Luxuryshakes

Idea

Introduction

Luxuryshakes Ltd. manufacture a range of exceptional branded and private label
shakes, created to fill a significant gap in the market.

Why milkshakes? Because this is a market that is currently devoid of a premium, high-quality, indulgent product range. Think ice cream before Ben & Jerry's and Haagen Dazs

What's the opportunity? The flavoured milk market is currently valued at £545m. It grew 15.5% on last year, and 54% over the last 5 years. But Mintel reports penetration at 15% in the 3 months to March 2022. So the potential is significant (just like it once was in ice cream!).

How will we take that opportunity? By producing wonderfully indulgent, differentiated products, made from natural ingredients, produced from our own factory (to give us total control), using 'state of the art' equipment to provide capacity and capability.

And our shakes already have proof of concept and great traction in the market. But there's more to come. New listings and Plant Based recipes are ready to go!

Substantial accomplishments to date

- Having started work on the factory in the Autumn of 2019, after an immensely challenging 20 months, Luxuryshakes completed the factory build and became operational in June 2021. Having worked so hard on our plans, we weren't going to let a mere worldwide pandemic stop us (even though it did slow us down a bit)!

- Having achieved Grade A BRC accreditation for the factory in year 1, on June 22, we went one better with an AA award- as high an accreditation as we can receive.

- Once accredited, we launched our brand with WHS Travel, available nationwide in rail, airport and motorway service station stores

- We launched with Sainsbury's in late October as part of their Future Brands programme and are now in 283 stores nationwide

- We took another huge step in March 2022, launching our first private label range for Morrison's. Consisting of a different recipe to our brand, this range has already been rolled out across the Morrisons supermarket estate.

- The average gross monthly revenue was nearly £40k in the last three months and grew 76% from Q1 to Q2*.

*based on unaudited management accounts.

- We are now preparing for our next launch with the Co-Op, and beyond this, we have a sales pipeline in place for both the UK, mainland Europe and Ireland.

- This is all supported by our brand values - Our products are made using only natural ingredients. Our packaging is 100% recyclable. Our dairy is British sourced from a West Country Farm (in Somerset). And all the chocolate we use is Fairtrade.

Monetisation strategy

Our business is focused on B2B.

Our strategy from the outset was to focus on large-scale, mainstream food retail to give us the greatest return in the shortest period of time. We have a factory to fill. Volume is key. But this strategy brings additional benefits:

- Through WHS, JS and Morrison's, we have achieved national distribution

- Brings immediate credibility to your proposition and brand when communicating to stakeholders

- Raises awareness from within the industry and helps to gain further listings - e.g. we have recently been approached by Aldi, having picked up and tasted our brand at Sainsbury's.

- Generates the opportunity for publicity

The next stages in our strategy are to gain further traction within the Food To Go market (through our Co-Op listing),

We will follow this with a focus on:

- The travel sector, specifically roadside retail (Rontec, MFG and BP).

- Online Sales - Ocado and/or Amazon Fresh

- Export to open opportunities beyond the UK market

Use of proceeds

Luxuryshakes has a clear plan for the investment funds we are hoping to raise, which will be used for both working and growth capital:

1. Working Capital (30%) - We have customers lined up for launch and negotiations underway for future launches. But we need time to bring them online.

2. Growth Capital (70%):

- Invest in our team: Professional sales staff to maximise the factory's capacity, backed up by a small backroom team to support the business.

- Invest in our brand: Marketing campaigns focussed on social media (specifically video platforms) to raise awareness of our product with the consumer. This would be aligned to trade marketing such as Product shows/exhibitions (such as Lunch!, The Speciality & Fine Food Show, IFE) to further raise awareness of our brand with Food Distributors and Food Service Suppliers.

- Invest in our factory: Capital to release sales opportunities, e.g. Over-wrap outer case packing equipment to enable supply to Costco