MADE & TESTED IN NEW ZEALAND
Zoop • Presentation | March 2021
WE ARE CREATING AN OUTDOOR SPORTS BRAND IN HIGH PERFORMANCE SKIN PROTECTION made from PLANT-BASED & SUSTAINABLE ingredients WITH A CIRCULAR REDUCE, REFILL & RECYCLE PHILOSOPHY We have created a portfolio of high performance products that harness the ingenuity of nature and are trusted to perform under the most extreme conditions. We have re-imagined sunscreen and skin protection for the outdoor athletes and their extreme needs. We work with outdoor performance athletes to design and create products that work really hard. All our products are designed, made and tested in the outdoor playground of our home, New Zealand.
ZOOP’s Mission Statement
TREAD LIGHTLY LEAVE A BIG IMPRESSION™ We have re-engineered the sunscreen and skin protection supply chain to foster social and environmental sustainability. We are guided by the ZOOP LOOP of PLANET – PEOPLE – BODY – PROTECT We have built the brand around our circular reduce - refill and recycle philosophy
WHATS IN A NAME? ZOOP – onomatopoeia ZOOP is the word for getting outdoors and doing activities that make you happy to be alive. ZOOP is the word for movement. ZOOP is the word when you feel the fresh mountain air or the first rays of sun on your skin. ZOOP is the word for that feeling you get, when you finally kill that new trick. ZOOP is the word for that adrenaline rush when you take that jump.
ZOOP™ is trademarked in NZ, Australia, UK and in process in USA TREAD LIGHTLY, LEAVE A BIG IMPRESSION™ is trademarked in NZ, Australia, UK and USA
CURRENT RANGE
WE CREATE PERFORMANCE SKIN PROTECTION FOR PEOPLE WHO LIVE FOR THE JOURNEY. WHO HIKE AND SURF ALONG THE WAY. WHO CLIMB A VOLCANO, SKI OFF IT AND BIKE HOME!
WASH BLOCKS • •
Castile All in One Soap (Camping Bar) Shampoo and Body (Glamping Bar)
face + body
sun
• •
• •
High SPF Moisturiser Aloe Vera Gel
CLICK HERE TO SEE ZOOP’s 2022 RANGE
Pro and Mineral Sunscreen Lip and Face Balm
SUNSCREEN LAVA / PRO FORMULA
PLANT-POWERED PERFORMANCE MEETS SKIN SCIENCE CORAL / MINERAL FORMULA
ZOOP have spent 3 years working with Dermatest, the top development and sunscreen testing lab in Australia. Our aim is to be the most tested and trusted sunscreen brand. All of our products have been tested to the highest standards globally for both Broad Spectrum protection and SPF ratings. Our products are reef safe and comply with the Hawaii Reef Bill. We have created unique formulas that reflect the volcanic and oceanic landscapes of New Zealand.
PERFORMANCE
CUTTING EDGE SKIN SCIENCE MEETS MOTHER NATURE ZOOP has created unique performance formulas designed for the specific requirements of the elite outdoor athlete. We went back to the drawing board and engineered a technical formula that utilises the latest in skin technology creating a high performance protection layer whilst maintaining a gentleness on the body and the planet. Did you know that there are only two types of sunscreen? Physical and Chemical. Physical creates a physical barrier on top of the skin…like zinc. Chemical is absorbed into the skin and scatters the UV rays Both types have their pros and cons. We have taken the best of both to create our unique high performance Mineral and Chemical formulas.
PERFORMANCE ZOOP is the first and only sunscreen brand to have a refillable system to reduce packaging waste
THE WORLD’S FIRST REFILLABLE SUNSCREEN: AN INTERCHANGEABLE DISPENSING SYSTEM Our containers and caps have been designed to be interchangeable. ZOOP ‘s system is designed for easy switching between performance pop-caps or lockable pump caps depending on technical requirements. The system is designed for ease of use in performance environments . All containers have been designed with the same opening – allows easy refilling
ZOOP products come in containers made from sugar cane. Our containers are designed with a wider opening to be reused and refilled to reduce waste.
