The 'free-from' ice cream revolution - Elementree.eu, the umbrella brand for OkoBay, PopFruits and Rawito, three healthy frozen snacks. All of them dairy-free, gluten-free, GMO-free, without refined sugar and vegan certified.
3. The Concept
Elementree is a portfolio company representing complimentary healthy, plant-based frozen snacks & desserts brands positioned to offer
retailers a solution to the rapidly growing ‘better for you’ and ‘free-from’ foods category.
Elementree has recently acquired the intellectual property rights, customer database and existing distribution infrastructures across Europe
through its acquisition of OkoBay Ventures Limited (OkoBay) and Frozen Fruits Sweden (Pop Fruits).
Both brands offer healthy alternatives to existing products available to consumers with a strict brand ethos and attributes that promise always
being free from dairy, gluten, refined sugars, GMO and soy.
OkoBay and Pop Fruits have been on the European market for 3 years and have grown from independent retail into major retail. Going forward,
Elementree will manage these brands and support their continued growth by engaging a wider sales agent network across Europe that will
offer retailers (independent and major chains), hotels, theme parks, fitness centres, health spas etc a portfolio and ‘branded freezer solution’
that will carry the growing OkoBay and Pop Fruits product range and in turn create a focal ‘point of sale’ in stores that will clearly identify the
values of the products it represents.
Over the next 18 months Elementree plans to acquire another two brands that have an existing distribution infrastructure that can be used to
grow the OkoBay and Pop Fruit estate in new markets while at the same time extending its portfolio with a complimentary range of products
serving a wider demographic of consumer across Europe.
Growth will be supported by strategic partnerships with major manufacturer and distributor Boermarke Desserts NL and distributor VitaSeege
in Finland that will manage production and distribution for all of Europe while Elementree focuses on new product development, sales and
marketing.
The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose
of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.
4. Market Insights
Research from New Nutrition Business, analysed 151 businesses founded between 2002 and 2013 in the UK, US and Australia, exploring what
makes a ‘healthier’ food start-up fail or succeed. The main finding was that snack and beverage start-ups are most resilient;
snacks enjoyed the highest success rate of 64%, and,
if a ‘free-from’ message was added, this figure rose to 88%.
Market research estimated that sales of products with a gluten-free label have doubled in the past four years.
Rising from €11.5 billion to more than €23 billion world wide!
Beyond organic, sales of free-from and fortified food and beverages are also buoyant; the category was worth €12.4bn in 2015
according to Euromonitor International.
5. Our Markets
1/3of ALL people arelactose intolerant
£Million
637
365
100
2009 2014 2019
275
450
625
800
551
465
ACTUAL FORECAST
Optimistic
Realistic
Pessimistic
Value sales and Forecast of the EU Free From market 2009-2019
Poland
78%
Sweden
75%
Italy
69%
Spain
68%
Germany
63%
France
63%
Nielsen 2016
Gluten & Wheat Free
€533m in 2016
+ 23% on 2015
Dairy & Lactose Free
€385m in 2016
+ 20.3% on 2015
Below shown % of customers interested
in NON-Dairy Ice Cream 2015.
Almond and Coconut based
6. Free-From Ice Cream
Nielsen 2016
Market Overview: Ice Cream EU Top Flavours in Dairy Free Ice Cream - Global Launches
New product Launches by by region,
% Launches
Top 5 Claim Categories, % Launches
New product Launches by Sub Category,
% Launches
7. Growth Predictions
Forecast Growth
Regional Comparison
Global Figure
Food Intolerance the Second Fastest Growing Food Category Globally
2014-19 CAGR
6%
Main Markets
% of Global Forecast
US 36%
Australia 19%
France 9%
Italy 9%
Norway 5%
Russia 3%
Germany 3%
Netherlands 2%
UK 2%
Finland 2%
6,6 - 15%
4,8 - 6,3%
2,8 - 4,3%
0,0 - 2,7%
Not Illustrated
Retail Value RSP, EUR million, Constant 2014, Fixed 2014, Ex. Rates, 2014-19 CAGR
Asia
Australiasia
Eastern Europe
Latin America
Middle East & Africa
North America
Western Europe
Food Intolerance is the second fastest growing food category globally
11. The Elementree Branded Freezer solution
NB. Freezer design will vary depending on country/culture (concept design)
All products contained will meet the
following criteria.
13. Manufacturing, Sales&Distribution
Boermarke is the leading, innovative (“private label”)
manufacturer for fresh and frozen dairy, fruit and dessert
products in the Netherlands.
