SOFI Spritz
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SOFI Spritz Australia’s Aperitivo. All-Natural. All-Australian. No Added Sugar.
  • Consumer Products
  • Retail
  • A$334,698

    invested

  • 83.7% funded

  • 6 days & 7 hours

    time left

  • 5.7% - 13.1%

    min - max equity offered

  • A$400,000 - A$1,000,000

    min - max investment sought

  • A$250

    min investment parcel

INVEST IN THIS OFFER
Can you please provide unit sale numbers for FY18 and FY19

I don't need a breakdown of product lines, I just want to get an idea of revenue per standard drink sold as you're pushing your key forecast number based on this metric.

Thanks

Jack Colreavy posted on 19.10.2019

Hi Jack

Thanks for the question. Without providing unit sales numbers, I can give you an idea of revenue per standard drink as requested by summarising our wholesale pricing. Our standard wholesale pricing varies from approx. $1.30-$2.00/standard drink depending on whether its kegs for cocktails on tap or packaged bottles/cans.

Wine industry statistics may be useful for comparison so worth noting this from page 24 of the offer doc: “Bulk containers account for 55% of Australian wine exports by volume (total 467 million litres of bulk) with the average price sitting at $1.08/litre (year ending 30 June 2018).” If we assume ABV for this wine is at least 11% on average, then each litre contains at least 8.7 standard drinks. This would mean that the average price per standard drink for 55% of Australia’s wine exports (for the year ending June 2018) was $0.12.

Hope this helps.

Cheers
Tom

Tom Maclean posted on 20.10.2019

Replied to Jack Colreavy

Future performance

Hi Tom,

Thank you for all the information you have already provided. I had a couple of additional questions that I am hoping you can answer:

1. Do the shares on offer include pre-emption rights?

2. Are you able to provide forecast financial statements? In particular some information around expected revenues over the next few years, and a breakdown between products lines, or existing vs new products

3. I see you have debt due to be repaid in August 2020 (and a further amount in August 2021). What is the current plan regarding this debt (i.e. repayment from business cash flows, refinancing etc.)

4. I recall from a previous presentation that you were hoping to get the business to $6-$10m revenue by FY20. Are you on track to do this?

5. I see from a previous question that the breakeven point is likely to be around this $5-$10m revenue mark. If you are not expecting to make a profit in the coming years, how are you expecting this will be funded (e.g. further equity raises, debt etc.)

Thanks
Shaun

Shaun O'Reilly posted on 02.10.2019


Hi Shaun

Thanks for the questions.

1. Do the shares on offer include pre-emption rights?

Full details of the rights of ordinary shares being offered are detailed in the Company’s Constitution available on the Equitise platform.

2. Are you able to provide forecast financial statements? In particular some information around expected revenues over the next few years, and a breakdown between products lines, or existing vs new products

Sofi is working to a 3 year plan to grow sales and profitability. We have provided details of the overall business growth strategy in Crowd Sourced Funding (CSF) Offer document but have not provided more detailed financial forecasts and breakdowns on individual product lines.
The CSF guidelines published by ASIC (Regulatory Guide 261) specifies that the CSF offer document should only include financial forecasts, targets or other forward-looking statements if there are reasonable grounds for their inclusion—otherwise, it states, that the information will be misleading.
Reasonable grounds means there must be a sufficient objective foundation for the statement, for example if the information is underpinned by an independent expert’s report. Information supported by hypothetical assumptions or based on certain contingencies may not indicate reasonable grounds.
As our detailed plans have been prepared by the management and approved by the Board (without incurring costs of an independent expert’s report), it was deemed that including such forecasts in the CSF offer document may not have complied with the requirements of ASIC regulations, and as such have been excluded.
However, to ensure we are managing to the plan, we have initiated internal processes to monitor and regularly report on progress against these plans to management and the Board.

