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Friiz Fru!t

Shares Belgium Tax Shelter applicable
100% natural freeze-dried snack
Information Note Terms & Conditions
€1,000,000
Pre money valuation
16.7%
Equity offered
€35,900
Amount raised
70 days
Remaining
€50,000
Minimum target
72% funded

DISCLAIMER

Every investment decision must be based on an examination of an exhaustive set of information provided by the entrepreneur on his online profile. Spreds only proceeds to a limited verification of this information and does not control the investment opportunity within this company. Spreds did not verify the extent to which the business plan is deemed realistic and does not intervene with the final Information Note, including the retained maximum valuation. Spreds will align itself with the financial terms negotiated with the co-investor(s).

Description

North Atlantic Food Trading BVBA (NAFTrading) is an Antwerp-based company established in 2018 to create, import and distribute an exclusive line of food products - the Foods of the Future. It is owned and operated by the co-founders Cecilia Sobral and Christian Lepage. The company is situated in downtown Borgerhout, in a very cosmopolitan area with a high concentration of consumers of specialty and natural food products.

The Foods of the Future comprise a complete portfolio of 100% plant-based, organic and highly-nutritious products developed to attend the most demanding palates; from children to the elderly. FRIIZ FRU!T represents the fastest-uptake product of our portfolio: it is a 100% plant based & organic freeze-dried snack, made with exclusive mixes of tropical fruits. FRIIZ FRU!T is made with whole fruit ingredients, without extra sugars, flavours, colorants or preservatives.

The global healthy snacks market size was valued at USD 23.05 billion in 2018. The evolution of consumer perception about healthy snacking along with key attributes such as ease of consumption, variety, and portability are expected to keep driving the market. In addition, hectic lifestyles of consumers are expected to propel the market over the coming years. Dried fruit snacks are being widely consumed by customers as they provide minerals, vitamins, phytonutrients, and fibres. Increasing awareness regarding their health benefits offered among consumers in European countries, primarily U.K., Germany and France, is likely to fuel the demand for these products over the coming years.

North Atlantic Food Trading BVBA brings FRIIZ FRU!T & the Foods of the Future to increase fruits & vegetables intake worldwide, fight food waste and promote organic and fair trade agriculture. NAFTrading wants to build globally recognized brands supported by our main values: quality, social responsibility and environmental welfare.

**NAFTrading Expansion is Already Happening**.

In the second half of 2019, NAFTrading joins two key players from the Netherlands and Ghana to wrap up a partnership project for the incorporation of a freeze-drying plant in Africa. At same time, our company has started the programming of a webshop where clients can buy FRIIZ FRU!T directly, the D-sea.net. It comprises an organic & fair-trade sales platform for the Foods of the Future© and products of third parties, compromised to invest in and support the development of clean technologies that don't impact the environment.

Problem

Low Fruits & Vegetables (F&V) Intake
According to the World Health Organization (WHO), up to 2.7 million lives could be saved annually with enough fruit and vegetable consumption. The WHO recommends that everyone should eat at least 400g of fruits and vegetables a day. In Belgium, according to the latest Food Consumption Survey, only 5% of the population (3-64 years old) respect the recommendations regarding the daily consumption of vegetables. When it turns to fruits intake, only 9% of the population (3-64 years) respect the daily recommendations in this regard. The European Health Interview Survey reports that, on average, more than a third of the European Union adults does not consume any F&V daily.

Food Waste

According to the report by the Boston Consulting Group (BCG), each year, 1.6bn tons of food worth approximately $1.2tn, goes to wasteabout one third of the food produced globally.

Abuse of Chemicals and Pesticides in traditional Agriculture

Apples
are generally near the top of EWG’s Dirty Dozen™ list because they contain an average of 4.4 pesticide residues, including some at high concentrations. 90% of conventional apples had detectable pesticide residues. One strawberry sample contained an astounding 22 pesticide residues. More than 96% of conventional grapes test positive for pesticide residues. One sample of conventional tomatoes contains 15 different pesticides and breakdown products. There is no need to say any more about this topic.

Idea

FRIIZ FRU!T & the Foods of the Future are an exciting and exclusive line of products that meets the needs of a fast-growing market of conscious consumers. They comprise an effective solution to
1. increase fruit & vegetable intake worldwide,
2. fight food waste and
3. promote organic and fair trade agriculture.

