Quarterly Summary September to December 2024
We Are Nicoya
Nicoya is investing in a more sustainable food system, focusing on:
• Lifestyle Brands - Brands that challenge eating habits encouraging people to adopt a greener, healthier, and more nutritious diet in the long term
• Food Infrastructure - Businesses that enable people to eat sustainably produced foods, or supply the food system with approved new ingredients and technologies
By investing in brands and infrastructure Nicoya targets both sides of the transformation
Nicoya is a niche investor in the food system transformation, investing for a more sustainable food system.
We are driven by our commitment to making a meaningful impact on people’s lives, their health, and the planet. Nicoya is where emerging, revolutionary food concepts are crafted and developed before landing on consumers’ plates. Together with passionate entrepreneurs, we are part of the force transforming the global food systems.
At Nicoya, we turn ideas into reality. We draw upon our deep industry knowledge in FMCG, brand strategy, and finance to make informed consumer-driven investments in ambitious startups within the food industry.
We target scalable and commercially viable companies that are reimagining food production, meals and distribution. As active investors, we partner with startups early on in their journey and guide them through the complex industry landscape. We streamline startups’ acceleration path by developing their product proposition and route-to-market strategy to deliver brand-driven growth.
At Nicoya, we are fueled by consumer behavior and data. Companies often forget that the consumer is the one in the driver’s seat – not the other way around, a mistake that often results in product launches that fail to resonate with consumers.
That is why consumer insights are always at the core of both our investment decisions and the acceleration journey of our portfolio companies.
We are Nicoya. Changing food for good.
Key events during quarter
Key events during quarter
• Successfully closed Nicoya fundraising of 80 mSEK, of which 30 mSEK were new funds
• NAV Q4 at 417 mSEK (+23% Q/Q)
• Secured fundraising for El Taco Truck to reach profitability during H1 2025
• Secured a strategic merger between Farmers & Chefs and Aloba Investment activity during quarter
• Invested 4 mSEK in El Taco Truck
• Invested 0.5 MSEK in Farmers & Chefs as part of the merger with Aloba
• Sold Inika Superfoods to third party
• Discontinued Kiano Life
Key events after quarter
• Helped secure Foodiq fundraising of around 10 mEUR, of which Nicoya participated with 1 mEUR. The funds will secure investment in JV in UAE, clear historic debts and provide 18 months of operational runway
CEO PERSPECTIVE
Dear Investors,
As we conclude 2024, I am excited to share key insights into our strategic progress and the steps we are taking to accelerate our portfolio companies. As you are aware, 2024 continued to be a challenging year for the food tech investment vertical. However, beyond our individual efforts, we are beginning to observe a brighter macroeconomic landscape. Decreasing interest rates and inflationary pressures provide a more favorable environment for consumer spending. This shift not only supports our investments who have strong foundations in innovation and consumer reach and relevance to build from, but also fuels optimism within the food tech vertical as a whole.
In Q4 2024 Nicoya successfully raised a total of 80 mSEK, of which ~30 mSEK was new funds. These new funds will allow us to continue to support our strategic core portfolio on its path towards sustainable, profitable growth. We’d like to extend our warm gratitude for the continued support from our investment community!
The Net Asset Value for Q4 2024 came in at 417 mSEK (+23% Q/Q), with the underlying portfolio flat. The investment activity during the quarter includes two strategic investments into our core portfolio – El Taco Truck and Farmers & Chefs, divestment of Inika Superfoods and discontinuation of Kiano Life.
During 2024 we further sharpened our focus on the “path to profitability” initiative across the portfolio, to enhance financial performance and ensure sustainable growth. The result for 2024 is growing top-line across most of our portfolio companies, with increased margins and lowered spend. Looking ahead at 2025 we expect to start reaping the
benefits from the work that has been put in also from a fair value perspective as the portfolio continues to deliver on set milestones, and as the macroeconomic landscape brightens.
