Idea

Introduction

Charbrew is a specialist hot beverage brand created to introduce and expose the everyday consumer to high-quality hot beverage products. We have introduced innovative fruit and herbal product offerings designed to bolster the profitability of the hot beverage category. Recently the brand has expanded into the soft drinks market with a range of ready-to-drink ice teas.

In the UK Charbrew is listed in 230 Tesco stores and 270 Holland & Barrett stores as well as supplying into well recognised venues such as Manchester United and The Lowry Hotel. Charbrew has a confirmed launch with Waitrose which will see four Charbrew products listed in 79 stores from October.

Internationally Charbrew is listed with the TJX group - one of the largest international home apparel and home fashion off-price department store chains in the world.

Intended impact

The Charbrew brand is at an early yet strong position. With limited new entrants into the supermarket tea aisles, we believe we have broken the mould and built traction with reputable retailers. The company requires funding to catalyse the already growing awareness and distribution of Charbrew products.

Charbrew has a clear defined strategy for growth, with a strong focus into the core beverage retail markets. This provides a platform and strategic opportunity for a strong structured brand build with significant value creation.

Substantial accomplishments to date

Our unaudited accounts show that year on year Charbrew has demonstrated a strong positive trajectory increasing in turnover and strengthening margin. In the last year alone (2013) Charbrew has reduced operating expenses by 29.2% (£148k to £104k) whilst increasing turnover by 36.27% (£144K to £226k) and reducing losses by 74.65% (£102k to £26K).

In the UK Charbrew is listed in 230 Tesco stores and 270 Holland and Barrett stores as well as supplying into well recognised venues such as Manchester United and The Lowry Hotel. Charbrew has a confirmed launch with Waitrose which will see four Charbrew products listed in 79 stores from October.

Internationally Charbrew is listed with the TJX group- the largest international home apparel and home fashion off-price department store chain in the world. Other notable international accounts include Ross Stores on the East Coast of America.

The company also has a planned October launch with Burlington Stores and is in negotiations with Walgreens.

Charbrew received investment from the North West Fund in 2011 and they remain supportive of the company.

Monetisation strategy

Over the past few years, Charbrew has successfully developed a business that has proven income streams in both the UK and International markets with retail listings including Tesco, Holland and Barrett, TJX and Ross Stores. In food-service Charbrew is available in Manchester United’s Old Trafford Stadium, the Lowry Hotel as well as nearly 20 hotels in and around London. The success of Charbrew is important in two ways; it is proof that there is scope outside of the traditional tea branding, and that the market is buoyant for the Charbrew brand.

The next stage of growth is focusing on increasing Charbrew’s sales and revenues with existing and new customers, developing the core customer base and leveraging Charbrew’s lean and cost effective structure delivering a ROI to shareholders. 80% of consumers of fruit, herbal and ice teas buy them at the supermarket which is why we intend to extend Charbrew products to more supermarket chains where the brand can develop traction and presence with the right on-shelf investment.

The short term view is to develop the main core of the business in the UK retail market, to build Charbrew as a recognized supermarket shelf brand. Through a combination of on-shelf promotions as well as ongoing sales efforts we aim to increase levels of distribution and will in turn build a strong loyal core customer base.

The mid-long term view is to develop Charbrew on an international retail basis targeting high per capita established tea drinking countries the main target being North America. This development phase is in motion targeting key distributors and multiples in these countries.

The Charbrew brand is at an early yet unique position with limited new entrants into the supermarket tea aisles we have broken the mould and built traction with reputable retailers. The company requires funding to catalyse the already growing awareness and distribution of Charbrew products.

Use of proceeds

1 Additional Business Development Executive

This business development Executive will be trained by Adam Soliman and will work alongside Robert Hunt the existing Development Executive helping support the UK sales development.

1 Marketing Executive

An in-house marketing executive will report directly to Adam Soliman and will enable the business to increase its customer engagement and brand message through social media and press relations.

Direct On Shelf Promotion and In Store Marketing Support

We have proven that on-shelf promotions are the key driver to building a core customer base before any form of advertising spend our aims are to increase the rates of sale and gain expansions to more estates in our current listing by driving consumer purchase.

International Sales Development

Our international sales development will focus on North American where the brand has had early stage success.

Working Capital of Stock.