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BUSINESS PLAN
Nèer
WHAT.
CHALLENGE.
"Project"Nèer, a promise to deliver raw & chemical free fruit based non alcoholic beverages
Sourcing & high pricing of coconut water. Big players launching similar products
Our first product, raw tender coconut water without preservatives, chemicals and no added sugar, is sourced from superior nuts from Kerala, India. PRODUCT.
Production & Sourcing is ready from Palghat,Kerala,India ( white labelling )
STATUS.
Expected break even in 18 months as we are an asset light company with $200k total cost for first year.COST.
MARKETS.
India, U.A.E, U.K & Ireland are the first year launch markets.
Nèer Return to innocence
SOURCING.
INNOVATION.
"Product"Manufacturing facility at Kinfra park,Palakkad,Kerala,India & nuts sourced from the area.
No chemical preservatives. Sourced from superior tasty nuts.
Revival of coconut farming/farmers in India and putting India in the coconut value added food map.SOCIAL RELEVANCE .
Technology support by Defence Food Research Organisation of India & Coconut Board of India.
TECHNICAL FEASIBILITY.
SHELF LIFE.
9 months - 12 months is the expected shelf life
₹90 for domestic market & $3.2 for export for 300 ml.
PRICING.
RAW TENDER COCONUT WATER WITHOUT PRESERVATIVES
NOT FINAL DESIGN.
ANDRINE MENDEZ.
KIRAN KUMAR/LIFETREE AGRO.
"Team"An entrepreneur who has exited his previous startup after selling it to a French company comes with marketing & strategic expertise of taking a Kochi based digital agency into National heights.
An engineering graduate who got passionate about the idea of setting up bottled coconut water product, who has worked over 5 years to perfect the product technology & quality
MANUFACTURING.OPERATIONAL.
MARKETING.SALES.BUSINESS.
US.
UK.
"Market"Already a developed market where we will need to fight for rack space,U.S. coconut water market growth rate exceeded the global growth rate in 2015, with growth of 27 percent and $778 million in revenue
A developing market , the focus here will be to educate people about the product,the UK market is estimated to become a £100 million retail category by the end of the year.
The category does not exist however has immense potential to develop.
INDIA.
$1 BILLION MARKET GROWING AT 28%
In Europe, even without heavy marketing or celebrity backing, coconut water is big business. According to a 2012 report by New Nutrition Business, a U.K-based research and analysis firm for the global nutrition industry, the number of coconut water beverage launches in Europe quintupled from 2009 to 2011, ballooning from seven to 36 brands. Retail sales grew 100 percent in 2011 and the current value of the European market is estimated to be worth $65 million. (The report values the U.S. coconut water market in 2011 as ranging between $110 and $200 million.) EUROPE.
Business Model
"Target segment"HEALTH CONSCIOUS.
Very health conscious Upper Class and Upper-Middle class, Age 40+
SPORTS/ENERGY DRINK.
Active men/women - sports/gym goers , who like to rapidly hydrate after a strenuous workouts.Contains 3 times more potassium, 10 times more sodium and 4 times more chloride than a regular sport drink
HEALTHCARE.
Patients with Diabetes or some other mal-functions who need the nutrientsUsed to regulate Blood Pressure, Blood Sugar and Cholesterol levels and Ph levels
HOSPITALITY.
ALCOHOL MIXER.
Welcome drink / In flight drink & on table drink at restaurants
Better mixer than aerated drinks any day & also can create a range of cocktails.
RETAIL CHAINS.
CONVENIENCE STORES.
Presence in Retail stores is going to be an important component and will lead the sales volumes.
Small retail chains with wider spread & numbers.
On table drink or welcome drink. A good way to increase billing than placing mineral water bottles on table.RESTAURANTS & HOTELS.
Ecommerce should help us create loyal customers with repeat purchases.
ECOMMERCE.
GYMS/SPAS/SPORTS.
Placement in gyms & sports outlets are also important for us to acquire new customers.
An important placement is to replace aerated drinks in hospitals and also do clinical tests.
HOSPITALS.
"Sales & Distribution "
OTHERS
Vending machine / B2B / In flight / welcome drinks / Bars / Subscription model
DIGITAL.
EVENTS.
"Marketing"Having to launch in multiple markets, digital is the default media vehicle we will be using to communicate with our target audience.
Experiential marketing , sampling & engaging with active/sports/health conscious audience means we have to be on ground along with the product.
A good sampling & new customer acquisition vehicle, having table tops and product placed instead of a bottled water in a fine dining restaurant will ensure customers try the product.RESTAURANTS.
RETAIL.
OOH.
Creating a brand tone & educating our TG about our product will also require a bit of outdoor
Point of sale communication is an important part to ensure conversions. Using light lid posters in retail outlets is the way along with shelve branding.
Competitors
VITA COCO.
O.N.E BY PEPSI.
"Peers"Last year, the brand sold almost $270 million dollars worth of coconut water— 300 times as much as in 2004, and more than double than in 2011.
PepsiCo owned O.N.E. is the third largest coconut water brand in the US, which has grown over 1,100% since its introduction to the Whole Foods market by Brazilian entrepreneur Rodrigo Velso in 2006.
