Drop Wine App
Drop is a tech-enabled on-demand virtual wine cellar - great quality wine to your doorstep within 1 hour.
- Over 25,000 orders since launch
- Average basket grown from £15 to £88 (2016 to 2020)
- 2020 revenue doubling year on year
- 5,000+ customers reached daily via social and email comms
Drop is an on-demand virtual wine cellar, expertly curated and available to your doorstep within 1 hour.
Over 50% of the UK admit to feeling overwhelmed and frustrated when it comes to choosing a wine, and with 25% of the UK’s 28 million regular wine drinkers now buying online, they are demanding the speed and convenience they are accustomed to in all aspects of their lives.
Whilst food delivery giants are starting to fill the wine void, it is at the sacrifice of quality and customer intimacy. Simultaneously credible wine merchants are lagging in technology.
Drop was founded by Ian Campbell and Will Palmer, successful restaurateurs and wine enthusiasts, to fill this growing market gap.
With Drop the right wine finds you. A powerful feature-rich APP helps you choose your wine without being overwhelmed or confused, combined with the ultimate of delivery convenience.
We aim to be the UK's leading virtual wine cellar - to your doorstep within 1 hour.
Substantial accomplishments to date
The Drop business has developed organically without any customer acquisition marketing, and has also proven to thrive during the COVID-19 pandemic, growing exponentially as more consumers have become aware of the proposition.
The business has to date focused on one site with a 5 mile delivery radius, from start-up in 2016 to almost £400k YTD for 2020*.
• More specifically, the APP sales have grown +145% during the 2020 COVID-19 pandemic*.
• Up to now relying on iOS sales, the business will broaden its reach with a planned Android launch in December 2020.
• Drop has fulfilled over 25,000 orders to over 4,000 customers.
• The APP has strong customer loyalty with over 750 customers having ordered over 5 times.
• The average order is now 5.3 bottles of wine.
• The average basket size has grown to £88 during 2020.
• A retail and franchise model has been developed attracting interest from 15+ potential franchisees in London alone.
• Drop is backed by close-knit group of active investors, who are lending support across the business.
• The Drop board is made up of executives with complementary skills around consumer product success, wine retailing, business scale-ups and investment strategies.
*Based on unaudited management accounts
Drop is a proven model and we now look to benefit from scaling the business from our current single site to a national footprint of over 100 distribution points over the next 5 years.
We aim to achieve this through:
• Network Expansion
Leveraging our tech we will offer the 1-hour delivery window to customers across the country via 2 fulfilment strategies:
o Franchises - Drop branded execution, local fulfilment, wine retailing and bar sales.
o Logistics hubs - a pure digital fulfilment, supporting a D2C model.
• Additional Tech Development
o A feature-rich virtual wine cellar experience.
o AI interpretation of customer buying needs and enhanced CX via machine learning.
• Upweighted Digital Marketing
o Our current customer base has been acquired organically with limited marketing. A marketing strategy has been designed to drive customer acquisition in line with regional growth.
• Additional Revenue Streams
o Eg. alcohol category expansion and subscription models via our Tech Platform.
Use of proceeds
The proceeds of hitting our crowdfunding target of £300K will be used to build out our business and fuel our company growth and monetisation strategies.
The main areas the proceeds will be utilized in are outlined below:
This target level of investment would also give Drop a 12-month runway, during which we aim to reach a breakeven point on our path to profitability.
Should we over-achieve on the target, we would increase our investments into both tech and marketing, across an increased number of distribution hubs and franchises in 2021.
• £100K - Additional development of our Tech Platform including feature-rich improvements, and AI and CX enhancements.
• £155K - heavily upweighted marketing investment to drive awareness and customer aquisition.
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. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
The company has the following outstanding invoices:
1. £35,000 for stock related purchases.
2. £8,600 to HMRC for PAYE, with monthly payments for 6 months from 25/11/2020.
The funds raised from this investment round will not be used to repay these invoices.
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