- Investment sought:
- Equity offered:
HOLOS is an award-winning premium kombucha company with a difference. We make delicious small-batch kombucha with a social purpose of providing training and employment for survivors of human trafficking.
Worldwide the kombucha market has grown at a rate of 155% over the past 5 years, with the UK market predicted to be worth £160 million by 2022. HOLOS recognises this growing opportunity and is on a mission to become the nation's favourite kombucha brand by offering customers a delicious range of drinks marketed primarily as alcohol alternatives.
HOLOS kombucha is handcrafted the traditional way, in small batches, and contains naturally occurring probiotics, healthy organic acids and enzymes. We care about making the best kombucha possible: our delicious flavours are vegan, low-sugar, unpasteurised and made with all-natural ingredients.
HOLOS kombucha is not only good news for your gut - with its unique social purpose and vision, we believe it's good news for our world too.
HOLOS was founded by five friends in Feb 2018, born out of a passion for kombucha - a chilled fermented tea renowned for its gut health properties - and with a vision to create social change through business.
HOLOS seeks to tap into the growing teetotal trend, as more and more adults are embracing a low alcohol lifestyle. In the last two years, there has been an explosion of interest in low and no alcohol drinks, with sales at a record high in the UK, now topping £100 million.
Taking HOLOS kombucha to the mainstream alcohol-alternative market will enable HOLOS to provide significant training and employment opportunities for survivors of trafficking, enabled through our seasonal placement programme.
We believe that kombucha with its complex, fermented flavours, is the perfect alternative to alcoholic drinks - tapping into the massive trend of fermentation and meeting increasing customer demands for low-sugar and healthier drinks. It is also great paired with food.
Substantial accomplishments to date
An exceptional product.
We have created a range of kombucha that uses all natural ingredients and is brewed the traditional way. Our latest flavour 'Classic' recently won 'Gold' in Olive magazine blind taste test against 11 of the top UK kombucha brands.
Proven UK market demand.
Since receiving seed investment in October 2018, we have established a growing stockist base of over 30 independent cafes, natural retailers, restaurants and bars. We are also available online through our distributor 'Dry Drinker'. In August 2019, our turnover was £2,800*.
Major Rebrand. (March 2019)
We overhauled our branding to make the packaging much more appealing with a cleaner minimalist look more suited to the alcohol alternative market.
HOLOS kombucha was selected to be the kombucha at Gwyneth Paltrow's first In Goop Health Summit in London. HOLOS has been featured in Liz Earle Wellbeing Magazine.
And we’ve done all of this on a shoestring budget and with a small team (part-time).
We have provided two seasonal work placements for survivors of human trafficking, 'building confidence, a sense of purpose and validation in society' (feedback from participant).
* Source: unaudited management accounts
Our success as a business is dependent upon us driving volume sales within the growing kombucha/ non-alcoholic drinks sector. With the recent recruitment of a Head Brewer from an overseas kombucha brand, we have the experience required to scale up operations in-house from our current volume to 8,000 litres per month. We are in negotiations to secure a larger manufacturing site where we intend to move to in Q1 2020.
Our strategy is focussed on developing our existing sales channels and expanding into new ones. Our four sales channels are as follows (in order of priority):
1. Through bar and restaurant chains as a non-alcoholic alternative (bottled and on tap). We have two drinks in development that will be tailored specifically to this market both in terms of flavour, packaging and distribution channel. We are in discussions with a major restaurant chain and hope to secure a trial by October 2019.
2. Traditional health channel, served through natural retailers.
3. Online sales. Continued sales through our online distributor Dry Drinker as well as other platforms such as online supermarkets.
4. UK supermarkets. Our target is to secure a listing in at least one major supermarket in 2020.
Use of proceeds
The proceeds of this raise used in five key areas:
1. Sales (30%)
We shall be expanding our sales resource, in particular through the recruitment of a full-time sales manager.
2. Marketing and Promotional activity (20%)
To raise awareness of the HOLOS brand we shall be increasing marketing spend on strategic high impact PR, attendance at select events and through general promotional activity.
3. Existing Staffing and overheads (30%)
CEO and Head Brewer (both full-time).
4. Manufacturing facility (15%)
Fit out of larger facility with specialist equipment to allow us to scale to meet growing demand. Key focus on efficiency and improving unit economics.
5. Working capital (5%)
As our customers get bigger there will be a need to hold more working capital moving forward.
Please see additional documents for more information!
The company currently has three classes of shares:
These shares have identical rights and rank equally.
All investors in this round, including Seedrs investors, will be receiving B ordinary shares.
The purpose of the C shares is related to the social purpose of HOLOS (to support survivors of human trafficking through training and employment opportunities). At the outset, the Foundation owned 25% of the business, this has been further diluted by investment into the business and the employee pool.
At present, the C shares are held in trust by the Founders until such a time that the HOLOS Foundation is established (within the next 2 years).
The HOLOS Foundation will exist to further the social purpose goals of HOLOS. It will do this in three ways:
1. The Foundation may be used to help deliver the social purpose in a more efficient way, for example by allowing people to volunteer time in support of the social purpose goals as well as access to grant funding that can support the infrastructure required to undertake placements.
2. Once the business is profitable and paying dividends, the Foundation will receive payments in the same way as other share classes. These will be used to fund work aligned to the social purpose of HOLOS.
3. In the event of a trade sale the Foundation would be capitalised. The funds would then be stewarded to support the social mission of HOLOS over the long term.
The company has the following outstanding loan:
£6,000 loan from the founder with no interest accruing. The loan is to be repaid once the company is profitable.
The funds raised from this investment round will not be used to repay this loan.