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Sorbet by Ethique Limited
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NZ $201,150 pledged
138 people pledged
NZ $150,000 minimum target
Pledges will only be confirmed if the target is reached by: 10/07/2015 at 7:00 PM (NZST)Make a Pledge
Sorbet by Ethique Limited
Welcome to our world
In 2012 Brianne started making unique solid formulas from her kitchen in Christchurch, New Zealand.
With her knowledge of chemistry & biology she wanted to create better cosmetics & wasn’t afraid to do things differently.
We’ve now outgrown the kitchen and set up in our lab. Our core guiding principle remains the same: healthy products made with sustainable - naturally derived - ingredients.
Different is beautiful
What does that mean for us?
It’s about ignoring the status quo & doing things your own way.
We started Sorbet because hair & skin care needed a shake up: simple, concentrated & sustainable products that deliver on results, without the packaging.
A fresh approach
Bars are our answer – no bottles, no harsh chemicals - just good things in high concentration.
We’re all about taking beauty products & making them super dense. Each bar is packed full of only good things that will work to bring out the best in your skin & hair.
Solid cosmetics have loads of benefits. They last for ages because they’re so concentrated. One bar of Sorbet can last as long as five bottles of its liquid relative and because there’s no water, Sorbet doesn’t need preservatives. ‘First do no harm’ is our priority, we can do that by making solid formulas.
For us, sustainability runs deep. We started making beauty products because we know they can be made better.
But it goes further than just formulas. We package our bars in water soluble paper and compostable boxes, the ultimate in no waste. Just run under the tap to dissolve the packaging or toss in your compost bin. Thus far we have prevented 32,000 bottles from being made and disposed of.
As you know, what goes down the sink ends up in the sea. That goes for our products too: the ocean is their destiny. Our ingredients are carefully chosen with this in mind. There’s nothing in our bars that will cause harm to the environment.
Our lab is powered with 100% renewable energy and we’re proudly certified climate-neutral.
What is ‘natural’?
We love natural things as much as you do. In reality it’s impossible to make a 100% chemical free product because everything is made of chemicals (yes, even you.) We use naturally derived ingredients that are effective, healthy and sustainable.
Here’s what we do:
- Find ingredients from sustainable sources
- Put them through as few chemical processes as possible
- Source organic when possible
Sorbet doesn’t contain:
- Sodium lauryl/laureth sulphate
- Ingredients that form nitrosamines or dioxins
- Formaldehyde or formaldehyde donors
- Palm oil
- Petroleum byproducts
- Animal products
Sorbet is certified cruelty-free by PETA, SAFE & Choose cruelty free. We don’t test on animals, or use ingredients that are tested on animals.
Why are we crowdfunding?
Something we feel passionate about is involving as many people as possible in Sorbet and its success. Our customers have given us product ideas, named various bars (In Your Face anyone?) and supported us every step we’ve taken. We need capital to take advantage of the amazing opportunities being thrown our way and this is the best way to do it.
What do investors get?
We are offering up to 200,000 non-voting shares at $1 each which will equate to a total of 16% of the shares in Ethique Limited (trading as Sorbet). The minimum number of shares you can purchase is 500 ($500).
We’re sweetening the deal with shareholder discounts, the opportunity to try our newest products before release and of course, every shareholder is invited to our AGMs where you will be able to tour our factory and try out new products.
The non-voting shares do not give the holder the right to vote at meetings of shareholders. In very limited circumstances (to ensure the shareholder’s core rights are protected) each non voting share gives the holder the right to one vote. This only occurs where there is a proposal or resolution:
- that will affect the rights attached to the Investor Shares
- to put the company into liquidation
- for the disposal of the whole, or a material part, of the property, business and undertaking of Ethique Limited
Non voting shares will give the holders:
- The right to an equal share in dividends and other distributions made by Ethique Limited (subject to the rights of any other class of share)
- The right to an equal share in the distribution of surplus assets of Ethique Limited.
The constitution sets out other terms that will apply to any shareholding in Ethique Limited. You should read the constitution before pledging for shares.
|Pre-offer||Post-offer (fully subscribed)|
|Martyn & Janette West||25,000||2.38||25,000||2|
About our Team
Brianne West. Brianne has a background in science (biology and chemistry) and has founded and run two businesses prior to Sorbet, both of which have since been sold. Her first business was also in the natural skincare industry and was started when she was just 19 years old. Brianne brings the passion and innovation to Sorbet and is rapidly gaining business nous.
