About Angel Food
We develop products for people wanting to eat plant-based foods - be it every so often or everyday.
A common issue people face with shifting to more plant-based are the lack of quality alternatives. We recognise that access to good alternatives makes it much easier for people to stick with their desired way of eating.
Angel Food was originally founded by Alice Shopland in 2006 as an importer and distributor of vegan products for organic food stores. The team grew in 2013 when Colin Woods joined the Angel Food team - and we made a decision to move away from importing in favour of creating and producing our very own plant-based and divine range of products here in New Zealand.
The decision to move away from high cost, low margin importation into local production is paying off for Angel Food and its consumers. We now have:
A growing range of our own New Zealand-made products, focused on fulfilling the needs of our communities;
Far better control over our distribution, meaning our product is more reliably available to our suppliers and consumers;
A more profitable and sustainable business model;
Exciting export potential
Our top sellers are our dairy-free cheese alternatives: because everybody loves cheese!
As New Zealand’s food innovators, we are committed to providing good choices for mindful eaters. That’s why all of our products are vegan, and most are also gluten-free and soy-free.
We have strong and happy customers who range from Hell Pizza to specialty food stores and mainstream supermarkets:
All 64 Hell Pizza stores stock our dairy-free mozzarella for their pizza menu.
We have been supplying 17 South Island New World stores since October 2014 and are poised to supply North Island New World stores in the coming months.
We have a distributor in Melbourne who supplies specialty stores in every state, either directly or via other distributors. We see a lot of potential for increasing our Australian sales.
Angel Food Limited is a limited liability New Zealand company. The directors are Alice Shopland and Colin Woods, who own 80% of the company. The rest of the company is currently owned by 6 individuals.
We use contract manufacturers rather than having our own facilities. The higher cost of goods is, at this stage, more than outweighed by the cash flow benefits and flexibility.
Our current products
Dairy-free mozzarella alternative (vegan, dairy-free, soy-free, gluten-free)
Dairy-free parmesan alternative (vegan, dairy-free, soy-free, gluten-free)
Dairy-free cheesey sauce mix (2 variants: mild and tasty) (vegan, dairy-free, soy-free, gluten-free)
Egg-free meringue mix (vegan, dairy-free, soy-free, gluten-free)
Liquid smoke (vegan, dairy-free, soy-free, gluten-free)
In developed nations around the world, more people are reducing their intake of animal products, especially meat and dairy. That's great news for the environment, for the animals and for human health. We want to do everything we can to support this great change, and we're focusing on cheese alternatives right now because we believe that's where we can have the biggest impact.
Pretty much every grocer in the country now has a good range of dairy-free milks (and sales grow every year) - but most people don't even know that dairy-free cheese alternatives exist! So they either go without, or cheat on the way they really want to eat. We're working on making these products visible, accessible and affordable.
We believe plant-based foods are the way of the future for three great reasons:
But getting people to change their diets is not as easy as pointing out that a bowl of lentils has a significantly lower environmental footprint than a piece of steak. We believe people want good change, but they also want to eat familiar foods. Angel Food makes these familiar foods, and they are simply divine.
About our Team
Alice Shopland, founder and CEO. 15 years experience as self-employed freelance writer for numerous NZ magazines: self-motivated and focussed. Vegan since 2004. Lifelong love of experimenting in the kitchen. Fervent desire to make a difference by helping people make great food choices. Talent for problem-solving on a shoestring.
Colin Woods, director of quality and systems. 30 years experience in medical laboratories: experienced in rigorous quality systems and staff management. Vegetarian for 30-plus years, vegan since 2010. Excellent and creative cook. Talent for conquering problems through lateral thinking and spreadsheets.
Jan Wuis, contract food technologist. 20 years experience in the NZ food industry, and a belief that good food and sustainability are compatible goals.
We also have a part-time office assistant, and demonstration staff in Christchurch, Wellington and Hamilton.