BoermarkeownshightechproductionfacilitiesandIFScertified,
operating to the highest standards in the industry with a focus
on an extensive dessert selection for the foodservice, retail
market and other business to business markets (including co-
packing).
Boermarke is also a key supplier for in-flight catering services
and other major catering companies.
TheCompanyhandlessalesanddistributionforitsownproducts
across The Netherlands, Belgium, Germany, UK, Poland and
with its alliance with Elementree will now enter the rest of
Europe in a coordinated effort to optimise distribution.
Vita Seege is a leading distributor in the Nordics that represents
brands such as Alpro and Rivella focusing on bringing healthier
food and drink options to the Nordic territories. Vita Seege will
grow the Elementree proposition throughout Northern Europe
in a sales and distribution capacity while also managing many
of the operational requirements such as ordering, invoicing
and logistical management of goods.
Both companies have a vested interest in Elementree.
w
Boermarke Desserts
Staalsteden 17
7547 TA Enschede
T +31 (0)53 4324802
F +31 (0)53 4328009
E info@boermarke.eu
Vitaseege Oy Ab
Petikontie 20w
FI-01720 Vantaa
Finland Tel. +358 9 8254 100
Fax. +358 9 870 1616
info@vitaseege.fi
Boermarke Factory in Enschede, NL
15. An sustainable Company
The sustainable element to Elementree includes an alliance with WeForest.org, an organisation based in Belgium that supports
reforestation projects around the world. Elementree will be running several campaigns throughout the year that will enable part
of the profits from product sales to be invested into specific reforestation projects in locations where Elementree sources its raw
ingredients from. Each project will be traceable allowing consumers of the Elementree products to track the efforts made by
the company by issuing codes displayed on packaging linked to a website that will demonstrate how over time this campaign
will help restore biodiversity in ravaged lands and increase fair trade employment in places that are in need of support.
“2017 will see all Elementree brands using 100% recyclable packaging”
16. Elementree Board
Chris Ouwinga
Chris Ouwinga is Chairman of UNIT4 NV. Chris co-founded UNIT4 in
1980 and was initially responsible for various functional areas of the
company, including the product and technical side of the business
with his appointment as Assistant Director in 1983. In 1986, he was
appointed CEO and, under his leadership, UNIT4 has grown into
one of Europe’s leading suppliers of business software and services.
In October 2014 Unit 4 was sold to Advent International for USD $1.6
Billion.
Chris was previously the Co-Founder of Instinctive Film GmbH – a film
production company jointly owned with Darryn Welch, responsible
for the production of over 20 feature film titles, now in hibernation.
ChrisisaFoundingPartner,investorandboardmemberofElementree
Limited
Henrik Persson
Henrik holds a MBA from Gothenburg School of economics and prior
to that also studied in the USA and the UK. He is a serial entrepreneur
andhasfoundedseveralsuccessfulonlineventuressuchasBestpoker.
com, Bestbingo.com, Bestbet.com, and Sachenunddinge.com &
Parktradeeurope.com. He has also acted as CEO of Betsafe.com
and the Betsson Group.
His expertise and experience is in building strong organizations,
managing teams and their strategy and creating long-term
profitability. He has also listed companies both in London and
Frankfurt and sold & bought companies in 50 million euro + deals.
Henrik is a Founding partner of Optimizer Invest, a prolific tech
incubator & accelerator and also an Investor Director and board
member of Elementree.
Florian Bachelin
Florian is a Berlin-based entertainment attorney and co-founder of
Sasse & Partner: a leading law firm in Germany also responsible for
the trademark acquisitions under Elementree.
He is also the co-founder of Premium Exhibitions and Station Berlin –
both highly successful fashion and music event platforms hosting key
events such as Fashion Week and Bio Berlin. Florian was previously a
shareholder in Instinctive Film GmbH with Chris Ouwinga and Darryn
Welch and sits on the board of Elementree.
17. Elementree Management
Darryn Welch (Founder & CEO) – 15 years in finance, production
and marketing for cinema and television; made the crossover into
FMCG in 2009 with the idea to develop a coconut water ice lolly.
Darryn has 12 years experience in investor relation management,
fund management and has been an active consultant for a range
of projects being developed from start to end across several
industries. He developed Elementree to combat the logistical
challenges involved in new product positioning and listings in the
current marketplace and to fill the gap in retail for the fast growing
healthier plant-based food category.