Shaped freeze-dried tropical fruit mixes define a pioneer product in the freeze-dried food market. There are no predecessors of similar products in any fields, so FRIIZ FRU!T enters the game as a leader.

1. Increasing Fruit & Vegetable Intake Worldwide.

FRIIZ FRU!T is a delicious 100% plant based & organic freeze-dried snack, made with mixes of tropical fruits. Each bite has a natural crunch and delicious, tangy flavor. Freeze-dried fruits taste, smell, look and are as nutritional as fresh fruit, but the water is out, so it’s a crunchy item. Consumers like snacks that crunch. That’s what makes FRIIZ FRU!T interesting and unique. Two small packages of 16 g of FRIIZ FRU!T deliver 120% of your daily Fruits & Vegetable needs. 100% of the kids and adults who tried FRIIZ FRU!T have met or overcame the WHO recommendations regarding the daily consumption of fruits and vegetables. They have repeatedly mentioned how easy and convenient is to eat 16 g of FRIIZ FRU!T twice a day and they would eat way more on a daily basis. This small scale customer survey has not only proven the prompt acceptance of FRIIZ FRU!T to kids, teens and adults, but also the several possibilities of using it. Our first customers have added FRIIZ FRU!T to their routine starting at breakfast with FRIIZ FRU!T as a topping to their granola bowls or blending it up in their smoothies. The kids would bring a package of FRIIZ FRU!T in their lunchbox to the school and parents to their office. It was noon and they would have already eaten the entire amount of daily fruits & vegetables recommended by the World Health Organization. In the survey mentioned children would refer to FRIIZ FRU!T as "candy", and they have asked to eat 1 or 2 more packages after lunch and afternoon snack (4 packages a day).

2. Fighting Food Waste.
The technology chosen to manufacture FRIIZ FRU!T is the freeze-drying or lyophilization process. Through the freeze-drying process, 98% of the moisture is removed. This results in easier portability and a very long shelf-life. In average, the total weight is reduced by 15x and they can last up to 25 and 30 years! Providing such extended shelf-life to the product makes it convenient to be eaten before the expiration date, therefore avoiding food waste. Moreover: our dedicated organic crops are harvested when the fruits are fully ripe and immediately processed to ensure the best of the fruits. Nothing is wasted.

3. Promoting Organic and Fair-Trade Agriculture.

"We share a common planet, and the world has learned the hard way that we have to get along and work together. We have learned, too, that cooperation can benefit all".
-Joseph Stiglitz.

Our tropical fruits are locally grown in Brazil and bio-certified under the European Organic Regulation. The fruits are grown free of pesticides, harvested when fully ripe and bought for a fair price in order to support the local farmers and promote the environmental welfare. In 2019 North Atlantic Food Trading joins two key partners to bring the Foods of the Future to a higher level: The Ghana Lyo'Plant.

Long Term Development Strategy
The Ghana Lyo'Plant aims to promote the organic fruits production and exports in Africa. This ambitious project brings together the Ghanaian Government, International Funds, private investments and opinion formers to bring know-how, create jobs and promote the Western Africa's growth. The targeted markets are (in order of relevance) the European Union, United Kingdom, Asia-Pacific and Brazil.

In short, to accommodate international expansion including an extended product line a new state-of the-art plant is required. By our estimation, a $50 million, 5.000 m² manufacturing facility would suffice to house the multiple manufacturing lines, packaging, warehouse, distribution centre, and administrative offices. The plant is planned to process and freeze-dry up to 10 t. of food per day (raw and cured products). All development and expansion will be planned and designed to accommodate the demand for the product, reduce shipping costs, and provide the flexibility to introduce new products.

Ghana is an attractive location for the prospective plant. The massive and organized organic farming sector, significant natural renewable power-sources, qualified, experienced workforce have driven our motivations to invest in the country. Furthermore, the EU has installed an Economic Partnership Agreement with 16 West African states; the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU). A USD 1.5 billion investment announced for a new multi-purpose port in Ghana and progress on similar plans in Nigeria, APM Terminals and its public and private partners are lowering trade costs and supporting employment and economic growth.

