In view of this, Veganz intends to establish an additional larger production site on around 10,000 square meters in the Federal State of Brandenburg, near Berlin. Veganz expects to raise the share of sales of self-produced goods from 0.3% (as of September 30, 2021) to 30% in the medium term. The new production site is intended to produce purely plant-based fish (smoked salmon, shrimp, tuna) and textured protein used to make unrefrigerated meat substitutes as well as cheese alternatives. To the Company's knowledge, this new production site will be the largest production site for plant-based cheese alternatives in Europe.
One potential component of the future in-house production could also be so-called "perennial vertical farming" of vegetables, fruit, edible mushrooms and seaweed. The use of vertical farming reflects Veganz' efforts to make its production methods as ecological as possible. After all, vertical farming saves production steps, enables regional plant production, more economical consumption of water, lower CO[2] emissions and higher purity of the plants produced without the use of pesticides, and thus also protects biodiversity. In addition, Veganz plans to remain very flexible in the area of production and become independent of the world market for raw materials.
Cooperation with well-known food retailers, drugstore chains and discounters shows great potential for increasing the number of POS (points of sale) and thus sales in the future
The branded goods business in retail distribution is the core and main sales channel of Veganz. In the DACH region (Germany, Austria, Switzerland), which Veganz considers its core market, Veganz currently sells purely plant-based food products through well-known food retailers such as EDEKA, REWE, Coop, Aspiag or Kaufland as well as drugstore chains such as Budnikowsky, Rossmann, dm and Müller, and discounters such as LIDL, ALDI, Penny and Netto. Internationally, the purely plant-based food products are distributed through food retailers such as SPAR (Italy, Hungary, Slovenia, Croatia, Greece, Cyprus), Kaufland International (Czech Republic, Slovakia, Romania, Bulgaria, Croatia, Poland), Coop (Denmark) and Sonae/Continente (Portugal). As of June 30, 2021, Veganz was represented with its product portfolio at 22,627 points of sale ("POS")^[12] globally and including its own three stores in Berlin. This marks the preliminary culmination of a steady increase in POS in recent years from 9,999 POS as of December 31, 2018, by 76.4%, to 17,638 POS as of December 31, 2019 and, by 13.8%, to 20,073 POS as of December 31, 2020 globally. In the DACH region, the number of POS has increased concurrently from 9,299 POS as of December 31, 2018, by 75.2%, to 16,289 POS as of December 31, 2019, and, by 15.4%, to 18,797 POS as of December 31, 2020.
"The cooperation with our retailers allows us to utilize a very established and strong selling distribution network of POS. However, even though we have a longstanding business relationship with several retailers, our products are not yet represented in their entire store network. We see this as an opportunity to further expand our portfolio in their stores, growing the number of POS and thereby boosting our sales in future.", explains CEO Jan Bredack.
The "Stores" channel as the second sales channel comprises sales through the three own "Veganz"-stores in Berlin. To reach consumers online, the products of Veganz are offered via online-sales platforms such as amazon.com, rohlik.cz, snacky.ch and vekoop.de as well as quick commerce providers such as Gorillas, flink, Foodpanda and weezy. In addition, Veganz also offers its products through the new "Food Service" sales channel in cooperation with its partners, such as the baked goods company Bakerman and the German football club RB Leipzig. For the further growth of this sales channel, Veganz is already in talks with other well-known European football clubs to examine the possibilities of future cooperation and in close negotiations with Aramark, one of Germany's largest caterers. As part of such cooperation, purely plant-based products are also to be offered under the "Veganz" label in the canteens operated by Aramark.