3. I see you have debt due to be repaid in August 2020 (and a further amount in August 2021). What is the current plan regarding this debt (i.e. repayment from business cash flows, refinancing etc.)

As disclosed in the CSF Offer document, these debts have been provided by shareholders of Sofi Holdings Pty Ltd. Whilst we are not able to provide details of future financial forecasts, it is expected that there are a number of repayment options that would be available, and it will depend on what is in the best interests of the company and utilisation of available funds at the time payment is due.

4. I recall from a previous presentation that you were hoping to get the business to $6-$10m revenue by FY20. Are you on track to do this?

Management team are committed to the growth of the brand/s and are confident that the 3 year plan will deliver on revenue and profitability targets.

5. I see from a previous question that the breakeven point is likely to be around this $5-$10m revenue mark. If you are not expecting to make a profit in the coming years, how are you expecting this will be funded (e.g. further equity raises, debt etc.)

The 3 year plan incorporates balance sheet and cash management strategies and as the business progresses to key milestones within the 3 year plan and more accurate determination of investment requirements, we will assess funding options available at that time and align with an appropriate mix between debt and equity.
For example, the same answer you reference above mentioned the potential for engaging a distributor in a key market which would positively affect the economics of the business and further accelerate growth. As a result, this will be a focus in the short to medium term.

Tom Maclean posted on 08.10.2019

Replied to Shaun O'Reilly

Flavours

Hello after investing was keen to sample the product but found them way too sweet and directed towards a certain crowd which got me thinking about a broader market and something like a lemon lime and bitter spritz came to mind something an older middle aged guy like me can support cheers

Scott Profke posted on 26.09.2019

Hi Scott
Thanks for the question and for joining the SOFI crowd! Regarding flavours/sweetness - at the risk of giving you more info than you want, here are my thoughts;

SOFI Spritz has no added sugar - all sugar comes from the grapes and other juices. The recipes were inspired by classic Italian recipes (Blood Orange & Bitters inspired by The Veneto Spritz, White Peach & Ginger inspired by The Bellini, and Lemon & Elderflower inspired by the Hugo Spritz) which seek to balance bitterness and sweetness. I started with round tables of my friends (to be fair, mostly female friends) and we got initial recipes together. Then came many iterations with Simon Gilbert, 5th gen winemaker and a large part of the recipe formulation was to get the right balance of bitterness and sweetness. We certainly didn't want any more residual sugar from the grapes than we needed to get the crisp refreshing taste we are going for - inspired by the Italian's bitter-sweet aperitivo.

Since completing the recipes, I have done countless farmers markets and food & wine events etc - serving up SOFI to literally tens of thousands of consumers in person. I can honestly say that most people - male and female of all ages - love the taste. BUT some do find them too sweet but some also find them too bitter. So given you cant please everyone and we were getting responses at both end of the spectrum with most loving it, we felt we were onto winning recipes and made changes only when we thought justified by a cross section of responses. I had enough confidence in the taste to roll them out on Shark Tank where a mix of middle aged men (3 of the 5 sharks - I hope they dont mind that description) all enjoyed the taste and made an offer along with 1 of the 2 female sharks!

LAST point on SOFI Spritz is that there is a variety of ways you might like to serve - limited only by imagination - I would only say that serving over ice is much better than straight from the bottle in any case (cans seem to work better for immediate consumption). Each bottle/can has a suggested serve - basically over ice with a slice of citrus and a sprig of fresh herb. The reason I mention this is that if you prefer less sweet, suggest serving with a wedge of lime/lemon/grapefruit and if sweeter, fresh orange. It is amazing the dfifference a garnish can make. Futher you can add soda to make for a longer drink or we have had consumers enjoy SOFI with vodka or gin ! The Rockpool group came up with adding Rosemary to our White Peach & Ginger which was so good we made it our suggested serve!

