Rävala Nordic Vermouth - Nordic by Nature

Still available:

€51 776.21

0

Interest Rate:

17.5 %

Funded:

€3 223.79

Investors:

46

Loan amount:

€ 55 000

Interest paid:

monthly

Term:

18 mo. 18 d.
30.09.2021

Project description

Rävala Vermouth OÜ (registration number 14946318) is an Estonian-registered Special Purpose Vehicle incorporated to develop and market first, in Northern Europe, commercially produced vermouth under the Rävala Nordic Vermouth trademark. Uniqueness of the product is the base that we used for the first of our vermouths – an apple wine that is produced from Estonian-grown apples and various herbs, including wormwood, barks, and spices that originate from different parts of the world, amongst which are also herbs that come from Estonia or other regions of Northern Europe. We believe that the idea behind the product is unique enough to justify the creation of a special Nordic Vermouth category that should become part of the larger vermouth category currently dominated by Southern European vermouths (mainly Italy, France, and Spain).

While the initial goal of this project has been successfully achieved – they've produced first 1,100-bottle batch of Rävala Sweet Nordic Vermouth and even started selling it in Estonia, and now require support to produce next batches of the vermouth as well as expand the range to dry and aged versions and look at other exciting new variations that they are already researching and planning. As they are in the very beginning of the journey they realize that raising funds against the equity in the company may be too early as most investors will view them as being in the proof-of-concept stage so the decision was taken to raise finances by borrowing EUR 55,000 on the platform such as Wisefund.eu for the period of up to 18 months. By the end of that period, they should be in a position to list their project on one of the equity crowdfunding platforms for the purposes of raising finances against the equity in the business.


Why invest in them?

  • The team behind the brand has years of experience working in the beverage industry in different parts of the world
  • An innovative product that is lovingly crafted locally 
  • Justified interest rate and transparency of the project
  • Professional company management with a clear path of success

Background

The team, behind the Rävala Nordic Vermouth, has expertise in creating and developing various alcoholic and non-alcoholic brands such as www.virubeer.com, www.obmj.beer, www.mixologist.beer and www.gypsydrinks.com as well as marketing and selling these and agency products (mainly vodkas) in many markets across the globe, but primarily in the EU and UK. Past achievements of the team include establishing strong presence of Viru beer in the high-end of the HORECA sector in the UK and successful creation and launch of Old Boy Mary Jane beer concept that is currently brewed in Estonia and since February 2020 is brewed under license in Switzerland for distribution in the Swiss market. Other notable past achievements include winning numerous gold, silver and bronze awards for Viru and Old Boy Mary Jane beers in various international competitions in Belgium, UK, USA, Latvia etc. as well as being a lead sponsor of the World Superbike team Suzuki Alstare during two seasons 2009/10 and 2010/11 which saw team finishing second in the world in the season of 2009/10.

As part of the Rävala Nordic Vermouth project, Rävala Vermouth’s OÜ parent company Rävala Beverages OÜ started setting up a production facility in the County of Harju, Estonia for which it purchased a plot of land and a building that it plans to convert into production facility and a visitors’ center. It is expected that the current trend of people visiting craft producers will continue for years to come. Being located just half-an-hour train journey from Tallinn in the small village that is also a home to a local craft brewery it will make Rävala vermouth’s place of production a popular destination for local and overseas tourists.

Their strategy is to start building the brand in its home market of Estonia and targeting Scandinavia, UK and Germany before expanding into other markets across Europe and the rest of the world.

In Estonia their plans are to build Rävala as a brand for cocktail bars by promoting twists on classics like Negroni and Manhattan as Negröni and Mänhättan as well as creating own cocktails that can be easily prepared and served in bars and perhaps at home. They also plan to target local supermarket chains and border trade operators to expand their market and allow their brand to be purchased by locals and tourists.




Borrowing company

Borrowing company SPV Rävala Vermouth OÜ (registration number 14946318) has been registered, and as the shareholder of SPV Rävala Beverages OÜ holds the trademark name ownership of Rävala Vermouth brand granting permission of its use to the SPV. Description of the project will be updated with registered company details once its registration has been finalized. 

SWOT analysis

STRENGTHS

For Estonian market Rävala Nordic Vermouth has the advantage of being an innovative product that is lovingly crafted locally using many local ingredients which is part of the brand’s USP. For markets outside of Estonia Rävala offers a new approach to the vermouth category in general which, combined with an overall interest in this category, will help our brand to build its international fan base. Team behind the brand has years of experience working in the alcohol industry with importers and brand builders in different parts of the world;

WEAKNESSES

Low social media presence and lack of own full-cycle production base are our main weaknesses while vermouth category in general is experiencing renaissance together with cocktails that are associated with this drink (Negroni etc) which may see new vermouth brands entering the market that will try to copy part of our USP;

OPPORTUNITIES 

Being in the forefront of creating NORDIC VERMOUTH category will allow us to promote our brand and make it visible in the bar industry as this is where all of the major drinks innovations happen. Being new and ambitious will allow us to create new partnerships that we will be forging with local craft spirits brands;

THREATS

We do not see big threats to our business model besides the usual operational and cash flow problems that may arise from time to time as in any other business. We are planning to address these threats by carefully managing our cash flow and working towards the goal of building our business to the level that would allow us to raise equity finance in the next 12-18 months. In terms of the continuity of supply, we are planning to secure long-term supply contracts with local and regional apple growers as well as our future plans include investing in own apple orchards and perhaps growing other fruits/berries that could be used to make a base for our vermouths.

Use of finances

  • Investment in packaging (gift and transportation boxes, wrapping paper, stock of bottles, labels, and caps) – EUR 10,000;
  • Wine and ingredients purchase – EUR 15,000;
  • Equipment – EUR 15,000;
  • Sales support – EUR 10,000;
  • Reserves – EUR 5,000

Total funds required: EUR 55,000

As most of the funds raised are meant to be used as working capital, we are expecting to maintain a healthy margin that will allow us to generate enough margin to be able to grow the business and cover all the costs related to this funding.


Securities & guarantees

As with investments in any commercial enterprise, there are certain risks involved that the Board is willing to minimize by providing the cross-company guarantee supported by its parent company Rävala Beverages OÜ as well as a personal guarantee from one of the Board Members.

Questions

Board is willing to share additional information with lenders by replying to emails sent to the following address: wisefund@ravalavermouth.eu, however, Board also stresses that some information may contain commercially sensitive data like recipe or some financial data that Board reserves the right to withhold unless specific conditions are met.

RÄVALA NORDIC VERMOUTH – NORDIC BY NATURE

www.ravalavermouth.eu

Sample repayment schedule

Participant’s investment:

30.04.20

€ 23.49

31.05.20

€ 14.86

30.06.20

€ 14.38

31.07.20

€ 14.86

31.08.20

€ 14.86

30.09.20

€ 14.38

31.10.20

€ 14.86

30.11.20

€ 14.38

31.12.20

€ 14.86

31.01.21

€ 14.86

28.02.21

€ 13.42

31.03.21

€ 14.86

30.04.21

€ 14.38

31.05.21

€ 14.86

30.06.21

€ 14.38

31.07.21

€ 14.86

31.08.21

€ 14.86

30.09.21

€ 1014.38

Total expected return € 1 271.79

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