PRESENTATION AND BUSINESS CONCEPT COMPANY … · not make any sense to do a program whose objective is to detoxify the organism with toxic / conventional products). Another point

PRESENTATIONAND

BUSINESS CONCEPT

COMPANY

ROTASCARISMÁTICAS, LDA

Characterization of the Company and Business Model

Products and services

Characterization of Customers

Branding Evolution and Awareness by the public

Business Evolution

Market and Competition

Business Development Proposals

Final Considerations

Recommended articles to support the Business Model

Index

Rotas Carismáticas,Lda I Company Presentation and Business Concept

2

Characterization of the Company and Business Model

Rotas Carismáticas,Lda I Company Presentation and Business Concept 3

The Portuguese company Rotas Carismáticas, Lda. Owns a brand of organic juices, created at

the end of 2013. Registered as national brand nº 550097 (INPI) and logo no. 30513 (INPI), also

having the biological certification given by SATIVA entity No. ABO418T Sativa PT-Bio-03. Inserted

in the area of Restoration and Beverages.

In recent years we have seen a growing demand for alternatives to the fast food boom, a

natural reaction to a food dysfunction whose consequences are often obesity, excess sugars,

cholesterol, coronary heart disease, etc.

These alternatives were presented in different ways, and the market for organic juices, one of

the most important ones, has recently appeared in Portugal. This brand of organic juices, meets

the needs of these new consumers. The brand has developed an innovative and specific

business in catering in Portugal, had and has the mission to offer a healthy option, balanced,

simple and tasty - meals in a liquid form - raw soups, prepared smoothies- with fruit, vegetables,

superfoods, seeds and organic cereals.

The main activity is the direct elaboration and sale of organic juices, 100% natural, without sugar

or water, without any additives, or GMOs. All juices are freshly prepared.

Opened in Lisbon, it is the 1st national store with organic certification.

The option from the beginning for organic products is the first criterion of differentiation and

positioning versus what currently exists in the market, and the brand also has a strong

environmental awareness, not using plastic cups, but rather of vegetable origin, friendly to the

environment . Added value to the product offered to the Customer and that also marks the

difference in relation to the competition.

The brand has a perfectly tested concept and business model (3 and a half years of existence)

inserted in a niche with a tendency to grow nationally and internationally.

The Brand has also prepared a Franchising model ready to move forward.

In the store one can find the following products:

a) Wellness Juices - the simplest juices, more fruit and less vegetables. Suitable for middle

morning or afternoon.

b) Functional Juices - are more complex juices prepared with fruits, vegetables and Superfoods

that have beneficial and unique properties for our body. The combinations are numerous ended

in to delicious juices that help to lead a healthier and more balanced life. Functional juices can

replace meals such as breakfast or snack and are great options for lunch time.

c) Nutrivege Juices - are made with a greater concentration of vegetables. They are raw soups

because of their consistency and nutritional richness.

d) Smoothies - with or without yogurt, options most appreciated for the breakfast or snack.

e) Other products

- Organic teas;

- Lemonade;

- Orange juice;

- Fruit salad;

- Fruit in pieces;

- Overnight oats

- Açaí Cups

- Mini Market of Fruits and Vegetables

- Hot Oats with honey and cinnamon

Products and Services


- Vegan Wraps;

- Natural Organic Yogurt or Coconut Yogurt (With cereals, fruit or natural)

- Vegan organicl small pies;

- Salted Pies;

- Crudivorous Salads;

f) Other services:

- Nutrition;

- Merchandising;

- Catering;

- Delivery of Fruit Baskets to Companies;

- Supply of some commercial houses with brand juices;

- Detox programs of 1, 3 or 5 days:

are made with 100% organic products, which represents one of the

great differences and valences in relation to the programs of the competition (it does

not make any sense to do a program whose objective is to detoxify the organism with toxic /

conventional products).

Another point that differentiates the Brand in the market, are the values to which they are

marketed, very competitive versus those presented in the market.

These programs have been developed and are constantly being upgraded in partnership with a

nutritionist who works directly with the brand.

There are many repeat customers several times a year, which gives us a good idea of success

and continuity in the future.