FINALLY we have just developed Bone Dry Rosé (bonedrydrinks.com) which lands in Vintage Cellars stores nationally next week! A key selling point of Bone Dry is that it contains nearly zero residual sugar. Industry standard for a bone dry wine is 0-1g sugar/L and that is where are with Bone Dry whilst still delivering on taste. Will leave the final word to some tasting notes from The Real Review (therealreview.com Silver Medal, 90 points) "Gorgeous pale-salmon-pink hue, with a nose that exudes freshness. The palate is restrained, dry and savoury with faint lemon peel nuances. An excellent example of a contemporary dry rosé that tastes as good as it looks."
TONI PATERSON, Master of Wine (TASTED JAN 2019)

Tom Maclean posted on 26.09.2019

Replied to Scott Profke

Break even level

Can you talk to your anticipated break even revenue - what is it, when will it be hit and why?

Cheers

Lindsay Stark posted on 20.09.2019

Hi Lindsay

Thanks for the question.

The short answer is that we anticipate our break-even revenue to be between $5-10m in revenue.

The long answer is that we believe we could be breaking even now but we are investing heavily in sales (eg dedicated sales personnel in 3 states plus a national manager and sales support) and marketing (eg national events campaign to drive trial and merchandising in-store to increase visibility) to drive ongoing growth. We believe that we can continue to push hard in these areas and still hit break even at anywhere from $5-10m in revenue. The reason for the broad range is that the economics of the business would change positively if we take on a distributor in a key market so this is a current focus.

We are tracking our expense categories as a % of revenue - happy to report that all costs, with the exception of sales and marketing, are rapidly reducing as a % of revenue which gives us confidence that we are tracking towards profitability whilst maximising growth. Our strong and improving gross margins also give us confidence that we are tracking in the right direction and as such, are a key focus for the business.

Please let me know if you have any further questions and I would be happy to help.

Cheers

Tom

Tom Maclean posted on 23.09.2019

Replied to Lindsay Stark

  • > Offer Type: Australian Retail (CSF) Offer This offer is open to Retail and Wholesale/Sophisticated investors in Australia. Whilst in New Zealand the offer is open to Wholesale investors.
  • > Company: SOFI Holdings Pty Ltd Securities purchased are for direct equity in SOFI Holdings Pty Ltd.
  • > Security Type: Ordinary Shares
  • > Fees Paid by Issuer: 6.00% of funds raised Upon successful completion of this funding round a total of 6.00% of capital raised will be paid by the Issuer to Equitise.
  • > Cooling-Off Rights: 5 working days - Retail investors in Australia are able to withdraw their applications for securities with accordance to the Australian Crowd Source Funding (CSF) regulations. For more information please click on the link supplied.
    More Info
  • > Related Parties: None

More detailed information about this offer is contained in this Offer Document

Offer Document
Offer overview

The Company is offering 400,000 to 1,000,000 ordinary shares under the following terms: 

*The Company currently has 739,889 Options available to be issued. Please see section 2.9.2 of the Offer Document for further information.

Executive summary

 

SOFI is focused on new product development and marketing innovative alcoholic beverages that address the unmet needs of a significant market segment.

Bridging the gap between Oversupply (wine) and Unmet Demand (consumers) requires a fresh, market-led approach that is untethered to the traditional positioning of wine and wineries. We aim to always address the major consumer trends of health and wellbeing, convenience and premiumisation.

SOFI Spritz, our first product to market, shows this research-led approach to product development in practice, proving our ability to successfully meet the consumer’s demands.

 INVESTMENT HIGHLIGHTS

Milestones & History

The graphic below depicts a timeline of key milestones & history for SOFI Spritz. The Y axis shows the number of cocktails served in the trailing 12 month period (1 standard drink = 1 cocktail).

SOFI is now on track to serve up over 2 million cocktails this year with 50% growth year on year. SOFI aims to accelerate this growth rate with the funds from this capital raise.

Investor rewards

Investments over the amounts listed below will in addition to the shares purchased in the company receive (for further information see section 3.2 of the Offer Document):

Business model



SOFI Spritz implements an unconventional and capital-light approach to bridging the gap between unmet consumer demand and oversupply.

