This product provides you with an excellent investment opportunity. Gluto is expected to be in full swing by 2020 and aims to pay dividends from then on. It has the potential to not only dramatically increase its market valuation but also to attract the attention of bigger players in the industry - a sale to a multi-national food and beverages company could result in a substantial return on investment.
In this share issue we offer B-shares of the company. B-shares have all the same rights as A-shares, excluding voting rights in the Annual General Meeting.
The problem this product solves
A large percentage of the population are either suffering from food allergies and intolerance issues (such as gluten, wheat and cereals, egg, milk) or are otherwise eager to adopt a more healthy lifestyle, with huge interest in food trends. In addition, some religion-based dietary laws, such as Kosher and Halal, place regulations on both the types of foods which can and can’t be consumed and on their preparation.
How the product solves it
Gluto is a unique fresh pasta alternative, without egg, wheat or additives and therefore wholly suitable for all customers regardless of allergies, intolerance issues and fully in accordance with dietary laws – and all without compromising the quality of the product.
Gluto isn’t just a pasta for special dietary needs or distinctive food requirements. It’s so much more than that. It is a tasty, fun and new alternative for all pasta lovers. Gluto fresh pasta has all the characteristics of traditional pasta without any of its traditional drawbacks.
Gluto’s current product selection consists of eight (8) different types of fresh pasta and four (4) ready meals. Gluto is is being developed with trending consumer segments in mind but it is also an interesting option for the ready meal industry as it would be attractive to provide Gluto’s unique pasta innovation in its white-label products.
Product use cases
Pasta for everyone – unlimited potential. Gluto’s fresh pasta provides a true ‘culinary pasta’ experience for everybody, every day and in every way - regardless of special diets and allergies. It’s free of intolerance issues and at the same time is both fully kosher and halal. Gluto is ready to provide fresh Pasta culture to everybody in the world.
Marco Lembo Founder and CEO
Founder and CEO of Glutzero Finland Oy. Marco has 30 years’ experience in HoReCa. Previous founder and owner of one of the first organic, ready- meals factory in Finland and HoReCa staffing agency. Marco is the main owner of Glutzero.
Maurizio Pelosi Pasta Master, R&D Director, Owner
Founder and Pasta Master (R&D Director) of Glutzero Finland Oy. Maurizio has 10 years’ experience in the development and production of fresh pasta. Maurizio is the second largest owner in the company.
Tuomas Hirvonen Chairman of the Board, Owner
Tuomas has 15+ years’ experience of stock market and private equity investments and financial consulting. Tuomas has holdings and board positions in several Finnish and Swedish SME companies.
Tuomas Meriluoto Member of the Board, Owner
Founder and CEO of one of the leading Finnish wine importing company Winestate Oy. Tuomas has extensive experience of consumer markets, sales and marketing, branding, importing and other activities to run SME businesses in praxis
Åsa Alanko Member of the Board, Owner
Main owner and CEO of food manufacturing company Domretor Oy. Åsa has a background on running her own business in food industry. Åsa has a deep understanding of food manufacturing, logistics, consumer markets, and sales.
Global health and wellness food sales is expected to hit a record high of US$1 trillion by the end of 2017.
European and Middle Eastern markets are logistically the easiest to serve with an identified strong demand for Gluto’s products. An attractive country selection is made including early adapters in the special diet and health food segments.
The Far East countries have the highest global growth figures for the health food segment. The large ready meal market is also an attractive market entry opportunity. On a large scale, this requires local production by Gluto or its partners.
There are no similar fresh pasta products available on the market. Although there are producers of gluten-free pasta, none of them has managed to combine both vegan and gluten-free qualities in one single product. The market is completely lacking a Gluto-type product. As pasta is one of the most well-known food types in the world, it is far easier for Gluto products to enter markets in all continents.
Unique differentiator from competitors
Competition is faced by substitute products in the gluten free, vegan and organic food categories. However, the success of other healthy or diet products actually supports the overall trend and it’s favorable for Gluto’s sales and growth prospects whenever the overall awareness of such products increases.