What we've done so far
We're proud to have:
- A well-loved brand with clear focus
- A small range of great vegan products: current focus is on dairy alternatives
- Good profit margin
- Strong partnerships with food service (64 Hell Pizza stores) and supermarkets (17 New World stores in the South Island)
- A committed and determined team
Angel Food is:
- a Living Wage accredited employer
- a member of the Sustainable Business Network
- a supporter of the Vegan Society of Aotearoa NZ
We have quite a few products in development, including:
- Dairy-free cheesey sauce (heat and eat) (vegan, dairy-free, soy-free, gluten-free)
- Dairy-free sour cream alternative (vegan, dairy-free, soy-free, gluten-free)
- Dairy-free cream cheese alternative (vegan, dairy-free, soy-free, gluten-free)
- Dairy-free cheddar alternative (vegan, dairy-free, soy-free, gluten-free)
- Meat-free salami (vegan)
We want to be…
- The best-known brand of vegan products in Australasia
- A recognised authority on plant-based eating
- Providing a wide range of great vegan products, including dairy alternatives
- A profitable and sustainable business
- Widely available in UK, Europe and Asia
- Recognised globally as a premier plant-based food innovator
We'll get there by:
- Maintaining a rigorous product development schedule
- Nurturing and expanding our team
- Implementing a marketing strategy that increases demand for plant-based foods and positions Angel Food as the market leader
- Engaging with potential international distributors
- Working with potential food service partners
We need to increase our sales volumes to achieve efficiencies. We need to increase our range of products to achieve efficiencies and increase turnover. We need to crank up our marketing to get our brand and products more widely known. This means investing in:
- product development - we will launch 7 products in 2015, and about the same in 2016. It’s essential, but the development and set-up costs are a big investment.
- marketing - we will continue to engage with the public and the food industry at consumer and trade shows. We’ll run a busy schedule of in-store tastings. We’ll expand our social media engagement with the help of experts.
- new sales channels - we aim to get into New World stores in the North Island. We will actively promote our products to foodservice (cafes, hotels, childcare centres, rest homes, hospitals).
- export research - we will work with our Australian distributor to increase sales. We will also continue to investigate the European/UK market. We are also keeping an eye on potential in the Asian market, where dairy products are being heavily promoted and where a very high percentage of people are unable to digest dairy.
This financial year we will hire a sales and marketing person, and engage a freelance PR specialist. Next financial year we will engage a full-time office administrator.
Over the next three years, we intend to increase turnover from $165,000 (FY15) to $1.35million (FY18). Every step along the way will deliver efficiencies for our manufacturing, pricing, freight, procurement and advertising.
As a shareholder, you’ll be part of the team – and you’ll enjoy sneak previews of new products, discounts, and the chance to join us at foodie events several times a year.
We will pay dividends when it is sensible to do so, but this is a medium- to long-term investment. Projections show the potential of profitability in two years’ time. Shareholders will be consulted on how we handle profits.
If you want to be part of a company with a solid track record of innovation, and you want to make a difference with your dollars, we’d love you to join us on our journey.
We’re offering up to 18.8% of the company for $150,000, with ordinary voting shares at $65 each. Minimum investment is $650 (10 shares). These are ordinary shares carrying the standard rights under the Companies Act, including one right to vote at meetings of shareholders, rights to dividends and other distributions.
|Pre-offer||Post-offer (fully subscribed)|
|Alice Refiti SHOPLAND||6,366||63.66||6,366||51.72|
|Colin James WOODS||2,122||21.22||2,122||17.24|
Risks and Challenges
Increased cost of imported ingredients.
Buying direct from manufacturers once scale is sufficient.
Cost of freight will limit export opportunities.
Contract manufacturing offshore for specific markets, or licensing the recipes.
Growing demand for dairy-free products will mean that large companies get interested.
Stay nimble, keep introducing new products.
Loss of key staff.
Establish rigorous processes so someone else can step in; use cloud storage so info remains accessible; grow team so that knowledge is shared by more people.
Competition entering the market
Work fast to establish our brand in the mainstream, and have an aggressive product development programme.
Ingredient supply issues
Source ingredients from well-established suppliers, and maintain communication with them.
As our volumes increase, so will the number of manufacturers who want to work with us.
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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2 days to go!
10:14AM Mon 22/06/15 on Angel Food
With just 2 days until our campaign closes, we are focused on getting to the finish line and THEN leaping in to the next exciting phase of Angel Food! We've passed the $126,000 mark, so it's still quite possible we'll get to our maximum raise of $150,000.
