UPDATE: We reached 100% after less than 3 days! Humbled by this overwhelming result, we decided to open up for some overfunding, and continue to welcome more investments.
Reasons for believing in Caliente are:
Concept: Well worked through and tested concept, and a unique product that meets strong global trends. Supported by international attention and a successful test launch in Sweden.
People: Committed team with experience from global expansion, branding & design, the food sector, and supported by an extremely experienced board.
Opportunity: This is a niche concept with big international potential, now targeting growth through rapidly entering new markets.
The problem this product solves
There is a clear gap in the international premium non-alcoholic drink market.
Globally, people skip alcohol more and more often (stated in a number of sources, includingMintel
). At the same time, the non-alcoholic alternatives available today are still limited. Most of them are either boring or unhealthy; standard choices of sugary sodas, juices, water, and of course the sad non-alcoholic version of beer or wine. We think you all recognize this problem.
How the product solves it
Caliente is a sophisticated and full-flavored drink, and also the first non-alcoholic beverage giving you a rush. Because we’ve added chili that, similar to alcohol, activates the reward center in the brain that in turn releases endorphins and feelings of happiness.
A growing number find spicy appealing taste-wise, and the health benefits are extraordinary. Caliente is also a real option to alcoholic drinks when talking about the way it’s consumed, as the heat makes it a drink to sip on.
Since the launch 2015, Caliente has won several awards, including the prestigious World Beverage Innovation Award, and got amazing reviews.
Caliente is a 100% organic juice drink with 15% fruit content, sweetened with 3,5% raw sugar. It comes in the flavors Lime/Ginger/Chili and Cranberry/Pomegranate/Chili.
It’s produced in Småland, and the Swedish ideals of quality, naturalness and transparency are integrated in the product, the concept and the organization.
We’ve chosen a glass bottle for a premium feeling, and because hot filled glass is a robust technology. It gives the opportunity for a 100% natural product, minimizes the risk of quality problems, makes it easy to scale production and gives a long shelf life without need for chilled storage.
Product use cases
Caliente is a social drink, suitable at numerous occasions – at work meetings instead of juice, as an afternoon pick-me-up replacing coffee or at a bar replacing long drinks.
Originally thought of as a product to be consumed on its own, we’ve seen that a number of foodies rave about Caliente as a great drink to go with food, renowned Chef Joel Lindquist being one of them. This opens up a number of opportunities, as it can be sold as a take-home option in convenience stores as well as served in high-end restaurants and cafés.
Caliente is all about the brand. The brand values are based on our beliefs and are hard wired into everything we do – the product, the images, our retailers, the events we support and the target group we turn to. They are enlightened people living in urban centers across the globe. They care about what they eat and drink and are determined to have fun. Previously, they’ve been enjoying drinks such as ginger-beer (Fever-Tree/Fentimans) and micro brewed beer. Although our slice of the entire global beverage market will always be marginal, the size of the potential market is huge.
Although we see ourselves as a challenger to alcoholic drinks, Caliente belongs to the category “juice drinks”. The global market size of this category is huge, and it continues to grow. Non-alcoholic premium drinks, offering new and unique values to consumers, are also going through a rapid growth. “Premium soft drinks were hardly existent 10 years ago – today they have forged a mainstream role,” according to a UK report presented by Mintel 2015. Non-alcoholic beers, another comparable sector, have doubled its worldwide sales since 2008.
What differentiates Caliente is that it’s both natural/healthy AND has a kick.
Unique differentiator from competitors
With its unique positioning, Caliente’s competition is in one way very limited and in another way broad. However, when looking at the many ways of potentially consuming we see ourselves competing in a number of different categories. Each of them shows the potential to take volume, as our product strongly differentiates from all of them.
