A nutrition focussed lifestyle beverage brand

1. Creating
a
lifestyle
nutrition
Indian
FMCG
brand
October
2017
CONFIDENTIAL
AND
PROPRIETARY
Any
use
of
this
material
without
specific
permission
of
Helico Foodlabs Pvt Ltd
is
strictly
prohibited

2. Indian
market
has
limited
nutrition
fortified
lifestyle
F&B
brands
Traditional
FMCG
Ready
to
eat
&
ready
to
drink
products Supplements:
Powder,
capsule,
tablets
Nutritional
positioning
Products
only
focus
on
taste
&
Price Products
only
focus
on
nutrition Balance
between
nutrition
&
taste
Lifestyle
positioning
+ =
Fortified
Food
&
BeverageDietary
supplements
Quick
and
convenient
nutrition
Protein
bars,
chips
&
shakes,
Vitamin
drinks
No
established
lifestyle
brands
with
nutritional
positioning

3. Point
of
inflection
for
rising
health
consciousness
is
near
and
it
would
pay
off
to
be
an
early
mover
Individual
Health
insurance
CAGR
22%
Health
FMCG
increasing
shelf
space
CAGR
18%
All-­‐time
high
growth
rate
Deficiency
of
vitamins
like
D,
B12
due
to
busy
lifestyle
80%
Urban
people
Rise
in
lifestyle
diseases
30%
Urban
people
Gym
&
Fitness
centers
CAGR
24%
50
Million
health
app
downloads

4. YOGIC
brings
quick
and
effective
nutrition
through
lifestyle
options
Functional
Ingredients
Fortification
Honey,
Milk,
Fruit
pulps,
Dry
Fruits,
Chia
seeds
Proteins,
Vitamins,
Minerals,
Dietary
Fibers,
Omega
3

5. We
are
targeting
Nutraceutical
segment
in
FMCG
which
is
a
$
4
Billion
opportunity
in
India
and
growing
at
a
healthy
rate
of
20%
Nutraceutical
Dietary supplements
Vitamins &
Minerals Herbal
extracts
Ayurvedic/Plant extracts
(Cinnamon/Tulsi/Spirulina)
Protein
Supplements
Functional
Food
and
beverage
Functional
Food
Omega
Fatty
acid,
probiotic fortified
food
Functional
Beverage
Energy Drink/
Fortified
drinks/
Probiotic
drink
Our
focus
Niche,
Underserved
&
rapidly
growing
$
4
Billion
$
1
Billion
$
3
Billion
$
2.7
Billion $
300
Million
Indian
Beverage
market
is
highly
underserved.
Growing
at
a
CAGR
of
20%
Source:
PwC-­‐FICCI
report
Winds
of
change:
the
wellness
consumer

6. Global
market
of
functional
beverage
and
functional
food
is
almost
equal,
indicating
that
functional
beverage
market
in
India
is
highly
underserved
Source:
Frost
and
Sullivan
-­‐ Functional
beverage
industry:
Trends,
challenges
and
developments
33%
36%
31%
Nutraceutical
market
share
(Global)
-­‐ $
190
Billion
Functional
Food Functional
Beverages Dietary
supplements
Functional
Beverages
67%
8%
25%
Nutraceutical
market
share
(India)
-­‐ $
4
Billion
Functional
Food Functional
Beverages Dietary
supplements
Huge
room
of
growth
in
functional
beverage
market
in
India

7. Key
brands
in
Nutraceutical
segment
Malt
based
powders
Herbal
brands
Yoghurt
brands
Nutrition
bars
Cereal
brands
Energy
drinks
Dairy
based
drinks
Fruit
juices
There
are
very
few
established
brands
in
functional
beverage
segment,
particularly
dairy
based
Cadbury Horlicks Complan Boost
Dabur Patanjali
Yakult Nestle Danone
Rite
Bite Yoga
Bar
Kellogs General
Mills
Gatorade Red
Bull
Real Tropicana
Milo ZaGo
Our
starting
pointRecently
launched
RAW
Epigamia

8. Decoding
nutritional
aspects
of
our
initial
product:
Nutrition
Milkshakes
Milk
Honey
&
Stevia
Flavor
profiling
Secret
Ingredients
Natural
fibers
Fortification
• No
refined
sugar
• No
Artificial
sweetener
• Slim
milk.
~
0%
FAT
• 21
Vitamins
&
Minerals
• 20
gm
protein
• Natural
cocoa
&
fruit
pulp
• No
Artificial
flavors
and
colors
• Natural
fibers
to
aid
digestion
• No
preservatives
Multiple
trials
have
been
taken
through
experienced
food
technologists
with
various
brands
&
variants
for
all
major
ingredients
to
come
up
with
optimum
profile
for
taste,
texture
(mouthfeel),
product
stability
&
aroma
MRP:
INR
100 MRP:
INR
60
Shelf
Life:
3
Months
Ambient
product

9. Structured
changes
in
point
of
sale
are
solving
problem
of
accessibility
of
mass
premium
FMCG
products
Primary
channels
Modern
Retail
E-­‐commerce
Amazon,
BigBasket,
Grofers
Organized
pharmacies
Convenience
stores
Secondary
channels
Corporate
cafeteria
Hotels,
Airports,
Airlines
Leisure
Cafes
Gym and
fitness
centers
• By
2020,
Modern
Trade
would
command
18%
of
$700
Bn grocery
market
• By
2020,
e-­‐grocery
market
would
be
$10
Bn
• Existing
mom
&
pop
upgrading
themselves
• Increased
investments
in
organized
stores
like
J-­‐mart,
easy
day,
Safal
Channels
for
inducing
trials
and
customer
acquisition