BRAND STRATEGY & POSITIONING
The Zoop Loop - Our 3 Pillars are what hold us high PEOPLE
PLANET
We exist to make lives better. We believe that getting outdoors is important to both our physical and mental health. The sun is our friend and with the right products, knowledge and help we can all live the outdoor life.
We have designed ZOOP to leave no trace. We use planet positive sustainable packaging from sugar cane. Our products are purposefully designed to be used over and over and refilled.
PROTECT This is the core of our company • we protect each other • we protect the planet • we protect our bodies if we cannot tick all 3 then we do not do it.
You will find it on every label
BODY We create the most technically engineered but gentle, natural products possible. Our products are tested to perform under the most extreme conditions and are trusted by elite performance athletes.
ALL OUR PRODUCTS ARE PLANT-POWERED
BODY PRODUCTS
We have built the foundations of our products around the unique natural Kiwi powerhouses of Manuka Honey (Antioxidant) and Kiwifruit (Vitamin C) Manuka Honey
Kiwifruit
We use the ingenuity & power of nature to create products that perform and work hard whilst being gentle on the body.
• • • •
We put our products through hours of testing by elite outdoor athletes to ensure that they perform and protect. All our products are made and tested in the wilds of New Zealand. We build the foundations of our products from locally sourced ingredients. All our products are plant-based.
PLANET MADE & TESTED IN THE WILDS OF NEW ZEALAND
OUR GOAL IS TO BECOME A B-CORP Our company goal is to be B Corp certified by 2023. B Corp Certification doesn’t just evaluate a product or service; it assesses the overall positive impact of the company that stands behind it.
We designed the company around the the Reduce – Use – Refill - Recycle system We take ownership of anything we put into the world throughout its entire lifecycle. Before we design a new product we ensure its fully suustaianble e.g. We have created reusable aluminium soap tins for our camping and glamping bars to limit the use of plastic in the wilderness.
• • •
We only use sustainable packaging made from low impact managed sugar cane and labels created from wood pulp. Our business model is structured around the refilling and reuse of our product containers. We live by our philosophy to “Tread lightly, leave a big impression”
PEOPLE
OUR GOAL IS TO PROMOTE AN OUTDOOR LIFE
EDUCATION
We will give people the tools to enjoy an outdoors life safely. We want people to explore and connect with the natural world
Our goal is to supply NZ schools with a refillable sunscreen solution to provide a practical example of a sustainable product, together with an education program on the sun and how we can protect ourselves from it.
• • •
We will promote outdoor activities for all. We will develop sponsorship with leading elite outdoor athletes We will partner with outdoor sports events
BRAND BUILDING
OUR WHY, HOW & WHAT
WHY
We believe in getting outdoors and doing activities that make us happy to be alive. We believe in being active, the world of movement, feeling the fresh mountain air or the first rays of sun on our skin. We believe in getting out of bed in the morning with the purpose of feeling good, killing that new trick or practicing many of the oldest tricks in the book.
HOW
We love to create things that simplify our lives and that we trust. We harness the ingenuity of nature to create powerful, natural and sustainable products that adapt to our demanding active lifestyles. We create clean and honest performance products that handle the harshest and most extreme of environments.
WHAT
We make high performance sustainable sunscreen and skin protection for outdoor athletes.
