Ecology, practicality and sustainable future

Wonderfood aims to change the packaged food sector by directly linking the economic benefits of its activity with the positive environmental impact it generates. Allowing to transform your immediate environment by encouraging:

• Extensive farming and livestock systems that optimize the use of natural resources, prevent overgrazing and reduce greenhouse gas emissions.
• Soil care through crop rotation, seasonal cultivation and disuse of chemical pesticides/fertilizers (45% of conventional foods contain pesticide residues, compared to 12% of organic certified foods (European Food Safety Authority: European Union report on pesticide residues in food, 2019)].
• Prohibition of the use of genetically modified organisms (GMOs) or ionising radiation to treat organic feed or food (Reglamento CE 834/2007 sobre producción y etiquetado de productos ecológicos)
• Animal welfare. Ensuring that animals have permanent access to pastures and prohibiting their tying, isolation or caging. (Reglamento CE 834/2007 sobre producción y etiquetado de productos ecológicos).
• Consumption of local and national products. 98% of the ingredients used in Wonderfood are of domestic origin.
• Emission neutrality and reduced use of plastics. Wonderfood is carbon neutral and during 2021 will move to a “zero emissions” system that will allow it to reduce its direct emissions to almost zero. In addition, with the addition of compostable packaging, it will reduce the use of plastics by more than 95%.

Market growth and initial traction

In Spain, more than 3,000 million euros are already invoiced a year in prepared meals (Ministerio de agricultura, pesca y alimentación, 2019, p.485 y p.486)with an annual growth of the e-commerce channel (data pre-COVID-19) of 28. 4% (Ministerio de agricultura, pesca y alimentación, 2019, p.485 y p.490)

In 7 months, and with 6,000. 00€ of investment in marketing (non-professionalized) Wonderfood has billed more than 20,000€ with 127 customers. In the last two months it has billed more than €8,000.00 without effective investment in marketing. It has also increased the turnover of the first quarter 2021 by >36% in comparison to the last quarter of 2020.

Validated B2C business model

During the first 7 months of activity, Wonderfood has been able to validate its direct-to-consumer business model with a current CAC of €47.60, an average ticket of €80.24 (thanks to the incorporation of monthly subscription models), an average LTV of €166. 80 (€384.04 for subscribers) and a ROAS (return on advertising spend) of > 3.

Scalability

Wonderfood has a sales system based off on: the investment in paid advertising and the subscription system. This allows you to scale sales resting on advertising expenditure and the exercise of some control over the volume of orders supported.

Plus, the national and international vocation of the business model, along with the technological component that supports it, avoids the theoretical sales topping associated with food businesses. It also allows to scale according to the profitability of its operations.

Use of funds and resources

Wonderfood already controls a fully equipped central kitchen that allows you to reach higher production volumes than you need to reach the first point of equilibrium.

The funds will be assigned to growth, specifically 20% for the professionalization of the marketing and sales area, and 70% to customer acquisition. This will allow Wonderfood to substantially expand its customer base and start optimizing costs with the first effects of economies of scale. For example, the reduction of shipping costs by taking on the internal distribution of orders within the Community of Madrid (savings of 30% of total shipping costs).

Sector

Healthy and BIO trends have become the new normal in the food sector as unmovable trends (AECOC: International Retail Report, 2020). COVID-19 has only raised the awareness of a consumer (KPMG: Global retail trends, 2020) who is increasingly seeking to concealing the need for a practical diet with that of a healthy and sustainable diet (Accenture: The future of food, 2017).

In Spain, more than 3 billion euros are invoiced per year in prepared meals, with sales growth of 26. 1% since 2013 (Ministerio de agricultura, pesca y alimentación, 2019, p.485 y p.486). In addition, the e-commerce sector is already channelling more than 66 million euros in sales, with an annual growth of 28. 4% (Ministerio de agricultura, pesca y alimentación, 2019, p.485 y p.490).