One of Europe's largest CBD brands, with €16m in sales in 2020 and 300k customers
|Healthcare Digital B2C
|8 Feb 2018
- Over 300,000 customers worldwide
- The most Googled CBD brand in Europe, and in the top 10 globally
- +€35M* total revenue since launching in 2018
- Never raised investments and still fully owned by the founders
At Nordic Oil, we provide premium CBD products to hundreds of thousands of customers worldwide, no matter what their need.
Our aim is to make CBD understandable and accessible for people across the globe, which we do by taking the very best of nature and perfecting it with industry-leading technology to create products that over 300,000 customers love. We’ve seen in the past how our products can really help people, and we believe that everyone deserves the opportunity to try premium CBD for themselves.
Since starting in 2018, we’ve grown rapidly and now have employees across 3 locations as one of Europe’s biggest and most Googled CBD brands.
Our state-of-the-art production facility and HQ is based in the Netherlands and we are currently expanding it to facilitate future growth. From here, we produce and distribute our products across Europe. We also have a large office in Munich, Germany, and a presence in the US, with an office in New York and soon, we plan to have a fulfilment centre in Texas.
Substantial accomplishments to date
Dannie and Christian, both entrepreneurs with other businesses, started using CBD products when traditional medicines didn’t work. They saw a lack of passion in the CBD marketplace, so decided to start a new business, aiming to shake up the market and make CBD accessible and understandable to everyone.
In 2019, Nordic Oil won a place on the German Accelerator program which led to establishing a local presence in the USA.
The company was nominated in 2 categories in the World CBD Awards.
Nordic Oil was rated among the best CBD products in Europe by Strain Insider.
Nordic Cosmetics, a dedicated skincare line, was launched in 2020 as part of a majority owned joint venture. Later that year, it also launched on Tmall (Alibaba) in China.
2020 was Nordic Oil’s 2nd full financial year, and saw total revenue of around €16m*.
Sundt, a range of CBD-free supplements and vitamins, was also launched in 2020.
NatuPet, believed to be the first CBD brand in Europe offering 100% compliant CBD products for pets, was launched in March 2021. Within just a few months, it has generated over €150,000 in revenue* and is already listed in more than 100 stores.
By Q4 2021, subject to approval by the relevant authorities, Nordic Oil products are planned to be available to the Japanese market, and the brand aims to have its own fulfilment centre for the US market in Dallas, Texas.
*Based on unaudited management accounts
Nordic Oil is a unique company. We've been bootstrapped since day one, which means that we had to focus on profitability and cash flow since early on in our journey.
We are and always have been a DTC company. From the very start of the business, our customers have always been at the forefront of everything we do. From product development to our exceptional customer support, we’re driven by a commitment to deliver products that people love to customers around the world. This also means that we can demonstrate higher profit margins than if we’d gone through external retailers, meaning that we’ve been able to invest more back into the business, facilitating our rapid growth.
Our customers are loyal to the Nordic brand, not to a faceless retailer. After launching Nordic Cosmetics, Sundt and NatuPet, we have already seen the same degree of brand loyalty, resulting in strong customer retention. In fact, over 35% of Nordic Oil customers have returned to order from us again.
Use of proceeds
Your investment will go completely into our marketing budget where we'll expand on proven strategies that we know deliver results. We won’t be doing anything with the proceeds that we are not already doing and which hasn’t already been successful; we will simply be doing more of what we know works, and at a faster pace.
Our marketing efforts will focus on the following objectives:
- Strengthening our market leadership in Germany and Scandinavia
- Moving into a hyper growth phase in South European Markets (France, Italy, Spain and Portugal) where we now have a fully optimised supply chain and infrastructure.
- Moving into a hyper growth phase in the US market. From Q4 2021, we expect to also have a fully optimised supply chain and infrastructure here.
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 and listed above. It is the company’s responsibility to honour such discounts, rewards and/or offers and Seedrs does not take any responsibility for them.
Currently, 3 lines of credit exist, which have mainly been used to finance our stock.
Loan 1: Startup loan from the Bavarian government. The loan was originally for €500,000, and as of June 2021, €343,750.00 is still outstanding. The loan will run until 30.12.2023 with a 1.7% Interest rate. Co-Founder Dannie Hansen has signed a personal liability for this loan.
Loan 2: Corona Express Loan of €600,000 offered by the German government. The loan has yet to be repaid. The loan will run until 30/06/2030 and has a 3% interest rate. The loan can be fully repaid at any given time without any fees due.
Loan 3: Short term loan of €700,000 from a supplier to finance initial product batches of new Product SKUs. The loan has a 7% interest rate and is set to be paid back by the end of 2021. Both founders, Dannie Hansen and Christian Pallesen, have signed a personal liability for this loan.
All loans are planned to be repaid from company cashflow, and the proceeds from the campaign will not be used to pay these loans.
Nordic Cosmetics GmbH is an independent legal entity created in 2020 as a joint venture between Nordic Oil and Hubert Burda Media.
Burda entered the JV at a pre-revenue stage in a media-for-equity deal at a €10M valuation and acquired a 25.1% stake. The remaining 74.9% is held by Nordic Health Group, which Seedrs investors are investing in.
The media budget can be applied to subsidiaries and partner companies of Burda at their inter-company pricing.
In parallel to this campaign, we are in the final stages of closing an investment from one of our main suppliers of raw materials. The final term sheet is near signing, and we expect to close the deal completely within the next month, however this is not guaranteed. The supplier is expected to invest €5M which will be paid in raw materials over the course of the next 2-3 years.
The investment is expected to be made by way of a convertible where the valuation will be based on the company performance at the time of conversion. Investors in this round will have pre-emption rights on any shares issued as a result of this investment.
This investment for materials is not guaranteed. Investors should not invest on the basis the company will be able to finalise this deal and receive this investment.
The supplier is also investing €500k in this round on the same terms as Seedrs investors.
To avoid additional dilution, we have started negotiations with a venture debt fund with whom we are also in the final stages of negotiating terms. The plan is to match the raised capital from Seedrs with an equally sized loan, the proceeds from which will also be used for growth-oriented marketing. The loan is expected to be issued as a credit line with a 8-10% interest rate and the lender will receive a 10 year 1% stock option. The closure of this loan is not guaranteed and investors shouldn't invest on the basis that the company will be able to receive this additional loan.
Dannie and Christian also wholly own a company called Oscar Rental, which is a rental car company they founded. They no longer participate in the day to day running of the company and act only as advisors to the team.
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