New premium & Lifestyle Tea Brand
Project code name “OCTAVE”
USD 5.5M sales
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:
- Revenue 2016= USD 0.7M
- Revenue 2017= USD 1.3M
- Revenue 2018E= USD 1.8M to 2M
- Revenue 2019F= USD 5.5M
I. The company’s existing strengths:
1. Fast & steady growth = Revenue = 2x / year
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