Gluto Pasta is well-branded high quality fresh pasta with pricing equal to high quality artisan fresh pasta products. Product pricing is placed at the highest fresh pasta price point due to its high quality and unique product attributes.
Company revenue streams
In most cases, Gluto pasta is sold to local distributors and importers - who then sell it on to large groceries retailers and HoReCa customers. In Finland, Gluto has some direct customers.
The licensing of both manufacturing know-how and the products to our partners, is a huge opportunity based on its high earnings potential and the low investment requirement of Gluto.
Partnering with selected supermarket chains/grocery operators with their own white-label products is the more likely sales path, although this requires higher up-front investment (marketing, sales, delivery channel).
Both the main distribution channels importers and selected distributors have been identified and selected e.g. in Israel, UK, South Korea, Australia, Italy, France, and Sweden. These local partners have better know-how and knowledge of their markets, of the relevant regulations and of the needs and requirements of large grocery operators and HoReCa customers. This likely means a lower sales margin for Gluto but offers faster market entry and significantly lower initial investment by Gluto with the right partners.
2014: Product innovation: Product development in Italy in cooperation with leading pasta industry experts
2015: Extensive testing with product and production line, tested with various consumers, enlargement of portfolio
2016: Go to market efforts around the world and access to Finnish major retailers channels, product portfolio enlargement, new packaging design
2017: Opening markets with leading distributors. Expanding portfolio with ready meals. Production co-location with subcontractor Domretor Oy.
Glutzero has been accepted onto a Tekes (The Finnish Funding Agency for Technology and Innovation) program for recently established innovative Companies as the sole representative of the food industry.
Next key objectives
With intensive sales activities, product testing with customers and product portfolio expansion in 2017, Gluto has negotiated several frame agreements for 2018 with major customers in several countries (please see our attached business plan for further details). Gluto's key objectives are strongly related to these main customers by securing their full satisfaction. By the year 2020 we are targeting for a 4-6 country success stories with a turnover €50+ million. This will be achieved with the help of distributors, importers and/or joint ventures in all main markets.
The company has already raised capital and other financing totaling €1.6 million.
Use of funds
Number of recruitments to support growth
• Sales and marketing organization – experienced Sales Director and new Key Account Managers to take care of distributors, importers and customers
• Administration to enable growth with transparent operations (e.g. full-time CFO)
Marketing/sales investments to reach target distributors in selected markets
• Samples, initial discounts, marketing support, agents fees
• Active participation in trade fairs
Capacity expansion for growth
• Production capacity investments in Finland/UK to enable 2018 sales and peak demand fulfillment
Increased need for working capital due to sales growth
• Financing inventory and production costs prior to receiving customer payments
After the most intensive growth phase projected to be after 2020, the company fully intends to pay steady dividends to its shareholders.
Glutzero will be an attractive acquisition target, which might well provide a realisation opportunity through a sale to a larger player in the pasta/food industry or to a private equity investor interested in the “free-from” food segment.
Quality control is key in food production. We follow a strict HACCP program rigorously to avoid any contamination or other quality issues.
Accurate deliveries are a key component of keeping our large customers satisfied. We will need to carefully build up our production chain in order to meet the demands of the business.
New competitors or competitive products are entering on the market. We are constantly researching new products to stay ahead of our competitors.
Weakening of health food trend: we strongly believe that Vegan and Gluten free are not passing trends but will only get stronger over time.
Privanet Group is a Finnish investment service group specialized in trading unlisted shares and managing companies’ financing needs. Our group includes the parent Company Privanet Group Plc, the fully owned subsidiary company Privanet Capital Markets Ltd, which focuses on capital market transactions, and its subsidiary Privanet Securities Ltd, which operates Finland’s only marketplace for trading securities of unlisted companies. Privanet is working closely with FundedByMe, the international crowdfunding platform. The entire Privanet group employs approximately 40 people. We have branches located in Helsinki, Tampere, Turku, Oulu, Jyväskylä, Vaasa, Forssa, Joensuu, Lahti, Mikkeli, Ylivieska and Kuopio. We provide a large variety of services aimed at bringing together investors and those in need of funding. http://www.privanetgroup.fi/?lang=en