Quinola Mothergrain

Idea

Introduction

Quinola Mothergrain is a radically-generous plant protein company, aiming to disrupt the £3bn rice category.

Our better-for-you products are aimed at helping the economy and society transition to a sustainably profitable future.

With 2 million units already sold, our healthy range of 30 quinoa-based products is mass market-ready. Having won 25 awards, they’re known as tasty, convenient and affordable - and listed in supermarkets across the UK, France and Ireland.

Our manufacturing operations are massively scalable. The team is ambitious and motivated. But most importantly, we believe that demand is about to ramp.

Quinoa is a super-versatile rock star of the plant protein world, in our view taking on almost any flavour. We see that it's moving from early adopter baskets into the early majority’s. And our packs of raw grains, microwaveable pouches, healthy snacks, hot breakfasts and toddler meals are just the beginning.

From our viewpoint, we can see that the Generous Revolution is coming. Quinola intends to blaze the heck out of that trail. Globally.

Intended impact

We’re on a mission to discover, prepare and promote spectacular-tasting, healthy plant proteins that are pesticide and allergen free, while redefining the positive impact a business can have on people, society and the environment.

We started the ball rolling with quinoa, because it is rich in vitamins while having twice as much protein - and four times more fibre - than white rice. Meanwhile, its demand profile is accelerating rapidly. Global success in this market will help us trigger the radically-generous revolution across many others.

Substantial accomplishments to date

As well as over 2m products sold since launch:

- Quinola is listed in

- Morrisons, Holland & Barret and Ocado (UK)

- Tesco and SuperValu (Ireland)

- Monoprix, Auchan, Carrefour, Casino and Bio c Bon (France)

- Our revenue growth in Ocado has been 40.7% in the last year, significantly outpacing the category average of 12.6%

- We have achieved FDA approval in the US - our first full container was shipped in 2018. We are now negotiating a high value partnership for the distribution of microwaveable pouches.

- Our 25 Awards include Best Store Cupboard Product (Free From Awards) and Best Organic Toddler Range (Loved by Parents Awards).

- We supply both our Peruvian and French grains to top-end restaurants, including the 3 Michelin star Plaza Athénée in Paris

- We have paid $250,000 above market prices to our two Peruvian quinoa cooperatives, giving the small hold farmers improved income security with guaranteed minimum prices

- Sourcing the world’s first whole grain quinoa from a French cooperative

- Offices have been established in London and Paris

Monetisation strategy

Our objective is to become a major global operation, able to influence the entire industry to conform to sustainably generous standards for consumers, producers and the environment.

Like all FMCG players, gross margins will rise as we achieve scale economies, decreasing the unit cost of production and delivery. Growth is, therefore, our key objective.

Currently, our main revenue stream comes from retail sales in the UK, France and Ireland - although the food service industry serving the out-of-home market is a growing component in turnover* (Q2 2019 vs. Q1 2019). We will focus on these markets until it is clear the brand’s dominance is assured. Quinola will then begin adding and investing in export markets to scale further.

The one exception is a significant opportunity in the US, where our format of microwaveable pouches is just starting to take off. To take advantage of this trend, we are currently negotiating a distribution partnership with one of the largest quinoa importers in the US.

*Based on unaudited management accounts.

Use of proceeds

The money raised will be tightly focused on increasing revenues.

We plan to invest in our existing listings via a series of ‘trial and repurchase’ campaigns at the point of sale. It is further planned that shopper data will be used to incentivise targeted consumers to start enjoying Quinola products. We expect this to significantly increase units sold per store, per week on a long-term basis.

This will then help fuel the second strand of revenue generation - adding muscle to our sales team with two new hires. As retailers evolve their ranging to reflect changing consumer trends we expect our proven success in the market to create exponential growth opportunities. Our new sales talent will help us to deliver on this potential.

As these strategies propels us towards becoming a household name, further working capital will be required. Funding will also be needed to accelerate product development and new geographies to take full advantage of the trend towards convenient, ethical and affordable plant protein products.