TARGETED DIGITAL COMMUNITY BUILDING OUTDOOR COMMUNITY LIVE ON THEIR PHONES We will build interest and community across digital platforms – Instagram lead • • • •
Brand lifestyle stories – athlete activation Real world depictions Lifestyle not products Trusted authentic NZ brand with integrity
BIKE & BOARDS STRATEGY Focus on key sports and groups • cycling is booming • seed in skateboarding / climbing • snowboarding and surfing Focus on bike shops and outdoor/ ski • create refilling for stores • Z stand with refilling station • First skin protection products in stores
BE A SPORTS BRAND
ACT LIKE A SPORTS BRAND
ATHLETES &INFLUENCERS • • •
Sponsor the skin of an athlete largest non –sponsored area of an athlete Be authentic Be different / unique
• • •
Build at grassroots events Get product in their hands to see it work instantly Live in the community
MARKET ANALYSIS & OPPORTUNITY
MARKET ANALYSIS
BEYOND SUNSCREEN - BODY CARE & SUN CARE OBSESSION Rapidly growing market – US CAGR 5% - AUS CAGR 7.4%
• • • •
Enhanced products with SPF sun care driving sales in US, EMEA & APAC Natural and environmentally friendly leading growth Consumers choosing low impact products Performance, enhanced and sport drive extra engagement
MARKET ANALYSIS
THE BODYCARE MARKET IS FRAGMENTED INTO TWO PARTS
OPPORTUNITY TO BE A SPORTS BRAND
1) Large brands who label old formulas “sport” 2) Natural, eco - brands who look for fewest ingredients but don’t appeal to the performance sports market
Megatrends driving the body care sector All natural / Sustainability and eco-conscious / Technical and science driven
THE SPF MARKET IS CORE TO GROWTH BUT HAS HAD VERY LITTLE INNOVATION OVER THE LAST 20-30 YEARS • • • • •
Encumbents have large market share and no reason to innovate Ubiquitous packaging – old fashioned ”sun tan on the beach vibe” Lack of trust - confusing message and positioning – too many similar SKU’s Unappealing to younger, active, dynamic Gen Z and Millennial consumers No purpose other than profit!
“MILLENIALS AND GEN Z AREN'T GOING TO PUT ON A NIVEA HAT AND T-SHIRT AND THINK IT'S COOL”
OUTDOOR PERFORMANCE SUNCARE & SKIN PROTECTION LARGE MARKET WITH LOW LEVELS OF INNOVATION •
Crossover between sun protection and skin care as awareness of everyday dangers of sun grows*
•
Consumers demanding added benefits**
• •
The US market saw 10% revenue growth between 2013 – 2016* The US market saw 15% revenue growth between 2017 – 2019* • driven by ultra and sport protection and then by natural and “free-from”
•
The total sun care market is forecast to be $24.9 billion USD , up from $8 billion in 2010* • Sunscreen = 85% • After sun = 2.5% • Self tanning = 12.5%
•
APAC (Lead by Australia) markets grew 10% year on year since 2010 to a total of $250 million USD*
•
It is forecast that sales will continue on the 10% growth trajectory**
•
The US retail market by SPF** • SPF 15 = 29% • SPF. 30 = 32% • SPF 50 + = 34%
* EUROMONITOR INTERNATIONAL ** MINTEL
A ”BEYOND” SUNSCREEN BRAND WHY IS SUN PROTECTION SO IMPORTANT AS A ROUTE INTO PERFORMANCE BODYCARE? •
Reports from around the world show that the melanoma skin cancer rate has steadily increased over the last two decades and continues to rise at an alarming rate
•
The incidence rate has tripled among American adults since the 1980s, while the highest rates have been reported in New Zealand and Australia
•
Mortality rates for melanoma are increasing faster than those for all other common cancer types
•
Melanoma is now the third-leading cancer diagnosis in women under 49
•
Rapid increase in skin cancer rates in men below 50
•
Men are at higher risk of sun damage than women due to knowledge gap
•
Sunscreen can reduce your risk of melanoma by 50 percent
•
Sunscreen should be part of a daily ritual to reduce instances of melanoma
•
Education needs to start young
Mintel : Suncare Report 2017 American Cancer Society Report 2017
RAPIDLY GROWING GLOBAL MARKET The sun care products market is growing at an unprecedented rate and is expected to continue to grow at a CAGR of almost 5% during the next 5 years, with a total incremental growth of US $2.85 billion by 2026 reaching a forecast total of US $24.9 billion
THE US MARKET SIZE AND CONTINUED FORECAST GROWTH
The US sun care products market is dominated by 4 large companies The relatively high cost of entry means that these big players dominate and add large margin multiples to the cost of goods Poor quality and old-fashioned products that have barely changed in the last 30 years have created consumer dissatisfaction Nivea sun owned by Beiersdorf ag Neutrogena owned by Johnson & Johnson Banana boat owned by Edgewell personal care Coppertone was owned by Bayer / sold to Beiersdorf