Janette West. Janette is Brianne’s Mum and came on board in February 2015. Janette is responsible for processing orders and is learning the manufacturing ropes. She brings a wealth of administrative and bookkeeping experience and keeps the lab looking tip top. Janette has a background in manufacturing & quality control. This involved implementing British safety standards and ensuring efficiency and quality across manufacturing systems.
Helen Rhodes & Danella Stewart. Helen & Danella are our dedicated wrappers. They ensure our bars are dressed in their best before they leave our lab. Both ladies are early childhood teachers with children of their own and are tremendous assets as they work all hours to make sure we are never caught short.
Bryan Pearson. As a company director, investor and consultant strategist, Bryan Pearson draws on more than 20 years experience in chief executive and governance roles in Australia and New Zealand. He has held a number of governance positions including Chairman of Mouton Noir Ltd (trading as MACPAC), independent director of J. Ballantyne and Co. Ltd and is currently a trustee of several third party private entities and Chairman at Lane Neave. In his capacity as consultant strategist he supports a range of public and private sector organisations in developing strategic direction, resolving strategic issues and mentoring leaders. “Boards, Chief Executives and Executive teams are often so busy doing they don’t have the luxury of time to step back and engage the business in thinking through who they are, what they stand for and believe in, where they are going and what they want to achieve in order to have a clear, concise and compelling touchstone for all business planning, investment and decision making. They then need support to make it happen.”
What we've done so far
Ethique Limited, trading as Sorbet, was started in October 2012 by Brianne out of frustration with the environmental impact of beauty products available on the market.
For two years Sorbet was run as a pilot program, whilst Brianne studied towards a bachelor of science in biology at Canterbury university. The products were concocted in Brianne’s kitchen and over 8,000 fans on Facebook and 6,000 customers tested out what worked in the way of products and packaging. Rave reviews started piling in (over 700 five star reviews in just under two years) and it gave Brianne the confidence to enter the Entre 85k business competition run through the University of Canterbury. As part of the competition, businesses were given a mentor and had to develop a business plan and pitch for investment. One of those mentors, Bryan, came on board as an investor and director in March 2015. Bryan is an experienced CEO and board member, having held positions on the boards of Ballantynes, Macpac and Saint Andrews College. Bryan specialises in strategy and governance and, with his help, Sorbet is now set on a high-growth path.
Since launching, we've prevented 32,000 bottles from being made and disposed of.
We aim to have completed fitting out and obtaining certification for our manufacturing lab by late August and will release our new branding at the same time. Then with all our ducks in a row we will be securing distribution in retail outlets, first in NZ, then spreading into Australia and further afield.
How will we spend the money?
Brand activation ($35,000)
We are currently developing some stunning new branding architecture, on which we will base our expansion. We have received feedback from retailers that our current branding will not cut the mustard for international expansion. We need to implement our new world class brand and get it right first time. It is important we have an easy to use and up-to-date website as the majority of our sales are online. This will be completed and released 1st of September. This includes new label, new packaging, a new website and PR.
Branded storage container ($13,000)
The number one request we get from our customers is to provide a container that they can use to store their bars in in the shower. We have been researching this for over a year and finally have sourced 100% compostable containers made from sugar cane. They will last up to five years in your shower, yet won’t clog up the landfill when thrown away. To get 5000 of these made with our logo, it will be just under $13,000.
Lab development & GMP certification ($35,000)
If pushed we can get 1000 bars daily out of our lab at the moment. We need to extend this to 5000 and also achieve GMP (Good manufacturing practises) certification. This will enable us to export around the world and to keep up with the demand our expansion will create. We plan to have achieved this certification by August.
Operation Manager ($50,000)
We need to employ an operations manager who can take over the day-to-day running of the lab & office. We envisage doing this by the end of July. Could this be you? Email us for the job description.
Global Market Development ($50,000)
This is the ongoing process of finding & researching potential new markets for Sorbet and developing the best entry method. Refer to our three year strategy for more information.
We've also factored in $17,000 for working capital, and we're aiming to raise up to $200,000.
