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We are brand builders of Portuguese premium craft spirits and beer!

100%
 - 
Funded 22 Apr 2019
€450,001 target
€506,016 from 192 investors
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Business overview

Location Lisboa, Portugal
Social media
Website www.icon-key.com
Sectors Food & Beverage Non-Digital B2B
Company number PT508522609
Incorporation date 19 Mar 2008
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Investment summary

Type Equity
Valuation (pre-money) €12.3M
Equity offered 3.55%
Tax relief N/A
  • Idea
  • Market
  • Team
  • Updates
  • Investors 192
  • Discussion
  • Documents

Idea

Introduction

We are Brand Builders. We create, produce, represent and execute the best route to market of our exclusive portfolio of brands. We build long term trustworthy relationships with our producing partners and final customers. Our academic and commercial experience has allowed us to build a rapid growth and sustainable business.

We’re located in the heart of Lisbon, one of the coolest cities in Europe, from where great sailors departed to discover the New World. That insatiable curiosity, very Portuguese, drives us to innovate and create new flavours. Our mission is to provide Innovative Premium Portuguese Craft Spirits and Beers.

Our international portfolio consists on 7 Portuguese Brands, already exported to 24 markets.

Intended impact

We shake things up by showing off to consumers that they are not restricted to massively produced industrial undifferentiated spirits and beers.

We create conditions for consumers to enjoy Portuguese alcoholic beverages in which high intrinsic quality - using natural ingredients -, origin authenticity, bottle and label design, as well as fair pricing are the pillars of success.

We have created, developed and executed innovative Brands and its Route to Market, together with craft producers that today are more than suppliers. They are long term partners and great friends.

We have given Portugal the right to deliver top brands outside the traditional categories. All are locally sourced fruit-based:.

Gin: Sharish / Gin13.
Rum: Hinton.
Cherry Liquor: Mariquinhas.
Fruit Spirit: Mad-Ronho.
Brandy: Louriana.

Our ambition is to reach 51 markets until 2023 and expand to additional 8 innovative brands, aiming to be recognized as the best supplier of craft beverages across the globe.

Substantial accomplishments to date

• 386% Net Sales Growth from 2014 to 2017.
• Record of €3.8 million of net sales in 2017.

• Record EBITDA of 8% / Net Sales in 2017 already.

• Achieved presence in #24 international markets record in June 2018.
• Record of 28% Net Sales for Export Markets in 2017.
• Record of 39% Net Sales for Export Markets in Year to Date June 2018 (Target is 41%).

• Our warehouse started with 200sqm in 2014. In end of 2017 had 1.000sqm, with total capacity for 1.200 pallets, which is as well a certified a bonded warehouse, where our logistic team prepares every shipment.

• Achieved record of 2006 bottles sold / day in 2017, with average of 1 shipment departing every single 1,6 hours.

• We have achieved so many International Contest Medals, that is already normal for us. Maldita was considered Best of Europe and Best of World several times, Sharish Gin and Hinton Rum have won Gold and Silver in so many contests, Gin13 and Mariquinhas are champions in the Taste Awards.

Main listings up to date:
>>> 2014: opened Makro (Metro Group).
>>> 2015: opened El Corte Inglès, Sonae (Continente), opened top market Belgium.
>>> 2016: opened Auchan, Jerónimo Martins (Recheio), Intermarché, Lidl, Dufry DutyFree, opened top markets Germany, UK (England, Wales & Scotland), Massachussets, Luxembourg.
>>> 2017: opened Jerónimo Martins (Pingo Doce), Amazon, opened top markets Italy, Denmark, Holland.
>>> 2018 up to June: opened TAP Portugal, opened top markets Dubai, Switzerland, France, Ireland.

Monetisation strategy

We build our brands from On-Trade to Off-Trade.

We build our brands from Home Market to International Markets.

In Portugal, we have a team of 5 regional brand builders that directly activate our brands in the best 700 on-trade customers, mainly focused in the touristic areas, such as Lisbon, Algarve, Madeira and Porto. They also introduce stock in our network of regional wholesalers that now account for more than 70.

We reach the remaining market through Off-Trade and C&C (supplying all of it directly), achieving a complete distribution, visibility and consistent promotional activity.

Regarding external markets, we have a team of 3 brand ambassadors that work together with our network of importers, in order to help them to activate brands locally. All importers, from our 24 markets, have contacted us spontaneously, looking for our brands.

Use of proceeds

The investment will be used into 2 strategic objectives:.

