- Investment sought:
- Equity offered:
Spare Fruit rescues beautifully fresh British fruit and transforms it into deliciously healthy award -winning fruit crisps.
Our vision is to become the Europe's leading sustainable snack brand available in supermarkets and independent retail outlets. Our aim is rescue thousands of tonnes of fresh fruit that would otherwise be wasted, and raise awareness of food waste amongst millions of consumers and thousands of businesses.
We gently slice whole fruits and slowly air-dry (never fry) them into crunchy slices of natural fruity goodness, without wasting a pip. Our fruit crisps are high fibre, low calorie with absolutely nothing added.
We support small British farms by purchasing their fresh produce deemed the wrong shape, size or colour and that would otherwise be wasted, and tackle and raise awareness of food waste in a delicious way.
We are currently listed with Selfridges, Planet Organic, Revital, Farm Drop and a host of independent cafes, health stores, deli’s, farm shops and garden centres.
Our aim over the next 5 years is to rescue over 5,000 tonnes of fresh surplus produce that would otherwise be wasted, and raising awareness of food waste among at least 100 million consumers and businesses.
One-third of food produced for human consumption is lost or wasted globally, which amounts to about 1.3 billion tons per year.
The Healthy Snack Market is estimated to be worth £25 billion by 2025. The importance of local, sustainable food with British provenance is echoed in recent industry reports from Unilever, with 33% of consumers now preferring sustainable brands, and from Waitrose, with 80% caring about where their food comes from. A recent Global Food Trend Report by Mintel highlighted food waste innovation as a key emerging trend in 2017.
Further terms and conditions may apply to any rewards offered. All rewards are the responsibility of the company to administer directly with investors.
Substantial accomplishments to date
Our brand values based on great taste, natural health and thoughtful production, has positioned Spare Fruit as an on-trend sustainable and healthy snack brand amongst consumer and trade press, rapidly propelling Spare Fruit into key sales channels.
Key listings such as Selfridges, Planet Organic, Google, Revital, online grocer Farmdrop and 17 specialist snack subscription boxes across Europe mean that sales have increased steadily over the past four months.
We are listed with major wholesalers Marigold, Diverse Fine Food and Bewleys. We are also in initial and advanced discussions with some of the largest food retailers and foodservice companies in the UK, with 2018 set to be a very exciting year.
We have featured in major female focused consumer titles such as Stylist, Natural Health and Balance Magazine as well as BBC Good Food, The Sunday Times Dish and Style Magazine, Delicious, The Daily Telegraph, Huffington Post, The Grocer, Food Navigator, The Fresh Produce Journal, Fruit Net and the Jamie Oliver magazine and by bloggers and influencers such as Cassandra (US), Tracy Kiss, Food Sauce and The Flexitarian.
We were recent winners of a Great Taste Gold Star Award (Apple Crisps), Food Talk Show Silver Award (Apple Crisps - Free from category) 2017 and shortlisted at Delicious Magazine Awards and Speciality Food Magazine New Producer Awards 2017.
We have a simple manufacturing process underpinned by a robust collaborative manufacturing agreement with our co-packer, plus an established relationship with Mid Kent Growers, a collective of independent fruit farms, who help us source our fresh surplus British apples and pears for us.
We are building a diversified sales and marketing strategy, starting with existing premium independent and high street, trend-setter outlets that reinforce the reputation of Spare Fruit as on-trend, innovative and high quality. This will support entry into high-end supermarkets in year two, alongside food service distribution and increased distribution in existing and new export markets with a demand for British sustainable products such as Germany, The Netherlands, Sweden and France.
We intend to develop at least 11 new product lines, across new varieties, flavours and formats creating opportunities in a wider range of sales outlets, enhancing on-shelf presence and increasing rates of sale.
Use of proceeds
We intend to use the funds raised to execute our sales strategy by providing the critical staff, marketing and NPD resource to significantly increase our marketing and sales activity.
A new Sales and Account Manager and Marketing and Sales Manager have recently joined the team, and will will help drive our marketing, sales and NPD activity, while maintaining and growing existing accounts. This should free up Spare Fruit's Founder to lead on major new supermarket, food service and export accounts to drive growth.
