30Sec Milk presentation, May 2017
Summary
Disruptive technology that allows dairy farms to liberate from processing dairies. Coupled with milking robots, Direct Dairy machines pasteurize, chill and pack milk from specific animals in seconds upon milking.
Technology
Direct Dairy™ technology pasteurizes, chills, and packs milk in seconds upon milking of a specific animal. Our fully-automatic units will be compatible with milking robots to serve herds of 50-100 cows. Direct Dairy™ technology is eco-friendly: it consumes several times less energy and water per one liter of packaged milk compared to value chains that involve big dairies. Direct Dairy Holding BV will unchain farms from processing dairies and let them sell their branded milk directly to consumers and/or retailers.
Consumer product
Direct Dairy Holding BV will build and hold “straight-off-the-udder” position for 30Sec Milk™ and make it a unique differentiating property. 30Sec Milk™ will be sold in branded one-liter stand-up pouches, with time of milking and ID number of the cow and farm printed on each package. One consumer brand (30Sec Milk™) for different farms, regions and counties.
Business concept for Europe
Farms with milking robots will install Direct Dairy™ machines within technology and brand name licenses. Income will come from (a) sale of licenses per se, (b) royalties on each cow and each pack of milk produced, and (c) commission for milk supply syndication to retail chains. Licensees will market their 30Sec Milk™ on their own or authorize Direct Dairy Holding BV to assist them in distribution of their milk (especially into retail chains). Direct Dairy Holding BV will develop 30Sec Milk™ brand globally and provide farmers with disposables (packages, etc.) and technical support.
“Straight-off-the-udder” and “Know your cow” appeals to consumers are very emotional and thus 30Sec Milk™ brand has a big potential to grab consumer attention and loyalty.
Investment plans and projected business results in three years
Investment plans
The company plans to attract up to 2M euro in 2017-2018 in the form of convertible loans and direct equity investments to reach its goals for 2017-2019.
Projections
The company plans to install its robot-compatible Direct Dairy™ machines at 134 dairy Dutch and UK farms by end of 2018 with this number to grow to 590 European and U.S. farms in 2019. Total business sales are expected to grow from €15M in 2018 to €90M in 2019 while the cash flow will grow from minus €630K in 2017 to €900K in 2018 and €24M in 2019 (before taxes).
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Milk with personality 05 16-2017 eng
1. Personal Touch of Milk
ANDREY KUTEYNIKOV
Founder and CEO, Direct Dairy Holding BV
May 2017
2. Milk problems & Direct Dairy™ solutions
Farmers
Depend on dairies.
Sell raw milk in bulk
at cost to dairies.
Consumer-ready premium milk
with strong brand support and
healthy margins right at farm.
ak@30secmilk.com +7 925 158 0238
www.30secmilk.com 2
Retailers
Many milk brands
with indifferent taste
Generate profits on premium
milk from local farms
Consumers
Milk is a loss item
Straight-off-the-udder local milk.
Unique taste in each package.
4. How we do it?
Compact all-in-one solution for dairy farms
Pasteurizes, chills and packs milk from
specific animals in seconds upon milking
Compatible with milking robots
Fully automatic: works 24/7
Result: non-mixed straight-off-the-udder
consumer-ready milk right at farm
ak@30secmilk.com +7 925 158 0238
www.30secmilk.com 4
5. Why will consumers pay a premium?
Because it is positively different!
Non-mixed = unique taste/flavor in each package
Natural = straight-off-the-udder
Local = comes from local farms
Fresh = available to consumers within minutes
upon milking
Transparency of origin = traceable to specific
milking session of specific animal, full info about
each farm and each cow available to consumers
ak@30secmilk.com +7 925 158 0238
www.30secmilk.com 5
6. Business model
Sell licenses with leased hardware
Get royalty on each cow and each pack of
milk produced (€0,14 per 1L combined)
Extra earnings on supply syndication for
retail chains from different farms
Umbrella brand of locally produced milk
for different farms and markets
ak@30secmilk.com +7 925 158 0238
www.30secmilk.com 6
12. Investment rounds
250K for engineering of first MVPs and
their certification in Europe (in progress)
€400-500K for market test in Europe
€ 1,3-1,5M for business launch to break-
even in Europe
ak@30secmilk.com +7 925 158 0238
www.30secmilk.com 12
13. LIBERTY TO FARMERS
NATURAL TASTE TO CONSUMERS
Andrey Kuteynikov, Founder & CEO
Direct Dairy Holding BV
ak@30secmilk.com; +7 925 158 0238 13
Editor's Notes
Numbers for Consumer price (semi-skimmed milk) and purchase price by processors quoted from “Dutch Dairy in Figures 2014” annual report p. 10
Based on assumed 450 tons of annual milk production at average farm with a milking robot. 120-130 dairy farms will supply 10% of Dutch drinking milk market.
A2 milk has no allergic effects to humans with traditional (A1) cow milk intolerance. “Organic” relates to milk produced at certified organic farms.