A product and infrastructure system designed to eliminate landfill packaging from the F&B industry.
Business overview
Location | London, United Kingdom |
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Social media | |
Website | www.clubzero.co |
Sectors | Food & Beverage Mixed Digital/Non-Digital B2B |
Company number | 09693923 |
Incorporation date | 1 Aug 2018 |
Investment summary
Business highlights
- 800,000+ orders completed, 1.6M plastic items saved from landfill
- Backed by Seedcamp, Atomico & Angels ex-Tesla & Impossible Foods
- Clients include JustEat, Nestle, Starbucks and McDonalds
- Turnover increased by 537% in 2020 vs 2019*
Idea
Introduction
Award-winning CLUBZERØ founded by Safia Qureshi has built a product line-up and infrastructure system to eliminate landfill-packaging from food and beverage (in-store, takeaway & delivery). With 800,000+ orders to date, we are growing and scaling to a city near you. Accelerate this zero waste winner and own a part of the business, with existing investors including Seedcamp and Atomico and US investors R/GA Ventures and super angels.
Launched in London and Palo Alto, CLUBZERØ is a patent-pending (worldwide) reusable packaging system designed for takeaway food and beverage. CLUBZERØ offers a convenient and cost-efficient alternative to disposable packaging. We are working towards a zero-waste future, reducing waste by a factor of 250 and CO2 by 50% (when compared to disposable packaging, as shown in our 2018, Lifecycle Assessment Report**.)
We are operating in the global reusable food packaging market, which is projected to grow to $29.32bn in 2027. With growing regulatory reforms happening across the EU thanks to the Directive on Single-Use Plastics, there is increasing momentum for cities, brands and retailers to procure comprehensive reusable packaging systems.
*Based on unaudited management accounts
**Find further information from our life cycle assessment report here: https://www.clubzero.co/news/sustainability-report
Substantial Accomplishments to Date
Proven execution in both London and Palo Alto across in-store, takeaway and delivery for clients including Just Eat, Nestle, Camden Council, King’s Cross, Google, catering companies Baxter Storey and CH&Co and Next-Gen Consortium brands (Starbucks, McDonald's and Coca-Cola) and more.
We have excellent KPIs to date, with a 95% return rate on average across both food and beverage reusable product lines.
We recently launched our city cluster in London's Kings Cross in partnership with Argent LLP with Just Eat and First Mile managing distribution of zero waste orders across in-store, takeaway and delivery.
Our patent pending reuse system is designed for multi-city operations, with established packaging standards and operating expertise to enable rapid city expansion, laying out a path to potential growth.
We’ve received prestigious awards and patronage including ‘Winner of New Plastics Economy’ by the Ellen MacArthur Foundation in 2017, ‘Best UX Design’ by Fast Company in 2018 and ‘NextGen Cup Challenge’ by IDEO in 2019.
Monetisation Strategy
CLUBZERØ provides an easy alternative to single-use for hosts (restaurants and cafes) and consumers.
CLUBZERØ works with host restaurants and cafes, brands and retailers as part of a monthly service agreement, with customers signing up to a fixed monthly volume of reusable food or beverage containers.
CLUBZERØ's entire service is provided on a price per use, with pricing starting at 17p per beverage container used and/or 30p per food container used.
Financial summary*:
CLUBZERØ started trading in August 2018 with customers across Business. Our time prior to this was spent on establishing our IP involving world wide patents(across 7 territories), trademarks in the UK and US, and copyrights across our product-lines and infrastructure system.
Our 2019 revenues were made up of sales from key customers including Cushman & Wakefield, John Lewis & Partners, Baxter Storey (contract caterers) for VISA, Next Gen Cup Challenge including Google campus.
In 2020 we were expecting significant growth, building on our 2019 revenue, much of which were long term contracts with Business customers. However, with the pandemic our growth was impacted and our revenues were £171,890.60 and Accounts Receivable £15,830.28.
In 2021 we continued to invest in product and technology. This involved building out our platform, apps for consumers, hosts and operators whilst getting feedback from our customers. We launched the retail and delivery arm in September 2021 with customers including Nestle, Just Eat, King's Cross (Argent), CH&Co (contract caterer for University College London) , Camden Council, Petersham Nurseries, Kaleido, Notes Coffee and Hidden Curry.
*Based on unaudited management accounts
Use of Proceeds
Funds generated from the crowdfund will be used to fund expansion of CLUBZERØ in London, driving key volumes per month and to drive an increase in host locations through partnerships.
This expansion is broken across three key areas of the business:
1. Key Hires:
Senior Product Manager
Business Development Manager
User Growth Manager
2. Product
Improve consumer UX
Further develop open standard for reusable packaging and yellow drop point boxes
3. Growth:
Launch next wave of London urban clusters
Build partnerships with estate owners and brand hosts
Key Information
Advance Subscription Agreement converting in this round
Two investors in this round have participated for a total of £95,547.50 (USD100,000 + GBP10,000) on an Advanced Subscription Agreement in October and November 2021. This ASA will convert in this round at a 20% discount. The shares from this investment have been included in the pre-money valuation.
Outstanding debt
The company has the following outstanding loans:
1. £5,000 director loan outstanding. The loan is not documented, however it is referenced in the Company's accounts and no interest is accruing on the amounts owed.
2. £29,000 Bounce Back Loan at an interest rate of 2.5% per annum.
3. Due to the coronavirus pandemic, has a PAYE arrears payment plan with HMRC and is paying this off in accordance with the payment plan.
The funds raised from this investment round will not be used to repay these loans.
Legal dispute
The company is in the process of responding to the following legal disputes:
1. A challenge to one of its registered trademarks. The company has responded to the claim and contested the challenge. The company is currently waiting for a response from the claimant. The company does not expect the outcome of the dispute to have a material bearing on the business of the company.
2. A challenge from a consultant over a success-based commission in respect of an unsuccessful grant application. The company has received further correspondence from the consultant to which the company is responding to confirm that no amounts are owed or payable to the consultant on the basis that the application did not succeed.
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