Karma Drinks hosted a webinar for investors on Thursday 12th November. Below is a link to a recording of this session. Please note that there is a typo in the webinar presentation - further info relating to this can be found in the comments section of the webinar.
We made Karma Drinks to taste good and be good. Good for the land, good for the people who grow ingredients, and as good for you as fizzy drinks can be — so you can feel good about drinking them.
We set up the Karma Foundation to ensure this happens.
8 years ago we made the first bottle of Karma Cola. Since then we’ve made another 15 great tasting, Fairtrade, organic and functional drinks and created sugar-free versions of all our original drinks. Our company has grown to over 30 people who have sold over 28,000,000 good Karma Drinks in 23 countries.
All this has enabled the Karma Foundation to support farming communities in 8 villages in Sierra Leone and producers around the world. We’ve helped build 3 bridges, provided bursaries for 133 girls to go to school.
We’ve paid 8 teachers to educate a total of 614 children each year and established a revolving fund that has invested in more than 50 local entrepreneurs trading their way to a brighter future.
As we’ve grown we’ve encountered new challenges and restructured Karma Drinks to realise the opportunities ahead. While upgrading our executive and strategic direction we’ve also needed to adapt to a radically changing world struck by COIVD-19. The changes we’ve made allow us to be agile, resilient and viable in a post-coronavirus future and our new CEO, Ben Dando, is navigating this storm whilst finding way to make us faster.
Thanks from everyone at Karma Drinks, on behalf of everyone who benefits from the sale of our drinks.
The more drinks we sell, the more good we can do.
Working alongside the grower families in Sierra Leone who helped us produce our original Karma Cola has always been at the heart of Karma Drinks. This continues with profound benefits to the communities in the Tiwai District.
Work is underway to evolve the focus of the Foundation with a view to broaden its purpose, impact and appeal to consumers on both social and environmental initiatives.
Since launching in 2010, Karma Drinks has expanded beyond its original Karma Cola product; now it has a name that recognises that.
Karma Drinks’ growing product range now extends to over 20 SKUs and 7 flavours, resulting in a clear driver of a umbrella master brand.
This was implemented in November 2019 across all Karma Drinks products globally, to develop:
The Karma Drinks master brand is an umbrella for Karma Drinks’ growing product range. Karma Drinks has a pipeline full of innovative products, with scheduled activity to react to successful products throughout the plan
Karma Drinks have benefited from strong brand and product development capability. To compliment this we’ve added strength in leadership, execution and sales. We’re commercially more savvy and we’re much more resilient. We’ve evolved our sales strategy.
We’ve previously succeeded in cafés in NZ and the UK, but after a successful trial in Sainsbury’s, with our new product range and with new leadership, we are confident to take on more significant grocery, convenience and fuel channel customers. We are ready to succeed in high volume channels in NZ grocery with a full range of products, high rate-of-sale functional drinks and a cohesive overarching brand that delivers strong shelf-presence.
Karma Drink’s business was impacted by COVID-19, particularly in the UK and Europe, because a high portion of our sales are through hospitality channels.
The impact on revenue across the business was significant as hospitality businesses around the world were forced to close their doors.
The impact of COVID-19 on the business together with the appointment of our new CEO resulted in some significant changes to the business, which combined with recent innovations and developments will result in a more efficient, focused and profitable business.
Faced with the prospect of limited sales and cashflow constraints, management undertook a review of the business to develop a model that would reduce losses in the business and provide a rapid pathway to profitability. The new budget is based on a number of key initiatives to ensure the business can weather the economic impact of COVID-19 and emerge better placed to profitably grow in the future.
Albert Tucker (Chair of the Karma Cola Foundation) - a native of Sierra Leone, Albert has a track record in leading and building successful social enterprises, working with organisations including Cafédirect, Divine Chocolate and Twin Trading.
We have 20 employees globally, with 15 across New Zealand and 5 in London. We take exceptional care in recruitment and have appointed the key executives to drive our ambitions for the next 3 years.
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.