Our strategy includes:
New Zealand: FY16
It has been our strategy over the first two years to concentrate on developing our brand awareness with both our target markets and focus on conversions through our online site. We have turned away most retailer enquiries, thus we don’t have much of a retail presence. When our new branding is finalised and packaging completed in late August, we will begin approaching retailers to stock our products. We have identified three channels which we will focus on; pharmacies, department stores and giftware stores. Our aim is to receive placement in thirty retailers by end of FY16, with an additional seventy by close of FY17.
To ensure continued awareness of the Sorbet brand, we will further develop and maintain relationships with influential media and bloggers through our PR company, Convergence.
In September when our branding is completed, we will begin approaching and securing placement in Australian stockists. We have identified three channels we would fit into, one chain of department stores, one beauty specific chain and a pharmacy chain.
We have a small customer base and two existing stockists over there already, but need to develop awareness of the brand. We will work with a small number of carefully selected chains and an Australian PR company to ensure we do this effectively and will manage it ourselves, not using distributors to ensure the best possible margin. If required, we will bring an Australian agency or account manager on board to facilitate relationships. To lower the shipment costs, we will secure warehousing in Australia and may open a factory outlet store such as the one currently in Christchurch. We expect to have secured placement in one chain (20 stockists) by end of FY16, and one other by end of FY17, with an approximate total of 60 stockists.
We need to carry out more market research into Singapore to ensure it is the best option for our first foray into the Asian market. We have had talks with a large department store chain over there who are interested in stocking our product, but we are not willing to do so without further market understanding. We plan to work with NZTE and Katabolt (export specialists) to determine this.
Further international development
Our success rate in our first two international markets will determine whether we enter another within this three year plan. We have identified a number of opportunities (as above), in particular North America, but will need to complete more market research before making the final decision on the best way to enter these markets. Although we have had multiple enquiries from distributors in China, Taiwan & the Philippines, we are not willing to enter markets half heartedly as the fastest growing businesses do fewer areas, better. Once we have entered a country we will do it completely with the aim to dominate our sector.
Our forecasts and assumptions
Staff: We intend to add an operations manager in July this year, with seasonal help bought in for November & December to cope with the increased order load. We expect to bring another manufacturer on early 2016.
Location: Our current lease runs out in November 2016 so we will move into a much larger premises and have estimated market rate +10% for this.
Silver assumptions: Growth will continue to double year on year through word of mouth and continued PR & marketing. We will secure distribution through half of the stockists we expected in both NZ & Australia and begin to develop the second international market.
Gold assumptions: We will smash our retailer targets both here and in Australia and have developed significant inroads into our second international market.
Ingredient cost will decrease up to 50% with larger amounts purchased.
Download our business plan for our full forecasts and assumptions.
Risks and Challenges
Loss of key staff
Losing Brianne (our founder) would be a significant threat to Sorbet at this time. We plan to bring on an operations manager to learn the more specific parts of her role (which will also free her up to export Sorbet) by end of July. The existing team share Brianne’s passion and drive for Sorbet so the brand would continue on. We have key person insurance should something happen in the meantime.
At this point, we have decided not to patent our products as the costs will outweigh the benefits.There is the potential for this to change with new innovative products in the future. We have to rely on developing a great brand, great products and our customers loyalty.
Securing debt is difficult as our major shareholder doesn’t have any assets. Whilst we will always exhibit caution and forward planning with budgets, we would consider a further capital raise in the future if necessary.
Manufacturing premises disabled by earthquake or similar disaster
The possibility of our Christchurch lab being disabled by a natural disaster is relatively high, but is easily solved. Our plant and fittings are all easily removed (or replaced) to quickly equip another premises. If it was inaccessible, we could use a contract manufacturer in NZ to produce our products for the shortest possible downtime.
Distance to market
New Zealand is one of the most remote countries on the planet, but manufacturing here does have the benefit of stamping ‘NZ made’ on the product. We expect we will open further manufacturing facilities in the future, in Europe and possibly North America to keep up with the demand.
Unusual product line
Whilst having an unusual product line has advantages, it is also a source of consternation for some new customers as to how to use the product, or why to choose a solid over a liquid. Consumer education will form a very large part of our PR and marketing plan, in particular when rolling out into new markets. This will provide excellent content to provide value and interest.
Note from PledgeMe
We have completed a Veda check on the company and their directors, as well as a Google check. There were no adverse findings.
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Only $20k to go!
22/06/2015 at 8:53 AM
We are so close to our target- just $20,000 to go.
We'd really like to hit $200,000 by the end of this week so we can get cracking on expanding; we have lots going on already and even more planned. So please share us around and help us spread the word so we can grow the empire!
