After successfully closing ROUND A of its fundraising campaign Rävala Vermouth OÜ is launching ROUND B that will help the company with the next steps of its development plans.
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. The 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. The company believes that the concept 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).
The first batch of 1,100 bottles was produced at the end of 2019 and initial sales started in Estonia in January-February 2020. The recent closure of Round A allows a company to confirm the production of outer packaging (6-bottle carton box) from its supplier Smurfit Kappa and move ahead with plans to start an Internet-based marketing campaign to support selling vermouth on local Internet platforms. Company will also restart its R&D program.
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
ROUND B description:
On the 14th of April 2020 a new contract was signed between Rävala Vermouth OÜ and partner cidery to secure the purchase of a new stock of wine that is needed for the preparation of production of the second batch of vermouth. This will also require the purchase of herbs and spices to prepare fresh infusions. Company will also need additional investments into packaging (single-bottle gift box as well as other variations of boxes and wrapping paper).
The company expects to close Round B before moving ahead with Rounds C and D that are aimed at strengthening its Internet and export sales efforts as well as moving ahead with ageing program that is currently being trialled on a small scale. Both of these rounds will also allow company to start investments into own production capabilities.
Overall, company expects that successful closure of all financing rounds will allow it to grow business to the stage where it will be ready to start a fundraising campaign on one of the equity crowdfunding platforms.
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 a 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 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 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.
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;
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;
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. Current coronavirus pandemic has shown that development of the internet-based sale strategy and streamlining of the distribution will eliminate risks of losing money due to problems that many conventional distribution channels have – like price inflation and non-payments;
Coronavirus pandemic has shown certain threats to the brand that are universal to all drinks categories – HoReCa sector’s instability during the quarantine. As new possible similar disruptions are expected in the future company is carefully planning its growth and expansion. 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
ROUND B (May-June’20):
• Wine and ingredients purchase – EUR 10,000;
• Investments in packaging – EUR 7,000
• Reserves – EUR 3,000;
Total: EUR 20,000
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.
Board is willing to share additional information with lenders by replying to emails sent to the following address: firstname.lastname@example.org, 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