Staff on contract
Eva Vritilkova - Operations
Jordi Fernandez - National account manager
Salvador Galiano - Digital media manager
Performance based Sales Team and Agents
Henrik Christensen - Denmark/Germany
Óskar Sigþórsson - Iceland
Israel Scotta - Spain & Balearics
Catherine Massabki - Central Europe
Accountants and Administration
A & L Chartered Accountants (www.altax.co.uk) have been
providing business advice, tax advice and accountancy services
since 2003. They work closely with their clients and apart from
the more general accountancy services they assist with business
development and specialist tax services.
Ordering/Invoicing/Logistics (Currently)
Windfall Logistics (www.windfall-logistics.co.uk) was born from a
partnership of A & L Chartered Accountants and Windfall Drinks
Limited. Windfall Logistics was established in 2003 with one main goal
in mind – to support the development of new and aspiring brands in
the UK market, providing an effective and efficient back office and
commercial management resource for new and existing brands.
This facility for all of Europe will be migrated to Boermarke Desserts in
The Netherlands who will take over production, logistics, distribution
and invoicing on behalf of Elementree while VitaSeege provides
the same for the Nordics.
Marketing and Design
Salience Creative
Legal
Rick Smyth, The Wilkes Partnership, UK.
18. Elementree Advisors
Advisors to the CEO:
Carl Gerlach
Carl Gerlach has spent the past two decades in the Consumer
PackagedGoodsindustry. Hehasmanagedmorethan25consumer
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.
Carl graduated with a Bachelor of Science in General Management
from Purdue University and a Masters of Business Administration in
Marketing and Strategy from the Stephen M. Ross School of Business
at the University of Michigan. He and his wife Kathy have two
daughters, Rachel and Nicole.
Vinay Kapoor
Senior Executive with 25 years of Work experience in General
Management,ConsumerandRetailMarketing,Sales,NewProducts,
Business Development, Strategy and M&A. Having successfully
worked across Asia, Europe, Pacific, North Africa and the Mid-
East he has strong experience and a proven track record in both
Emerging markets and Developed markets at senior leadership and
managerial positions.
Vinay launched the JV between Coca Cola and Illy coffee; Ilko as
its CEO and the company reached $100m in retail sales.
AsanentrepreneurhehassuccessfullyestablishedandbuiltaGlobal
start-up venture and acts as a NED and board advisor for brands:
Little Miracles, Bubbleology Tea, Gustare Honey and Sambazon Inc
20. Elementree Group P&L
Revenue to Elementree is three tier:
1.20%-25%ofinvoicedsalesachievedacrossEuropethroughsalesoftheOkoBay
product range. The agreement with Boermarke Desserts (Manufacturing/Sales/
Distribution) means that they cover all production costs, storage, logistics,
distribution and invoicing.
Elementree handles sales & marketing only and remains brand owner. This
eliminates need to fund production and therefore also eliminates the risk having
stock locked up in storage until it’s sold.
2. 40-60% margin on all Pop Fruits sales across Europe. Elementree will fund
production needs as it takes place in Vietnam at a different facility.
Margin is therefore higher as Elementree will produce and own stock in the first
year of operation. This is the only cost of goods in the financial planning, and
itemised in the below table as: Cost of Invoiced Sales.
3. New product development (NPD) this is a reduced margins taking into
account the inclusion of an existing brand such as Rawito (www.rawito.cz) that
will produce once Elementree secure orders. Margin will be between 12-25%
only here, but withlittle to no investment exposure from Elementree.
• Storage and Distribution is for stock that Elementree may have on consign-
ment for sampling campaigns and direct sales.
• Account Support is the additional investment Elementree may make in order
to support Boermarke or VitaSeege with in-store promotions and listing fees to
be taken from the Elementree marketing budget.
Numbers are NET (of Value Added Tax)
P&L Summary
YEAR 1 YEAR 2 YEAR 3
Sales Revenue
Sales £755,709 £1,542,677 £2,904,758
Licensing Royalties
Total Sales Revenue £755,709 £1,542,677 £2,904,758
Cost of Sales
Cost of Invoiced Sales £244,361 £486,064 £897,647
Gross Profit £511,348 £1,056,613 £2,007,111
Gross Profit % 68% 68% 69%
Storage and Distribution £7,331 £14,582 £26,929
Account Support £22,671 £46,280 £87,143
Gross Contribution £481,346 £995,751 £1,893,039
GC% 64% 65% 65%
Opex
Staff £170,400 £226,800 £279,200
Office Costs £33,650 £42,250 £47,400
Sales and Marketing £148,031 £259,048 £398,514
New Product Development £29,500 £35,500 £44,500
IT £6,000 £7,000 £10,000
Legal and Accounting £45,127 £66,415 £98,361
Total Opex £432,708 £637,013 £877,975
EBITDA £48,638 £358,738 £1,015,065
EBITDA % 6.44% 23.25% 34.94%
£275,000
£550,000
£825,000
£1,100,000
EBITDA
EBITDA
21. Elementree 2016-2017 Timeline
November - December 2016:
Securing and closing funding round: 300,000 euros via Crowdfunding
on FundedbyMe
• Send out Product vouchers and dry ice home delivery packages
for all investors in FundedbyMe campaign.