The link is to a video we made a couple of days ago with one of our food service customers. Cheers!
Comment on this update:
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We did it!
12:00PM Fri 12/06/15 on Angel Food
We are absolutely thrilled that we have just passed our minimum target, so it is all go! (Apologies for two updates in one day, but this is HUGE!)
Comment on this update:
Sailing past the $70K mark!
08:45AM Fri 12/06/15 on Angel Food
Overnight we got a couple more pledges that put us at $70,785 - which brings us very close to our minimum target of $75,000! Thank you so much to all our pledgers. We look forward to working with you.
If you're still considering pledging, please do! Exciting times are ahead. Yesterday we met our food technolologist to sample the latest version of the sour cream he's developing for us - and it is almost perfect. (That's it on kumara in the photo below.) Our meat-free salami recipe is also complete and we just need to find the right manufacturer.
I'll finish with a couple of quotes from fans who have pledged:
"I can't express in words how thankful I am to Angel Food for their history of innovation. It makes me proud of our country, to see someone really stand up and work hard to achieve new results, new products, new concepts made flesh - or in this case, fully vegan!" -- Jordan
"I pledged because I know Angel Food has massive potential to grow and succeed with their awesome products. I also love eating Angel Food products, so now every mouthful improves my investment! I'm eating my way to a growing investment!" -- Michael
Comment on this update:
20 new team members!
04:16PM Fri 05/06/15 on Angel Food
We are absolutely thrilled to now have 20 new members of the Angel Food team - welcome, all you wonderful pledgers! We're more than two-thirds of the way to our minimum goal and we are happy happy happy!
Comment on this update:
08:11AM Tue 02/06/15 on Angel Food
Just a week into our campaign and we're well over halfway towards our minimum goal! ($42,055 has been pledged by 15 people, and we have to get to at least $75,000.) Thanks to everyone who has pledged - if you're considering it but haven't pledged yet, please ask questions here or email email@example.com or phone 09 3764623. We're very happy to answer your questions!
Nice to see dairy-free cheeses getting a mention as a trend for 2015 in today's email from industry publication www.foodnavigator-usa.com.
Comment on this update:
We're off to a great start!
06:22PM Thu 28/05/15 on Angel Food
Wow, what an amazing response to our sale of shares through PledgeMe! Less than 48 hours after our campaign launched, we are more than a third of the way to our minimum goal of $75,000. Thank you SO MUCH to everybody who has pledged so far - we really appreciate your faith in us and our products!
Comment on this update:
|Maximum Shares Offered||2,308|
Explanation of valuation:
Based on mid-range Y3 profit of $180,558. Multiplied by 5, discounted by 10% p.a.
|Prev Year||Current Year||Est. FY 2019||Est. FY 2020|
Company Name: Angel Food (registered as ANGEL FOOD LIMITED)
Company Number: 1830413
Companies Office URL: http://www.business.govt.nz/companies/app/ui/pages/companies/1830413
Incorporation Date: 22 Jun 2006
Company Status: Registered
Entity Type: Registered
Constitution Filed: Yes
Annual Return Filing Month: March, last filed 11 Mar 2015
|Registered Office||132 Symonds Street
|Address for Service||132 Symonds Street
|Colin Woods||Director, Quality and Systems||https://nz.linkedin.com/pub/colin-woods/60/1a6/379||✔|
Ask a Question (You must login to ask a question)
What are present arrangements for establishing and maintaining quality control to satisfy statutory regulations for safe/healthy food? How will the risk of poor or loss of product quality control be mitigated?Posted on 28-05-2015 by Martin Ough Dealy
Hi Martin. Thanks for your question. We run a food safety programme - the key components are using contract manufacturers and suppliers with appropriate systems and certification. To become approved suppliers to Foodstuffs (who own New World) we had to submit extensive paperwork and our processes have to be audited annually. Please let us know if you'd like more detail!Answered on 28-05-2015 by Alice Shopland
Do the shares offered carry any obligation to respond to future calls for more capital by the company?Posted on 28-05-2015 by Martin Ough Dealy
How was the loss ( approx. $47000) reported for last FY paid for or covered?Posted on 28-05-2015 by Martin Ough Dealy
Hi! In the last 18 months we've sold some shares privately, and that has helped to finance the switch from being a low-margin distributor of other people's products to much better margins on our own range of products.Answered on 28-05-2015 by Alice Shopland
Thanks for your response re quality control. However how will a quality problem be mitigated if it crops up? Do you have insurance cover for this or some other way of protecting the company?Posted on 28-05-2015 by Martin Ough Dealy
We do have public liability insurance. And it is the responsibility of our contract manufacturers to deliver products to the agreed specification, so they would be responsible for the value of any unsaleable product they delivered below spec.Answered on 28-05-2015 by Alice Shopland
Hi, firstly i think you're products are a great idea and have huge potential, will be heading out this weekend to try a couple of them. Innovative products like this are exactly what we need, well done. I have a couple of questions:
1. Can you detail the key terms of the supply arrangements with Foodstuffs and Hell's? Are these term supply agreements, or just supply arrangements?