CHALLENGERS
ACTIVE M&A – MULTIPLES 5X REVENUE
ENCUMBENTS
COMPETITIVE ANALYSIS
• • • • • •
US surf focused brand – Vegan – Founded in 2010 Family and youth positioning - Lifestyle brand VMG invested $21million USD in 2016 US sales grown rapidly to $70million USD Range extension into other body care, shampoo, hair and creams Sold in 2019 for $400million to SC Johnson
• • • • •
All mineral sunscreen Founded by Chris Birchby – also started Coola organic sun care Fast growing in traditional retail – Walmart, Target US sales $50miilion USD + from start 5 years ago Discussions on a trade sale exit of $250million USD +
• • • • •
Largest brand in the US - $213million revenue in 2018 Owned by Bayer – sold to Beiersdorf for $550million in 2019 Traditional old fashioned brand – created in 1940’s No appeal to youth / Gen Z or Millennials Volume price: approx us$10 / 150ml
•
The biggest seller by sales and volume in UK, NZ and Australian markets Qwned by Beiersdorf ag _ largest sunscreen globally Traditional slap it on family approach Any npd is lost in sea of blue and orange Volmue price: approx us$14 / 150ml
• • • •
NEW CATEGORY FOCUSED SPORT BODYCARE
NEW BRANDS IN PERFORMANCE SPORTS BODY CARE • • • • • •
US performance body care brand established 2018 The self –proclaimed “Nike” of body care Investors include estate of Kobe Bryant Started D to C now national distribution in Target & Walmart US sales growing rapidly as new market Not mission drive or sustainable credentials
Rapid growth highlights potential with clear focus on needs of modern athletes
GROWTH CATEGORY PLASTIC FREE BEAUTY
SOLID BARS & CONCENTRATES – A KIWI SUCCESS STORY • • • • • • •
Kiwi plastic free beauty brand established 2012 by Brianne West Solid shampoos and beauty range In 2015 Raised $200,000 from PledgeMe (a Crowdfunding platform) Raised a further $1.2 million in 2017 from 400 + Investors (50% PledgeMe and 50% Wholesale Investors). Sold in 16 countries globally through Target, Amazon, Holland & Barrett 300-400% year on year sales growth – 60% margin $3million in 2017, $10million in 2018, $25million + in 2019
Rapid growth highlights consumer demands for companies and brands with a clear focus on environmental & social sustainability
SUMMARY
A CONSIDERABLE OPPORTUNITY FOR DISRUPTION Ideal market conditions for a new challenger brand • • • • • • • •
Sector dominated by large global companies who apply the word “sport” on old formulas as a marketing tool Existing companies are beauty lead brands – not action sports Confusing and overly complicated positioning Consumers rarely emotionally connect with brands Increased focus on importance of sun care and body care combination 5 year growth forecasts for sector Natural + organic performance to dominate Category needs a re-boot, old fashioned positioning with antiquated formulas
CREATE AN ACTION SPORTS BRAND WITH PURPOSE
OPERATIONS PEOPLE, SALES & FINANCIALS
KEY PEOPLE
The team have 20+ years of experience and knowledge in their respective fields. A Harvard educated serial entrepreneur and an Oxford educated, finance driven, sales manager. An impressive and experienced executive team and board is being assembled, consisting of leading personnel in the body care, sports and social - environmental sustainability sectors.
JOHN HESELTINE FOUNDER Head of Community Strategy, Community Marketing, Brand
MARK HOSKIN Head of Operations Operations, People Finance, Sales
John has 20 years’ experience in creating, building and executing brand development across multiple global FMCG markets. John is an experienced CEO, strategic and innovative thinker, building and managing strong leadership teams and driving continual improvement. He has created brands in the health, wellness and natural channels and continues to be driven by the understanding that sustainable environmental solutions need to be driven by social impact.
Mark has over 20 years experience in finance and sales, founding and exiting from 2 finance businesses in the UK, before taking on a Sales Manager role at Mercury in the solar division in New Zealand as a recent immigrant. Mark originally trained as a Chartered Accountant at Price Waterhouse in London, before becoming a Chartered Financial Planner. Having previously been the ethical adviser of the Year in 2014, Mark is conscious of the environmental impact of business and wishes to be part of the solution to our environmental challenge and not the problem.
