Creative Nature

Idea

Introduction

Living with allergies is hard enough, without having to read ingredients lists with a magnifying glass.

The Creative Nature team has made it simple, by creating a range of organic baking mixes that cater for the Top 14 Allergens, as well as being refined sugar free and having a vegan recipe on pack.

We've also produced a unique range of snack bars that are allergy-friendly. Our products have won 11 Great Taste Gold stars since 2014.

100% self-funded, the brand is now stocked in over 3,500 stores across the UK, online through Ocado & Amazon and in 11 countries worldwide.

44% of British adults now suffer from at least 1 allergy and the amount of vegan consumers in the UK has risen by a staggering 548% since 2016 to reach 3.5 million.

Our current 2018 run-rate is £1.2 million* with exciting new product and store launches still to come.
*Calculated using unaudited management accounts from Q2 2018.

Intended impact

Owner, Julianne (IoD's Young Director of the Year) created the products out of frustration at the lack of allergy-friendly, tasty snacks that weren't full of additives. We feel most new snack bar companies all start out because of a "lack of healthy options in the market", but Julianne struggled to eat what was available without fear of dying!.

It's no exaggeration, anaphylaxis is the "severe and sometimes fatal allergic reaction to a foreign substance". In the 20 years prior to 2012, there was a 615% increase in the rate of hospital admissions for anaphylaxis in the UK.

With most food brands only focusing on 1 or 2 allergens, Creative Nature have spotted a gap in the market to be free from the top 14 allergens. More than 150 million Europeans currently suffer from chronic allergies and by 2025 it's estimated half of the entire EU population will be affected.

Creative Nature caters for these consumers, whilst appealing to a mass market through award-winning great tasting products.

Substantial accomplishments to date

2014 - To our knowledge, we became the 1st UK superfood brand with only 2 people on the team, to launch nationwide in a major supermarket.
2014 - Created the 1st and only cold-pressed snack bar to win 2 Gold Stars at the prestigious Great Taste Awards.
2014 - Launched in Ocado.
2014 - Julianne becomes youngest winner of the Natwest Everywoman Artemis Award.
2014 - FSB Surrey Awards winner; Young Person in Business, Real Life Entrepreneur, Overall.
2014 - Doubled turnover from previous year
2015 - UKTI Taste of the South East winner.
2016 - Launched into Asda with 6 products.
2016 - Red Ribbon Awards Innovation Winner.
2016 - Julianne named in Management Today's Top 35 Women Under 35.
2016 - Julianne named The Guardian's Small Business Leader of the Year.

2017 - Launched into 500 Sainsbury's with 2 products.
2017 - Doubled product listing in Asda.
2017 - Launched into almost 2,000 Co-op stores with 2 products.
2017 - Apple Pie becomes the 1st High Protein bar to ever win a Great Taste Award.
2017 - Named in the Top 10 best new product launches in Sainsbury's home baking.
2017 - 4 bars in the Top 10 best selling snack bars in Manor supermarket, Switzerland.
2017 - Julianne named IoD Young Director of the Year.
2017 - Julianne graduates from the Goldman Sachs 10K Small Business Course
2017 - Successfully pitched on BBC's Dragon's Den.
2018 - More products in Asda, Sainsbury's and Co-op.
2018 - FSB National Scale up of the Year and Overall Best Small Business.
2018 - Over 1.1 million bars sold in the past year.

Monetisation strategy

Creative Nature has 4 main revenue streams which stem from our 3 core product ranges; Free From, Organic Home Baking Mixes, Allergen Friendly Snack Bars and Superfoods to add to drinks or food.

The 4 revenue streams are:
- Retailers.
- Wholesalers/ Distributors and Independents.
- Export/ Overseas Distributors.
- Online Web Sales.

Creative Nature source many products direct from the country of origin, like India or New Zealand, which we believe is better in terms of supply chain and traceability control.

We ensure that our product manufacturing is performed in the UK, with each site gaining BRC A standard or higher, for quality control.

Over the next 12 months we aim to increase our market share in the UK Supermarkets, Catering and Wholesale, as well as focus on International expansion through export.

We plan to launch an online subscription model with the aim being to increase our website revenue.

We also intend to increase volumes across all our ranges.

Use of proceeds

We have a proven product in the market from the traction we have seen and the listings that we have secured into major supermarkets. We are now looking to scale up our Sales and Marketing.

With this raise we intend to:

1. Increase personnel including hiring 2 more National Sales Account Managers who have a proven track record and relationships in FMCG. Other roles will include General Manager, Customer Support, Marketing Support.

2. Use for working capital including scaling up production to prevent running out of stock, which we believe will enable growth.

3. Accelerate our marketing including consumer shows, events, ambassadors, content creation, digital advertising and POS.

4. Operational capacity, we will need to increase warehousing and streamline processes to improve efficiency.

5. Launch new products (development takes about 1 year from conception to launch) and packaging innovation, including moving all packaging to sustainable material.

Notices

Please note that the company has a director loan of £147,307. Funds raised in this campaign will not be used to finance this loan.

There is also a £199,030 trade creditors balance as of their 2017 management accounts. As above, the funds raised in this campaign will not be used to finance this balance.