SUMMARY OF BUSINESS OPERATIONS:

  • SOFI conceives products with suitable positioning to address key consumer trends and develops the appropriate branding and packaging.
  • SOFI sources wine (either producing from grapes grown or acquired on the open market) and outsources operations (including winemaking and contract bottling).
  • Products primarily sold direct to retailers and via low-cost/broad-range wholesalers.
  • Costs and retail prices (premium positioning with a relatively high $/L but low $/standard drink compared to category peers) allows for attractive margins along the supply chain.

PRODUCT RANGE:

SOFI Spritz Blood Orange & Bitters - inspired by The Veneto Spritz 

SOFI Spritz Lemon & Elderflower - inspired by The Hugo Spritz

SOFI Spritz White Peach & Ginger - inspired by The Bellini

Use of funds

The table below sets out the intended use of funds raised under this Offer based on the minimum and maximum subscription amounts.

For further information please refer to section 3.3 of the Offer Document. 

Financial summary

For a full breakdown of the financials for Sofi Holdings Pty Ltd please see section 2.10 of the Offer Document.

Risks Facing the Business

The table below is a summary of the main risks facing the business. Please refer to the Offer Document for a full breakdown.

Tom Maclean

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Nikki Romans

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Kate Wileman

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Dean Kornman

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Natasha Leeuwendal

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SOFI Spritz Offer Document

This is the SOFI Spritz Offer Document as at 3 September 2019.

Download

The investors below have committed capital to the business in this funding round.

Sheren Hawking

2019-10-23 12:52:03

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Jelena

2019-10-23 12:16:37

Rodrigo Antonino

2019-10-23 10:40:54

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Michael McKay

2019-10-22 22:08:34

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Garza

2019-10-22 16:41:51

AntMc

2019-10-22 08:43:18

Hayden Marshall

2019-10-22 07:26:40

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Paul Creighton ATF Creighton Holdings Trust

