in the last month, Elementree has already secured a permanent listing with Dansk Supermarket Group while also securing exclusive distribution rights for two more successful independent vegan Swedish ice cream brands.
Target 300k. Other strategic investors in play to match fund when round closes.
Elementree forecasts 5X return on investments in this round based on a conservative €15million exit valuation at year 3 by way of a trade sale and €25million in 5 years.
An IPO may yield higher exit.
Share bonuses for investments of 5,000 euro +, see docs.
Investors to receive free Elementree products at closing of campaign.
The problem this product solves
In todays market there is a lot of product innovation, but shelf space remains limited. Buyers in retail prefer to work with suppliers that offer a wider selection of choice in a specific category as opposed to a supplier with just one brand and a few products. The problem is that individual brands find it difficult to compete against the massive conglomerates with unlimited budgets.
In addition, consumers are looking for identifiable signs for products that are clearly defined for their functionality or "free-from" attributes, such as being dairy-free, sugar-free, gluten-free, low-calorie, etc.
How the product solves it
Elementree offers a central and unifying platform for 'better for you' brands! By unifying several brands, it will be able to provide a portfolio solution with a varied range of healthy, allergen-free snacks catering to a wider demographic. Where the retailer has the space, Elementree will have a branded freezer to hold its range, while the look and feel of this 'point of sale' will clearly stand out in stores as the 'healthy, natural choice' freezer enabling consumers to clearly identify the products and their positive attributes. Increased visibility will equate to increased sales and sustained listings with retailers.
Elementree will combine multiple plant-based snacks brands under one portfolio, sharing the following attributes: No dairy, no refined sugars, no gluten, no soy, no GMO's.
- OkoBay desserts are low calorie coconut water & coconut milk-based desserts winning awards in taste and innovation at major fairs.
- Pop Fruits are 100% ripe tropical fruit on a stick offering a perfectly healthy snack for everyday with a high sales margins.
- Rawito are 100% organic using superfoods as their base (think dairy free, sugar free Magnum equivalent).
All of our products are designed to offer healthy alternatives without compromising on taste.
Product use cases
Our Products are currently sold in major retailers in the UK, Spain, Sweden, Denmark & Germany.
We anticipate growth in 2017 to increase the distribution estates within each country and then, for 2017-2018, enter all of the Nordics, France, Poland and Central Europe.
Customer outside of traditional retail will include gas stations, fitness centres, theme parks, hotel chains, airline catering and beach clubs.
Elementree is developing a range of smaller Pop Fruit single to sell affordably into schools across Europe to offer healthier snack and desserts for kids.
100ml single Coconut Milk tubs are being developed for impulse and catering.
Darryn Welch Founder & CEO
Darryn Welch - is British and lives in Marbella after having spent 6 years in Berlin running a successful film company: Instinctive Film with over 18 feature films under its belt. An Entrepreneur at heart he has been involved in several start-ups across varying industries including a gourmet mozzarella company, ... See more
Darryn Welch - is British and lives in Marbella after having spent 6 years in Berlin running a successful film company: Instinctive Film with over 18 feature films under its belt. An Entrepreneur at heart he has been involved in several start-ups across varying industries including a gourmet mozzarella company, a fitness training meal-prep business, recently helped structure the packaging of a new fragrance branded by the singer Michael Buble that launched worldwide in August 2016 (www.fragrancedynamics.com). He is also the founder of OkoBay Ventures (www.okobay.com) - a healthy coconut based desserts company that produces frozen treats distributed throughout major retailers across Europe and has created the Elementree concept to become a portfolio solution for retailers with the plan of establishing a point of sale within retailers to improve visibility for the brands and products it represents and retain listings with a greater success rate. See less
Eva Vrtilkova Operations Manager
Eva Vrtilkova, 26 years old Czech made and Marbella (Spain) based. With bachelors degree in tax consultancy and master in corporate finance and trade, including academic year and a half spent in universities abroad. Experienced as event manager, as intern in management departments for major corporations and is now the ... See more
Eva Vrtilkova, 26 years old Czech made and Marbella (Spain) based. With bachelors degree in tax consultancy and master in corporate finance and trade, including academic year and a half spent in universities abroad. Experienced as event manager, as intern in management departments for major corporations and is now the central nervous system at OkoBay/Elementree handling logistics & operations. Eva is a healthy lifestyle maniac - addicted morning runner, bicycle kind of transport user only. Sugar free, gluten free and dairy free every day. See less
Carl Gerlach Advisor
