PrimaryMarkets

VIEW OUR WEBINARS

SOFI Spritz - Australia’s Aperitivo
SOFI Spritz - Australia’s Aperitivo
View Recording

Deal Snapshot
Deal Snapshot
View Recording

Pre-IPO Trading with PrimaryMarkets
Pre-IPO Trading with PrimaryMarkets
View Recording

AIRR - Profile Video
AIRR - Profile Video
View Recording

Deal Snapshot
Deal Snapshot
View Recording

SOFI Spritz - Australia’s Aperitivo - Capital Raise

SOFI Spritz - Australia’s Aperitivo - Capital Raise
Asset Categories : Securities, Unissued Securities
Sale Type : Asking Price
Price Guide : AUD Target Capital Raise A$2M
Status : Open

Summary:

Asset Description:

SOFI Spritz is an award-winning Australian beverage brand which takes Australian wine and blends it with sparkling water, citrus & herbal extracts to create a range of pre-batched cocktails inspired by classic European recipes. The Company has developed three core wine-based beverages inspired by the most popular cocktails in Italy and has also produced limited edition or seasonal offerings. It has proven market traction with an enthusiastic base of repeat consumers. Revenue in FY18 grew by nearly 55% from FY17 to reach A$1.7M.

The Company is positioned to address three key trends:

  • Health & Wellbeing – SOFI has reduced alcohol content (8% ABV). It is a lighter refreshment due to its water component, consisting of only natural ingredients (with no added sugar).
  • Convenience – premixed formats include 250ml Piccolos (6x4 packs) & cans (6x4 packs), 500ml share size (12 bottle cartons), 750ml full size (12 bottle cartons), and 30L Kegs for Cocktails on Tap.
  • Premiumisation/Indulgence – on-trend European recipes, boutique producer, hand-crafted product with packaging & brand aesthetics.

Market

  • SOFI Spritz takes a commodity that is in systemic oversupply, Australian wine, and crafts products to address the unmet needs of a significant market segment
  • Significant market potential of A$500M with relevant sub-categories enjoying rapid growth
  • Bulk containers account for 55% of Australian wine exports by volume (total 467 million litres of bulk) with the average price sitting at $1.08/litre (year ending 30 June 2018)
  • Under the WET tax regime, all wine products enjoy a preferential tax rate (29% of wholesale price) versus the spirit-based beverages (excisable at approximately $1/standard drink) which the Company competes against resulting in a tax cost advantage of $0.50 - $1.00 per standard drink.

Growth Opportunities/Key Achievements

  • Strong growth for FY18: Sales driven by increased ranging with Woolworths owned retailers, introduction of Coles-owned retailers as a meaningful customer plus new wholesale channels
  • National off-premise distribution with over 2,000 stockists
  • Proof of “Cocktails on Tap” concept (including successful trials in ALH and Colonial venues) allowing for meaningful expansion
  • Ready for expansion, especially licensed cafés and casual dining
  • Brand designed to execute as a personality online (@sofispritz) resonating with target market and approaching 25,000 organic followers with authentic engagement
  • 12,000+ Instagram followers, 11,000+ on Facebook (400+ in VIP group) and 7,000 on EDM
  • Crowd funding campaigns and prime time appearances on Shark Tank provide valuable consumer engagement
  • SOFI was awarded the Australian Drinks Award 2017 for the “Best Innovation” for SOFI Spritz Blood Orange & Bitters. The awards were based on a survey of over 6,000 Australian consumers.
  • Pipeline of customers that will provide revenue of $2.5 million for FY19. Current revenue projections assume selling only domestically and only rely on the existing customer pipeline - significant opportunities are available to broaden domestic distribution and explore export, both of which are considered upside to the current business case

Offer

  • Target capital raise: A$2-2.5M (Pre-money EV A$4.5M)
  • Existing Shares: 78,154 shares
  • Offer price per share: A$57.58
  • Minimum investment: $50,000
  • Use of Funds:
    • Growth strategy (Domestic and International)
    • Working capital
    • Repayment of loans ($50-100k)

Investor presentation and call with the Founder is available to interested parties.


 

 


Share this Listing

 

 

Request more information

 

Add to Bookmark

Go Back

Become a Follower