Estonia
Manufacturing
Closes Jun 04, 2017 23:59
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BELIEF ENERGY WATER

Healthy Energy

124 200 € (448%)

of 27 692 - 129 462 € goal funded

2,99 % to 12,58 % of company offered
138 € minimum ##################ment
##################

Quick Pitch

It is a well-known fact that the pace of life in developed countries continues to hasten, forcing people to exert themselves to accomplish more than ever before. This in turn means that people browse stores for products which would help them cope – gain increased energy and banish tiredness, all in a healthy manner.

According to market research information by Nielsen, two beverage categories in Europe are growing faster than any other – energy drinks and water. The energy water series under the BELIEF Energy Water brand incorporates both of the above, standing in the market as the first energy water in Europe – a healthy alternative to coffee and energy drinks!

Today, we sustain a stable customer base and cash flow and, furthermore, enjoy export opportunities in four European nations – all this in only nine months. In the coming months we are about to enter at least four additional export markets, i.e. we constitute an actively operating business.  

##################ors interested in helping us include an Estonian brand in the world map are welcome to join forces with us! 

Problem & Solution

Having marketed different beverages in the Baltic region for years, we kept hearing IT companies say how it would be fantastic to have a healthy alternative to energy drinks* and coffee.

Studying market data and learning that sales undergo the strongest growth in the categories of energy drinks and water, we decided to unite these two categories, establishing the energy water category, unique across the whole of Europe.

This approach has proven itself in the rest of the world. Our region, actually, provides for certain advantages in energy water sales:

  1. A climate that causes tiredness.
  2. Neighboring countries that constitute the world’s greatest caffeine consumers.
  3. In our largest export market – Finland – our prices are cheaper than those of sodas and more popular flavored waters. That being said, above does not happen at the expense of profit margin and is, rather, conditioned by Finland’s sugar levies.
  4. The sugar levy, soon to be applied in Estonia as well, has a positive effect on the BELIEF brand – our competitors’ prices will be closer to ours, resulting in increased sales.

Our extensive analysis indicates that a multitude of companies consume enormous amounts of coffee. For example, there are IT companies in Estonia where programmers consume an average of 15 cups of coffee a day. Above information derives from analysis of user statistics as related to coffee cards used in companies.

As we also sell directly to companies, it is clear from above data that increased demand can be expected in direct sales to businesses. Direct sales eradicate the retailer margin as well as a number of variable costs.

Conclusively, it can be said that there indeed is a problem in society – according to statistical data by Nielsen, energy drink consumption is trending upward. Likewise, coffee consumption is increasing across the globe.

*For more information on energy drink consumption, take a look at the study by the National Institute for Health Development.

Market

According to information of a nation-wide population study, conducted in Estonia by the market research company Turu-Uuringute AS, 72 %, i.e. more than 750 thousand Estonian residents 15-74 years of age, consume bottled water. In terms of preference, most consumers (59 %) prefer sparkling water, 18 % of bottled water drinkers choose still water, and a new consumer group is formed by individuals that consume water with added value (sweetened water with added vitamins, minerals etc.). A total of 750,000 individuals in Estonia consume bottled water. The total annual volume of the Estonian water category amounts to nearly 40 million euros.

Belief Energy Water falls in the segment of water with added value.

The market contains a considerable number of people that would consume energizing beverages if said beverages did not have such a harmful effect. Countless studies concerning the harmful nature of energy drinks have been published to date (National Institute for Health Development, 2013). 

For more information on markets, take a look at our business plan.

Traction & Accomplishments

Owing to increased water consumption and a favorable export margin, Belief Water has taken significant steps towards establishing a successful brand.

During our activity thus far, we have analyzed the European market and similar product in America, conducted surveys among Estonians, and developed recipes enabling production of our products. In addition, the packaging label design and the brand image have also been devised. Furthermore, a supply chain is already in place as well as all required processes. The trademark “BELIEF Energy Water” is protected in Europe.

Today, we have achieved considerable distribution both in the domestic market and across the border. Our biggest clients in Estonia include Selver, R-Kiosk, Statoil, Prisma, COOP etc. As said collaboration partners are very strong financially, credit risk is minimal.

Today, we sustain successful operations in the exports markets of Finland, Latvia, and England. Sales are soon to commence in Lithuania, Poland, France, and Australia. In addition, negotiations are underway with retailers in Holland, Slovakia, Norway, Sweden, Greece, Cyprus, Spain, Ireland, South Africa, and India.

