The additives market is rapidly growing with expectations to reach USD 60 billion in 2024 with a size of USD 55 billion in 2017 today, for sweeteners alone. With Fooditive just passed the start-up phase, you have the opportunity to participate in an early stage and fully benefit from market growth and growing consumer awareness for healthy products. These two factors result in an expected growth in turnover from €800K in year 1 to €4900K in year 3. Based on current projections a dividend payout is expected of 2% in 2020 and 12% from the year 2021 onwards.
The offer is carried out through an investment in the holding company Fooditive Sweden AB. The holding company will, after the issue, use the cash to buy 2-10% of shares in Fooditive The Netherlands B.V. The sole purpose of the holding company is to own and manage the shares in Fooditive The Netherlands B.V. and to monitor the owners' rights in relation to existing and any other future direct owners. Shareholders have full voting rights within Fooditive Sweden.
The problem this product solves
While at the same time disregarding a stream of fruits and vegetables waste, the food- and beverage industry uses additives to enhance the quality or characteristics such as sweetness, structure, color and shelf life of their products. Most of these additives are relatively expensive, non-natural, chemical based and can influence the wellbeing of the user. Both on short term (allergic reactions) and long term (development of certain types of cancer). The use of additives is crucial for the industry, and so is the search for healthy alternatives without the negative impact on the human body.
How the product solves it
The Fooditive additives are based on recycled fruit and vegetables, turning waste into useful, high quality resources. The additives are natural and healthy for the user without causing any negative side effects like gaining weight, tooth decade or more serious such as lever disfunction or cancer. At the same time, with "waste" being the main raw material, the cost price of these additives for our customers is lower than the currently available products on the market.
We have four products:
- Sweetener: 60–70% as sweet as sucrose (table sugar), is extracted from a mix of apples and pears. It is noncaloric, doesn’t affect blood sugar levels and doesn’t cause tooth decay.
- Emulsifier: extracted from potato and acts as an agent between two immiscible liquids like oil and water, allowing them to perfectly blend into stable emulsions.
- Thickening agent: extracted from banana skin and comes with a favorable liquidity, without colour, starch and odours. It is unsweetened.
- Preserving agent: extracted from carrots, particularly active against mold, less active against yeasts, not active against bacteria.
Product use cases
The use of additives and sweeteners is an absolute must nowadays for every single product produced by the food and beverages industry. It is either used to give sweet flavors to drinks, frozen items or sweets and or preserving the product for long duration, with the possibility to create the textures and color that is right for the product. Examples of products that can benefit from our additives are: soft drinks, energy drinks, frozen desserts, pre-made salads, canned foods, soups, sausages and dairy products.
Moayad Abushokhedim Founder - Food Scientist
Moayad earned his degree in Food Science at the Les Roches Academy of Culinary Arts in Amman, by the university of Jordan. After his internship in Barcelona, Spain, he moved to The Netherlands in 2015 and started his own first company Blazing Sorbets. Two years later Moayad sold his three ... See more
Moayad earned his degree in Food Science at the Les Roches Academy of Culinary Arts in Amman, by the university of Jordan. After his internship in Barcelona, Spain, he moved to The Netherlands in 2015 and started his own first company Blazing Sorbets. Two years later Moayad sold his three patents by the age of 23. Meanwhile Moayad started his second venture Fooditive with the aim of making a healthier world with sustainable impact. He is an entrepreneur and scientist at the same time, driven by his ideas to change to food industry. See less
Rob Lussenburg Chief Operating Officer
Rob has a background in business economics and started his career in financial and business consultancy. Since 2004 he has been a self-employed project manager and advisor. Rob is both a professional and an entrepreneur, specialized in start-ups. He brings knowledge and experience to make new ideas work and companies ... See more
Rob has a background in business economics and started his career in financial and business consultancy. Since 2004 he has been a self-employed project manager and advisor. Rob is both a professional and an entrepreneur, specialized in start-ups. He brings knowledge and experience to make new ideas work and companies grow. See less
Bert Martens Chief Financial Officer
Bert is the CFO and financial conscience of Fooditive. He has 40 years of experience in finance and internal risk control, helping the Fooditive team to structure all processes in accordance with general accepted standards. Bert’s knowledge and expertise is important especially in this stage of the start-up: proper financing ... See more
Bert is the CFO and financial conscience of Fooditive. He has 40 years of experience in finance and internal risk control, helping the Fooditive team to structure all processes in accordance with general accepted standards. Bert’s knowledge and expertise is important especially in this stage of the start-up: proper financing and business structuring supports solid future growth. See less
Sarah Qabbani Brand Manager
With over 8 years experience in design solutions, Sarah is the creative brain of Fooditive. During these years she collaborated as a professional team member on branding as well as project management. Besides being a part of the Fooditive team, Sarah is now also getting her master’s degree of applied ... See more
With over 8 years experience in design solutions, Sarah is the creative brain of Fooditive. During these years she collaborated as a professional team member on branding as well as project management. Besides being a part of the Fooditive team, Sarah is now also getting her master’s degree of applied sciences in digital design at the University of Amsterdam. See less
René Mons Legal and Operations account
René has a legal background. The last 6 years he has been a lawyer, mostly working in insolvency and criminal law. With his experience René knows what it takes to make new business successful and to protect ideas and intellectual property.