On that note, if you know anyone who would love to work for us, let them know we are hiring: http://www.trademe.co.nz/Browse/Listing.aspx?id=903193992
And once again... Thank you!
Thank you for helping us raise the bar.
17/06/2015 at 12:17 PM
Excitement in the Sorbet office this morning... we are over the line and have hit $150,000 in under a week!
Thank you, thank you, thank you!
I keep saying this, but it really means so much that you have so much faith in Sorbet, it only gives me the drive to work even harder.
We now have just 50,000 shares available before we hit our maximum of $200,000, so if you want on this amazing ride, jump on quick.
The extra will give us the oomph to get out there and start exploring the export options open to us.
Over 65% of those of you who have invested are already existing customers, which is exactly why we chose to crowd fund. We are so delighted to have almost 100 new team members join our fold, helping us save the world.
16/06/2015 at 2:42 PM
Just over $7000 till we hit our target!
To those of you whom have pledged, thank you, we are so excited to have you on board. To those of you thinking about it... now is the time to take the plunge, it would be great to hit our goal in less than a week. If you have any questions/concerns/feedback, do let me know and I will answer as best as I can.
We are finalising our new packaging at the moment and have pushed the 'go' button on our in-shower containers. They are made with compressed sugar cane, so a 100% renewable, compostable container which will last up to five years in your shower.
Our experiments with the prototype showed they doubled the life of shampoo bars (when compared with a naked bar in no container but kept out of standing/running water).
Woohoo! Over $100k already!
14/06/2015 at 12:12 PM
Thank you so much, yesterday we reached just under $110k in under four days. The support you have all shown is incredible and I am so excited to bring you along on our journey save the world from cosmetic packaging!
It's been an amazing week and I know next week will be even better.
As you can see, Janette is very excited.
Off to a solid start!
11/06/2015 at 2:16 PM
Last night we launched our equity crowd funding campaign in the Ballantynes hair salon with our friends, family, customers and a bunch of people we’d never even met.
“I invested in Sorbet because I believe that the business will grow as well as outlined, if not faster, along with the fact that it is an amazing brand and amazing product.”
"I love what Sorbet is about and can see the company going far. It is exciting to be able to support such an innovative business!"
I started Sorbet with the goal to prevent the incredible amounts of waste coming from cosmetic products.
|Maximum Shares Offered||200,000|
Explanation of valuation:
2.5 times third year earnings before depreciation, interest and tax. We have based our valuation on our silver forecast to try to make it fair and achievable.
|Prev Year||Current Year||Est. FY 2021||Est. FY 2022|
|Revenue||NZ $116,000||NZ $350,000||NZ $705,000||NZ $1,350,000|
|Operating Expenses||NZ $78,939||NZ $178,000||NZ $331,000||NZ $457,940|
|EBITDA||-NZ $5,403||NZ $41,000||NZ $120,000||NZ $401,560|
|Net Profit||-NZ $5,403||NZ $41,000||NZ $86,400||NZ $289,140|
Company Name: Ethique Ltd (registered as ETHIQUE LIMITED)
Company Number: 3152626
Companies Office URL: http://www.business.govt.nz/companies/app/ui/pages/companies/3152626
Incorporation Date: 27 Oct 2010
Company Status: Registered
Entity Type: Registered
Constitution Filed: Yes
Annual Return Filing Month: June, last filed 23 Jun 2014
Unit 2, 375 Wilsons Road
|Address for Service||
Unit 2, 375 Wilsons Road
|Brianne West||Managing Director||https://nz.linkedin.com/pub/brianne-west/49/a2a/791||✔|
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Hey, it says to read the constitution but I cant find anything under that name. Is it the business plan?Posted on 11-06-2015 by Daniel Fleming
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"All the best Brianne. Such a cool and exciting plan. Tom"
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This campaign has closed, but this company may choose to do more equity raises on PledgeMe in the future. If you're interested in investing in Sorbet by Ethique Limited, you can sign up to be notified when a new equity campaign from this company is published.
5% shareholder discount on the ordinary retail price of products, invitation to AGM & after party. We’ll also send you some sweet Sorbet branded apparel so you can show off your shareholder status.
10% shareholder discount on the ordinary retail price of products, invitation to AGM & after party. We’ll also send you some sweet Sorbet branded apparel so you can show off your shareholder status.