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ZAG Drinks

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ZAG is a new disruptor in the Non-Alcoholic drinks market

106%
 - 
Funded 21 Mar 2022
£180,006 target
£191,407 from 110 investors
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Business overview

Location London, United Kingdom
Social media
Website zagdrinks.com/
Sectors Food & Beverage Non-Digital Mixed B2B/B2C
Company number 11932615
Incorporation date 8 Apr 2019
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Investment summary

Type Equity
Valuation (pre-money) £2M
Equity offered 8.73%
Tax relief

EIS

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Business highlights

  • ZAG is a disruptor in the booming NOLO alcohol market
  • Successful D2C test market completed
  • Investment secured from Velocity Capital Advisors Ltd
  • Featured in The Independent, Women's Fitness, The Mirror & Metro
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Key features

  • Secondary Market
  • Seedrs nominee min. £13.06 +

Idea

Introduction

ZAG is a disruptor in the booming NOLO alcohol market, offering something different: a healthy soft drink recipe, the appearance of a beer and a unique taste.

Despite the growth of NOLO drinks, consumers are unhappy with the choice: 50% of 18-44yr-old alcohol consumers would like more non-alcoholic options (Mintel)

Typical NOLO drinks copy alcohol products – like beer – but remove alcohol. For many, they taste inferior to the alcohol version: “Doubts over taste have been a stumbling block for non-alcoholic drinks” (Mintel)

Many consumers are rejecting soft drinks as too sweet and unhealthy: 81% are concerned about the sugar content of soft drinks (Grocer).

ZAG aims to redefine NOLO with a unique product - not another sweet soft drink, or poor tasting alcohol-free beer.

The alcohol-free market growth is a major international trend, yet it's still full of "me-too" products. We believe this market will evolve through product and occasion innovation, thus representing a global opportunity.

Substantial accomplishments to date

DECEMBER 2020 - Product development completed (a low sugar, low calorie blend of kombucha, green tea, lime, lemon, mint and natural hemp flavouring with no added sweeteners)

FEBRUARY 2021 - D2C test market launched

APRIL 2021 - Velocity Capital VC fund invest in ZAG after identifying the brand as an innovative, high growth potential entrant in the F&B sector

JANUARY 2022 - Regional launch in the hospitality trade

Monetisation strategy

ZAG’s positioning – as a healthy alcohol-free drink sitting between alcohol-free beer and soft drinks sectors – allows the brand to access consumers via multiple distribution channels. It also allows the brand to steal share from the alcohol-free beer and soft drinks categories.

ZAG can compete with alcohol-free beer in pubs and bars and adult soft drinks in supermarkets; offer an excellent alcohol-free accompaniment to food in restaurants; provide an interesting, healthy alternative for the corporate and events sector; and fit well with leisure venues such as gyms and sports clubs.

ZAG also benefits from the trend towards on-line sales and the advantages of tight consumer targeting from digital advertising. ZAG is already sold via its own website and Amazon.

The trend towards alcohol-free is global, representing huge growth potential for ZAG as an innovative, healthy, alcohol-free alternative drink in Europe, the US and beyond.

Use of proceeds

- Marketing (inc Advertising) - 44%

- Salaries (no Founders' salaries being paid) - 29%

- Fundraising Fees & Expenses - 6%

- Product Development - 3%

- Working Capital - 18%

Key Information

Debt

The company has a Directors' loan of £11,052.60 (charged at 2% p.a. applied monthly, non-compounding). The directors' loans will only be repaid once the company is profitable and will require board approval.

The funds raised from this investment round will not be used to repay this loan.

Share price

The share price for this round is £0.0653. The investment multiple for the campaign has been set as £6.53 for 100 shares in the business.

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If you successfully purchase a share lot of this business, you will be granted access.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This webpage has been approved as a financial promotion by Seedrs Limited ("Seedrs"), which is authorised and regulated by the Financial Conduct Authority. It is not intended to be a promotion of any individual investment opportunity and is not an offer to the public. The summary information provided about investment opportunities on this webpage is intended solely to demonstrate the types of investments available on the Seedrs platform, and any investment decision should be made on the basis of the full campaign. Full campaigns are available to investors who have become authorised to invest on the Seedrs platform. All investment activities take place within the United Kingdom, and any person resident outside the United Kingdom should ensure that they are not subject to any local regulations before investing.

Seedrs does not make investment recommendations to you. No communications from Seedrs, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Seedrs does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Seedrs, you should consult a professional adviser.

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 £2,000,730

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.

Pitch type

There are 5 types of investment pitch available on Seedrs.

  • Equity
  • Convertible
  • Fund
  • Cohort
  • Secondary

Investing in a regular equity campaign is the simplest and most common way to invest in a startup. You decide which business you want to invest in, and if the campaign hits its funding target then you will become one of their shareholders. As the company becomes more valuable, so do your shares; allowing you the opportunity to share in the future success of the business.

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Seedrs nominee

This shows if you are able to choose, when making an investment, that you be represented by, and your shareholding be managed by, the Seedrs nominee.

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

Learn more about Custodian here

Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Seedrs Nominee). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

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