Some portfolio highlights for the quarter include Foodiq that has pivoted its business model into technology licensing of its proprietary manufacturing technology. The new business model has received strong customer traction and steps for creating an attractive JV in the GCC region is underway. Moreover, Foodiq has during the beginning of the year secured new financing of around 10 mEUR which is a tremendous achievement and enables delivery of the growth plan for 2025 and beyond. N!CK’s has experienced headwind with macroeconomic factors during 2024, but as the company as adapted its pricing and cost structure accordingly the outlook for 2025 is very promising from a growth and margin perspective. El Taco Truck closed the year in line with budget, growing 20% Y/Y and several big growth opportunities are being pursued for 2025. The growth is being delivered with a backdrop of structural financial improvements, positioning El Taco Truck for becoming profitable during H1 2025. Farmers & Chefs has finalized a successful merger with Aloba, achieving a stronger company with complementary assortment and team competences. As part of the merger, we are also welcoming new missionaligned investors to Farmers & Chefs, including founders of Santa Maria. We are seeing a positive start to the year, with sales above budget and multiple new listings that will kick in towards the second half of the year.
Looking ahead at 2025 we will continue to closely support our core portfolio from a business and financing perspective, while supporting our non-core assets strategically. We will
continue our focus on “path to profitability” while exploring diversified growth opportunities and managing risk effectively.
Lastly, we’ve done our third year of sustainability reporting in line with EU’s SFDR. I’m delighted to learn about all the impact initiatives happening throughout the portfolio that don't always get mentioned in the regular business updates. Please see pages 7-9 for a glimpse of some findings from the sustainability reporting 2024.
As we embark on another year, I remain confident. Our focus on innovation, strong operational fundamentals, and strategic funding initiatives will continue to position us favorably. I want to express my gratitude to our dedicated team, investors, and partners for their steadfast support as we navigate this journey toward achieving our shared vision – to Change Food for Good.
Thank you all for your continued support.
Best regards, Christopher Slim
Please follow us on LinkedIn and our website.
GREENFOOD FOODTECH TREND REPORT
Nicoya CEO Christopher Slim was interviewed by Greenfood, a leading European player in the healthy food sector, to share his insights and perspectives on the foodtech sector for Greenfood’s Foodtech Trend Report. The published interview with Christopher follows on the coming pages.
If you are interested in reading the full report you can find it here – Greenfood – Foodtech Trend Report
NICOYA SUSTAINABILITY 2024
We invest in companies with intentional and positive impact on people, planet and health at the core of their businesses, backing categorydefining companies accelerating the food system transformation.
Nicoya was founded upon the wish of Changing Food for Good. It’s our tagline and one we’re very proud to base our efforts on. The food system is vast and to play to our strengths, where we can add the most value as investors, we’ve chosen to focus on consumer-centric innovations and technologies. We believe that consumers are the driving force behind the food system shift.
For the third year we have conducted a sustainability review of our investments. We base this review on EU's Sustainable Finance Disclosure Regulation (SFDR).
Our portfolio consists of two verticals, each with its own set of impact drivers:
Our portfolio collectively contribute to the following UN SDGs:
Impact drivers
• No refined sugar or artificial sweeteners
• Organic & Clean label
• Healthy & nutritious food
• Alternative protein and production
• Next-generation supply chain
• Food security
NICOYA KEY SUSTAINABILITY INSIGHTS
Climate
Rationale: Reduce Greenhouse Gas Emissions and Environmental footprint through greener product offers and business practices
of portfolio value are investments in alternative protein 58% of portfolio value are investments in food infrastructure 26%
Health
Rationale: Reduce overweight and diabetes by investing in better-for-you food helping people improve their health and well-being
of portfolio value are investments in what’s considered clean-label of portfolio value are investments that avoid refined sugar in their products
Gender balance
Rationale: Promote diverse teams by tracking gender balance, defined as 35-65% females, and # of female founders
of investments have gender-balanced management
ultra-processed food products across entire portfolio
of investments have female founders of investments have genderbalanced boards
SUSTAINABILITY SPOTLIGHT: HEALTH
2024 was a year of significant growth for Ozempic and other GLP1-based medicines. Only in the US, more than 12% of adults have used them for weight loss or diabetes management. Meanwhile, diabetes continues to grow globally, affecting over 500 million adults - 1 in 10.
Most know the planet is burning whereas we need to burn calories. Making healthy choices isn’t always easy, but research shows that personal health is the strongest driver for adopting a more sustainable lifestyle.
This is the context in which we find N!CK’S. A company, whose founder was diagnosed with prediabetes ten years ago, prompting a lifestyle change - and luckily for us, led him to create tasty treats without compromises.
