Little Island is a leading New Zealand plant-based food manufacturer, producing a range of dairy-free products with combined revenues of $5.7m for FY20.
The business was inspired by its founders and is led by an experienced management team, with strong support and governance from its board. Our vision is to challenge the traditional dairy market and to become part of the daily family diet by creating delicious products from the best plant-based ingredients.
The plant-based food segment is one of the fastest growing trends in the global food and beverage sector. This is primarily driven from consumer values being influenced by environmental, ethical and health concerns. Plant-based foods have quickly evolved over recent years from servicing a niche population to becoming mainstream.
The growth and size of the global market illustrates this growing trend. In 2018, global plant-based alternative product sales exceeded US$17.3bn, and is expected to reach US$29.6bn by 2023. The Asia Pacific market accounts for the largest share of the global market, followed by the US and Europe.
The maturity and success of the global market provides validation of the opportunity emerging in New Zealand. We estimate that the New Zealand market opportunity will follow similar growth trends and will reach $117m over the next 7 years.
Little Island was founded on the recognition that our food system is undergoing radical change, preferences are evolving and traditionally consumers have not had access to a wide range of quality, plant-based dairy products.
We believe Little Island can lead the plant-based food movement in New Zealand. Our core business is already a prominent brand across the premium plant-based milk and ice cream segments and our position will be strengthened following the integration of the yoghurt business. We are the only New Zealand company specialising in plant-based dairy alternative products with product coverage across the category, creating a unique competitive advantage in a highly competitive FMCG market.
We believe that New Zealand needed a food and beverage producer that is focused on sustainable plant-based food and beverage dairy alternatives. Little Island has become an expert in connecting with consumers by providing an aligned set of food and beverage products that are tasty and better for everyone.
Our two foundation brands are Little Island and Nice Blocks:
Little Island has agreed terms for the acquisition of a complementary plant-based yoghurt business. The addition of this yoghurt business will create a single-minded organisation that covers all aspects of the plant- based food industry, as well as providing consumers with a broader range of dairy alternative plant-based products.
Little Island has created an identifiable brand in the plant-based food and beverage segment. The business has benefited from its early entry in the NZ market with a 50% market share and forecast FY20 revenues of $5.7m for the post-acquisition combined group.
The fast paced and growing plant-based food and beverage segment provides compelling growth opportunities for Little Island, and we believe the strength of our brand and our competitive advantage places us in an excellent position to capture a significant share of it. We believe with additional capital, Little Island can sustainably grow sales to $22.2m by FY24, including $4.55m of export revenues.
We are now raising between $1.5m and $2m of growth capital at a pre-money equity valuation of $6.525m to drive our growth strategy. We have a clear growth strategy that aims to capitalise on the market growth opportunities and will focus on five key areas:
Our immediate focus will be on driving profitable growth within the NZ market, including creating a more scalable NZ centric position, before developing an export proposition that we can successfully take into specific target regions that have demonstrable strong growth in this market segment.
We love what we do and we love sharing our world-class, plant-based products with New Zealanders. This is our opportunity to strengthen the Little Island team at an exciting point in our growth journey, and we invite you to join us
Little Island's CEO and Board Chairman would welcome the opportunity to discuss the growth strategy for Little Island in one of the fastest growing food and beverage market segments.
If you wish to receive more information about the upcoming capital raise for Little Island, please leave your details and an indicative investment amount below. We will be in touch with all interested investors in due course.
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