2019-10-22 01:03:31

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Jordan Nutt

2019-10-22 00:36:35

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ZDK

2019-10-21 11:01:13

Jonny Wilkinson

2019-10-21 06:58:57

Managing Director at Equitise

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EagleEye

2019-10-19 20:02:29

Katherine Boiciuc

2019-10-19 18:52:14

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Anna and Adolfo Salvatore

2019-10-19 18:31:27

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Alice-Anne Su Fui

2019-10-19 15:54:22

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Ricky Sehjal

2019-10-19 13:59:47

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Guy

2019-10-19 13:04:38

Sam

2019-10-19 12:38:06

Andrew Harrison

2019-10-19 12:20:58

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Panda

2019-10-19 11:13:02

Ross Clissold

2019-10-19 10:12:12

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DLE

2019-10-19 10:08:17

Bulent Safakoglu

2019-10-19 10:07:36

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Dragons

2019-10-19 09:46:09

SimonC

2019-10-19 09:30:54

Warwick Arnett

2019-10-19 08:36:53

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justine swenson

2019-10-19 06:36:56

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AuntyBiffy

2019-10-19 02:18:22

Lyssa Wallace

2019-10-18 23:04:09

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Jamie Fleming

2019-10-18 22:40:53

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Robert Ferreira

2019-10-18 20:34:35

Jason Bell

2019-10-18 20:29:40

Facilities Manager

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Angela Winter

2019-10-18 20:23:01

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Sam Eddy

2019-10-18 20:01:25

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Florian Knoepfel

2019-10-18 19:04:11

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Andrew Smith

2019-10-18 18:54:34

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LINCOLN EICHENBERGER

2019-10-18 17:41:37

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Darren

2019-10-18 17:24:17

iwannaknow

2019-10-18 16:14:32

SH

2019-10-18 16:04:21

Brett Rava

2019-10-18 15:07:50

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A B Robinson

2019-10-18 15:05:18

Jim

2019-10-18 14:42:14

Paul O'Hara

2019-10-18 14:35:21

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Grant Mealey

2019-10-18 14:26:41

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Christine Williams

2019-10-17 23:11:08

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Romulous Mauri

2019-10-17 21:45:02

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Jasmine Bartel

2019-10-17 19:56:03

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Plainview

2019-10-17 15:51:42

Shea Thomson

2019-10-17 15:50:41

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James Robinson

2019-10-17 14:10:34

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JOHN KOSMAS

2019-10-16 12:38:25

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Matt Blesing

2019-10-15 21:48:40

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Blake Davey

2019-10-15 09:22:32

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FW19

2019-10-14 21:57:04

David Woolley

2019-10-14 20:18:44

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Fox

2019-10-14 08:29:54

Jo-Ann Duff

2019-10-12 18:39:07

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JC

2019-10-12 12:35:41

Sofie Williams

2019-10-12 11:31:03

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Luke Evans

2019-10-12 11:30:48

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Richard Fernando Bahamondez

2019-10-11 23:46:13

Australian Property Lead at Standard Chartered Bank

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John Barr

2019-10-11 20:27:11

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Amy Nguyen

2019-10-11 18:01:43

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)(es

2019-10-11 17:45:54

Stubb54

2019-10-11 16:56:42

Natalia Banks

2019-10-11 16:26:55

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Chinni Nakka

2019-10-11 15:59:08

Sr. Project Manager ICT

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Jye Siemsen

2019-10-11 15:57:48

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Nikki Romans

2019-10-11 14:13:38

Marketing Consultant

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CA

2019-10-11 10:15:04

Ben Li

2019-10-11 08:37:20

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sheba

2019-10-10 17:50:17

Chris Davey

2019-10-10 10:57:44

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CHAZ

2019-10-09 21:58:58

Allan Isaacs

2019-10-09 08:14:58

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Jmason

2019-10-08 23:15:14

Stefano Portaluri

2019-10-08 22:58:16

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Andrew Young

2019-10-08 20:48:02

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2019-10-08 11:50:05

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Catherine Campbell

2019-10-07 21:56:01

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Akash Goyal

2019-10-07 19:37:40

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Amir Abbas

2019-10-07 12:14:10

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Marcus Rummler

2019-10-06 20:13:19

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Konstantinos Susanne polizos

