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Healthier Brands / Naturelly

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Healthier snacks and desserts brand loved by kids & parents aiming to naturalize the global jelly market.

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Funded 22 Jun 2019
£200,003 target
£244,583 from 0 investors
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Business overview

Location ALTRINCHAM, United Kingdom
Social media
Website www.naturelly.co.uk
Sectors Food & Beverage Mixed Digital/Non-Digital Mixed B2B/B2C
Company number  09656002
Incorporation date 25 Jun 2015
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Investment summary

Type Equity
Valuation (pre-money) £1.1M
Equity offered 15.36%
Tax relief

EIS

  • Idea
  • Team
  • Updates
  • Investors 0
  • Discussion
  • Documents

Idea

Introduction

The initial product was launched under the brand name Naturelly, listings secured with national retailers including Sainsburys and Waitrose and making sales.

An opportunity for you to invest in the early stage growth of an innovative and easy to understand, “on trend', well-researched and concept proved product range. Multi-award winning including Platinum for best Children’s snack and Dessert voted on by parents and children.

We are now seeking further investment to fund sales & marketing for growth.

Healthier Brands is a family run business by Dean, Joanne and Liam (Dean’s brother) with an advisory board of industry experts.

Our mission is to provide innovative and fun products for active kids that are loved by health-conscious parents.

Our purpose is to inspire parents to help their children have fun and live healthier whilst helping to reduce child obesity by encouraging active play.

Our current strategy is to naturalize the jelly market.

Are you ready to get your wiggle on?

Intended impact

Being the parents of 2 young girls, the founders Dean Dempsey and his wife Joanne desperately struggled to find fun and healthy treats for their daughters that they would both enjoy when on days out to stop those sweet cravings while out. For the previous 15 years, the founders Dean had been a Marketing Agency Leader and Joanne was a buyer for the likes of Liberty's.

The problem is real! Child Obesity is still on the rise! In some parts of the country, 1 in 4 children now start reception year obese and that trend continues throughout their school years.
Plus, children constantly pester parents for sugary snacks as research finds half of children’s sugar intake is being consumed between meals.

We believe artificial ingredients including sweeteners in products are also a big problem for parents.

We look to offer a product which is convenient, healthy, natural and tastes good. Our marketing positioning is natural & low in naturally occurring sugars made from real ingredients. We believe the opportunity here is tapping into lunchbox market, being a healthy go-to snack after school and a post-sport fruity boost for kids. Plus, a lunchtime & after dinner dessert for health-conscious dieting adults.

Substantial accomplishments to date

Sept 2015 - Launched Naturelly at Speciality Fine Food Fair, chosen as 1 of 6 winners from 320 applied for Grocery Accelerator mentor programme.

October 2015 - Naturelly went live in Wholefoods Market stores.

November 2015 - Live on Amazon.

January 2016 - Selected by Cotswold Fayre (specialist food wholesalers).

April - June 2016 - Secured 150K SEIS FUNDING.

June 2016 - Launched into Boots stores nationwide (however after 2 years and due to change in positioning we no longer supply Boots)

June 2016 - First export to Dubai (Choithrams, Spinneys and Waitrose).

August 2016 - Gold Winner Loved by Parent Awards Best Toddler Snack.

Nov 2016 - Live on Ocado, with Nisa.

January 2017 - Gold Winner Best Children's Snack Loved by Children Awards.

January 2017 - Live with food service wholesaler Bidfood.

March - August 2017 - Secured £250,000 EIS investment.

Aug 2017 - Platinum Winner Best Children's Dessert Loved by Parent Awards.

Aug 2017 - Set up as a supplier with a large supermarket chain.

Aug 2017 - First Export to China.

April 2018 - First Export to Taiwan.

June 2018 - Listing with Food Service Wholesaler Brakes for gym chain Fusion Lifestyle.

July 2018 - Launched into 555 Sainsburys stores.

Oct 2018 - Launched into 204 Waitrose stores.

Nov 2018 - Selected by Government backed start-up loan company as "Small Business Ambassadors."

Monetisation strategy

We outsource 100% of our manufacturing to specialist BRC accredited manufacturers based in the UK. Naturelly is made in Britain.

We buy ingredients for a price cost of goods (COGS), we add a margin and sell to distributors, wholesalers and retailers who in turn add a margin and sell to consumers in grocery stores, cafes, leisure destinations, delis, garden centres or direct to consumers online.

We also offer a 25% off subscription service online.

Use of proceeds

The investment will be used to drive growth and to:
Scale up sales and marketing activities to drive customer acquisition and brand awareness – c.20%.
Trade marketing support with retailers – c.25%.
Recruitment of sales and account managers - c.20%
Research & Innovation for new product development flavours & formats c.10%
. Operational expenses and working capital inc. production and logistics – c.25%.

We aim to become a national family brand and we believe that we will become an attractive acquisition target realising shareholder value through a trade sale.

This investment round will enable us to take a substantial step forward towards achieving our ambition to be in all the major multiple grocery stores by 2020.

Naturelly has loans in totalling £43,900 which will be repayable over the next 4-5 years a business overdraft facility of £25,000. £22.8K of the company's outstanding debt is a trade finance loan for stock which will be repaid immediately through working capital. The remaining loan balance will be paid in monthly instalments over the next four years. Proceeds of this campaign will not be used to repay any loans.

Rewards

Investor perks are available for investments over:

£50 - 10% web discount - 25% annual subscription discount.

£100 - 20% web discount - 30% annual subscription discount.

£500 - 30% web discount - 40% annual subscription discount.

£1000 - 40% web discount - 50% annual subscription discount.

£5000 - 50% web discount - 50% annual subscription discount.

*Unlimited usage within 12 months. Voucher code sent after funding round complete. Excludes trial pack of 6.

Please note that any discounts, rewards and/or offers listed by a company in its campaign are subject to the terms and conditions applied by that company and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.

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Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Healthier Brands / Naturelly has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 5 April 2019 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £1,101,750

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

Learn more about pitch type on Seedrs

Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

Learn more about investing and pre-emption rights.

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None of the information in constitutes part of the campaign and it has not been approved or reviewed by Seedrs.

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