Lex Ouburg Marketing & Sales Manager
Lex is an experienced marketing professional. As an entrepreneur he invented multiple concepts in the hospitality and food- and beverage industry. With his experience and vast relevant network, Lex helps Fooditive to further develop the concept and to market it successfully.
Niklas Rudemo Chairman of the Board
Niklas studied computer science at Uppsala University and is a member and chairman of the board of Fooditive Sweden. He is the CEO and co-founder of Qoorp and has a keen interest in commercialization of research and serves as an advisor to multiple startups. He is also board member of ... See more
Niklas studied computer science at Uppsala University and is a member and chairman of the board of Fooditive Sweden. He is the CEO and co-founder of Qoorp and has a keen interest in commercialization of research and serves as an advisor to multiple startups. He is also board member of several other Swedish companies. At Qoorp, he maintains an expert blog on the legal aspects of running a company and a wiki on company related terms. With his knowledge and expertise, Niklas helps the Fooditive team to make a successful start in Sweden. See less
Allard Droste Investor
Active as an investor in Fooditive. Ten years ago he joined the Aldowa metalworking company in the Spaanse Polder in Rotterdam. Here, the team achieved a major cultural shift from strong hierarchical to collective management. From directive to organic. A change from a general supplier to a project organization for ... See more
Active as an investor in Fooditive. Ten years ago he joined the Aldowa metalworking company in the Spaanse Polder in Rotterdam. Here, the team achieved a major cultural shift from strong hierarchical to collective management. From directive to organic. A change from a general supplier to a project organization for facade construction. Turnover from 2.5 to 16 million euros. From a sickness absence of around 7% to 2%. Allard is also active as a supervisory director, investor, coach and speaker. He is the father of two sons, Maas and Duco, an enthusiastic athlete and lives in Bussum. See less
Albert Schulp Investor
Active as an investor in Fooditive and director of Schulp Fruit Juices | consciously sustainable entrepreneur. He is a entrepreneur and investor, and owner of family business in juices. Albert has a history of working in the food and juice industry. Skilled in management with fruit knowledge due to his ... See more
Active as an investor in Fooditive and director of Schulp Fruit Juices | consciously sustainable entrepreneur. He is a entrepreneur and investor, and owner of family business in juices. Albert has a history of working in the food and juice industry. Skilled in management with fruit knowledge due to his education and the remarkable family history since 1861. See less
The target market is the mainstream food- and beverage industry. Fooditive customers are producers of soft drinks, bakery ingredients, canned food, soups and dairy products. The market size for food additives was over USD 55 billion in 2017 and the industry expects consumption above 385 million tons by 2024. Rapid expansion of technology in the industry pertaining to consumer’s demand for healthy and organic food options will positively affect market growth, with the sweeteners alone the market is projected to over USD 60 billion by 2024.
Our main competitors are large additives and sweeteners producers like ABF, DuPont and Hansen. They offer chemically produced additives and highly concentrated sweeteners, mostly based on Stevia and Xylitol. Current producers all use similar production techniques leading to similar end-products. With the current products in the market being very much alike, with no differentiating product benefits, the current competition is mainly focussing on advantages in the areas of pricing, volumes, logistics and terms & conditions.
Unique differentiator from competitors
The production process of Fooditive additives and sweeteners is completely different compared to our competitors, leading to an end-product with other characteristics. Based on natural ingredients and waste, consumption does not lead to unhealthy side-effects, production is environmentally friendly and up to 50% cheaper to produce. Where Stevia based sweeteners are concentrated by a factor of 200, Fooditive sweeteners are not concentrated, giving the industry the opportunity to substitute the current volume increasing ingredients by the less-costly sweetener. For (future) end-consumers this means the Fooditive sweetener can replace the ordinary table sugar in volumes consumers are used to.