Our production takes place in Denmark. As retailing to a great extent foremost constitutes a marketing business, our focus remains on sales and marketing. Production is purchased by way of subcontracting, allowing us to focus on above most important aspects, i.e. sales and marketing.

##################ment of the current owners into the company amounts to EUR 75,000 as well as countless working hours and a total of approximately two years of pre-launch development.

For an overview (in Estonian) of what we have been up take a look at the April 18, 2017 Radar show and an article on our early years.

How We’re Different

Launching the BELIEF energy water brand, we had to consider the risk of water consumers not embracing the beverage, viewing it as yet another energy drink. Nine months of successful operation have proved that people like the concept of energy water and a healthy image of the product has been established.

Uses of Funds & Timeline

We use involved capital to strengthen our position in existing markets and expand into new markets, that is to say:

Food fair ANUGA 2017 – € 15,000

We are confirmed participants of the world’s largest food fair ANUGA, providing us with an ideal opportunity to find new resellers in export markets. The support will cover our entry fee, display presentation, and other participation expenses. The fair is held in Koeln, Germany on October 7 – 11, 2017. Today, our participation in the fair is confirmed. We consider participation in Anuga as an important milestone in increasing export. Namely, a multitude of importers, sales managers, and other decision makers in the beverage industry to whom we could sell the product are represented in Koeln. Looking at the success stories of a number of innovative beverage brands, many businesses gained the wind beneath their export wings at Anuga.

For more information visit the fair’s web page.

Marketing campaigns to support sales in existing markets – € 40,000

Today, BELIEF is sold in four markets, in each of which, including the Estonian market, consistent input in marketing is called for. On account of this, approximately 40 % of involved capital is directed into marketing in our existing markets.

Development of new flavors and products – € 9,900

Our interests lie in developing new products based on the same concept which would subscribe to a more extensive functionality and varied alternatives so as to provide, every now and then, for new “experiences” in the market while staying prepared for new competitors entering the market – our product development must remain one step ahead of others.

Entering new markets – € 35,000

Entering new markets requires marketing ##################ment; consequently approximately 35 % of involved capital is directed into marketing in new markets.

Obligations to ##################ors, Profit Distribution

##################ors interested in joining forces with us in including an Estonian brand in the world map are welcome to join our team; we also appreciate individual assistance related to know-how and contacts.

BELIEF Energy Water is no longer a mere idea but an actively operating business with a steadily growing turnover. Today BELIEF Energy Water products are sold in four markets by vendors including large retail chains, cafes, and gyms alike.

2016 drew to a close for the company with a loss of EUR 26,000 caused foremost by expenditure on product development and entering varied markets. As early as January this year (2017) the business earned a profit of EUR 24,000 and estimates forecast a decent profit for the company by the end of the current year.

Our goal is to achieve 3.5 million euros in turnover by 2021 - as a point of reference, the value of the world’s energy drinks market is 40 billion euros and BELIEF constitutes one of the few healthy alternatives to energy drinks.

The company is planning to divide dividends in the amount of € 400,000 in 2020 and of € 600,000 in 2021.

Exiting an ##################ment is subject to the right of pre-emption by other shareholders with the company as well having the right to buy the holding. The current main shareholder is interested in repurchasing holdings in a five year perspective.

Our goals lie in long-term growth and increasing value; however, in the case of a sound offer, selling the company to a large manufacturer cannot be excluded altogether.

Added bonuses for ##################ors

##################ors that ################## at least € 500 receive a gift of two boxes of BELIEF in their preferred flavor to celebrate our new cooperation!

Furthermore, all ##################ors, regardless of the amount of the ##################ment, receive 20 % off of the price list on all our products. 

Communication

All ##################ors may choose to receive an invitation to join an ##################or-only newsletter, providing an overview of the company’s undertakings and including all of the latest news.

Meet the team on Wednesdays

Throughout the Fundwise campaign, ##################ors are welcome to visit us each Wednesday from 4:00 PM to 6:30 PM at our Tallinn office at Männiku tee 104 (Männiku Ärimaja – Männiku Commercial Building). This enables you to meet us face to face and ask us any additional questions. During any other times, pre-arrange a meeting with us by e-mailing raido@beliefwater.com or calling +372 5063870.

Risks and Mitigation

Work in a competitive business such as this one, includes a number of greater and smaller risks, foremost connected to large local manufacturers and, in our case, to people’s receptiveness and perception related to establishing a new product category. To find out in detail which tools we use and how we manage risks, take a look at our business plan.