Marketing strategy

Our comprehensive and far-reaching marketing strategy is to create messaging and positioning that clearly articulates our values to each of our target markets. We must communicate that value through our marketing tactics to grow our third-party sales channel, build brand awareness, and support our distributors and their customers.

Marketing Tactics.

Lead Generation – to identify/prospect potential distributors and retail buyers and nurture them through the sales process.

Brand Awareness – to provide support for our sales channel by building a strong brand.

Sales Channels Expansion and Support – to create promotional programs that will help our sales channels sell through more effectively.

Distribution strategy

FRIIZ FRU!T will count on two Distribution Channels.

1. Direct Distribution Channel: E-commerce / Online Shop: Our company has started the programming of a webshop where clients can buy FRIIZ FRU!T directly. Other E-commerce Platforms, Co-branding.
This distribution channel will mainly be promoted through social medias.

2. Indirect Distribution Channels: Distributor/Wholesale Partner: our partner, Felix Cohen, is one of the largest Food Distributors in The Netherlands. They will work together with us for the storage and distribution in Europe and are well known in the Dutch HORECA market. They have already presented FRIIZ FRU!T to AHold, Metro, Makro and Maxxima. Retail Partner: we are in negotiation with Retailers in Belgium: Bioplanet, Biostation, Het Natuurhuis and more. The Indirect Distribution Channels are mainly promoted by the attendance of Food Trade Shows, LinkedIn Connections and Chamber of Commerce Networks/Reports.

Internationalisation strategy

We will take a phased approach by first selling into the Benelux area, and later on expanding into Germany, Austria, France, Switzerland. We have estimated there are approximately 198.000 retail firms and co-op food markets in our primary and secondary target areas. Our selected distributor, Felix Cohen currently serves wholesalers, restaurants, and institution in that area. The internationalization strategy that better fits North Atlantic Food Trading profile is non-equity mode, comprising exports and contractual agreements with local agents in every new country we may enter. Multidomestic Strategy chosen focuses on maximizing local responsiveness by giving decentralizing decision-making authority to local business units or agents in each country so that they can create products and services tailored to their local markets. Using the multidomestic strategy, NAFTrading can customize FRIIZ FRU!T & The Foods of the Future to meet specific preferences and needs of local customers.

Intellectual Property

The value of a trademark lies in the goodwill associated with that trademark. FRIIZ FRU!T is an exclusive, authentic and unique product entering the international food market. The brand delivers precisely the message we want the customers to internalize about this product: it's fruit and it's freeze-dried. The colours of the logotype transmit freshness, a cool look, it's genderless and ageless.We will protect FRIIZ FRU!T and the side-products' logotypes and the term The Foods of the Future under the EU trademark law, giving us protection in all EU countries (currently 28). We will protect FRIIZ FRU!T's logotype and the term The Foods of the Future in Brazil too. We have already bought the following domains: www.friizfruit.com, www.northatlanticfood.com, d-sea.net.

Major contracts

We have concluded the following major contracts:
- Loyalty Agreement and Partnership with the Brazilian manufacturers: Liofoods.
- Fixed contracts for the delivery of the products on regular basis, fixed prices over a longer period with the Brazilian manufacturers: Liofoods.
- Exclusive harvesting supply of bio-certified fruits with the Brazilian farmers: Bioenergia Orgânicos.
- Distribution agreement: Felix Cohen BV (NL).

Joining in brief the Spanish Belgian Luxemburg Chamber of Commerce. As we’re just a starting company, we haven’t concluded important sale contracts yet; only spare sales. We’re in the step of contacting potential buyers, promoting the brand and marketing the product.

Main partners

FRIIZ FRU!T is supported by a strong & strategic partnership never seen before. Connected by the same positive principles, our company has joined two key players in Brazil and one in The Netherlands to optimize and guarantee the best business flow regarding organic certified food. Based on contracts, planning and friendship, we bring a reliable and scalable production chain: farmers, manufacturers and distributors.

Organic Farmers: Bioenergia Orgânicos;
Freeze-drying Manufacturers: Liofoods;
Distributors: Felix Cohen BV.

TAX SHELTER 45%

This business qualifies for the startup tax shelter. If you meet the conditions, 45% of your investment will be reducted from your personal income taxes. Read more…