Karma Drinks Investment offer preview

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Karma Drinks

Karma Drinks is a functional beverages business that produces a range of organic sodas, probiotic kombuchas and switchels. Their drinks are made from real ingredients that give back to growers through the Karma Foundation. They have won global taste, design and ethical awards, and the Foundation is unique and ensures brand authenticity.

The Karma points of difference match consumer demand. Millenials and younger generations are increasingly demanding authenticity from the products and services they buy. Karma Drinks has positioned itself to take advantage of the rapid growth in consumer awareness and demand for the benefits of organic beverages.

Karma Drinks has a proven track record of market entry and expansion in the most demanding markets in the world. The business generated approximately $12m in sales last year.

In early 2020 Karma Drinks made a number of key leadership hires across their New Zealand and UK markets and believe they are well positioned to execute on an exciting growth strategy targeting more than $21m revenue over the next 2 years. 

As a result of the impact of COIVID-19, Karma Drinks have refined their global expansion plans including new-product development and expansion into new sales channels. Over the course of the next 12-18 months their focus is on continuing to drive value through key markets in New Zealand, Australia and the UK which will result in an efficient, focused and profitable business.

Business results over the last 3 months have been well ahead of the COVID adjusted budget (up to 75%). While the next 2 years will be challenging with difficult trading conditions for a number of hospitality customers and potential on-going shut-downs in the UK and NZ, there is also significant opportunity in grocery and convenience sales channels and strong growth foreseen for functional and plant based drinks.

Following an upcoming pre-emptive offer to existing shareholders, wholesale investors will have the opportunity to invest into Karma Drinks via a convertible note offering an annual 10% cash yield (paid quarterly), and a 25% discount to the next equity round. Expressions of interest (min $10k) are now being taken.

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About Snowball Effect

Snowball Effect is a New Zealand-based online investing marketplace, that enables New Zealand companies to offer shares to members of the public. Snowball Effect was founded in 2012 and launched in August 2014, after being one of the first to acquire an equity crowdfunding license from the New Zealand Financial Markets Authority (FMA). Over NZ$100 million has been raised on the platform.