Competition Our differentiation
Juices/juice drink Natural kick, Organic, Great flavor
Coffee Kick without caffeine, Refreshing
Alcohol Non-alcoholic but still a rush of endorphins
Non-alcoholic wine/beer Natural kick, Not just a “bad copy”
Energy drinks Natural, Non-carbonated, Organic
Soft drinks Organic/natural, Suitable for adults, Kick
Company revenue streams
During 2015, our primary goal was to build the brand and create awareness – a goal successfully reached. Today, we’re selling Caliente through the edgiest cafés (Tous Les Jours, Alkemisten, Urban Deli etc.), best street food places (Hija De Sanchez, Tommi’s Burger Joint etc.), restaurants (Thörnströms kök, Saltimporten Canteen etc.) and the best eco/premium supermarkets (Paradiset, ICA NK etc.)
We are now to scale our national sales through convenience stores, speciality health chains, hotels and conference businesses, having ongoing talks with the major national chains. One of the recently closed deals accounts for introduction to 180 units spring 2016.
In Sweden, going forward, we shift from direct to wholesales – already listed with five of the largest national partners.
Internationally, we will work with dedicated agents, and have already signed with three such partners.
The functions of marketing, brand and external communications, whether to Sweden or abroad, will always be based in our Swedish headquarters, and we will supply extensive brand platform support and sales material templates to international agents.
- Almi startup loan €55 000.
- 35 major events including: Guldäggsgalan, Konstfack, Smaka på Stockholm, Hyper Island, Stockholm Design Week.
- First national coffee chain.
- Winner Natural & Organic Awards – ”Best New Organic Drink”.
- Winner World Beverage Innovation Awards – ”Best Premium Adult Drink”.
- ”Best ever” review from <a href=”http://Drinkpreneur.com” rel=”nofollow”>Drinkpreneur.com</a>, 100/100 points.
- UAE/Dubai distributor signed, sales at 15 key outlets in Copenhagen started.
- Denmark distributor signed (also covering Norway).
- 450 retailers in Sweden and approximately 85% repurchase rate.
- National distributors signed: Dagsmeja, Martin & Servera, HKC, Menigo, Svensk Cater.
- 1700 Facebook fans, 3400+ followers Instagram.
- Coverage in 30+ publications.
Next key objectives
2016 Establish an international business:
- Ensure national coverage in Sweden, working with wholesalers and chains.
- Selectively tart the international expansion, get a foothold in a total of 6 markets.
- Expand the portfolio with 2 new SKUs, in collaboration with a highly recognized Chef.
2017 Further international growth
- Accelerate growth in the established markets
- Aggressively enter new markets, based on learnings from 2016
Funding up to today has been done by the founder’s private investments and by getting approved a start-up loan from Almi Företagspartner (500k SEK).
The management team and the board are all shareholders and will participate in the coming round for funding.
Our business model is a razor sharp focus on product development, marketing and to some extent sales. Everything else, production, logistics etc., we outsource to our business partners.
Trensums is our industrial filling partner. They are certified organic and have extremely high quality standards. With an on-going cooperation with 4 of the world’s 10 largest food & beverages companies, Trensums will ensure capacity for a rapid international growth.
To help us drive sales, our national partners are Martin & Servera, Svensk Cater, Dagsmejaand HKC and our international partners so far include Premium Products, Zenzari, Nordic Exquisite Foods and Neogoma.
- WINNER: “Best Premium Adult Drink” – World Beverage Innovation Awards 2015 – the most prestigious award in the industry.
- FINALIST in the two categories Best Juice/Juice Drink, Best New Brand.
- WINNER: “Best New Organic Beverage” – Natural & Organic Awards Scandinavia 2015 – the largest competition for organic products in Scandinavia.
- FULL SCORE: 100/100 – Drinkpreneur Int. beverage network – “Best review we’ve ever written”
- Selected to talk at the conference InnoBev in Verona 2016
Extensive PR coverage – for recent press clippings, please look at news section on Caliente’sMynewsdesk page.
Use of Funds
The money will fund our growth focusing on:
- Building the organization
- Product development
- Securing operating capital for high growth scenario
The financial case is based on aggressive sales across a number of markets. We plan to be self-financed through the revenue and strong gross margin we generate. All surpluses are planned to be reinvested in marketing for growth. Being a beverage startup with a differentiated brand and high margin, we estimate an exit in 5 years.
Price per share: 25 SEK
B-Shares offered: 140 000
Issue Amount: 3500 000 SEK
The issue is SEK, € amounts are estimates.