Understanding the investment opportunity
Wonderfood is a prepared meal e-commerce with ecological certification, 100 % gluten-free and made with natural ingredients (without additives or preservatives), traced from its origin.
Wonderfood delivers meals that are ready to be heated up and eaten anywhere in the Iberian Peninsula (Spain and Portugal). In less than 72h working hours from the order reception, the client receives refrigerated tuppers with a minimum expiration of 7 days.
Two main problems are at the core of Wonderfood activities:
- Lack of time [Average Spaniard spends more than 8h a week doing the shopping (Eurostat, 2010), cleaning and cooking (Statista, 2015)].
- Lack of access to practical, healthy and sustainable food.
‘Healthy’ and BIO trends have consolidated in the food sector with fixed trends (AECOC: International Retail Report). Covid-19 has only accentuated the consciousness of the consumer (KPMG: Global retail trends, 2020) who carefully looks for a way of concealing the need of practical dietary habits with healthy and sustainable foods (Accenture: The future of food, 2017).
In Spain more than 3000m of euros per year are billed in prepared meals, with an ongoing rise in turnover of 26,1 % from 2013 (Ministerio de agricultura, pesca y alimentación, 2019, p.485 y p.486). Plus, the e-commerce sector is already channelling more than 60m of euros in turnover, with an annual growth of 28,4 % (Ministerio de agricultura, pesca y alimentación, 2019, p.485 y p.490).
Through its sustainability master plan, Wonderfood aligns economic and environmental objectives, focusing on protecting biodiversity, fighting climate change and building circular economy models.
The company is on the eve of its growth phase. During the first 6 months of activity it has been able to:
- Launch an MVP that allows to better understand users and initiate iteration processes (both for product/service improvement and cost reduction).
- Validate your business model:
- Billing more than €20,000 with only 127 clients and with a total investment in marketing (non-professional) of €6,000. For every €1 invested in marketing, the return is €3. 33
- Billing +4,000€ per month (March 2021) without marketing investment and increasing the turnover of the first quarter 2021 by +36% compared to the last quarter of 2020
- Reducing the CAC to 47.60€ while increasing the average ticket to 80,24€ (thanks to the incorporation of monthly subscription models) and achieving an average LTV of €166.80 (€384.04 for subscribers). In the next months, and after professionalizing the marketing area, Wonderfood will focus on expanding the customer base. This will allow to reach its first break-even point in 2021 and face a new round of investment in 2022 with the objective of expanding facilities, equipment and customer base.
Wonderfood Bio Team
Diego Bonati Larre
Diego es un emprendedor apasionado. Es graduado en bellas artes y especialista en diseño + desarrollo web.
Sergio Bonati Larre
Graduado en comercio y master en desarrollo sostenible + RSC. Experiencia directiva en Spotahome y auditoría climática en grandes empresas.
Lorena Márquez González
Licenciatura universitaria en gastronomía y master en RRHH + relaciones laborales. Experiencia directiva en cocinas centrales.
Reasons to invest View more data
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.
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).
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).