10. Projected
Q-­‐o-­‐Q
unit
economics
for
first
2
years
and
at
steady
state
Operating
margin
=
MRP
– Distribution
– COGS
Contribution
margin
=
Operating
margin
– Marketing
&
Sales
Distribution
=
Distributor
margin
+
Retailer
margin
+
Logistics
+
Warehousing +
Returns
COGS
=
Cost
of
raw
materials
+
processing
+
packaging
+
wastage
Marketing
=
Sales
agents
+
promoters
+
Branding
+
Design
+
digital
ads
+
communications
40% 40% 38% 38% 35% 35% 34% 33%
87%
77%
64% 62%
55% 53% 48% 45%
86%
63%
46%
39%
33% 28%
26%
24%
-­‐27%
-­‐17%
-­‐2% 0%
10% 12%
18%
22%
-­‐113%
-­‐80%
-­‐48%
-­‐39%
-­‐23%
-­‐16%
-­‐8%
-­‐2%
-­‐120%
-­‐100%
-­‐80%
-­‐60%
-­‐40%
-­‐20%
0%
20%
40%
0%
50%
100%
150%
200%
250%
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
Q-­‐o-­‐Q
Unit
margins
(as
%
of
MRP)
COGS
Distribution Marketing
&
Sales Operating
margin Contribution
margin
Operational
breakeven
at
the
end
of
1st year
28%
35%
15%
At
steady
state
Lower
COGS
due
to
technology
upgradation
and
economies
of
scale
22%
contribution
margin
Considering
industry
standards
for
distributor
and
retailer
margins
and
marketing
spent

11. Appropriation
of
seed
fund
and
target
revenue
Total
GMV ~
2.9
Cr
Trade
margin ~
0.9
Cr
Total
Revenue ~
2
Cr
Total
Expenses ~
4.7
Cr
Net
burn ~
3.1
Cr
Fund
required
(with
10%
buffer)
~
3.4
Cr
($0.5
Million)
Monthly
revenue
rate
(after
the
end
of
24
months)
~
21
Lakhs
10
15
8
42
99
56
86
114
59
14
0 20 40 60 80 100 120
Packaging
innovation
Supermarket
listing
fee
Legal
&
statutory
Working
capital
COGS
Distribution,
Logistics
&
returns
Marketing
&
sales
Admin
&
HR
Product
Development
Taxes
Utilization
of
seed
fund
over
2
years
(in
INR
Lakhs)
Looking
to
raise
$500,000
for
2
years
to
achieve
a
monthly
revenue
rate
of
21
Lakhs

12. Inorganic
growth
boosters
in
future
with
higher
volumes
Technology
Upgradation
R&D
tie-­‐ups
Digital
branding
Aseptic
technology
will
significantly
bring
down
the
packaging
and
processing
cost;
Also
improving
the
product
quality
Feasible
only
at
very
high
volumes
Strategic
tie-­‐ups
with
non-­‐
competing
pharma
companies
for
detail
R&D
and
higher
credibility
Focus
on
building
digital
brand
to
get
better
customer
insights
&
consumption
behavior

13. Future
product
roadmap:
Ready
to
Eat/Drink
Multiple
flavor
development
in
existing
product
line
Ayurveda
&
Herbal
variants
in
existing
product
line
New
product
lines
• Fortified
Yoghurt
Smoothies
• Fortified
Green
Tea
• Fortified
Fruit
Juices
Launching
women
and
kids
specific
products
/
brand

14. Team
Vaishnav Gupta Naman Lahoty
IIT
Bombay
2012 IIT
Bombay
2012
Previous:
Marketing
and
growth
head
at
DoorMint Previous:
Co-­‐founder
and
COO
at
DoorMint
Marketing,
Branding,
Sales Supply
chain,
Product
development
CEO COO
Know
each
other
from
past
13
years

15. Thank
You
Coordinates:
Vaishnav Gupta
+91
91676
37049
vaishnav@helicofoods.com
Naman Lahoty
+91
97692
53205
naman@helicofoods.com

16. Appendix
Data
from
credible
reports
substantiating
functional
beverage
as
a
good
market
opportunity

17. Functional
Beverages
(particularly
Dairy)
driving
the
Nutraceutical
market
growth
Dairy
as
a
major
growth
area;
particularly
in
India

18. Major
reasons
for
rise
in
functional
beverage
category

19. Categorization
of
nutraceutical
market
Reason
why
fortified
Milkshake
is
a
good
starting
point

20. Consumer
categorization
in
health
and
wellness
space

21. Health
life
stage
Implications
for
brands
Health
and
Wellness
brands
needs
to
target
each
category
of
consumers
differently

22. 40%
19%
29%
12%
Dietary
supplement
%
Share
2015
Vitamins
&
Minerals
Herbal
Protein
&
Dietic
Chyawanprash
15%
20%
55%
10%
Functional
beverages
%
SHARE
2015
Sports
Energy
Enhanced
Others
Product
share
in
functional
beverages
and
dietary
supplements
in
India