• Sales and Distribution meetings with major retailers
• Closing Export deals with Slovakia, Iceland and Austria
• Establishing preliminary freezer distribution plan for Sweden
and Spain
• Explore airline catering product line via existing sources
January - March 2017
• Secure additional funds of up to 300,000 euros via Private
& Strategic Investors
• Board meetings to review strategy and targets
• Production of OkoBay, Pop Fruit and Rawito products for
distribution
• Establish sales strategy for independents
• Preparing strategic roll-out of sampling campaigns with
specific retailers
• Agree in-store Promotion calendar
• Build marketing materials and social media plan across all Brands
April - September 2017
• Board review
• Core sales period for Elementree
• Roll-out marketing and social media campaigns
• Roll-out sampling campaigns
• Roll-out 100+ Elementree freezers
• Managing customers and compliance in stores
• Exhibit at trade events, source new customers and explore
potential brand collaborations and acquisitions
• Roll-out internship program to review freezer positioning and QC
via photo upload to management
October - December 2017
• End of year sales performance reporting
• Board meetings to review strategy
• Review with retailers re sales and negotiations for continued listings
and growth
• Staff and product review
• Exhibition attendance
• New retailer meetings for 2018
22. Elementree Funding Summary
First Round
Elementree is issuing 10% of its company shares at a pre-money
valuation of 3Mil Euro, equivalent to 455,619 new shares.
Second Round
Elementree will issue a further 10% of its company shares at the same
pre-money valuation to strategic investors that can add value to the
Elementree business.
FundedbyMe campaign can be overfunded at same continued share
price and rate as listed offering dated: 07.11.2016
Exit Strategy
Elementree management believes its most viable exit option
for investors in the Company will be one of three options that the
company in year 3 of operations the Management will begin
strategically planning for: 1. via a trade sale to a multinational in the
FMCG business 2. via acquisition by a Private Equity firm. 3. an IPO on
the Swedish or an alternative Nordic stock exchange and this process
would be managed by the Optimizer Invest management who have
prior success in this field.
Specifically companies such as Unilever with ice cream mega-brands;
Walls, Ben & Jerry’s, Heartbrand and Nestle; with ice cream brands
Häagen-Dazs, Dreyers, Movenpick, Skinny Cow etc. are the most likely
buyers for a business like Elementree.
The reason that an umbrella brand like Elementree might eventually
be on the radar for potential acquisition by a bigger company has a lot
to do with the ability that they have to innovate, produce and deliver
to market based on market trends with a much faster turnaround that
the large multinationals are able to. A smaller operation with a smaller
team can make decisions faster and adapt faster. Traditionally these
kind of multinationals mostly focus on existing brand extensions and
entering new territories with existing products. They often have specific
departments that monitor the newer and smaller brands entering the
market to evaluate just how quickly traction can be built as a result of
the market trends that these brands are able to quickly gauge.
In the frozen desserts/ice cream and snacks industry, high growth
brands have been acquired at multiples ranging from 3- 5 times
turnover. Elementree plans to own at least 5 differentiated brands
by Year 3 which will further increase the valuation of the umbrella
company.m
Elementree would be exploring possible exits in Year 3-4.
• detailed company financials including forecast P&L and budgets
can be provided to investors upon request
• current shareholding table can be requested by investors once
they have formally committed to an investment on FundedbyMe of
directly with the management of Elementree.
23. Contact
Darryn Welch
Founder
dw@okobay.com
+34 695 311 866
Okobay Ventures Limited (ElemenTree)
Windfall House
D1 The Courtyard, Alban Park
St Albans, Herts AL4 0LA
United Kingdom
www.okobay.com
Rick Smyth - The Wilkes Partnership LLP.
(www.wilkes.co.uk)
Main areas of expertise:
Corporate finance, business acquisitions
and disposals, MBO’s MBI’s, prviate equity, LLPs,
corporate reconstructions, joint ventures.
Email: rsmyth@wilkes.co.uk
Phone: +44 121 710 5932
Fax: +44 121 233 4546
www.elementree.eu