Carl Gerlach has spent the past two decades in the Consumer Packaged Goods industry. He has managed more than 25 consumer brands and is focused on developing strategies to grow brands in the highly competitive market. In his career he has built brands for Kraft Foods, Allstate Insurance Company, Sara ... See more
Carl Gerlach has spent the past two decades in the Consumer Packaged Goods industry. He has managed more than 25 consumer brands and is focused on developing strategies to grow brands in the highly competitive market. In his career he has built brands for Kraft Foods, Allstate Insurance Company, Sara Lee, Unilever and most recently Ruby’s Naturals. Carl’s expertise is driving Growth by positioning consumer brands for maximum competitive differentiation, focusing on insightful understanding of the core consumer. For the past year, Carl has been the Chief Executive Officer of Ruby’s Naturals, a natural food company based in New York. Since that time he has doubled Revenue, improved profitability and developed several new product lines. He is presently on their Board of Directors and is actively consulting with a number of natural food start-up brands. He and his wife Kathy have two daughters, Rachel and Nicole. See less
Jordi Fernandez National Account Manager
Bachelors in Economics from Salford University. Been in sales and marketing for major and start up FMCG companies across Spain and the Canaries. Manages Sales team for Spain and negotiates with distributors and retailers in Spain for listings and manages promotions. Football fanatic but his first love is his family ... See more
Bachelors in Economics from Salford University. Been in sales and marketing for major and start up FMCG companies across Spain and the Canaries. Manages Sales team for Spain and negotiates with distributors and retailers in Spain for listings and manages promotions. Football fanatic but his first love is his family and feeding them OkoBay and Pop Fruits to keep them healthy and happy!:) Speaks English, French, Italian and Spanish of course! See less
Robin Seege Sales & Distribution partner - Nordics
Robin is a very enthusiastic entrepreneur with great passion for good food. His mission is to bring better food to the Nordics. Robin is the co-owner and managing director for Vitaseege with current focus on building the business across the Nordic countries. He has 8+ years experience within FMCG and ... See more
Robin is a very enthusiastic entrepreneur with great passion for good food. His mission is to bring better food to the Nordics. Robin is the co-owner and managing director for Vitaseege with current focus on building the business across the Nordic countries. He has 8+ years experience within FMCG and Nordic retail. He previously worked within management consulting and has also been involved in a number of start-ups. See less
Historical sales for OkoBay&PopFruits have demonstrated that our demographic is female led on a 60/40 ratio to male consumers. Targeting young families and young adults - health and fitness driven as well as the masses looking for healthier alternatives.
Market focus in:
- Year 1: existing markets where OkoBay and Pop Fruits are already available: Sweden, Denmark, Spain, Germany and UK with export opportunities continuing to develop in Austria, Estonia and Slovakia.
- Year 2: expansion in same markets with customers that offer scalability including Norway and France.
- Year 3: expansion across all of Europe and beyond.
There are several brands on the European market offering dairy alternative ice cream options, many of them focused on one or two territories. Elementree is unifying these brands under one portfolio to increase the coverage of products in the market. If there is a competing brand, it simply wont have as compelling an infrastructure as Elementree will offer with multiple brands and a wider product selection.
Unilever and Nestle dominate the frozen market, however they have little to no healthy, dairy free options, so here Elementree is clearly differentiated.
Unique differentiator from competitors
Elementree's key point of difference is that it is not positioned to compete with what would have been a direct competitor, but instead unify them in this frozen space, offering consumers a wider range of complimentary products that all have a point of difference.
The portfolio with the added freezer solution for stores means that we can employ the Unilever tactic, without the asset risk of buying freezers that we aren't monetising. If a freezer doesn't hit its target rate of sale in a store, it will be relocated to another store or returned to the leasing company.
Company revenue streams
Revenue will come from orders made by the retailers, invoiced directly by Elementree.
Licensing agreements are in place with key partners including manufacturing and distribution partner, Boermarke, who produce, sell and distribute range, paying Elementree a flat fee of 20%-25% of invoiced sales without needing any of Elementree's resources.
- Third party agencies will represent Elementree outside the core markets in exchange for a sales commission.
- Private label of Elementree products being developed for major retailers, this will improve economies of scale in production.
- Licensing brand to foreign distributors on flat fee, min order and royalty basis.
Target distribution will be major retailers that offer scalability. These include groups like Coop, Seven Eleven, Ica, Carrefour, El Corte Ingles, Eroski, Dansk Supermarket (Bilka, Fotex), Sainsbury's, Tesco's, Veganz, Edeka, REWE etc.
