Halo Coffee

Idea

Introduction

The market

The coffee capsule market is a growing 60bn pods p.a. industry. New markets are opening up i.e. Asia, where coffee consumption is growing rapidly. Market leader Nespresso sells ~14bn capsules p.a.

Trend and context

Greater eco-consciousness is driving the change in consumer behaviour.

As the first 100% home compostable biodegradable capsule in the market, Halo has positioned itself in a sweet spot, bringing to the market a unique product, filled with speciality grade coffee and unrivalled benefits to the planet. Amongst its merits, Halo is the Official Supplier of the British Olympic Sailing Team.

The plan ahead

Launch Halo Germany with an experienced team, and continue to build brand awareness and develop sales in the UK, expand product portfolio and strengthen the team.

Why invest in Halo?

A unique opportunity to invest in a truly sustainable brand with a positive impact on the planet that has demonstrated its "raison d’être" with its “flower bed compatible” coffee capsule

Substantial accomplishments to date

• Sold to 70 countries worldwide

• >9,000 buying customers

• >30,000 followers

• >40% customer retention rate (Oct '19 - Sep '20)

• 45% of sales revenues generated by subscription customers (Based on unaudited management accounts)

• Profitable Marketing margin (Based on unaudited management accounts)

• 86% YoY revenue growth in the UK

• Signed distributors in New Zealand, Saudi Arabia and Iceland

• Halo Coffee Germany (GmbH) to be launched in 2021

• Official sponsor of the British Olympic Sailing team

• Partnership with The Perfect World Foundation; with Sir David Attenborough

• Winner of Sky: Beyond Plastic category at the tve 2019 Global Sustainability Awards

• Posted on the Houses of Parliament’s twitter account on July 10th, 2019

• Case study on Halo Coffee in PA Consulting’s 2019 report on Innovation for Sustainability

• Selected partner to the 300 Years of Leadership and Innovation campaign with St James' House at the occasion of Queen Elizabeth’s 95th birthday

Monetisation strategy

Main objective is to provide the largest audience possible of coffee loving and eco-conscious coffee drinkers with "The World’s Best Coffee, In a Way That’s Best For The World" across three sales channels: Direct Sales, Distribution and Online Sales.

Online Sales is targeting end consumers and allows customers to place orders and manage their subscriptions on the online store. Halo is continuously on a mission to find new customers across multiple channels. Since launch, 9,000 customers have been acquired.

Direct Sales comprise HoReCa and Offices, with customers such as Booz Allen and NHS. Business customers requires a sales team.

New Zealand, Iceland and Saudi Arabia are covered through distributors, with mutually signed exclusive agreements.

Last, Halo has worked with excellent results to build loyalty with its online customers by launching a variety of blends, an attractive subscription plan and a generous reward program. Hence, customer retention exceeds >40% (Oct '19 - Sep '20).

Use of proceeds

In parallel with the launch of Halo Coffee in Germany, proceeds will be used to continue building brand awareness and driving customer acquisition, further develop sales, expand the product portfolio, develop capsule generation II and strengthen the team.

• Increase offline customer acquisition with print activities: 2-3x p.a.: 48%

• Launch of Halo Coffee GmbH: 18%

• Strengthen the team: 14%

• Develop capsule Gen. II: 10%

• Change on Opex (i.e. travel, etc): 7%

• Selected partner to the 300 Years of Leadership and Innovation campaign with St James' House: 2%