During 2024, people made a healthier choice on more than 30 million occasions thanks to N!CK’S
NAV Development & Portfolio Update
NICOYA PORTFOLIO OVERVIEW
All core holdings have displayed good resilience during the quarter with a fair value development of around +8 mSEK (+2% Q/Q). NAV for Q4 came in at 417 mSEK (+23% Q/Q), driven by Nicoya’s financing round during the quarter.
Q4 valuation comments by Deloitte:
Following 2023, a year of political and economic volatility, the challenging and unstable market environment continued throughout 2024, a year characterized by geopolitical turmoil. However, we note there are reasons to be cautiously optimistic entering 2025. There are signs indicating a slight market improvement, especially consumer spending and gradually decreasing interest rates. However, it appears to be some lag in food tech market multiples. Additionally, private markets are gaining momentum with increased deal activity and investor risk appetite. This trend is evident in Nicoya's holdings, which saw several financing rounds during this quarter, including a round in Nicoya itself. The financing round in Nicoya demonstrated a regained interest in the food tech sector.
The estimated fair value of Nicoya’s holdings is 392 mSEK, an increase by around 8 mSEK (+2%) during Q4 2024, of which 7 mSEK is attributable to investments. Nicoya’s portfolio consists of 13 portfolio holdings.
During the quarter Inika Superfoods was divested to a third party, and Kiano Life was discontinued. As Farmers & Chefs is the sole company remaining active under the umbrella that was previously referred to as Revel Foods, we have chosen to display Farmers & Chefs standalone as a core asset from now onwards.
During the quarter Nicoya conducted a financing round in which 30 mSEK was raised and convertible holders set off the full convertible amount of approximately 50 mSEK. Several additional financing rounds have occurred during Q4. Foodiq raised 0.7 mEUR in newly issued shares with participation from two investors, one new and one existing. El Taco Truck closed a funding round during the quarter of around 5 mSEK with participations from several internal and external investors, of which Nicoya invested around 4 mSEK. During the quarter, Farmers & Chefs completed the merger with Aloba Foods and as part of the transaction converted outstanding convertible notes.
Nicoya NAV
1 We have applied the fully-diluted ownership figures when applicable, i.e., including maximum dilution from outstanding stock options. 2) Currently, the
the fair value estimate at its nominal amount. Valuation methodology to be assessed on an ongoing basis.
Note: Holdings in Oda, Oatlaws, Paradiset and HappyHabits not shown as the value of these assets have been written down to 0.
By and large, the fair value of Nicoya’s portfolio companies on an 100%-basis is estimated at c. SEK 3,331m and the NAV as per Q4 2024 comes in at SEK 417m, adjusted for net cash (or equivalent) of SEK 26m. Ultimately, the NAV is up some 23% on a Q/Q basis. As the fair value of Nicoya’s holdings increased by 2%, the upwards adjustment of 23% in NAV primarily relates to the change from a net debt position to a net cash position in Nicoya, following the recent funding round.
Primary valuation methodology for N!CK’s, Foodiq, El Taco Truck and Farmers & Chefs remains the market approach with revenue multiples, as it is deemed the most appropriate metric considering the early stage and high growth profile. Multiples are supported by market-based indications and relevant primary transactions (unchanged from prior quarters) in combination with a milestone approach where deemed relevant. Where relevant the valuation in the last external financing round has been applied. The remaining portfolio holdings (Splendid Spoon, Vertical Harvest, Julienne Bruno, Peas of Heaven and InsightMe, Oatlaws, Oda, Paradiset and Happy Habits) have not been considered nor valued following the revised scope. In Q3 multiple tail assets were written down to zero (Oda, HappyHabits, Oatlaws, Paradiset) and are thus excluded from the overview.
What they do
N!CK’s is a leader in better-for-you snacks and sugar elimination, closing the gap between indulgent and healthy through food innovation. The market opportunity is massive at 129 bnUSD in categories and markets N!CK’s is already present. With world leading innovation and commercialization strategy N!Ck’s have become the fastest growing national pint ice cream brand in the US. And with a global in-house R&D, own factory in Europe and co-packers across both Europe and the US, N!Ck’s is geared for scaling to the next level.
Why we are excited about N!CK’s
N!CK’s has established themselves as a leader both in innovation and commercialization of better-for you snacking market. They have already proven their ability to efficiently scale with presence in 15K retail stores in the US, and becoming a leading category brand in 10 countries. They have a strong growth plan in place for 2025 and beyond, forecasting profitability during 2027. We are very excited to continue to support N!CK’s on their journey forward.