-Second tier will be working with wholesalers&distributors that have a wide network of independent retailers that offer direct distribution.
-Third tier includes hotel chains, theme parks, fitness centres and racket sports clubs, kids play centres and university campuses.
-Fourth tier will be pop-up stores and eventual direct owned and Elementree franchise retail outlets offering the 'vegan' snacks and desserts experience. a Franchise model store is being developed.
2013: OkoBay launched and secured listings with WholeFoods Market, Holland & Barrett, Tesco's and Sainsbury's in the UK.
2014: OkoBay won the Innovation & Taste Awards for its products in The Grocer & The Natural and Organics Fair outcompeting Haagen Dazs and Mars.
2015: Pop Fruits secured exclusive listings with SevenEleven in Sweden.
2016: Pop Fruits was acquired by OkoBay and secured a listing with Coop in Sweden. VitaSeege became the distributor for the Nordics and OkoBay secured permanent listing with Dansk Supermarket Group in Denmark. Boermarke signed licensing agreement to represent portfolio in Europe.
Next key objectives
-Effectively grow distribution within each existing customer to its optimum.
-Secure full SevenEleven and Coop estates in Sweden.
-Secure year-round Elementree freezer positioning in major retail and hotel chains.
-Acquire another 3 brands with existing distribution in new territories to grow portfolio and offer greater choice to consumers.
-In 2018 to launch ambient range that can sit on a shelf attached to the Elementree freezer for increased annual sales.
-Secure export to UAE and USA via licensing agreements with third parties.
-Hit 3.5 mil euro in revenue in Y3.
-To become a global icon in healthy & sustainable foods.
OkoBay Ventures Limited received circa 1 mil euro between 2012 - 2015 for product development, production, sales and marketing.
Frozen Fruits Sweden AB (Pop Fruits) received corporate loans from SEB and Almi bank for circa 100,000 euros from 2013 - 2016 for the same.
Elementree is acquiring all existing assets, IP, customer bases and is seeking new funding to manage the existing estate an continue to grow under its new portfolio solution.
Funding is sourced in two stages: Round 1 via the crowd, Round 2 to match the crowdfunding, specifically targeting strategic investors and partners that can add value.
-Sales agreement in place with Boermarke to sell our products across Europe.
-Alliance with fitness group TwentyFourSeven Fitness will enable exclusive positioning of Elementree freezers in a focused, non-competitive space with access to thousands of potential consumers.
-Negotiating private label arrangement in Germany with existing dairy free brand that may give the Pop Fruits range access to 6,000 stores.
-In talks with Gate Group to provide inflight vegan desserts for major airlines.
-In talks with major hotel group to be its exclusive vegan snacks supplier.
-In talks with major FMCG.co in North America with potential JV to become global brand.
Use of funds
25% of funds will be used to expand portfolio with new product development.
25% of funds for expanding the branded freezer infrastructure across the Nordics.
15% of funds for regular in-store promotions and focused product sampling to bring awareness to products once listings are secured.
10% of funds for growing the sales team across Europe, mostly on performance-only basis.
25% of funds used for regular social media marketing activities to grow the community of fans and create engagement campaigns.
The OkoBay Ice was a world-first in the frozen category and maintains that position in the UK.
OkoBay broke all sales records during trial at Netto Denmark in 2016.
Elementree products are Vegan and Vegetarian certified and products have won several taste and product innovation awards consumer led programs and major industry events.
All three co-packers producing for Elementree are fully certified to enable worldwide export.
Advisors are seasoned industry professionals with ample experience in FMCG and impressive track records.
Board has IPO'd two of its companies in the last 12 months and will strategically guide Elementree towards possible exit.
Per the Sales Forecast and P&L available to investors, Elementree anticipates being profitable by the end of its second year of trading; September/October 2018. The shareholders may elect to take a return on investment then or continue to rollover profits into growth of Elementree so that the company can explore exit opportunities in its third year of trading by way of a trade sale or IPO in the Nordics.
The company anticipates a minimum yield of 5 x ROI for investors in this round.
However if the board elects to pursue an IPO, this ROI could be substantially increased.
Similar risks faced by many new brands is not having sufficient funding in place to sustain listings by sponsoring regular product promotions and sufficiently marketing the brands contained under the Elementree banner to bring awareness of our products to consumers.
Risks exist like one of the major industry players bringing out similar products and dominating the shelf space.
With the Elementree concept however, the normal risk that a product might experience on the market is now spread across several brands, thereby increasing the potential success rate by offering more than just one brand to retailers and consumers.