Veganz's success story is evidenced by steady double-digit sales growth in the last financial years. After posting unconsolidated sales through the sales channels "Retail" and "Stores" of EUR 20.3 million (thereof EUR 2.8 million from the "Veganz" stores^[13]) in the financial year ended December 31, 2018, Veganz grew significantly by 32.0% to EUR 26.8 million (thereof EUR 2.9 million from the "Veganz" stores^[14]) in the financial year ended December 31, 2019. In the financial year ended December 31, 2020, unconsolidated sales of Veganz continued to grow by 12.7% to EUR 30.2 million (thereof EUR 3.5 million from the "Veganz" stores^[15]). In the six-month period ended June 30, 2021, unconsolidated sales of Veganz amounted to EUR 17.2 million (thereof EUR 1.7 million from the "Veganz" stores^[16]) and were 16.2% above the six-month period ended June 30, 2020. As a result of the clear focus on executing its growth strategy, the adjusted EBITDA^[17] of the Company was EUR -2.1 million in the financial year ended December 31, 2020 and EUR -2.1 million in the six-month period ended June 30, 2021.
Experienced management team with strong commitment accompanied by high-profile investors
The Company's management board (Vorstand), led by the founder of Veganz and chairman (CEO) Jan Bredack, combines entrepreneurial spirit with longstanding industry experience and a lasting commitment to the Company's mission. Jan Bredack developed the initial concept behind Veganz and has managed the business from its inception. He has over 20 years of sales and customer service experience within the automotive sector and the plant-based food industry. Alexandra Vázquez Bea, Chief Financial Officer, has over 14 years of management experience in the field of finance and start-ups. Anja Brachmüller, Chief Operating Officer, has over 15 years of experience in logistics, purchasing and processing in the food industry. Moritz Möller, Chief Marketing Officer, can look back on many years of experience in the field of marketing and has the expertise regarding the necessary strategies to enhance the visibility of the Veganz brand. The experienced management board is accompanied by many well-known investors, some with proven expertise in the food industry.^[18] They include Vegan Angels GmbH (14.1%), Paladin Asset Management Investmentaktiengesellschaft mit Teilgesellschaftsvermögen (12.5%), Katjesgreenfood GmbH (7.8%), Develey Holding GmbH & Co. Beteiligungs KG (3.5%) and Brandenburg Kapital GmbH (wholly-owned subsidiary of the "Investitionsbank des Landes Brandenburg") (3.5%).
The total volume of the IPO is expected to amount to up to EUR 50 million, comprising newly issued shares from a capital increase utilizing the Company's authorized capital alongside a sale of existing shares by certain shareholders as well as a market-standard greenshoe option. The selling shareholders intend to sell shares in the IPO to ensure sufficient free float and trading liquidity in the Company's shares.
A market-standard lock-up of twelve months is expected for the Company and major shareholders. Jan Bredack, the CEO of the Company holding 26.3% of the Company's shares^[19], will agree to a lock-up commitment of 36 months, which underscores his strong commitment and belief in a positive development of the Company.
The Company is targeting gross proceeds from the sale of the new shares of approximately EUR 35 million, of which it intends to use the largest share for the establishment of the new production site near Berlin as well as for investments in the further organic and inorganic growth of Veganz, e.g. for research and development, expansion of field force, marketing and further expansion in selected European countries.
M.M.Warburg & CO will act as Sole Global Coordinator and Sole Bookrunner. Quirin Privatbank will act as Co-Lead Manager.
Contact:
cometis AG Claudius Krause Phone: 0611 205855 28 Mail: investorrelations@veganz.de
About Veganz:
Veganz - Good for you, better for everyone - is the brand for plant-based food. Founded in Berlin in 2011, the company became known as European vegan supermarket chain. With a colorful and life-affirming company philosophy, Veganz managed to break open the vegan niche and establish the plant-based nutrition trend on the market. The current product portfolio includes around 120 products (101 active products as of September 30, 2021) across 17 categories and is available in more than half of all European countries and in 22,627 points of sale (POS) as of June 30, 2021, including Veganz' own three stores in Berlin, Germany. In addition, the Veganz product portfolio is continuously being expanded to include high-quality, innovative items and the sustainable value chain is constantly being improved. For this commitment, Veganz was the only German company to be voted one of the top 3 innovative brands and Germany's most innovative food brand in an exclusive Handelsblatt ranking in 2021.
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