Company Description
Why invest?\nInvest in the future of food\n\nThe Opportunity\nWe all deserve more delicious and healthy optionsPeople are seeking more plant-based meals or may have dietary restrictions, but they still wish to indulge in delicious Italian cuisine at home. “A plant-based diet can have a significant positive impact on the environment and your health.”\n- (Physicians Committee for Responsible Medicine)Raising a dairy cow requires ample grain and water, and vast land. Cows emit massive amounts of GHG (greenhouse gases). Cashews and oats, two of NONA’s dairy substitutions, are grown using 10-16 times less land than dairy, significantly less water, and emit a fraction of the emissions. The food sector accounts for 30% of the world’s total energy consumption and 22% of total GHG emissions. NONA is committed to using sustainable ingredients in our products. As NONA continues to grow, we aim to form direct partnerships with cashew farmers to ensure sustainable and fair practices are in place. \n\nThe Solution\nTutti a tavola - everyone to the table!NONA Vegan provides high-quality, refrigerated Italian sauces that are both delicious and healthy. Our sauces are versatile and suit a variety of dietary preferences. They are gluten-free, dairy-free, Kosher-certified, non-GMO, keto-friendly, and preservative-free, with soy-free and nut-free options as well. They are ready-to-use, resealable, and Italian mama-approved! \nProduct\nDelivering the comfort & joy of Italian home cookingOur product offerings include three cashew-based sauces: Alfredo, Cheesy, and Carbonara, as well as two tomato and oat-based sauces: Rosée and Bolognese (featuring BeyondMeat®). We’ve garnered several awards including “Best of Fest” at the Toronto Mac and Cheese Festival. All sauces pair perfectly with noodles, vegetables, pizzas, and sandwiches. \n\nTraction\nWe’ve seen immense growth in the last yearIn 2022, gross revenue hit $290,000 with sales focused on Canada. Our sauces are distributed through more than 400+ retail locations, including national retailers Sobeys and Whole Foods. In the summer of 2022, we launched into the US market and were enthusiastically welcomed by distributor reps, retail buyers, and customers. You’ll find us in over 300 stores across Southern California, Texas, the Southern and Midwestern states. \nCustomers\nCatering to a range of customersWe all know someone with dietary restrictions who struggles with mainstream food options. They may be gluten, lactose, or soy intolerant, or follow a Kosher, keto, low carb, no cholesterol or no sugar diet. NONA caters to this food sensitive demographic.Our customers range from busy professionals who need easy, ready-to-eat meals, to flexitarians (flexible vegetarians) looking for more plant-based food in their diets. Environmentally-conscious customers … Plant-based diets help slow climate change and feed more people on the planet with efficient calorie production. Most people are familiar with these benefits, but they’re hesitant to change their diets if it sacrifices taste. NONA dispels this myth by providing sauces that keep the joy in eating.Our target retail customers for 2023 are small to midsize health food grocery chains, typically located in urban centres. The food service sector (i.e. restaurants, universities, hospitals, airlines) is also on our radar. \n\nBusiness Model\nOur Business RecipeNONA currently sells at over 400 stores in Canada (including Whole Foods [ON, BC] and Sobeys [ON]), and over 300 stores in the US (including Erewhon [CA] and Central Market [TX]). In Canada, NONA works with Jonluca Enterprises and UNFI for distribution. In the US, NONA partners with the two largest natural food distributors: UNFI and KeHE.NONA Vegan co-manufactures its products and sells to distributors, who then sell to grocery retailers. NONA owns the brand and the recipes. The CPG (consumer packaged goods) business is the company’s main revenue stream. NONA is exploring foodservice opportunities, beyond current trials in Toronto. Plans to start a direct-to-consumer online store are underway for Q4 2023. \nIn Canada, NONA works with a sales broker, BrandSeed Marketing Inc. In the US, part-time regional brokers are contracted and managed by US Business Director, Emily Green. We are executing a region-by-region strategic rollout that started with Texas, Southern California, the Southern states, and Illinois. Marketing tactics include geo-targeted ads, local influencers, pop-ups, and sampling demos at the store level. The co-manufacturer purchases all raw materials, including packaging, and provides the cost of finished goods to NONA. The co-manufacturer charges NONA for the product as it leaves the factory with 30-day terms. In Canada, NONA ships directly to the distribution warehouses and is paid in 30 days. In the US, NONA ships to a third-party logistics company in Cashton, Wisconsin, which then delivers to various distribution warehouses. NONA is paid between 10-30 days after the US distribution warehouses receive the product.The majority of core business functions are handled by Kailey Gilchrist and Emily Green. Additional assistance is hired on a contract basis for marketing and administrative assistance, including bookkeeping and accounting. Across our channels, a NONA sauce retails between $7 and $10 (CAD) with an average 43% product margin. Watch a videoof our Founder, Kailey, delivering the first large US order to Texas and Southern California.\n\nMarketing & Sales\nInvesting in sales to increase our reachA Canada-wide sales broker, BrandSeed Marketing Inc., handles Canadian sales, by securing new retailers, as well as increasing volumes at current accounts with promos and placement. For the US market, we work with distributor reps (product education, engaging individual reps in target regions) to secure new retailers. Local sales brokers will also be used strategically to leverage retailer relationships. On the marketing side, NONA participates in trade publications and provides retailers with quarterly promos, distributor promos, couponing as well as in-store sampling demos. NONA also has Instagram influencer campaigns and partnerships, pop-ups, web ads, and PR campaigns. NONA will invest in merchandising support to ensure we are looking our best in the dairy case.