Naked Rivals | Swarmer (original) (raw)

Reasons To Invest

• Intellectual Property: Naked Rivals has developed a strong foundation of intellectual property with a world-first single-serve frozen citrus juice cube format and an innovative manufacturing process, making it difficult to replicate.
• Global Scalability: With a strategy that includes entering global markets (North America, Southeast Asia, and the Middle East), Naked Rivals is poised to expand across retail, white-label, and foodservice channels.
• Market Demand: Extensive consumer research shows high purchase intent for lemon and lime juice in Australia (66%), the US (52%), and Asia (70%). Demand for sustainable, convenient food solutions is growing globally.
• Brand Alignment: Our “Convenience with a Conscience” ethos is perfectly timed with the global movement towards health, sustainability, and ending food waste.

Who are Naked Rivals?

Naked Rivals was founded in 2023 by Andrew and Kate Gordon from their family home in Sydney. Together, they are on a mission to offer sustainable and convenient food options that help reduce food waste. The family business is also inspired by their three children, James, William, and Eloise.

The Problem

In Australia, 20% of purchased food is wasted, costing households up to $2,500 annually, and roughly 2.5m tonnes of food going to landfill [1].

We started our journey with lemon and lime because these citrus products are frequently wasted due to fluctuating prices, seasonality, and heavy reliance on imported produce. Additionally, juicing citrus by hand is laborious, and bottled juices are often filled with additives.

Food Waste is a global problem, and this is why we believe Naked Rivals has the scope to expand into other geographies including North America, South East Asia and Middle East.

• One third of all food produced is lost or wasted – around 1.3 billion tonnes of food – costing the global economy close to $940 billion each year [2].
• Up to 10% of global greenhouse gases comes from food that is produced, but not eaten [3].

Our Solution

We provide solutions that align with evolving consumer preferences: convenience, reduced waste, affordability, superior taste, and value.

Whether a consumers’ passion lies in cooking, baking, hydration, or mixology, Naked Rivals is dedicated to enhancing those experiences. By streamlining the utilisation of ingredients and minimising waste, we aim to enrich lives in every culinary endeavour.

We aim to expand into other high-demand food ingredients such as herbs, garlic, ginger, infused butters, and stock cubes—continuing our commitment to sustainability, health, and convenience.

Business Model

Since launching in early 2024, Naked Rivals has been ranged in 1,600 supermarkets nationwide. While we currently focus on retail distribution, we plan to expand into foodservice, wholesale, and export channels. All manufacturing is outsourced to a Melbourne-based contract manufacturer who aligns with our sustainability values.

Our juice is sourced exclusively from Australian farms in Victoria, NSW, and Queensland. We’ve secured distribution agreements with Woolworths, Coles, and Monde Nissin, covering over 300 independent retailers across Australia.

The Industry

Based on the Independent Consumer Study we conducted in 2023*, our research shows 68% of Australians use lemon and lime juice multiple times a week, with even higher usage rates of 75% in the US and Asia. 83% of consumers use the juice in cooking and baking, while 51% use it in drinks. Our consumer testing revealed incredibly high purchase intent: 66% in Australia, 52% in the US, and 70% in Asia [Naked Rivals Independent Consumer Study 2023].

Demand for lemon and lime is increasing globally, leading to a predicted upward consumption trend over the next decade, in part due to the obvious health benefits of citrus juice.

World average per capita consumption of lemon and lime is estimated at 2.54 kg per person, with 40% of Australians buying lemon as part of their weekly grocery haul - purchasing an average of 259 grams per shopping trip [4].

*The Independent Consumer Study was conducted between Friday 19th May and Wednesday 31st May 2023 by a consumer insight specialist, Insight Led [www.insightled.com.au]. They conducted research with a specific group of our target consumers being females ages 25-45, who are the primary grocery buyer in their household. Interviews included over 381 consumers, with a margin of error of +/- 4.9%. In 2024, this research was expanded to include research with consumers in China and USA.

Competitive Advantage

Unique Product: Frozen lemon and lime juice cubes, made from imperfect fruit, fill a gap between fresh produce and bottled substitutes.

Sustainability: We focus on ending food waste at home and providing a sustainable alternative to imported citrus products.

Manufacturing and Packaging: Our single-serve frozen format is unique, environmentally friendly, and difficult to replicate.

Broad Market Appeal: The product appeals across multiple consumer channels—retail, foodservice, and potential white-label partnerships.

Business Achievements

• Business is 100% owned by founders and we launched across 1,600 supermarkets within 12 months of idea inception.
• Distribution to 300+ independent grocers via national agreement with Monde Nissin.
• Ranging across 500+ Woolworths and 800+ Coles supermarkets, commenced Q2 2024.
• Trademark and packaging design registration approved in Australia, pending in other target geographies.
• Winner of multiple prestigious awards, including the Naturally Good Awards, Good Food Guide and Silver Medallist Packaging Design Innovation Awards for reducing Food Waste.

Use of funds

Regarding the allocation of funds, key areas of investment include:

• Brand Awareness: Increasing consumer awareness through social media, PR, and in-store promotions.
• Product Development: Expanding our product range with new innovations and improving packaging for foodservice and export channels.
• Manufacturing Enhancements: Investing in our Melbourne manufacturing facility to reduce costs and boost profitability.

Key Risks

• Retail Distribution Risk:
  At this stage, the Company is reliant on distributing through major retailers and being deranged from shelves if sales do not maintain agreed KPIs. Monthly meetings take place with retailers, and we have visibility of sales in real time.
• Funding and Cash Flow:
  The Company is in the process of raising funds to achieve its strategic business objectives and to cover its projected operating expenses. The Company may not raise all of the required funding and therefore not achieve all of its business objectives. This means that the current cash reserves (plus proceeds of the Offer) may not provide the Company with sufficient working capital. Accordingly, the Company may need to obtain additional funding in the future. There is no assurance that the Company will be able to obtain additional rounds of funding on substantially the same terms as outlined in this Offer Document or at all. The Company’s value may be materially affected if the required additional funding is not available.
• Retention of Key Staff:
  The Company is susceptible to the untimely loss of key personnel who are considered critical to the success of the Company. If key personnel were to leave the organisation, they would need to be replaced in a timely fashion in order for the Company to achieve its business objectives.
• Supply Risk:
  The Company is reliant on Australian-based citrus juice to supply its product to retailers and consumers. Significant weather events and other related supply chain issues may impact our ability to meet demand.

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