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We’re a sustainable pantry-focused brand and retailer, helping the world reduce their environmental impact, without compromising on convenience or quality.
We are on a mission to give all New Zealanders the opportunity to fill their pantries sustainably with no barriers. Already New Zealand’s leader in sustainable pantry food shopping, with 7 retail locations throughout the country and a growing online store that delivers plastic-free, nationwide.
We’re giving the 70% of consumers who want to shop sustainably the opportunity to organise their pantry in a beautiful, functional way without generating packaging or food waste. Through technology, the business is becoming more intimate with this group of New Zealanders and is helping them achieve their pantry goals through making the core aspect of refilling their pantry incredibly affordable, enjoyable and easy.
We’re looking for a minimum investment of $1,700,000 and a maximum of $2,000,000. This capital will be used for building the infrastructure of our online growth strategy and the key hires to scale this. We will also open a flagship “2.0” GoodFor retail store and launch a globally targeted pantry storage brand.
We have spent 4 years developing and refining our model, understanding how it can truly influence the masses to shop sustainably. Now with a clear vision of making this happen, it is time to ramp things up and make sustainable shopping part of every New Zealander’s pantry.
The current food system is categorically unsustainable. From the way food is grown, to the way it is packaged, to the way it is distributed and ultimately wasted, is all unsustainable.
Industrial pollution and the discarding of plastic waste must be tackled for the sake of all life in the ocean.
Sir David Attenborough
GoodFor is helping New Zealanders reduce the environmental impact of their shopping, without compromise. We have developed an offering that allows consumers to shop for quality, organic product, plastic- free, where food waste is no longer a major factor.
Leading the way for zero waste / reduced plastics. This is a stunning store with friendly staff and a great variety of products to suit all dietary requirements.
The first store was opened in Ponsonby back in 2017, since then we have expanded across NZ with seven stores in four of the nation’s busiest centres. Like the greater GoodFor brand, the stores are rooted in giving people an easy and enjoyable way to shop sustainably.
Focused on dry pantry goods, the stores allow people to refill their own reusable containers with product, rather than buying an alternative product pre-packaged in plastic. The 500 SKU’s of long shelf life and predominantly organic and plastic free produce in each store have been refined to service the requirements of our customers. As new products come to the fore and prove their worth, we are quick to adopt them.
Store locations are driven by locality to a supermarket, good parking and foot traffic, and a building with a character and feel that matches our brand.
The building and the fit-out of the store are an integral part of the user experience, and a key reason for customers coming back and spreading the word.
Operated through the same supply chain and warehousing system as the physical stores, our online store allows customers anywhere in NZ to purchase almost all of our SKU’s from the comfort of their own home.
Online customers have their orders delivered within 48 hours in 100% plastic free packaging, at prices that match or beat all major supermarkets. We have seen a large increase in customer retention since launching this service, and have recently introduced an automated re-order system based on a customer’s historical usage.
Our online store was given a baptism of fire during the COVID-19 period in 2020. Our systems were stress tested and we were able to very quickly iterate to what we are now confident is a robust and efficient system.
I just wanted to thank you so much for my first online purchase with you! I’m so happy with my products and I’ll for sure be ordering regularly with you now that I know how easy and awesome it is!
- GoodFor Customer
Identified early on in the development of the GoodFor business as a complementary extension, a branded line of ‘pantry infrastructure’ containers has been developed to offer the market top quality, innovative and functional, sustainable, and long lasting pantry infrastructure products.
Our containers utilise the latest developments in sustainable materials, and through their novel and functional design allow customers to reliably store refillery panty products in versatile configurations, and organise their pantries in tidy, fun, and creative ways.
The container brand, ‘Slowly’, is a wholly owned subsidiary of GoodFor Limited. Starting in FY23 Slowly will pay a $10k per month management fee to GoodFor.
In 10 years time, the way your pantry is displayed will be as important as the furniture you choose for your living room. We will be the brand that is recognised as the must have in this space.
