Coconuts Organic

Idea

Introduction

Coconuts Organic make exceptional non-dairy ice cream.

Taking Cornish ice cream into the 21st Century, we're on a mission to become the UK's best selling luxury non-dairy ice cream, and to take it to the world by expanding our export business.

In June 2019 we launched two new flavours exclusively into Tesco freezers across the country. This was supported by a major rebrand and name change, which has helped us stand out on the shelves and catch the eye of discerning supermarket shoppers.

Coconuts Organic ice cream is made with coconut cream and unrefined coconut sugar. We use only a few other natural ingredients to create our range of seven flavours. It is thick, creamy, delicious and 100% vegan. We've won seven Great Taste Awards, and BBC Dragon Peter Jones declared it the best ice cream he'd eaten that is free-from.

Intended impact

Coconuts Organic was founded in 2014 by Cecily Mills. She had recently switched to a plant-based diet but missed her favourite treat - ice cream. The few options that were available were either full of unnatural ingredients and refined sugars, or were hard, icy and just didn't taste particularly indulgent.

That's because absence of milk and egg in vegan ice cream makes it really hard to replicate the thick, creamy, consistency that we expect when we eat ice cream.

Furthermore, to eradicate iciness and solid-freezing in commercial ice cream without the use of emulsifier blends containing mono-diglycerides (E471) is also really hard. This is why the majority of ice creams, both dairy and non-dairy, contain them. However, these emulsifier blends can contain trans fats.

Coconuts Organic is a range of natural, vegan ice creams made with no refined sugar or mono-diglycerides, with absolutely no compromise on taste or texture.

Substantial accomplishments to date

Supercharging our sales

In June 2019 we launched two new flavours into Tesco stores across the country. Sales this year (April –August 2019) are over 300% up on the same period last year

Brand awareness growing

We estimate our press to have reached over 13million people since June 2019. Our followers have grown by 200% these last twelve months and subscribers by over 400%

International sales

We are available in Dubai and Cyprus. We're working on launching in China by Spring next year and Saudi Arabia before the end of this year.

An exceptional product

We are the only organic ice cream in Tesco. Our vegan ice cream delivers the texture, taste and creaminess of luxury dairy ice cream, using all-natural ingredients and no mono-diglycerides

A secure supply-chain

We faced unforeseen issues with our supply chain earlier this year that forced a delay to the Tesco launch and forced us to make significant changes to our manufacturing. We addressed these challenges thoroughly and now have manufacturing partners.

Approval from the Dragons.

Cecily received two offers of investment in The Den, and our ice cream won universal praise from all five Dragons.

External Recognition

Cecily has been selected a finalist in the South West Food & Drink Entrepreneur of the Year, part of the NatWest Great British Entrepreneur awards.

Monetisation strategy

Our strategy is focussed around growing sales, expanding existing channels and developing new channels

We have three routes-to-market:

1) UK supermarkets

2) International supermarkets

3) UK food service

We are a volume-driven business and operate within growing market sectors. We're currently focussed on delivering:

1) Tesco: From November we will be in 433 stores, including, for the first time, 9 Scottish stores. There will also be a price reduction from £5 to £4.50. We will be having a review meeting at the end of the year to enable Tesco to decide if we will be ranged in stores from next spring - this hinges on hitting our sales targets and we are totally focussed on brand-building activities to support sales growth in store.

2) Growing sales with Ocado

3) Develop food service channels

4) Grow export sales with launch in China and additional listings in Cyprus and the Middle East

Use of proceeds

Proceeds from this raise will be used to accelerate the momentum we have been building since January, divided especially across three areas:

1) Marketing spend. We plan to drive customer acquisition through Tesco and other listings, particularly by investing in in-store price promotions. We will also increase the breadth of our digital geo-marketing activity to capture more ABC1 families within the 28 to 45 age bracket.

2) Working capital. We need to ensure we have stock available to ship within five days. We already factor our invoices from Tesco, we now need to build more stocks to service sales growth, particularly export.

2) Building the team. We will look to add to our current team, initially by hiring an international sales manager.

Our overall objective is to continue to build shareholder value. We are grateful for the faith our shareholders have shown in us so far and we will continue to work really hard to grow the company and deliver long term value for them.