2. What is your growth plan if the crowd equity was not successful? Do you have cash to continue to fund growth, if so, how much?
3. Can you disclose how much equity you have invested to date (approx.)?
4. Are there any aspects to your products that are unique, i.e. provide a competitive advantage that a competitor could not copy, technological, or copyrighted?
5. Following above, what trademarks and patents do you have registered?
Hi Thomas. Thanks for your questions! I'm taking today off but will get back to you later this weekend. Cheers, aliceAnswered on 30-05-2015 by Alice Shopland
One further question:
What is the intention with the shareholder loans, are these to be repaid, converted to equity? If so when?
Thanks very much, Thomas
Righto, to answer your questions!
1. We have simple supply arrangements, not term supply arrangements, with Hell Pizza and Foodstuffs.
2. Raising funds is crucial to the success of our growth plan. If the equity sale was not successful then we would continue but at a much slower pace - which is not what we want to do!
3. We've put in approx $110,000. We are in no hurry to recoup that, and will only do so when the time is right for the company.
4. Recipes can't be copyrighted - but nor do the precise formulations have to be revealed, beyond what is required on the labels! Our strength is in the detail of our formulations, and our developing brand. We have Angel Food trademarked in NZ and have just a little more work to do to achieve the same in Australia.
It is me again.
What were the assumptions on which your projections for future performance were based?
Hello you again! We made several key assumptions: getting into North Island New World stores this year, starting to supply Countdown next year, getting another big food service customer like Hell, increased sales in Australia thanks to increased marketing.Answered on 01-06-2015 by Alice Shopland
What happened to the Cheezly product which seems to have been discontinued?Posted on 01-06-2015 by Martin Ough Dealy
Cheezly (made in UK) was one of the products we imported but which didn't make financial sense for us! About 3 years ago we decided to phase out our imported products to focus on our own products being locally made, and that is going very well. For example, we never could have got the imported products at a price that would work for Hell Pizza.Answered on 01-06-2015 by Alice Shopland
Thanks for answer on assumptions. But what I was after was a more specific idea of not only what your assumptions were but also what rates of growth were assumed when the forecast financial calculations were made. I really do need more specifics otherwise I have no idea about the degree to which the forecasts can be said to be realistic, and , hopefully, conservative. So I look forward to your response as I am seriously considering an investment rather than a speculation.Posted on 01-06-2015 by Martin Ough Dealy
FURTHER INFO FOR M.O. DEALY'S QUESTION ABOUT ASSUMPTIONS
Background assumptions for financial projections for FY2016:
Sales of our current products expected to increase by between 30% and 92% (varies according to the product). We believe this is reasonable given the much bigger market that we will be able to reach once we are in North Island New World stores (compared with our existing stockists which are organic stores and other specialty independent retailers).
Monthly revenue increasing by almost 600% from April 2015 to $95,824 in March 2016. We are confident it is reasonable with our range significantly expanding with the launch of 5 new products before the end of October 2015 (formulations for 3 of those are complete already) and with the addition of North Island New World stores.
Background assumptions for financial projections for FY2017:
For existing individual product sales in NZ, steady growth of between 2% and 4% per month (depending on product).
Monthly revenue increasing by 330% from April 2016 to $162,437 in March 2017.
We will launch at least 6 new products in FY2017.