Company revenue streams
The main source of revenue is direct sales of Fooditive to the food- and beverage industry. This stream represents a forecasted 90% of the total revenues. A secondary source of income will be sales of waste of the production process as fertilizer for the agriculture industry. This stream will represent 10% of the total income.
Our company is in start-up phase and no other distribution channels exists than to provide interested parties with samples of our products. We anticipate starting distribution from our own factory directly to our clients without logistical hubs. This is possible due to the limited number of our initial clients; a few large leading names in the industry with centralized production. In future, as we anticipate entering the retail market with our sweetener, the model will include distribution centers supporting last moment delivery concepts used in this market. The chain will be based on ecological footprint first and cost effectiveness second.
- 2011 - 2017 Product development including clinical trails
- May 2017 First use of the "Fooditive sweetener" in consumer product
- May 2018 Start of Fooditive company
- July 2018 FDA, FCA approval received
- July 2018 Business & investment planning completed
- August 2018 Trademark registration completed
- August 2018 First investment of €600K secured
- September 2018 First shipment of sample batches to potential clients
- November 2018 5 Patents granted: 4 for additives, 1 utility patent for production
- November 2018 Press release issued announcing Fooditive launch
- November 2018 First sales meetings completed with offers
Next key objectives
Stages: Start, Launch, Grow. After objectives are met, the next stage starts, ultimately into the stage of continuous improvement and product-development.
Start (ends March 2019): This stage is about preparing business fundamentals and has these remaining objectives:
- Complete legal structures
- Getting contract with clients
Launch: This stage is about getting to the market:
- Run FundedByMe campaign
- First customer delivery (May 2019)
- Launching the product on Dutch market (July 2019)
- Dealing with outsource production company (May 2019)
Grow: This stage is about expanding:
- Open production facility, start production in The Netherlands (December 2019)
- Start production Sweden (December 2019)
During the start of our company, mid 2018, first expenses have been covered by the founders. In the early May private investors committed to additional funding in total of €300K. This transaction will be completely finalized by the time the FundedByMe campaign starts.
The main partnerships:
- With a third-party additive manufacturer. The partnership is based on NDA and licensing agreement in order to provide us with sample batches to deliver to interested parties. This partnership also secures first production in 2019 in the event our own plant is not up-and-running by the time we need to deliver to our clients. For the obvious reasons we will not publicly name this company.
- With University of Wageningen / Start Life, specialized in food sciences to support product development.
- With FundedByMe to collect capital.
- FrisalandCampina for partnership.
Use of funds
Predominantly funds will be used for setting up production facilities in The Netherlands and Sweden, finance costs related to staffing and marketing. In addition to this, to enable future growth, R&D on product development will be started late 2019.
Setting up production facility Sweden: 16%
Setting up production facility The Netherlands: 15%
Marketing & Advertising: 14%
Product development: 8%
Other expenditures, provision unforeseen: 9%
Reimbursement founder: 3%
Cover Operational loss in the first year of business: 16%
The reimbursement for the founder is for expenditures already by him made on: travel, setting up NL production and product development.
Fooditive sweetener has been granted the Green Label by Eurofins.
Fooditive is nominated for the ‘Start-Up of the Year award 2018’ by the Dutch Chamber of Commerce.
Fooditive was also nominated for the Innovation Award of the Dutch Hospitality Association.
Investors will be entitled to dividends based on their individual ownership levels from 2020 onwards. Based on a profit-pay-out-ratio of 20% and financial forecasts, the projected dividend return in 2020 is 2,6% and from 2021 and onwards: 12,1% per year. During the first 4 years 80% of the generated profit is reinvested for growth of the company, thus increasing the value of the shares. By this, investors can have a further return on investments through private sale of individual shares.
The main risk in the food industry is interruption of supply due to uncontrollable factors like adverse weather, infrastructure issues or damage to a supplier location. Loss of even one dependable supplier can lead to a loss of income and can affect the quality and consistency of the delivery clients expect. Fooditive mitigates this risk by having production not fully driven on sales, but also to have minimum stock levels. The whole production process is ensured by having at least one third party manufacturer that can produce license based in the event of interrupted production at the Fooditive site.