Investor Webinar
Executive Summary
Zeffer is New Zealand’s fastest growing cider brand with a strong distribution network across Australasia. We see significant long-term growth opportunities in the cider and 0% alcohol categories and are raising $1.5m to ensure that we are well positioned to accelerate growth as Covid disruptions normalise.
Over the last 2 years, Zeffer’s growth has been heavily impacted by Covid disruptions. These included a reduction in bar and restaurant demand, disrupted
retail distribution and delays in the commissioning of our new production facility.
Despite these challenges, we have made strong underlying progress and improvements, positioning Zeffer well to capitalise on current market opportunities. These include:
- A simplified range focused on opportunities in NZ and Australia.
- Major production site upgrade, resulting in efficiency, capacity and gross margin improvements.
- Our 0% alcohol cider is now our largest selling product and one of the top performing products in the rapidly growing non-alcohol category.
- In NZ, Zeffer remains the fastest growing cider brand and we anticipate 48% growth in FY23.
- In Australia, we have recently launched our 0% cider in Coles Supermarkets and have first-mover advantage in this category with a plan to unlock additional distribution opportunities.
Having weathered the perfect storm during Covid, we have emerged in a strong position to grow revenue and profit. We are conducting a capital raise to invest in immediate NZ and Australian growth opportunities.
In the next 3 years, Zeffer is forecasting to grow to $12.4m revenue with $1m EBITDA.
Zeffer - Home of NZ Cider
- Recent site investment allows production to scale to over 6mL PA (from 1mL PA) and improve gross margin.
- Multiformat bottle and can packaging capability on site with tunnel pasteuriser.
- High level of beverage innovation capability with world class team.
- Home of Zeffer, hugely popular taproom and bar on site, with large event capability.
Storyline
Since Covid
Like many other FMCG companies, our trading environment was heavily impacted by Covid disruptions over the past 2 years.
In FY22 alone, approximately $2m of our forecast sales revenue was affected by:
- NZ bar and restaurant disruption.
- NZ supply chain disruption into Supermarkets and Liquor Stores.
- The temporary closure of our Taproom and Bar.
- The liquidation of our largest contract manufacturing client on the back of Covid trading impacts.
- Market and shipping disruption in Australia and China.
While these impacts were multi-channel and significant, we believe they are short term and largely the result of lockdowns and movement restrictions.
Since these disruptions, we have refocused our growth strategy on key opportunities in NZ and Australia including:
- Focused product offering in cider and 0% cider, categories where we know we can rapidly gain market share.
- In NZ, increasing our supermarket and liquor store distribution and opening tap opportunities through our exclusive distribution with Lion NZ.
- In Australia, capitalising on the launch of 0% cider into Coles Supermarkets.
As the impacts of Covid pass, we are already seeing positive signs of channels re-opening.
The commissioning of our site upgrades, coupled with the implementation of a LEAN manufacturing programme, is expected to deliver further gross margin and efficiency improvements.
We believe Zeffer is in a strong position to profitably execute key growth opportunities as we transition into a more normal post-covid trading environment.
Organisational Chart
Team Overview
Tim Chrisp Director (Non-Executive)
Tim joined the Zeffer board as a new director after the 2018 capital raise when Cedenco became a strategic investor in the business. Tim is the Managing Director of Cedenco Foods and brings a wealth of strategic and governance experience to the board. He currently holds directorships for a number of companies throughout New Zealand.
Josh Townsend Executive Director, Chief Executive Officer (Full-time)
Josh’s 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 turnover of $77k in 2011 to where it is today. Josh manages all external aspects of the business including sales, exports, brand direction, marketing strategy and key business relationships. He is now focusing his time on driving the overall Zeffer growth strategy which is collectively formed by the Board of Directors and Senior Management team.
Greg Small Executive Director, Chief Financial Officer (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 financial and logistical aspects of the business.
Hannah Bower Executive Director/ Founder, Human Resources Manager (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 now oversees Human Resources and sits as an active member on the Board of Directors. 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.
Simon Ansley Director (Non-Executive)
Simon is an Investment Director at New Zealand Trade & Enterprise. His teams have helped more than 500 companies successfully raise capital. Simon's background has primarily been in F&B, through a hospitality and coffee group he co-founded. Prior to joining the NZTE Investment team, Simon was a corporate and commercial lawyer in Auckland and London, where he worked in cross-jurisdictional mergers and acquisitions and fund-raising transactions, as well as commercial and intellectual property projects.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.