WE HAVE SECURED A KEY DISTRIBUTION LISTING & ARE TARGETING OUTDOOR AND SPORTS RETAILERS We have been operating in the FMCG space for in excess of 20 years and understand the routes to market for both performance and natural body care products. We have a unique approach opening up opportunities through the Bikes and Boards Strategy.
ZOOP’S OMNICHANNEL ROUTE to MARKET Key Distribution Channels
• • • • •
D to C Social partnerships Outdoor retailers Sports retailers Pharmacies
CURRENT DISTRIBUTION TARGETS – LAUNCH SEPT 22
• •
•
40 Hunting & Fishing stores across New Zealand (July 2022 - Accepted onto buying list)
• •
Evo Cycles, Stirling Sports, Torpedo 7, North Beach - total 50 stores Pharmacies – 30 + stores
Points of distribution are set to grow rapidly and are forecast to hit 115 outlets by end of year 2022 We believe accelerating beyond to approx 1000 outlets will involve expansion into the large USA market
A FULLY DEVELOPED SALES STRATEGY A retail ready solution: • Shelf –ready packaging in recycled cardboard • The packaging is also the shipper • Ease of distribution and unique ZOOP display
ZOOP’S STRATEGY to THE MARKET Key Sales Messages • • • • •
Free Refills Reuse to discount Bundles Tailor discounts to individuals All our ordering through zoopnz.com
A FULLY DEVELOPED SALES STRATEGY Drive the customer to D to C purchase • • •
Drive the customer to key outdoor retailers
Go to events Be present where the consumer plays Marketing dollars spent outdoors
• • •
In store refilling stations Unique bundles and discounts with key retailers Create flow between Digital and Physical stores to enhance position of brand in consumers journey
Side 1 The ZOOP mobile • • •
Fully branded self-contained campervan Campervan fully kitted out with powerful sound system to become hub for events Mobile refilling station
Side 2
FINANCE Current Position MILESTONES TO DATE • ZOOP identity, brand strategy and positioning fully developed across multi channels • Our own filling line in Auckland which gives the company control over its inventory. • The complete range of products developed and in production: Pro and Mineral Sunscreens, High SPF Moisturisers Camping and Glamping Wash Blocks, Lip and Face Balm, Aloe Vera, Travel soap tins and Silicon wash bags. • An industry leading development and testing programme for SPF and Broad Spectrum sunscreens with world renowned lab, Dermatest in Sydney. • Complete supply chain working and in motion
• A sales agent relationship with Equipe Limited who distribute Fila products into sports shops across NZ.
• Considerable stock holdings for full launch
• www.zoopnz.com a fully functioning customer and wholesale sales system.
• Market ready launch initiatives including our flagship Campervan for events and promotional tours of NZ.
• Sales and Distribution chain in development in the USA
FINANCIALSPROJECTIONS 3 YEAR NEW ZEALAND P&L
SALES BUILD ASSUMPTIONS
BUILDING SOLID FOUNDATIONS IN NZ MARKET
FINANCE CASH REQUIREMENT
INVESTING TO ESTABLISH THE NZ MARKET
The business will be looking to raise $500k to continue the growth across the NZ market and ready the company for a launch into the USA market Seed money focus will be on digital marketing together with store and club activation. The seed money is primarily to cashflow our launch and drive sales growth in NZ.
FINANCE Zoop Ambition Zoop What are our targets? • To develop $2m of turnover in NZ in calendar year 2024 and prove the ZOOP concept. • To raise $500k in the near term to accelerate into NZ • An expected raise of $6m in 2024 to launch into 6+ states in the USA. • To emulate our NZ business in each state and thus grow turnover year on year with a target first exit for shareholders in 2027
USA EXPANSION DRIVES GROWTH
INVESTMENT OPPORTUNITY It is our intention to seek $500k of investment for 20% of Zoop Group Limited at a Pre-Money Valuation of $2,000,000 * Please contact the company for further information
CONTACTS
FOUNDER / COMMUNITY
OPERATIONS
John Heseltine
Mark Hoskin
• • •
@zoop_nz +64 27 205 6993 john.heseltine@zoopnz.com
• • •
@zoop_nz +64 27 476 5270 mark.hoskin@zoopnz.com
TREAD LIGHTLY LEAVE A BIG IMPRESSION™ THANKS FOR READING!