WOOF&BREW

Idea

Introduction

As a challenger brand, Woof and Brew have identified gaps in the pet market, and with the launch of our product ranges we have created a new category - drinks for dogs.

The global market for mineral water and health drinks continues to grow, as we struggle to stay fit and manage our health….but what about the pets we all adore? For most, it’s the tap water we all avoid drinking…or muddy puddles.

That is all about to change as we found more and more owners demand the same healthy food and drink for their pets that they expect for themselves and are prepared to pay a premium for it. It was this insight that prompted us to launch Woof and Brew in 2013.

To our knowledge we are the first to create a range of healthy drinks for dogs, including a herbal tea range, a tonic range and a ready-to-drink infused water. We have also recently launched our dog beer ‘Bottom Sniffer’ which has captured the eyes of retailers and consumers instantly.

Since launch, sales have grown rapidly with high profit potential in a global pet care market worth $85bn.

Intended impact

With all food products, the keys to success are affordability, effectiveness and convenience whether satisfying hunger, providing refreshment or as an aid to well-being. Our pets suffer the same health issues as we humans, whether that be from the consequences of poor diet and exercise or from innate illnesses or allergies.

Woof and Brew has developed a range of healthy pet products using readily available herbs mixed in original formulas to deliver positive results for daily dog care - whether for increased energy, a healthy skin and coat, to calm anxiety, refresh bad breath or aid digestion.

Woof and Brew tea and tonics are available through national chains, independent retailers and online stores and come in convenient packs for daily use at home, when out and about or travelling. A ready-to-drink range will be launched later this year.

The products have been very well received in the UK and worldwide with national distribution secured in both of the UK's largest retail multiples Pets at Home and Pets Corner; plus in independent retailers across 13 countries.

Reception by the media has shown how compelling the idea is for the pet sector and owners alike with coverage in several national newspapers and international titles and radio stations. Please request a media pack if you wish to see samples of the global coverage.

Woof and Brew has strong evidence of customer satisfaction with an overall approval rating of 89%.

We believe pet owners appreciate the simplicity of a liquid when compared to tablets, injections and creams.Woof and Brew believe its products will quickly become routine, ensuring continued use and a high lifetime value for each customer.

Substantial accomplishments to date

Woof and Brew developed the tea, tonic and drink range together with Richard Allport (MRCVS) a leading expert in pet nutrition. Through direct approach to pet, general retail, leisure outlets and distributors, we have secured product listings with leading multiples and 350 independent pet stores. Media coverage and word of mouth has helped secure products listings in more that than 300 stores in 13 countries.

In our view Woof and Brew has a strong brand identity, with a proposition that is easily understood by consumers and clear presentation ensuring stand out on the shelf.

The ranges enjoy good support from the trade in a sector that is always looking for innovation.

Woof and Brew has secured £240k development capital and reached the tipping point where it is ready to scale quickly.

Monetisation strategy

Around 21% households in Europe own a dog. There are 75m dogs in the EU all needing a daily drink. It is reasonable to predict that pet owners will recognise the benefit of a healthy drink for their dogs just as they do for themselves. However in our view Woof and Brew needs just a fraction of the market to build a substantial business.

Our target for the next three years assumes that 1% of 50m dog owning households purchase from our range 12 times year. Exponential growth can come when infrequent customers become regular users or we achieve sales greater than 1% of the EU market.

The business has recently won a major contract and we now aim to double the net margin through substantial savings in manufacturing and marketing costs.

Our go to market strategy is three fold - saturation of the leading specialist multiple retailers throughout the EU - critical mass in the largest independent pet retailers across the region - test marketing in lifestyle retail ie Starbucks, Whitbread, Eurotunnel where leisure purchase and impulse use could be very high.

Woof and Brew will not aggressively sell direct to customer but will accept incoming orders. This is to keep operating and marketing costs under control as we build volume.

Orders will also be accepted from other markets with a careful eye on growth potential especially in the US, Canada, Australia, Japan and China subject to local regulations.

Once the range, model and margin has been proven for dogs, Woof and Brew plans to launch into the cat sector where demand is expected to be equally high.

Investment will concentrate on new product launches, brand development and reducing our manufacturing costs.
Detailed forecasts are available on request.

Use of proceeds

Woof and Brew has completed initial development of the dog tea and tonic ranges and has supplied products to 300+ stores. The next task is achieve scale through increased supply to current partners, the addition of more multiple and independent partners across the region, plus marketing to encourage trial and frequent use among our early adopters. We will roll out the "Drinkies": our ready-to-drink brand, with high profile lifestyle promotion through social media, to generate customer demand and advocacy.

To fund market development we must first reduce manufacturing cost by investing in volume. Purchasing packaging in bulk in advance should significantly reduce cost and increase margin.

We believe we have an early mover advantage and must consolidate our IP and brand value quickly with further investment in design.