Zico, founded by Mark Rompolla in 2004, is the second largest US brand. Now owned by Coca-Cola, the company doubled its sales last year to become a $87 million dollar business.
ZICO BY COKE.
Other vendors in the market include Amy & Brian Naturals, Bai, Blue Monkey Waters, Bush Farm Trading, C-Coconut Water, C20 Pure Coconut Water, CHI Coconut Water, Coco Libre, CocoJal, Ducoco, Edward & Sons, FOCO, GNC, Green Coco, H2COCO, Harmless Harvest, INVO Coconut Water, ITI Tropicals, Frolic Foods, Jax Coco, Naked Juice, Nudie, Organic Avenue, Pulse Beverage, Pure Brazilian Coconut Water, Purity Organic, Raw C, Taste Nirvana, Temple Lifestyle, Thai Agri Foods, Whole Foods, Zola, and Coco Zumi.
OTHERS.
AFF
OR
DA
BLE
EX
PE
NS
IVE
HIGH QUALITY
LOW QUALITY
Taste Nirvana - $ 2.25
Zico - $ 2
365 - $ 3.3
Vita coco - $ 3.54
Amy&Brian - $ 2.3
Goya - $ 1.15
harmless harvest - $ 5.49
harvest bay - $ 5.5
Liquitera - $ 8.5
Invo Juicepress - $ 13
Nèer- $ 3.2
PROJECTED COST.
EST. FIRST YEAR REVENUE.
"Finance"Since manufacturing is already taken care of, our spends will be in marketing and distribution and our estimated expenditure is $520k.
We are hoping to touch $500k in sales after retail incentives.
We are looking to raise $200k as seed fund to expand reach as equity/royalty loans.
FUND REQUIRED.
Marketing ( 40% ) , HR ( 15% ) , Procurement ( 30% ) & Others ( 15% )
UTILISATION.
EXIT OPTIONS.
Loyalty from sale of every product , series A funding , loans with guaranteed interests payouts
CASH FLOW.
We are hoping to have quarterly increase of 50% across sales channels in the first year.
REPRESENTATIVE NUMBERS ONLY. REQUEST FOR BUSINESS PLAN FOR DETAILS.
FLAVOURS.
COLD PRESSURED.
"Scalability"The next logical step is to add the product line is to add more flavoured products to tender coconut water
Our current packaging process is low heat pasteurisation but for us to reach our full potential we need to invest in new technologies
We want to extend our product line up beyond coconuts.
BEYOND COCONUT.
COCONUT PRODUCTS.
MANUFACTURING.
We hope to invest in our existing manufacturer infra to add more products & better packaging tech.
There are other product lines like coconut milk, oil etc to look into.
SUPPLY.
"Numbers"Nearly 90 percentage of the global production of coconuts comes from Indonesia, which produces 18 metric tons; The Philippines, producing 15.9 million metric tons; India, contributing 10.6 million metric tons; Brazil, which produces 2.9 million metric tons; and Sri Lanka, which contributes 2 million metric tons of coconut.
India produces more coconuts than Thailand . Yet 4 out of the 7 best coconut water drinks in US are from Thailand
WHY INDIA?
New York-based All Market LLC, doing business as Vita Coco, leads the market and offers three lines of coconut beverages: Vita Coco pure coconut water, Vita Coco Café Latte and Vita Coco Kids. According to Chicago-based Information Resources Inc. (IRI), All Market was the top-grossing vendor among aseptic juices with $186.5 million in sales, a 17.5 percent increase in dollar sales for the 52 weeks ending Dec. 27, 2015, in U.S. supermarkets, drug stores, mass merchandisers, gas and convenience stores, military commissaries, and select club and dollar retail chains.For aseptic juice drinks, the Vita Coco brand amassed $7.1 million in dollar sales, an increase of just under 8 percent; however, Vita Coco Kids experienced a 35.3 percent drop in dollar sales generating approximately $2.3 million in sales for the 52 weeks ending Dec. 27, 2015, according to IRI data.
N.Y-based PepsiCo’s O.N.E brand also experienced varying results. Its aseptic juice drinks experienced a 29.3 percent decline, generating approximately $7.3 million in dollar sales for the 52 weeks ending Dec. 27, 2015, while O.N.E. aseptic juices experienced a decrease of less than 1 percent, amassing sales of nearly $25.1 million, according to IRI data.
Also within aseptic juices, Zico, a brand of Atlanta-based The Coca-Cola Co., experienced a 13.3 percent increase in dollar sales, garnering nearly $19.2 million in sales for the 52 weeks ending Dec. 27, 2015, according to IRI data. Additionally, Zico aseptic juice drinks generated approximately $3.5 million in sales, an increase of 8.2 percent, for the same timeframe.
PEER NUMBERS.
"The Plan"
We are here
Brand design
Restaurants sales
channel open
Launch : new bottle design
& retail launch
Test marketing & distribution
network creation UAE shipment
is ready
Online sales in
India in all leading portals
Europe shipment
ready
Marketing campaign
launch
July AugustMay
KARIKKUWATER
PROJECT
DRINKNEER.COMIn Kerala, tender coconut water or " Karikku vellam" as its called is available in plenty and has a superior taste compared to its peers in Tamil Nadu or Karnataka because of the soil texture and climatic conditions in the state.