- James Denton, GoodFor Founder & MD
GoodFor has 130+ relationships with suppliers from around the world with real emphasis on sourcing the best in class organic products. Currently sourcing the majority of products from major New Zealand importers and a significant portion directly from Australian manufacturers and growers. GoodFor also creates a selection of unique products and works with contract manufacturers to produce these products which are then branded as GoodFor where applicable.
Each store orders directly from the majority of suppliers and holds a small but efficient level of inventory. All supplies that the stores do not receive directly we distribute via a central contract warehouse in Auckland. This is the same warehouse that handles the packing and distribution of all online orders.
Our inventory management system is a robust and efficient mechanism that ensures we can keep our internal product wastage at 1%, avoiding the financial and environmental costs associated with this. Store inventory is run on a FIFO basis and minimal stock is held for efficient levels of turnover. Stock is ordered directly from suppliers weekly, including from the central distribution warehouse. Store leaders run weekly stock takes and inventory date reports to manage the freshness of the product. All products are checked for quality on arrival to the store and before entered into stock.
Currently GoodFor employs 24 FTE’s and 55 part time staff. Each GoodFor store is staffed with a full time store manager who is supported by another full time shop attendant. The remainder of store staff are employed on a part time and/or casual basis. GoodFor’s overall operations are managed by an Operations Leadership Team who take care of training, process creation, and implementation. This group is made up of the store managers and James, the GoodFor managing director. With the anticipated growth we plan on increasing our roster to 30 FTE’s and approximately 65 part time employees over the next 12 months.
The global grocery market is substantial with the industry being valued at USD11.7 trillion in 2019, and forecast growth of CAGR of 5% through to 20275. As a subset of this, and by means of comparison, the global organic and sustainable grocery market is projected to grow at a CAGR of 12.7%, reaching USD272 billion by 20276. The growth in sustainable and organic food is a disruptive force within the wider industry, and is a reflection of the changes in consumer values and preferences that are occurring globally. Forbes7 reports that 65% of consumers look for products that can help them live a more sustainable and socially responsible life. These trends that are occurring globally, and the business that have thrived as a result, offer a glimpse into the future of the market here in NZ.
The overall grocery market in NZ was recorded to be worth NZD22.3b8 in 2020, having grown from NZD22.1b in 20189. Locally, the awareness of the consumer of their environmental impact is growing significantly year on year. Consumers are actively searching for environmentally conscious purchasing choices with sustainability ranking third on their list in their hierarchy of purchasing choices behind price and convenience.
More importantly, reducing plastic packaging waste is the highest priority on the consumers’ and governments sustainability choices, with the NZ government sending a strong signal in banning single use plastic bags from supermarkets in 2019. These tailwinds of consumer trends leave GoodFor in a great position to capture a growing share of this substantial local and international market.
The global food storage container market is estimated to be worth USD280b annually a 4.8% CAGR projected over the next 5 years10. Pantry organisation, a part of this market, has seen demand surge off the back of the growth in pantry organisation breakouts like the “Home Edit”, a best selling book and now reality show on Netflix. This series led to an increase in retail sales at their partner “The Container Store” of 20% in the third quarter of FY202011. It is these trends, and the advantages that our unique position as a dry goods retailer affords us, that positions us well to grow this part of our business both domestically and internationally.
The New Zealand market is dominated by the two big supermarket owners, Woolworths and Foodstuffs, together accounting for about 85% of market share14.
The remainder of the market is fragmented between a number of different operators that land across the board in terms of sustainability, price, and convenience. Our direct competitors are the aforementioned Woolworths and Foodstuffs, as well as Farro Fresh and all of the smaller independent retailers selling commodity dry pantry products.
Affordability shouldn’t be an obstacle to sustainability, but it kinda can be! You guys are helping change this. Love it!
I just wanted to thank you so much for my first online purchase with you! I’m so happy with my products and I’ll for sure be ordering regularly with you now that I know how easy and awesome it is!