- Actively increasing external markets footstep from 24 to 51 up to 2023.
- Accelerating the launch of 8 innovative brands up to 2020.

Use of proceeds will be:.

• Starting a second 5 year cycle of investment in International Trade Fairs - from 2019 to 2023 - 400 k€ (80k€ / year).
> Permanent presence in the 2 main European fairs (London and Berlin).
> Permanent presence in the 2 main American Fairs (Brooklyn and New Orleans).
> Explore and be present in Asian and Middle East main trade events - to be defined.

• Stock of 8 New Brands: 400k€ (detailed disclosure only upon request and validation of purpose).

• Marketing Support to launch new brands: 200k€ (detailed disclosure only upon request and validation of purpose).

Funds raised will not be used to repay any kind of loan, but to further expand business, increasing portfolio diversity and international distribution footstep.

Market

Target market

Our target market is the premium alcoholic beverages consumer - men and women above 25 years old, typically between 30 and 50 years of age - that live in metropolitan areas, curious about unconventional brands that offer a high quality experience, imbued originality, unique identity, disruptive packaging, story authenticity, and family ownership values.

This segment of consumers is giving the opportunity for craft spirits and beers to develop. They typically buy our brands in Bars, Liquor Stores, Department Stores, Duty Free and bigger Retail stores.

Therefore, our typical customer is an independent importer/distributor that supply the trade above stated through his own operating structure, namely his own warehouse, commercial team, marketing and route to market plan.

Our Home-Market business unit manages all the local trade directly with our own commercial, marketing and operational team.

Characteristics of target market

Global Craft Spirits revenues accounted in 2016 for 5.3 Bill € with expectation to grow at a 33% CAGR from 2017 to 2025, reaching 69,2 Bill € in 2025.
Global Craft Beers revenues accounted in 2016 for 73,1 Bill € with expectation to grow at a 19% CAGR from 2017 to 2023, reaching 500 Bill € in 2025.

Craft Spirits have the potential to grab up to 20% of market share in the next years. Craft Beers already account for 23% of value market share sold in the USA, and the same development is replicating in Europe.

We operate already in 24 markets through our exclusive importers: Angola, Belgium, Australia, Mozambique, Dufry Duty Fee, Germany, Luxembourg, England/Wales/Scotland, Massachussets, Cape Verde, Holland, Denmark, Italy, Poland, Denmark, Portugal and Estonia. We've added France, Ireland, Malta, Latvia, Switzerland, Sweden, Taiwan and Dubai.

The Home-Market account for 21 Million Litters and 235 Million € of Net Sales. We have achieved in 2017 a Market Share of 1,1% and our objective is to achieve 2,6% in 2023.

Marketing strategy

Our brands are built through a pull strategy, thus creating the demand directly from consumers to our customers. Our strength and competitive advantage is the result of the combination of:.

@ Distribution Strategy - from Portugal to the World.
> 600 Premium Bars & Liquor Stores in top traffic touristic areas - Lisbon, Algarve, Porto & Madeira - and 100% Off-Trade + C&C coverage.
> High traffic platforms - most Portuguese airports, TAP Portugal and Amazon.
> Present in #24 markets (38% of net sales in YTD 2018).

@ Superior Quality.
> Gold, Silver, Bronze and Other several medals awarded.

@ Bottle & Label Design.
> Unique eye catching bottle and label design.

@ Truthful origin.
> Fresh & Locally sourced fruits.
> Protected Geographic Origin.

@ Present in the best European beverages fairs showcasing our brands to international buyer.

Competition strategy

For Portuguese products, to our knowledge, competition is limited.

We compete with brands from different geographies, such as Monkey47 for Gin, Plantation for Rum, Amarula for Liqueur, Tito's for Vodka or BrewDog for Beer.

The behaviour of the consumer is clearly developing: choosing hand crafted spirits & beers that deliver unique and differentiated, truthful experiences.

We aim to be the first Portuguese Spirits & Beer Company with international footprint, such as Pernod Ricard did for France, Diageo for England, Campari for Italy, Brown-Forman for the US or William Grant & Sons for Scotland.

We will accelerate the consolidation of our brand ambassador team, in order to enhance our relationship and sales with our international distribution network.

We have full visibility and control over the supply chain, allowing us to innovate and act very quickly. We are targeting to launch our following 8 brands in 2 years frame and double the market footprint in the next 5 years.

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Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from €12,250,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

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Equity Offered

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