2019-10-05 22:52:53

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Andie Rubico

2019-10-05 13:14:42

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Janine Graham

2019-10-05 08:33:46

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Harpreet Kohli

2019-10-04 19:41:40

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Vicky Guthrie

2019-10-04 18:14:57

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Darran Crockett

2019-10-04 14:29:35

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Wade Kirk

2019-10-03 22:42:52

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Luke McAlpin

2019-10-02 23:31:09

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Simon Chappell

2019-10-02 23:07:41

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Abhya Chand

2019-10-02 21:55:36

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Sean Hegarty

2019-10-02 20:20:57

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Stacey Sambell

2019-10-02 14:19:16

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Jason Wiggins

2019-10-02 12:30:50

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Chrisanthan Arokianathan

2019-10-02 08:53:23

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Murray Stevenson

2019-10-02 00:03:46

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Lauren Mitchell

2019-10-01 20:25:37

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krazycat

2019-10-01 19:36:24

Jon Wearne

2019-10-01 19:34:26

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Vu Long Tran

2019-10-01 18:37:26

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Mary Phillips

2019-10-01 18:36:16

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Ashlee Leigh

2019-10-01 17:46:44

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Awhi078

2019-10-01 17:35:47

Ryan Mullan

2019-10-01 17:33:31

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James Cole

2019-10-01 17:20:50

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Mark Greig

2019-10-01 17:04:40

Director

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Irfaan

2019-10-01 16:56:32

Garon De Angelis-Pearce

2019-10-01 15:54:37

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Krishna Sura

2019-10-01 15:47:45

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Sammy

2019-09-30 18:27:53

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2019-09-30 11:35:13

VB

2019-09-30 10:57:04

Jade Gordon

2019-09-29 02:19:59

Driller Extraordinaire

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Liv

2019-09-28 09:35:01

Noel Mathews

2019-09-28 09:25:50

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Mellisa Gillies

2019-09-27 16:40:49

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Mark Arnold

2019-09-27 08:09:42

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Lindsay Stark

2019-09-26 22:18:29

Senior Underwriting Developer at Pacific Life Re

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jacqueline maynes

2019-09-26 15:10:26

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Ryan Withers

2019-09-26 14:36:10

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Jessica Matthews

2019-09-26 11:28:33

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YAW

2019-09-25 01:29:47

Joshua Lanzarini

2019-09-24 21:59:13

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Aaron Mete

2019-09-24 20:27:13

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Yvonne Jasper

2019-09-24 14:05:40

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Alexander Henken

2019-09-24 09:06:17

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Mihir

2019-09-24 06:50:00

OT

2019-09-22 23:06:27

TM

2019-09-22 19:02:30

Su Ayyagari

2019-09-22 16:38:33

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Jess Clay

2019-09-22 15:43:35

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Peter Davidson

2019-09-22 11:11:27

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Welly Mulyadi

2019-09-22 06:34:10

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Aaron Shuttleworth

2019-09-21 14:40:22

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Ry Ry

2019-09-21 13:01:45

Mark Klasen

2019-09-20 23:32:48

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Darius Tjoeng

2019-09-20 22:19:51

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Sammyo

2019-09-20 20:43:18

Peg

2019-09-20 19:24:43

Shea

2019-09-20 18:05:23

Lucille Spaander

2019-09-20 17:36:36

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Jessica

2019-09-20 17:24:22

Cmicko

2019-09-20 17:24:08

Tommy Gee

2019-09-20 16:35:42

Scott Profke

2019-09-20 16:17:09

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Sharon De Jager

2019-09-20 16:16:08

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Nico Guerrero

2019-09-20 16:06:23

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Dukendra KC

2019-09-20 16:02:25

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Efi Condovrakis

2019-09-20 16:00:10

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Chien-you chen

2019-09-20 15:42:54

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TVV

2019-09-20 15:41:53

Johan Schyberg

2019-09-20 15:41:15

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Rodney Hopkins

2019-09-20 15:41:09

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Cody Spangler

2019-09-20 15:24:50

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Coco26

2019-09-20 15:22:37

Matt

2019-09-20 15:22:37

Nicolas Couvret

2019-09-20 15:20:55

Investment Analyst

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John Kay

2019-09-20 15:14:41

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Alexandra Rooke

2019-09-20 15:13:53

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Brett Jones

2019-09-20 15:05:36

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Nick

2019-09-19 14:22:11

Andrew Goodwin

2019-09-19 13:02:10

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Peter David Evans

2019-09-18 13:14:54

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Scott Spain

2019-09-18 13:12:28

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Angiet

2019-09-18 11:59:29

Tim Crommelin

2019-09-17 17:52:01

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David Oakley

2019-09-17 17:46:59

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Benjamin Hatcher

2019-09-17 17:10:22

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BGS

2019-09-17 16:50:12

Ross

2019-09-17 14:40:51

MD

2019-09-16 16:00:59

Thomas Reardon

2019-09-16 15:20:57

CEO

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David Hewitt

2019-09-16 14:55:28

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Mal Higgs

2019-09-11 11:05:52

Non-Executive Director

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John Rohl

2019-09-10 22:06:43

Marilyn Maclean

2019-09-10 10:32:11

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Christine Maclean

2019-09-07 14:22:47

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Katrina Czapracki

2019-09-04 11:28:50

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Jodie Kasatchkow

2019-09-04 10:10:37

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