A fantastic store for anyone who wants good quality wholefoods, especially organic. I regularly buy my gluten free flours and dried fruits here. They are vastly superior to anything you can buy at the supermarket – if you can even find the products there.
GoodFor is one of the pioneers of the pantry refillery grocery business here in New Zealand, and we continue to maintain a strong place in the minds of sustainability conscious consumers.
Since launching we have been able to achieve a CAGR of 50%, which we forecast to maintain over the next 4 years. Our current market share of the greater NZ grocery market is 0.02%, so with the tail winds of consumer trends towards sustainability there is enormous scope for growth.
Our journey to date has formed our plans for the future, with some of the key learnings being:
After four years of continuous development and learning the best route to take to execute on the GoodFor mission, we are focusing our attention on giving New Zealanders the opportunity to have a sustainable pantry with no barriers.
Our current stores will be slightly upgraded to help promote this promise and we will be launching a new “2.0” store, an omni-channel focused store which captures a larger audience. These developments will be supported by the continued refinement and expansion of our online store.
Through efficient packing systems and technology, we are making it exceptionally easy for customers to refill their pantry plastic-free and with high quality organic products at an affordable price.
A survey that we conducted of our community revealed a number of key points that we have formed into our store strategy moving forward.
There are several small upgrades that need to be made to our current network of stores. These are aimed at improving the customer experience, and will help build the customer base and revenue. We have budgeted $70k from this capital to be used for the following:
All new bricks and mortar stores that we open will be of this new format. The format has been developed to address all of the user experience issues we have identified to date. The key difference is that they will be roughly double the floor area of the existing stores, 200sqm vs 100sqm. This extra space will help to facilitate:
These stores will serve as the physical manifestation of GoodFor, our brand, and what we stand for. They will be located in order to maximise their accessibility to the largest possible population of GoodFor-type customers, but will not be rolled out into every town in New Zealand. We have allocated $430k from this capital raise to our 2.0 Store growth strategy.
An effective online store is key for us to be able to engage with and service customers who want to shop sustainably, but are not conveniently located near one of our physical stores.
Currently with 52% recurring customers and an aim to increase that to 70%, we are focused on improving the online experience for our customers and investing in spreading the word through more targeted digital marketing. The $100k we have earmarked from this capital raise will go towards:
We know how to build really attractive things... that have sustainability at their core.
Currently in initial production at reliable and tested manufacturing partners, our pantry container brand will initially consist of a family of three sizes of container. These containers are revolutionary in their materials, design and functionality, and are intended to be passed down through generations.
Our existing customers will be the first to adopt the range, which will be available through our existing stores and the dedicated online store for the container brand. The reach of the brand will then be extended through dedicated marketing spend to reach a much larger local audience that cares about both the look and functionality of their pantry. As the container business gains momentum we will look to expand the range beyond the first three sizes to include new shapes and sizes.
Once the brand has been successfully launched into the NZ market, we will turn our attention to the Australian market. Representing a significantly larger market than NZ, the Australian market is a logical next step. This will involve some dedicated marketing spend in the region and an extension of our distribution capabilities to ensure we can reliably and efficiently deliver containers to Australian customers.
We have budgeted $300k from this capital raise to be used in production, stock, marketing, and the developments of new products with their associated production moulds.
GoodFor trademarked the term “Refillery” here in NZ, and through social media around the world. GoodFor owns the term refillery in New Zealand which will be incredibly useful for the large scale plan. In addition to this, GoodFor will have design patents on all pantry containers.
During COVID, GoodFor was deemed an essential service with all stores remaining open and adhering to strict distance and cleanliness protocols. Due to the lack of people travelling and purchasing moving predominantly online which caused in-store revenue to drop by around 50%, with the exception of Ponsonby and Takapuna performing closer to 90% with higher staffing costs.
The online store volume rose by over 1,000% and the fulfilment operations were not prepared for the significant increase in volume. Although the period was not a profitable one, it was an invaluable learning experience about the opportunity online can provide. This has led the business to allocate more resources to building a greater online store experience and fulfilment operation that can handle much higher volumes.
