Our Investment Opportunities – Project Code Name: “OCTAVE”

Industrial services & products provider - Investment Opportunities

New premium & Lifestyle Tea Brand

Project code name “OCTAVE”

USD 5.5M sales

Asia/Europe

USD 2.5M Fund Raising

 

A unique premium Tea Brand for the new generation (the Millennials) with unmatched quality, authenticity, art & culture, bringing fashion into historical Chinese teas – founded and led by a visionary Entrepreneur based in Hong Kong.

The shareholders & advisors have already injected USD 1.7M (including USD 450K self-funded by the business owner) to build the foundations and enable the brand to take off.

They are now willing to welcome a minority shareholder that will inject USD 2.5M in order to support the brand rapid growth, strengthen its existing business model and finance further growth opportunities already identified: i.e. expand their distribution network and market reach by increasing their marketing and sales capabilities.

Key Investment Considerations:

    I. The company’s existing strengths:

    1. Fast & steady growth = Revenue = 2x / year

    • Revenue 2016= USD 0.7M
    • Revenue 2017= USD 1.3M
    • Revenue 2018E= USD 1.8M to 2M
    • Revenue 2019F= USD 5.5M

    2. Brand positioning targeting the MILLENNIALS: Tea consumption among the Millennials is expected to grow 30-35% over the next five years (4-6% CAGR 2018 – 2023).

    3. A Strong, experienced & committed team, lead by a visionary serial entrepreneur, bond to execute the plan thanks to their 20 years impressive successful track record (3 companies created and sold)

    4. An original marketing to build a full Lifestyle Brand

    5. 6 years of product innovation & hard work with 2 of the world’s most famous and experienced tea blenders to develop a wide portfolio of 24 flavours across 3 series of blend

    6. Efficient Distribution via multiple channels to operate in selective points of sales.: 5* Hotels/Palaces, Concept stores and “Salons de thé”

    7. Truly international company with HQ in Asia and Sales, production & logistic office in Western Europe

    8. Outstanding customer response

 

    II. The company’s main growth drivers:

    1. Solid margins will improve thanks to the future growth and economies of scale

    2. Leverage on the existing brand portfolio

    3. Product innovation & R&D to continue to offer unique tea blends & mixed tea drinks & new tea (such as Super Tea Smoothies)

    4. International expansion: recent opening of new markets such as China, Japan, Korea, Thailand

    5. The market trend: “Tea is the new coffee”: premium tea segment is expected to grow from USD 3.4Bn in 2016 up to 6.5Bn in 2025 globally.

    6. Diversify & expand sales through new channels : Concept stores & franchise

    7. Boost of the digital sales & promotion

    8. Strengthening of the existing team