused whipped cream. Manufacturing is largely carried out by TSG and other related parties, including Temperance Distilling for Whipshots. The company sells through brick-and-mortar retailers such as Walmart, H-E-B, Meijer and Food Lion, as well as online via Amazon and its own websites.

Revenue drivers

• Soylent — A ready-to-drink meal replacement brand acquired in 2022; recent results cite strategic reductions in e-commerce marketing spend and a large retailer merging the category set as drivers of lower revenue.
• Whipshots — Vodka-infused whipped-cream aerosols launched in December 2021 and distributed in 47 states; recent quarterly declines were attributed to prior-year inventory stocking orders.
• Winona Pure — Popcorn and sauce spray line for which STCB is marketer of record under a licensing agreement; sold in Walmart, H-E-B, Meijer and Food Lion, with growth cited in Q3 2024 results.
• Art of Sport — A behavior-changing brand acquired as part of the company's 2022-2023 acquisition strategy; cited alongside Winona as a partial offset to revenue declines in Q3 2024.

Recent performance

Q3 2024 net revenue was $15.5 million, down from $17.7 million in Q3 2023, due to reduced e-commerce marketing for Soylent, a retailer category reset, and lower Whipshots sales against prior-year stocking orders. Gross margin was 41.2%, a sequential improvement, though gross profit fell to $6.4 million from $7.7 million. The company reported a Q3 2024 net loss of $6.3 million, largely from an $8.2 million non-cash fair value share adjustment, while Adjusted EBITDA was positive and roughly flat year over year. For the first nine months of 2024, revenue was $46.5 million versus $46.3 million a year earlier. Full-year results show net losses of $17.7 million in 2024 and $20.9 million in 2025.

Strategy

The company's stated strategy is to grow its portfolio through acquisitions of established brands and to leverage its related-party manufacturing relationships. It has built a shared services platform and identified approximately $3 million in cost optimization opportunities through headcount efficiencies, streamlined marketing spend and logistics refinement. Management has said it is focusing on targeted distribution expansion and a new product pipeline, while reducing unprofitable marketing spend. The company continues to rely on TSG for manufacturing and on related parties for certain administrative activities.

Risks

• Related-party dependence — The company relies on related parties for some revenues, manufacturing and administrative activities, including TSG, and Whipshots is produced by Temperance Distilling where CEO Ross Sklar is a majority shareholder.
• Key-person concentration — The company is highly dependent on CEO Ross Sklar, who does not devote full time to STCB and also serves as CEO of TSG and Chairman of Temperance.
• Voting control — As of April 10, 2026, Mr. Sklar beneficially controls voting power over up to 221,483,611 Class A shares, representing 28.2% of total voting power, giving him significant influence over stockholder matters.
• Net losses and cash use — The company reported net losses of $46.2 million in 2023, $17.7 million in 2024 and $20.9 million in 2025, and operating cash flow turned negative at negative $900,770 in 2025.

Outlook

Management stated in late 2024 that it expected to leverage its shared services platform and market learnings to pursue distribution expansion and new product launches in fiscal year 2025. The company cited a robust new product pipeline and targeted distribution expansion as drivers of anticipated growth. No updated guidance was provided in the source excerpts. Subsequent 8-K filings in 2025 and 2026 report material agreements, financial obligations, officer changes and an acquisition or disposition, but the excerpts do not describe their terms or financial impact.