Getting into Countdown supermarkets – they have already indicated interest in our products.
For both of these years there will be increased export revenue. We are counting on Australian sales through our existing distributor, and are in contact with distributors in several other potential markets.Posted on 02-06-2015 by Alice Shopland
Your projection for sales for the first quarter of the current year is $76k. Now that you are two months into the quarter how are you going against target?Posted on 08-06-2015 by Graeme Ogier
Hi Graeme. Thanks for your question. First two months of this quarter are above our projections, so we're pretty happy with that!Answered on 09-06-2015 by Alice Shopland
Hi Alice. Just a couple of questions.
How are any equity stakes to be legally realised? Will there be a shareholder agreement?
Is there a process for how a shareholder could exit? For instance, via public listing in the future, first right of refusal for other shareholders, or the ability to divest with a private sale of one's shares?Posted on 12-06-2015 by Aaron KB
All shareholders will be officially recognised on the companies office register. Check out the 'Details' tab on our campaign page to see the constitution, which outlines shareholders rights.Answered on 12-06-2015 by Alice Shopland
Who own the "Founder shares" and how are these shares different from "investor shares"?Posted on 15-06-2015 by Martin Ough Dealy
Colin Woods and Alice Shopland own the founder shares. Info on the different types of shares are outlined in section 2 of our constitution. The differences involve appointment of directors and first rights to shares being offered for sale.Answered on 16-06-2015 by Alice Shopland
1.After the sale of investor shares has been completed how many directors will the founder share holders be entitled to appoint?
2. The constitution enables a founder share holder to appoint a director for every 20% of the share holding. Founder share holders can appoint up to 4 directors of a maximum of 5).Is the assumption that founder and investor shareholders have the same entitlement of I vote per share correct?
3. What is the process for the appointment of a director to represent investor shareholders?.
Hi, and apologies for the slow reply! We are looking to add an additional board member in the next 6 months. That the board member will be voted in by founder shareholders with more than 20% shareholding (ie Alice Shopland and Colin Woods), but we will discuss with all our shareholders and they would represent all shareholder's interests (as they are legally obliged to). Investor shareholders do not have a vote on this, but they can vote in every other respect.Answered on 19-06-2015 by Alice Shopland
Sorry to be a nuisance, but a key point about my earlier question is that the constitution says that founder shareholders are entitled to appoint a director for each 20% of foundation shares. After the sale of shares has been completed Colin will have less than 20% share of the total shareholding according to your table detailing the breakdown of the shareholdings (where founder and investor shares are lumped together)before and after the completion of the current offer. So it seems, on that basis that Colin will not be entitled to appoint a director after the offer is completed. . If this is wrong then the wording of the constitution and the terms of the offer seem ambiguous. The definition of the founder and investor shares is key to determining what the 20% share holding means. I will be grateful for clarification of this before the share offer closes (4 days time)
ThanksPosted on 20-06-2015 by Martin Ough Dealy
You are correct that after the new shares are issued, Colin will not be entitled to appoint a director because his shareholding will be below 20%. But with a minimum of 51% shareholding, I will be entitled to appoint 2 directors, and I will appoint myself and Colin. In any case, there will be no change of directors until our AGM in September. Please let me know if you need further clarification.Answered on 20-06-2015 by Alice Shopland
Congratulations on your success so far - I hope you reach your maximum before the offer closes. I understand that once the offer closes, Angel Food Limited will become a Code company for the purposes of the Takeovers Code (as it will have over 50 shareholders and over 50 share parcels, but correct me if I'm wrong on this). On that basis, what have you budgeted in the way of Takeovers Code compliance costs? (as I understand these costs can be substantial for small companies - for example, any increase in Alice or Colin's shareholdings would appear to require compliance with the Takeovers Code, including legal advice and potentially an independent advisers' report) Thanks.Posted on 22-06-2015 by Wade Pearson
Hi - thanks for your question. Yes, we will be code compliant after the offer closes, but there are only potentially costs in a takeover situation. We understand also that the Takeovers Panel is working through an exemption at the moment that should decrease or even remove costs associated to small companies having more than 50 voting shareholders.Answered on 22-06-2015 by Alice Shopland
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Equity crowdfunding is risky.
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