These are truly the distinguishing factors of the Brand vis-à-vis the current market.


Customers are primarily Shop Clients, but also Companies to whom we offer a daily delivery

service in their offices.

Sociologically they are Customers who already had the habit of making a healthy diet or with

our help, they accepted to try this type of raw food, in liquid format and acceded without

reservation.

The store , already has a large number of regular customers, a growing number of consumers

who demand for fresh, high quality, but above all organic products. This customers increase

every day. There is also a high demand of foreigners for this type of supply, since this type of

food is already part of their daily life. Housed in hotels near the store, or residents now in our

country, they come to us through various applications and specialized websites.

All this work is being complemented by an increasingly information by the media, social

networks, etc. On the need and benefits of a change in our diet, not only as a determining factor

for our well - being but also as a preventive diet of medium / long-term health problems.

Development and Brand Awareness by the public

The Brand has participated in several events (Lisbon Yoga Festival, GreenFest, Green Day at the

EDP Foundation, Annual Fair Terra Sã, Agrobio), TV programs (Green Economy, Queridas

Manhãs, Jornal da Tarde of the Correio da Manhã Canal) and magazines such as TIME OUT and

“SABADO”. It also has partnerships with other organic brands such as Organii,

cosmetics and Maria Granel. Partnership with Implantology Clinic Dr. Hugo Madeira.

The evolution and knowledge of the Brand by the Public is due not only to these references, but

also through the publicity made through flyers, digital platforms and one on one advertising.

As a consequence, has already been approached by other brands for potential partnerships, and

its feasibility is under study and analysis.

Characterization of Customers


Business Evolution


5.1. From the outset, we wanted to show the four different business families (wellness juices,

functional juices, yogurts and snacks) in the P & L in order to understand their relative weight in

the totality of the business (see comparative tables 2016 and 2017).

As it is easily seen, Functional Juices account for more than 50% of the total business (52% to

55%).

Here it is necessary to continue to ensure the seasonal updating of the same, keeping,

nevertheless, the bestsellers always present in the menu.

We do not expect a very significant evolution in Yoghurts and Snacks (in yoghurts a relative

growth of ~ 1% a year and in snacks a share of around 24-25%, still being the 2nd most important

family).

Wellness … 9,92%

Functional 51,82%

yogurts … 13,24%

Snacks … 25,01%

8%

55%14%

23%

2017 F/C

Bem-estar …

Funcionais

Iogurtes …

Snacks …

Wellness … 8,14%

Functional 54,42%

yogurts … 14,36%

Snacks … 23,08%


In the Wellness Juices is not predicted a great growth, but with the partnerships, that are added

here, an increase is predictable and more significant.

In 2015, the first partnership with the Pastry "L'eclair" was started, and in 2017 two new ones

were added: the Medical Office "Dr. Hugo Madeira Implantology Clinic" in Saldanha and the

"Maria Granel" Store in Alvalade.

It is expected that these will contribute to a 100% increase in their relative weight in this family.

5.2. The turnover has consistently increased since the start of the operation as well as Net Cash-

Flow, as shown in the following tables:


In addition to the success of the operation, there were factors that influenced this

performance positively and negatively:

Namely :

Negative factors: It was necessary to revise the calculation of cost of sales in 2015 with a greater

incidence in 2016. The fact that the distribution of organic products is not yet well settled made

changes in consumer prices during this period suffered a strong variation, especially in fruits like

apple, orange and pineapple.

Some of these products, due to their natural seasonality and the inefficiency of inventory by the

distributors, forced the importation of these products in quantities much larger than expected

and thus the variation of their final retail prices, suffering an inflation well above the

foreseeable .

In fact this remains the great risk factor to be managemend, almost daily. A more professional

distribution structure is needed so that the fluctuations seen in this, as in all markets, can be

predicted and thus optimized.

Another factor, which can not be considered totally negative, is related to the fact that the

prices of the menu remain unchanged since 2014. A slight increase is now under study for 2018.

Positive factors: The sector taxation was quite benefited from the lowering of VAT to 13% in the

2nd half of 2016. No major effects in 2016, this effect will be and is already felt in the current

year.

