HOLOS

Idea

Introduction

HOLOS is an award-winning premium kombucha company with a difference. We make delicious small-batch kombucha with a social purpose of providing training and employment for survivors of human trafficking.

Worldwide the kombucha market has grown at a rate of 155% over the past 5 years, with the UK market predicted to be worth £160 million by 2022. HOLOS recognises this growing opportunity and is on a mission to become the nation's favourite kombucha brand by offering customers a delicious range of drinks marketed primarily as alcohol alternatives.

HOLOS kombucha is handcrafted the traditional way, in small batches, and contains naturally occurring probiotics, healthy organic acids and enzymes. We care about making the best kombucha possible: our delicious flavours are vegan, low-sugar, unpasteurised and made with all-natural ingredients.

HOLOS kombucha is not only good news for your gut - with its unique social purpose and vision, we believe it's good news for our world too.

Intended impact

HOLOS was founded by five friends in Feb 2018, born out of a passion for kombucha - a chilled fermented tea renowned for its gut health properties - and with a vision to create social change through business.

HOLOS seeks to tap into the growing teetotal trend, as more and more adults are embracing a low alcohol lifestyle. In the last two years, there has been an explosion of interest in low and no alcohol drinks, with sales at a record high in the UK, now topping £100 million.

Taking HOLOS kombucha to the mainstream alcohol-alternative market will enable HOLOS to provide significant training and employment opportunities for survivors of trafficking, enabled through our seasonal placement programme.

We believe that kombucha with its complex, fermented flavours, is the perfect alternative to alcoholic drinks - tapping into the massive trend of fermentation and meeting increasing customer demands for low-sugar and healthier drinks. It is also great paired with food.

Substantial accomplishments to date

An exceptional product.

We have created a range of kombucha that uses all natural ingredients and is brewed the traditional way. Our latest flavour 'Classic' recently won 'Gold' in Olive magazine blind taste test against 11 of the top UK kombucha brands.

Proven UK market demand.

Since receiving seed investment in October 2018, we have established a growing stockist base of over 30 independent cafes, natural retailers, restaurants and bars. We are also available online through our distributor 'Dry Drinker'. In August 2019, our turnover was £2,800*.

Major Rebrand. (March 2019)

We overhauled our branding to make the packaging much more appealing with a cleaner minimalist look more suited to the alcohol alternative market.

External Recognition.

HOLOS kombucha was selected to be the kombucha at Gwyneth Paltrow's first In Goop Health Summit in London. HOLOS has been featured in Liz Earle Wellbeing Magazine.

And we’ve done all of this on a shoestring budget and with a small team (part-time).

Social Impact.

We have provided two seasonal work placements for survivors of human trafficking, 'building confidence, a sense of purpose and validation in society' (feedback from participant).

* Source: unaudited management accounts

Monetisation strategy

Our success as a business is dependent upon us driving volume sales within the growing kombucha/ non-alcoholic drinks sector. With the recent recruitment of a Head Brewer from an overseas kombucha brand, we have the experience required to scale up operations in-house from our current volume to 8,000 litres per month. We are in negotiations to secure a larger manufacturing site where we intend to move to in Q1 2020.

Our strategy is focussed on developing our existing sales channels and expanding into new ones. Our four sales channels are as follows (in order of priority):

1. Through bar and restaurant chains as a non-alcoholic alternative (bottled and on tap). We have two drinks in development that will be tailored specifically to this market both in terms of flavour, packaging and distribution channel. We are in discussions with a major restaurant chain and hope to secure a trial by October 2019.

2. Traditional health channel, served through natural retailers.

3. Online sales. Continued sales through our online distributor Dry Drinker as well as other platforms such as online supermarkets.

4. UK supermarkets. Our target is to secure a listing in at least one major supermarket in 2020.

Use of proceeds

The proceeds of this raise used in five key areas:

1. Sales (30%)

We shall be expanding our sales resource, in particular through the recruitment of a full-time sales manager.

2. Marketing and Promotional activity (20%)

To raise awareness of the HOLOS brand we shall be increasing marketing spend on strategic high impact PR, attendance at select events and through general promotional activity.

3. Existing Staffing and overheads (30%)

CEO and Head Brewer (both full-time).

4. Manufacturing facility (15%)

Fit out of larger facility with specialist equipment to allow us to scale to meet growing demand. Key focus on efficiency and improving unit economics.

5. Working capital (5%)

As our customers get bigger there will be a need to hold more working capital moving forward.

Investor Perks

Please see additional documents for more information!