All financial projections contained in this document are based on our best assessment of future financial performance and assume that we successfully raise $2m of new capital this year. In the event we only raise the minimum target of $1.7m, we will have a reduced cash balance at the end of FY22 & FY23 but still enough working capital to complete the growth initiatives that we have planned. The assumptions on which the projections were prepared may prove incorrect and actual results may vary significantly.
Projected gross margins are based on historical gross margins, with a gradual increase due to higher purchasing power and the introduction of the higher margin container business. All relevant products costs are known and it is assumed any pricing pressure will be offset by cost saving benefits arising from increased scale.
Projected overhead expenses are based on historical overheads, adjusted to reflect additional costs consistent with our business plan and inflation. The majority of forecast overheads will be managed in line with revenue growth as our expansion strategy is validated.
Rent costs will align with CPI rent rates which we have factored into forecasts moving forward. We have a lot more weight with future tenancies, being an established brand that draws other tenants to an area, as well as understanding our value to a landlord and getting the best possible lease terms.
Wages and salary costs are projected to increase particularly in the 2.0 stores and the container business in the form of additional marketing, ecommerce and product staff who will be hired to ensure effective use of marketing spend and a best in class online store customer experience and fulfilment operation as well as continued product development.
Valuation of the company before funds are invested
Amount required for the offer to be deemed successful
The maximum amount the company is looking to raise
Percentage of the company offered at the minimum target
Percentage of the company offered at the maximum target
The cost of each share
The minimum investment amount for this offer
See the Subscription Agreement for details
GoodFor Limited may have rights to shorten or extend this end date
GoodFor is offering ordinary voting shares (“Ordinary Shares”) ranking equally with all other shares on issue. Except for Ordinary Shares issued for investments of $100,000 or more pursuant to the Offer, the Ordinary Shares to be issued by GoodFor are to be issued to Snowball Nominees Limited (the “Nominee”), who will hold legal title to those Ordinary Shares on trust for the relevant beneficial owner of those Ordinary Shares (i.e. the investor). Further detail on why GoodFor is choosing to use a Nominee is described under the heading “Nominee shareholding structure” below.
Holders of Ordinary Shares have:
Holders of Ordinary Shares are also subject to drag and tag along rights (as set out in the Subscription and Shareholders’ Agreement). The Subscription and Shareholders’ Agreement and Constitution set out other terms that will apply to a shareholding in GoodFor. You should read these documents before subscribing for Ordinary Shares under the Offer.
We are making use of a nominee shareholding structure to simplify the share register and to ensure that GoodFor cannot become a “Code Company” for the purposes of the Takeovers Code.
Except for Ordinary Shares issued for investments of $100,000 or more pursuant to the Offer, the Ordinary Shares to be issued by GoodFor are to be issued to the Nominee, who will hold legal title to those Ordinary Shares on trust for the relevant beneficial owner of those Ordinary Shares (i.e. the investor).
The full terms on which the Nominee will hold the shares are set out in the Nominee Deed Poll (which forms part of the Offer Documents).
In broad terms, the Nominee must:
Under the Nominee Deed Poll, each beneficial owner indemnifies the Nominee against any losses, damages, costs, actions, proceedings, claims and demands that may be made against or incurred by the Nominee as a result of it holding the Ordinary Shares under the Nominee Deed Poll (unless the Nominee has been fraudulent or grossly negligent).
At GoodFor, our short to medium term goals are to grow our product offering and network of stores into a profitable multi-million dollar business, establish ourselves as the leader in the sustainable grocery and pantry container business in New Zealand through our beautiful stores and complete range of products available in-store and online. We have substantial evidence to suggest that these goals can be achieved and we believe that we are on the cusp of the most exciting time our business has seen to date.
Shareholders investing in GoodFor will be acquiring an interest in our retail business (in store and online) and our upcoming container business and gives you the opportunity to come on this journey with us. Your investment will go towards growing a business which is creating a vastly more sustainable and accessible way to shop for essential products.
