SOFI eCommerce

Project summary

Full description of the project

We want to build not just a profitable business, but one that would be consistent with our values and the mission of our company. Therefore, we are implementing a project for the supply of freeze-dried food products of Ukrainian origin to the US market with implementation through eCommerce channels with the creation and development of our own brand.

One of the food processing processes, which ensures the preservation of more than 95% of nutrients and vitamins of the original product, is freeze-drying (or lyophilization), when water in a frozen product passes from a solid to a gaseous state, bypassing the liquid stage. The shelf life of such products can be up to 25 years.

Mission of our project

On the one hand, the introduction of Ukrainian products with high added value to foreign markets and an increase in confidence in them from foreign consumers. On the other hand, it is meeting the growing consumer demand for clean label food.

Not a Problem, But Opportunity

The growing trend for the consumption of food with a "clean label", an increase in the number of healthy lifestyles. More than 60% of US consumers have a preference for “no artificial ingredients” and “no preservatives” products that are “all natural” *

The market for freeze-dried foods is also projected to grow, with the United States as the largest market.

The globalization of markets, the development of e-commerce and the availability of technologies make it possible to implement the project at this stage with the further launch of its own production. Many processes are outsourced.

* https: //www.lek.com/sites/default/files/insights/pdf-attachments/ 2174-Clean-Label-Food-Ingredients.pdf

The minimum required investment amount is US $ 82,000 .

Optimal investment amount 95,000 USD

We consider investments (loans) from $ 4,000 to $ 30,000 .

We offer 30-36% per annum in US dollars, depending on the borrowing amount and on the interest payment schedule.

For investors with a check of 30 000 US dollars or more, the option of registering a share in the project with subsequent redemption with an increased coefficient is possible.

A loan / investment for  our Ukrainian or American company is being considered.

Repayment of the loan body from 2 years.

Primary Target Audience:

- People who follow food trends;

- Supporters of a Healthy Lifestyle;

- Travelers (by car, hiking, etc.);

- Parents who care about the nutrition of their children;

- Consumers with average income and above (for the American market).

Business model:

Short description:

1. Contract production of freeze-dried food products under Private Label.

2. Export of products from a Ukrainian company to our American company.

3. Delivery of products to Amazon warehouses under the Fulfilment By Amazon program (the marketplace itself accepts orders, processes them, accepts payment, ships the goods to the buyer).

4. Marketing and promotion of products on Amazon, in social networks, through influencers, etc.

Detailed information: in the presentation and business plan.

Market:

Initially, marketplaces in the US were Amazon, Ebay, Walmart ...

Monthly sales of our product categories only  on Amazon are over $ 1.16 million.

In the future, after the launch of our own production, it is possible to go offline through our American company.

Team:

Vysotskyi Oleksandr (education - Finance, MBA).

Shurygina Tatiana (education - Marketing CIM, MBA).

Purpose of fundraising:

Investments are necessary for the production of products under our TM, marketing - launching an active advertising campaign in social networks and on sales platforms.

Range of products :

- freeze-dried organic berry powders.

- freeze-dried ice cream;

- freeze-dried yoghurt and fruit drops;

- fruit leather (to expand the line and increase the margin).

Development strategy for the next 5 years: expanding the product line, developing new products, mastering new sales channels and sales markets, launching our own production.

Risks

To minimize the main risks in the project, a number of decisions were taken:

- export of a product line, not one (if 1-2 products do not work, others will pull out the project);

- selected products with a long shelf life (9-12 months);

- many processes are outsourced to performers who specialize in them (production, logistics, receiving and fulfilling customer orders, etc.);

- a company opens in the USA that will act as an importer and counterparty for electronic platforms;

- for the financial model, the minimum planned sales figures are adopted (0.5-1.5% in each category).

There are other risks inherent in this type of business - production delays, delivery delays, low demand.