Milestones Achieved Q4 2024
• Revenue of around 48 mUSD during 2024
• First quarter cash flow positive
• 9 brand in ice cream pints in the US and #3 in better-for-you category
• Launched production facility and increased capacity >2X
1.5 N!CK's products sold very second!
FOODIQ
What they do
Foodiq’s innovative manufacturing technology (MLC) enables food manufacturers to innovate nutritionally enhanced and clean label foods, test them with flexible-batch productions and introduce the products to the market through local production – all at a fraction of the cost and time-tomarket vs. traditional manufacturing process. The growth strategy builds on licensing of MLC production lines to food producers and other industry players along the value chain.
Why we are excited about Foodiq
The market opportunity for Foodiq’s technology is immense and growing driven by megatrends in health and sustainability, and a need for a more efficient food system. Foodiq has a proven technology, with a technology patent pending. The pivoted business model in technology licensing is getting strong traction and is very attractive from a financial standpoint. We believe Foodiq is geared for scale and believe 2025 will be the big turning point.
Milestones Achieved Q4 2024
• First international MLC licensing deal with a significant revenue potential signed with large industrial company in UAE
• Patent application filed - MLC technology patent pending
El Taco Truck
What they do
El Taco Truck is the No1 premium challenger brand disrupting the Tex-Mex category with an authentic Mexican food experience, an all-vegan portfolio and an innovative retail concept. El Taco truck operates on an attractive market at a value of 5 bnSEK in the Nordics and with another 5 bnSEK in Western Europe. El Taco Truck has a strong track record delivering 70+ mSEK annual revenue in 4 years (CAGR 39%), currently present in 6 markets.
Why we are excited about El Taco Truck
El Taco Truck has made a successful transition into the retail space, quickly becoming the category leader in better-for-you Mexican food. The company has a strong track record in innovation, building long-term customer relationships and expansion to new markets – delivering strong revenue growth and improving margins. A rapid European expansion is under way 2024-2026, including listing with Costco in multiple markets, which we believe will take El Taco Truck to the next level. We expect a large milestone in becoming profitable being reached during H1 2025.
Milestones Achieved Q4 2024
• 2024 revenue at around 70 mSEK, up +20% vs YA, GM% +1%, vs YA
• Expansion into two new countries via Costco (UK and Spain), and a strong innovation plan developed for 2025
• Cash burn ix30 vs YA 2024, structural financial improvements are expected to kick in as of Q1 2025 Deep-dive CEO interview on following pages!
Farmers & Chefs
What they do
Farmers & Chefs is propelling plant-based cooking as the natural choice, with 100% plant-based, healthy and tasty cooking products. Farmers & Chefs has brought a new meal concept “Eat More Greens” into retail that simplifies everyday cooking and makes it greener. Farmers & Chefs operates across several sizeable categories with a market value of > 14 bnSEK in Sweden alone.
The broad listings in 70% of Swedish retail and 50% of Finnish retail is a strong fundament for growth, with large distribution upsides.
Why we are excited about Farmers & Chefs
Farmers & Chefs has a proven product portfolio and innovation strategy, being No 1 in plant-based bearnaise in Sweden. The recent merger with Aloba will enable Farmers & Chefs to broaden its product portfolio and enter the food service sector which will catalyze growth during 2025 and onwards, with underlying healthy gross margins. We believe Farmers & Chefs are set for delivering a transformative business during 2025.
Milestones Achieved Q4 2024
• Finalized successful merger of Farmers & Chefs with Aloba
• Ensured funds via merger for 2025
• Achieved a total 32 new listings for period Nov'24 - Feb’25
• Started Food Service assortment and achieved first business
Building an authentic brand and challenging large incumbent players: Interview with Robert Wranning CEO at EL TACO TRUCK
Q4 2024 | Interview
El Taco Truck is the food truck that stepped into retail, filling the shelves with its colorful pink brand and mouth-watering authentic Mexican products. After entering the UK with Costco this summer, it is now available in six countries, and Nicoya has been an active investor since its original launch into Swedish retail in 2020. What can be expected from this innovative, playful company that is taking up a fight against the dominant, established players in the taco market?
What are El Taco Truck’s biggest milestones achieved so far?
Besides the fact that our first year of launch in Sweden was 30Msek (which is pretty much unheard of in the business), I think the continued expansion to establish ourselves in 6 markets are all very significant and important milestones for us.