We are looking to raise $1.7m to $2.0m of equity. If this investment round is oversubscribed, we reserve the right to consider accepting further investment. Individual minimum investment is set at $2,000 for new investors or non-staff. All shares issued are ordinary voting shares.
The GoodFor board and existing shareholders, having regard to independent advice and feedback from new investors, have set the pre-money enterprise valuation for the GoodFor business at $9.96m and a pre-money equity valuation (net of debt) of $8.4m.
The valuation has been determined having regard for:
James Denton and the Denton family currently own 67% of GoodFor Limited shares. On completion of the capital raise, new shareholders will either be individually named on the company’s shareholder registry or will be included within a nominee vehicle managed by Snowball Effect, depending on the quantum of investment made. The final shareholder structure may vary from this due to the actual amount raised and rounding of individual allotments.
The business does not intend to pay a dividend for the next 2–3 years. Any net profit produced during this period will be reinvested into growing the business. After this period of time, the dividend policy will be reviewed.
The strategy of growing our brand, product offering and complimentary container business is designed to significantly increase the value of the business. As we continue to grow we will evaluate appropriate opportunities to create liquidity for shareholders. A future possibility which is currently closely aligned with GoodFor’s long term strategy would be a trade sale. There is also a possibility to create short term liquidity for shareholders on a recurring event basis and the board will continue to assess these mechanisms.
Based on current forecasts we do not foresee any further capital requirement in the next 3–4 years. However, the board and management will continue to carefully evaluate new opportunities as they arise and if additional capital is needed.
There are no past or current litigations or disputes known to the Directors or Management.
James and Georgie are GoodFor Limited’s only Directors. On completion of this offer, the business will appoint an independent Director, which may include a representative of a relevant investor.
All remuneration of current and future executives and team members will be reviewed regularly by the Directors to ensure it is market driven and reflects individual performance and achievement of role objectives. No changes will occur until an independent director is appointed.
When we took the first round COVID19 wage subsidy there was some ambiguity as to whether we were eligible. However, we did technically meet the criteria and we used the funds to specifically pay wages. For transparency, we voluntarily had our position reviewed and while we are waiting for final confirmation, we understand we’re in a position to keep the wage subsidy as there was no request for repayment. To be prudent, we are keeping the $300k wage subsidy as a contingent liability until 31 March 22 in the case that the matter is reviewed again.
We intend to keep our investors updated through:
Snowball Effect charges a fee, if a company successfully reaches its minimum funding target, of the greater of $25,000 or 7.5% of the funds raised.
Snowball Effect may amend this fee in discussions with the company before an offer is listed on Snowball Effect. The fee for this offer may differ from the normal fee.
The distribution of this offer outside of New Zealand may be restricted by law. This is not intended to, and does not, constitute an offer of securities in any place which, or to any person to whom, the making of such offer would not be lawful under the laws of any jurisdiction outside New Zealand. This includes, but is not in any way limited to, Australia and the United States. It is the responsibility of any Snowball Investor to ensure compliance with all laws of any country outside New Zealand relevant to their subscription, and any such Snowball Investor should consult their professional advisers as to whether any governmental or other consents are required, or other formalities need to be observed to enable them to apply for securities pursuant to each offer. The failure to comply with any applicable restrictions may constitute a violation of securities law in those jurisdictions. The securities in each offer have not been and will not be registered under the US Securities Act or the securities laws of any state of the United States.
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It's crucial for you to understand the characteristics and risks of this investment opportunity. New Zealand law normally requires people who offer financial products to provide in-depth information to investors before they invest. The usual rules do not apply to offers by companies through Snowball Effect. As a result, you may not be given all the information you need to make an informed decision. Investing is risky. Some of the key risks include loss of capital, illiquidity, lack of returns, dilution, loss of key people and customers, and lack of control. You should only invest money that you can afford to lose.