In addition, the store has only 30m2 of total area, about half for Customers, which encourages

consumption "To Go". In this scheme the VAT goes to 6% which adds an even greater benefit.

Salary costs also reflect an increase, this positive, by full-time admission of a 3rd element to the

store.

Another very important factor is that Detox programs of 1, 3 and 5 days have been growing

substantially over the years.

The mix clearly shows their real profitability.

One of its most important features is that it has an increasingly stable repetition rate.

A Client of this program has become accustomed to repeating it at least 4 times a year.

Finally, operating costs after the natural adjustment in 2015/16 dropped ~ 8% in 2016 and will

increase ~ 10% in 2017 as a result of the entry of a 3rd element to the full-time team. Without

this, operating costs would have a new downward adjustment identical to 2016.


Market and Competition

By the time the brand hit the market, there were two brands already operating, although none

were organic. One closed its activity in 2016 and the other resized itself by losing some of the

existing stores to date, also in 2016. There is no registration of new brands coming to market so

far. There is a new offer but online without being able to validate its quality and / or success.

On the other hand and in addition to the already well-known bio weekend markets, they have

been opening several bio distribution companies (supermarkets, restaurants ...) all over the

country with a public perception of quite success. This has helped to spread these products

more widely, even helping an ever greater correction of the much-vaunted PRICE paradigm. It is

already possible to find more affordable prices of these products and after all the perceived

difference is not great.

There is a natural synergy between these businesses that allows them to see as complementary

rather than competitive.

Business Development Proposals

We believe that this type of business has enormous potential for growth, we have now

explored a path, but there are several aspects that we consider important to follow.

We point out the following:

•Create a children's line, with juices, raw soups, fruit and vegetable milks;

•Create a merchandising for kids with Brand Ladybug;

•Create shops / small sizes, corners in Lisbon with the concept "To Go" in strategic zones with

much tourism and pedestrian areas;

•Create a line of “cold press“ juices, bottle and sell in Hospitals, Clinics, Schools, Supermarkets,

Private Companies, and so on;

•Street Food vans only with juices, smoothies and Shots


Final Considerations

This business has a relevant differentiating feature. It follows an increasingly visible public

perception of the benefits of organic and raw food, which means a more natural, balanced and

healthy diet. Incidentally, it will be reasonable to say that this business is increasingly leveraged

to a concept of Health and Well-being than exclusively to a strictly food-based option.

That's what the market says!

Growing areas for organic production in the world, in Europe and naturally in Portugal. Greater

number of producers, greater variety of products, larger retail network.

This is how this market is expected to grow consistently over the next few years at rates above

25%.

With a growing demand on the market for green organic juices, with vegetables and raw food,

we believe that the jump will be fast, unpredictable, so that these growth rates will be quickly

exceeded. That is why it is necessary to be prepared. We believe that the Brand is surely

prepared.


Articles that we recommend to support the Business Model

- Estratégia Nacional para a Agricultura Biológica

http://www.portugal.gov.pt/pt/ministerios/mafdr/documentos/20170329-mafdr-estr-agr-

bio.aspx

- Facts and figures on organic agriculture in the European Union

http://ec.europa.eu/agriculture/markets-and-prices/more-reports/pdf/organic-2013_en.pdf

- The World of Organic Agriculture 2017

http://www.fibl.org/fileadmin/documents/en/news/2017/mr-world-organic-agriculture-2017-

english.pdf

http://www.portugal.gov.pt/pt/ministerios/mafdr/documentos/20170329-mafdr-estr-agr-bio.aspx

http://ec.europa.eu/agriculture/markets-and-prices/more-reports/pdf/organic-2013_en.pdf

http://www.fibl.org/fileadmin/documents/en/news/2017/mr-world-organic-agriculture-2017-english.pdf

THE END

COMPANY

ROTASCARISMÁTICAS, LDA

PRESENTATION AND BUSINESS CONCEPT COMPANY … · not make any sense to do a program whose objective is to detoxify the organism with toxic / conventional products). Another point

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