Having pioneered the restaurant-style bottles into trade, first as chilled back in 2020 and then a few years ago, into the dry Tex-Mex shelf are two other milestones that we are proud of. Not only because we have delivered on what we have promised (which is a very important principle for El Taco Truck and myself
personally), i.e. driving innovation and growth in the category, we are also very proud of the consumer response we get and that constantly reminds us that we are doing a lot of good (and tasty!) stuff.
Perhaps not the most significant milestone, but one very close to our heart is when we moved to our own office back in April 2023. This has meant a lot for us as a team.
El Taco Truck is a very vibrant brand. Tell us more about (the importance of) it!
In today’s retail environment with private label being a very significant part of all categories, having a strong brand that is hard to copy is more important than ever, and we have that. We have a unique history of being Sweden’s first food truck, and that is unchallengeable.
The founders have successfully created a brand that stands out and has a special aura around it. It stands out, yes, but in a very natural and playful way and it is of course one of our key reasons for being where we are today. Our brand identity and everything we do is sprung from the founders’ inspiration for the Mexican street food kitchen, which has lead to our position as the challenger in the category.
What’s the secret ingredient to win in retail?
The secret ingredient is that there is none. If there was I would OFF COURSE share it with you
It comes down to many things that have to come together consistently, in order to reach results. The closest thing to a secret ingredient (besides great products) is
winning in-store. Without being present at the right place in the right way you are not giving yourself a chance to win. You have to have the basics right, but also as a new brand, you have to constantly relate to the habit-driven consumers and help them try new (taco) things. The best way to do that is in-store.
How does El Taco Truck convince traditional customers who think that 100% vegan means a less tasty experience?
The reason we have vegan products is that we want to be available for all, and many consumers are actually not always aware that the products are vegan. I think that says a lot. Vegan or plant-based does not mean less tasty, and we want to make sure that we reach also the consumers who do not search for vegan, we help them find it.
What’s trending in taco and what can we expect on the next level?
What’s funny about tacos in the Nordics is that it’s quite habit-driven, consumers love their tacos and it never goes out of style. Everyone (well almost) loves tacos and a reason for that is the convenience it gives you. That trend is here to stay and we will continue to help consumers upgrade their tacos - in an easy way. Much like we have done with our fresh guacamole (with 95% avocado) and our convenient squeeze bottles that you can simply put on the table, and it still looks very nice.
Consumers are also seeking and being exposed to more inspiration from around the world, where Mexico is becoming a more and more common travel destination for Nordic consumers. This is another trend we want to leverage.
stubborn helps) and learn from mistakes.
In a start-up company, many things are coming our way in terms of opportunities to grasp. I think key learning is to dare to go for the opportunities that you really believe can make a difference but only try to go for those.
What are your key learnings from leading a start-up?
Oh where do I start? There are many things we have done great during the last 4 years and off course many mistakes. That’s probably the first learning, that mistakes will happen, it’s only important that you fail fast (ie not being too
What are your key learnings from leading a start-up? (Cont.)
Focus is extremely important, and it needs to be balanced with the flexibility and “goget” mentality we possess as a startup. This also goes back to “failing fast” and quickly understanding which initiatives we see becoming successful and which ones do not, is key in order for us to quickly adopt, learn, and win.
The third learning sounds like a cliché, but is very true. The team is the greatest asset we have and having people that are prepared to handle complex challenges and are prepared to go for all the opportunities that we believe are the right ones, day in and day out, is an absolute key. We have a flat organization and everyone is given a lot of freedom in their job to really make a difference. With that comes a lot of responsibility and it is not for everyone. I think especially handling a high level of uncertainty in many situations is something that you learn in this job and
it’s something that I worked with a lot to improve for myself and the team during these years.
Where do you see El Taco Truck in 5 years?
In 5 years, El Taco Truck will be an even more natural choice for Nordic consumers and abroad and many consumers will be eating an “all El Taco Truck” dinner. More single households vs today will be eating tacos simply because it’s one of the best taste experiences you get from the grocery store.
We will also be a significantly bigger team, we will be a large player within our area and we will have established ourselves much deeper in all Nordic markets. Our portfolio of products will have grown drastically vs today and many other companies (much like today) will have followed in our footsteps, as we continue to develop the category and give consumers a leveled-up taco experience.
Financial Report
Christopher Slim, Co-founder & CEO