\nMarket\nCategory growth has enormous potential The total plant-based food market in 2021 was $7B, but more importantly, is growing almost twice as fast (27% year over year) as overall food sales. Couple this with consumers showing interest in healthier lifestyle choices, that pay attention to the environmental impact of food production. For example, one in three Americans now considers themselves a ‘flexitarian’ (flexible vegetarian). Plant-based food products are now in over 50% of American households. Approximately 45-65% of North American adults are lactose-intolerant, 13% are gluten-sensitive and 6-9% are either vegan or vegetarian. The gluten-free market size in the US was $4.3B in 2019, expected to reach $7.5B in 2027. The Keto market is growing at CAGR (compound annual growth rate) of 5%, and the Kosher market is growing at CAGR of 7.48%. All of these metrics bode well for NONA Vegan’s growth potential. While NONA satisfies the allergen-friendly market, the growth potential extends beyond the specialty categories. Similar to many plant-based companies in the market (i.e. Silk® alternative milk), part of NONA’s total market reach includes displacing traditional (non-vegan) products. For example, NONA’s Alfredo sauce intends to challenge Classico® and other similar conventional sauces.Retailers in turn are searching for innovative product offerings to serve the evolving needs of their customers. As a woman-owned, Certified Diverse LGBTQ+ Supplier, NONA addresses diversity mandates for companies wishing to incorporate more diversity into their supply chains. Food service (i.e. restaurants, universities, hospitals, and airlines) is an additional revenue stream to pursue. Buyers and chefs are looking to include plant-based and allergen-friendly options on their menus to better serve their customers. The market for Italian restaurants in the US was $79B in 2022, making it an ideal target for NONA’s food service sales. Another key target is food service contractors such as colleges and sporting venues which generate $53.3B in annual sales. \nCompetition\nNONA’s unique offeringOkay, there are a handful of direct competitors who are producing alternative sauces with allergen-friendly attributes and/or nutritious ingredients. Typically they are shelf-stable (no refrigeration required), though there are a few competing with NONA in the dairy case. Indirect competitors may include boxed mac & cheese products, frozen pasta meals, or other condiments and sauces from kitchens around the world. Our sauces are refrigerated, which allows us to have a higher PH and less acidic flavour profile than our competitors. Rich ingredients such as fresh cashews, vine-ripened tomatoes and herbs recreate authentic Italian tastes. Flavour is our main competitive advantage evidenced by our positive customer reviews and product awards.None of our direct competitors are focusing on a full line of Italian sauces. NONA has a heartfelt foundation story with a values-based mission. NONA has the opportunity to ‘own’ the plant-based Italian space.\nUse of Funds\nWe are raising $300,000 on FrontFundrOver 60% of the funds will be deployed to sales and marketing. We’ll increase our sales force to deepen our Canadian reach and effectively roll-out the US plan to bring on more retailers. Marketing strategies such as geo-targeted ads, regional pop-ups, in-store sampling demos, and local public relations/media will be used. A portion of the proceeds will be directed toward new product development. Finally, we will grow our operations and finance capabilities. NONA is poised for growth, and this funding is imperative to achieve our goals. Join us on our journey!\n\nIndustry Comparables & Exit Strategy\nAcquisitions in the vegan spaceDaiya foods is a Canadian plant-based food company founded in 2008 that was acquired by Japanese pharmaceutical company Otsuka for $405M (CAD) in 2017. Canadian vegan CPG food company, Sol Cuisine, founded in 1980, with $23M (CAD) in annual revenue, was sold to PlantPlus Foods in 2021 for $125.4M (CAD). These acquisitions demonstrate the willingness of investors to own in the vegan food sector. With recent activities in the vegan food industry, Nona believes that an acquisition is the most likely exit strategy. With that in mind, it is worth noting that there are generally three routes by which an investor may realize a return on their investment: (1) liquidity by a strategic sale to another company, (2) take the company public on a stock exchange (IPO or similar process), and (3) the company focuses on growth and distributes dividends to investors.\nFuture Goals\nNONA as the leader in plant-based Italian food productsFounder and ‘Sauce Boss’ Kailey created the company as an ode to her late Italian mama, who was making cashew sauce back in the 70s. Since NONA’s inception in 2013, the plant-based market has exploded. NONA now has ideal product market fit and is being well-received across North America. There are still opportunities for NONA to fill with regards to Italian vegan products … just think of an Italian menu – fresh pastas, cheeses, desserts. With our proven product development and creativity, NONA intends to become a household name synonymous with quality, authentic Italian products. \n\nJoin our NONA Famiglia by investing today.\nGrazie!\n\n\nOfferings on the platform contain forward-looking information. Forward-looking information includes statements that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements, and involve known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of the issuer to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. 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