Marketing activity will support the sales plan, through targeted consumer and trade campaigns such as in-store tastings and promotions, social media, online campaigns and trade shows.
Funds generated from this campaign and through product sales will be deployed as follows:
Sales and marketing, resource, materials and overheads: 50%
Stock purchase manufacture and distribution: 46%
New product development: 3%
Spare Fruit targets health conscious consumers that fall into the Acorn 'Affluent Achiever' and 'Rising Prosperity' categories that make up an estimated 18% (9.3m) of the UK population.
Meet Esme. She is a busy communications professional, aged 35, married with two young children. She is concerned about both healthy eating and wider environmental issues. She reads The Guardian Online, Cosmopolitan Magazine and BBC Good Food Magazine.
Esme wants to enjoy natural and delicious snacks on her own and with the family, and is keen to avoid 'snaccidents', where she picks up an unhealthy snack when in a rush!
Esme sees Spare Fruit as an alternative to oily, sugary and salty snacks. She might buy Spare Fruit to eat at work, at home with the family, or at leisure centres; as a mid-morning snack, ‘grab and go’ lunch accompaniment or afternoon treat; for her children's lunch boxes; or she might find if served as an accompaniment for cereals, salads, dips at corporate events.
Characteristics of target market
The UK sweet snack market exceeded £2.8bn in 2016. But with potato crisps sales in decline since 2014, it is healthier snack options that have been driving its growth. These include popcorn, vegetable crisps and fruit snacks.
The latest Euromonitor Health and Wellness Report highlights that the overall value of the UK Health and Wellness market exceeded £2bn in 2016. Spare Fruit belongs to the Naturally Healthy segment of this market, one of the fastest growing segments, made up of products low in salt and sugar, high in fibre or with added vitamins. Despite current uncertainty over economic growth in the UK this segment is forecast to continue its 17% growth since 2011, forecast to grow by £877m over the next five years.
The fruit snack market is currently valued at over £300 million growing 33% over the past five years, and is projected to grow steadily, as people continue to move towards healthier snacking.
As air-dried crisps are a new product, we focus on in store and event sampling, consumer promotions and collaborative competitions with brands and industry bloggers with the aim of getting consumers to taste and talk about the product. This is coupled with driving brand awareness through Facebook, Instagram and Twitter profiles, blogs and print media.
As our reputation grows, and people become converted to the product, we will shift focus to supermarket sales, supported by in-store discounts and promotions.
Our marketing budget is set at 28% of sales in year 1 reducing to 6.5% in Year 5. We plan to target:
* Social influencers, food and health celebrities and chefs in the blogosphere such as Madeleine Shaw, Millie Mackintosh and Healthy Chef Steph.
* Consumer food magazines such as Waitrose and Delicious Magazine.
* Securing TV exposure, with stories focused around health and sustainability.
* Trade shows, including speaker slots at UK and export events.
* Trade magazines and industry awards read and recognised by our buyers.
* Listings in wholesaler catalogues.
To our knowledge, Spare Fruit is the only sustainable fruit crisp on the UK market. We plan to offer healthy snackers a high-quality, British sustainable fruit crisp range to compete with fried, imported products that use palm oil and accumulate significant food miles.
A small number of competitors sell internationally across Europe, which shows good market demand. Only half use British produce and none of these brands utilise fruit that would otherwise be wasted.
Spare Fruit's competitive advantages are:
High-quality, great taste
We use a top manufacturer and we recently won our first 2017 Great Taste Award
Sustainable supply chain
We support small British farms by giving them a fair price for their surplus produce. We use 100% surplus produce that would otherwise we wasted
100 % British
All our produce is grown and produced in Kent, UK
All our produce is picked, produced, packed and stored within a 20 mile radius in Kent.
Zero waste production
We use 100% of the fruit - skin, core and stalk and all.
We air-dry which maintains all the goodness, enhances the flavour and adds a naturally crisp texture, removing the need to add anything or fry.