Zeffer Cider Co.

From humble beginnings in Matakana in 2009, Zeffer has grown to become an award winning craft cider brand and the largest independent, dedicated cider producer in New Zealand.

Minimum investment: $1,000.00

$1,200,000
Funded
Min target: $700,000 (13.46% equity) Max target: $1,200,000 (21.05% equity)
Ended Fri, 17 March 2017 9:00pm (NZST)
261 Number of investments
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$1,200,000 Funded
$700,000 Min target (13.46% equity)
$1,200,000 Max target (21.05% equity)
Offer closed 21:03pm, 17 Mar 2017

Executive Summary

From humble beginnings selling small batches at the Matakana Farmers Market in 2009, Zeffer has grown to become a leading craft cider brand and the largest independent, dedicated cider producer in New Zealand.

Today we're producing over 300,000 litres per year, roughly equivalent to around 1,000 bottles a day, with our cider being sold across NZ and exported to the USA, UK, Australia, Canada, China, Thailand, Singapore, Hong Kong and Japan.

Unlike many brands that produce cider from concentrate loaded with sugar, we use juice from freshly crushed Hawke’s Bay apples, creating an authentic New Zealand cider with a drier, crisper flavour. Outside of our award-winning core red and green apple range, we produce world leading, “new world” style ciders such as our Hopped and Apple Crumble ciders, using innovative local ingredients like kawakawa and NZ hops.

The Zeffer team is an incredibly talented and focused bunch that won’t allow anything less than excellence to end up inside a Zeffer bottle. My tastebuds aren't easily impressed and yet the team has never, across the smorgasbord of styles they produce, let me down. They're stylish, slick and seriously creative - and that's reflected in the quality of their cider. The Zeffer brand will hit the stratosphere if given half the chance - I'm convinced of that." - Yvonne Lorkin, Co-Founder of WineFriend and Wine & Beverages Editor for Dish Magazine

The cider market is experiencing rapid international growth, growing at 25% CAGR over the past 5 years (Zeffer has grown at 54% CAGR over the same period). Here at home, cider is the fastest growing alcohol category, and much like the trend in beer from mainstream to craft styles over the last five years, consumers are now also seeking a more premium, handcrafted cider. Unlike the craft beer market, the craft cider market is only now beginning to emerge. They are distinctly separate markets, but craft cider is likely to follow similar trends as craft beer has experienced over the past 10 years. With nationwide distribution and strong brand positioning, we’re set to grow with the premiumisation of the cider category.

While we currently export to nine markets around the world, this year we're honing our export focus on two of these markets: China and Thailand. Cider is starting to take off in these territories, so we’re working closely with the best Chinese and Thai distributors and are setting up local, dedicated staff to drive sales in these exciting, emerging markets.

In New Zealand, our distributor, Quench Collective is on track to continue to grow sales through their high call frequency and merchandising coverage in all key retail outlets. Last quarter we were the fastest growing cider brand in grocery, growing at 75% on the same period last year. We’re on track to reach over $1.75m in
sales in the current financial year and $2.6m revenue (with a profit of $52k) in the upcoming financial year. We’re also moving production from our existing cidery in Silverdale, north of Auckland, to the source of our apples in the sunny Hawke’s Bay, resulting in annual freight savings of approximately $200k.

To execute our Asian export strategy and increase domestic resources to drive growth, we’re now raising $700k to $1.2m through Snowball Effect, on a pre-money valuation of $4.5m.

We love what we do and we love sharing our world-class, unique cider with New Zealanders. This is our opportunity to strengthen the Zeffer team at an exciting point in our growth journey, by on-boarding the Kiwis who love our cider as shareholders. Join us as together we create New Zealand’s next FMCG success story.

Team Overview

Photo of Mike Brown

Mike Brown Chairman (non-executive)

Mike brings more than 20 years experience in the wine industry to Zeffer, along with a track record of leading growing business year on year through export growth. He was previously CEO of Tohu Wines and Waimea Estate, GM Sales & Marketing for Kono NZ (produces and markets wine, seafood and fruit), and sat as Chair of industry body Nelson Winegrowers for 6 years, and then on the board of New Zealand Winegrowers for a further 3 years. Mike is now based at New Zealand Trade & Enterprise (NZTE), where he works with F&B companies in the Nelson/Marlborough region focusing on their business strategy and export development.
Photo of Josh Townsend

Josh Townsend Executive Director, Sales and Marketing (full-time)

Josh has a marketing degree from the University of Otago. His entrepreneurial drive led to him joining Zeffer early in 2011 while playing professional rugby. Since joining, he has led the growth of the business from a turnover of $77k in 2011 to being on track to hit $1.75m in FY17. Josh manages all external aspects of the business including sales, exports, brand direction, marketing strategy and key business relationships. He is now focusing more of his time on driving Zeffer’s export growth and works closely with key stakeholders in Zeffer’s export markets.
Photo of Greg Small

Greg Small Executive Director, Finance and Operations (full-time)

Greg has a finance career spanning 12 years, which started with PWC and becoming a Chartered Accountant in 2009. His interest in the growing worldwide cider industry was sparked during a stint working in the UK, where he worked for Magners cider company. This led to his involvement with Zeffer upon returning to New Zealand in 2013. Greg oversees all internal aspects of the business including finance, production planning, operations and logistics.
Photo of Hannah Bower

Hannah Bower Founder, Non-Executive Director (part-time)

Hannah founded Zeffer with partner Sam in 2009. She comes from an advertising and marketing background and led the development and launch of the Zeffer brand. She stepped back from day to day involvement with Zeffer after the birth of their two girls and now sits as a member on Zeffer's board. She has a strong focus on the business staying true to its core values of quality, style and innovation, as well as the overall strategic direction of Zeffer.
Photo of Jody Scott

Jody Scott Head Cider Maker (full time)

Jody was born and raised in the cider regions of the United Kingdom. He has a first class honours degree in wine making and over 10 years of wine and cider making experience, having made wine and cider for some of the biggest brands throughout Europe, USA, Australia and here at home. He leads Zeffer’s production team and has won a number of prestigious cidermaking awards since his time with the company. He has been a judge at the International Wine and Spirits Competition, International Wine Challenge, Air New Zealand Wine Awards and is currently a judge at the Brewers Guild of New Zealand Beer and Cider Awards.
Photo of Sam Whitmore

Sam Whitmore Founder, Cider Maker

Sam founded Zeffer with partner Hannah in 2009. With a bachelor of viticulture and oenology and over 13 years of wine and cider making experience, Sam has a wide-ranging production skill set and specialises in cider making, quality control and new product development. He is also leading the current relocation of the cidery to the Hawke's Bay. Sam has a passion for being hands on in the cider making process from orchard to bottle.
Photo of Tony Marks

Tony Marks Strategic Advisor

Tony has an extensive background in consumer marketing, having worked for Air New Zealand where he ran worldwide sales and marketing for 10 years, Zespri where he was CEO, and Virgin where he was their inaugural CEO for international operations under the Pacific Blue Brand. Tony’s current career as an independent director spans organisations such as House of Travel, Ngai Tahu Tourism, Zespri, Auckland Transport, Leigh Fish and the Martin Jetpack Company. He was also Chairman of Redwood Cellars for 6 years and helped build the company’s Old Mout Cider brand into the country’s top-selling cider before leading the sale of the company to DB in 2012.

Warning statement

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.

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