Sorbet by Ethique Limited

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.

Why bars?

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.

Sustainability

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:

1. Find ingredients from sustainable sources
2. Put them through as few chemical processes as possible
3. Source organic when possible

Sorbet doesn’t contain:

• Sodium lauryl/laureth sulphate
• Parabens
• Pthalates
• 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.

About our Team

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.

What's next?

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.

Australia: FY16-17

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.

Singapore: FY17-18

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

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.

Offer Details

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.

Financial Summary

Company Details

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

Addresses:

Company Documents

Director Details