Beverage distributor

Bedarf:5459.87€
Min.:0.00€
Zinssatz:13%
Zeitraum:12 Monate
Dieses Darlehen ist mit einer Crowdestor-Rückkaufgarantie ausgestattet.
Ziel: 100000€
Mindest. Ziel: 30000€
Öffnet: 2019/12/02
Läuft ab: 2019/12/30
Art: Business
Lage: Baltic States
Investoren: 637

Summary

The current investment opportunity offers CROWDESTOR investors to make a secured loan to project Organika Distribution Baltic.

Organika Distribution Baltic SIA already has a successful cooperation with several retail chains and wants to add ELVI to is cooperation partner list. Loan will be used to finance distribution of alcoholic beverages with ELVI retail chain in Latvia. Loan amounts will be used on revolving basis, i.e. funds received from ELVI for sold alcoholic beverages will be used only to finance the next delivery dedicated to ELVI. 

Current investment opportunity offers CROWDESTOR investors to make a loan with 13 % annual interest rate with monthly repayment of the principal amount and interest. Minimum target to be raised in this fundraising phase is EUR 30 000,00 and the maximum target is EUR 100 000,00. 

Loan is secured with first-hand commercial pledge on the total stock of the company.  

Loan

Minimum target: EUR 30 000,00. 

Maximum target: EUR 100 000,00. 

Loan term: 12 months. 

Interest rate: 13 % per annum. 

Interest payments: paid monthly.

Loan repayment: repaid monthly from second month in similar instalments

Crowdestor BuyBack fund: Yes. 

Collateral: The loan is secured by first hand commercial pledge on the total stock of the company.

Remember - interest rate payments start calculating from the day you make your investment! 

About Borrower

Company is in the field of distribution of alcoholic beverages. Beneficiaries of the company have extensive experience in food trade in the Latvian market, namely for more than 10 years they are dealing with the processing of poultry meat. The meat-processing enterprise has a long-term trading relationship with leading Latvian retail networks, with a regular delivery to more than 100 shops all over Latvia with own company’s transport.

Having mentioned experience and preference relationships with several manufacturers of alcoholic beverages in Russia and Moldova, it was decided to enter the Baltic alcohol market with several product lines for different price segments. For each of the brands company has obtained exclusive distribution rights for Latvia, Lithuania, Estonia and also Polish markets.

Premium segment is represented by vodka Organika, being in the same market’s niche as its direct competitor brands Beluga, Grey Goose and others. Its quality has been proved by high demand in Latvia being in the same line as for other above mentioned top brands. Different types of Organika branded vodka are represented in a significant number of exclusive Latvian restaurants in Riga and Jurmala, such as 36 line, Laivas, Halipapa, Ozo restaurant, Kazino777, Entresol, Restbar MO and others. Overall there are more than 50 HoReCa (hotel, restaurant, cafe) customers recurrently purchasing this brand production from the company.  

 

Medium segment is represented by vodka Kamoflage and products of Zernoff factory (vodka under the brands Mendeleev, Petrovskaia, Zernoff). Comparing to other products available in the Baltics in the same price range Zernoff products are much softer because of being distilled seven times for the essence of grain vodka purity. Quality of the product and well-managed pricing policy made it one of the top choices for customers in the medium market segment.

Organika Distribution Baltic began to build its cooperation with retail chains in 2018 and up till now has made a success being represented with its products in the food retail chain LATS, specialised alcoholic beverage store chains Boozie, AlkoMarket and other approximately 70 privately held non-chain shops in Riga and Jurmala. 

Company is actively cooperating with SIA Duty Free Baltics in distribution of its products in tax-free points in Latvia, Lithuania and Poland.  

Currently Organika Distribution Baltic is negotiating terms for entry in several other alcoholic beverage shop chains in the Baltics, including Vynoteka, Winestock, ALKO 1000 Market. Company’s sales agents are also actively working to add even more customers in the region. Company is in the contract signing phase for selling products through FLAVIAR online platform, a mobile application and an online alcoholic beverage store throughout the European Union.  

Company’s development so far has been financed by personal funds of the owner’s team.

Seeing high demand for their products and having received offers from other retail chains to cooperate the company decided to obtain additional financing for further growth.

The company wishes to borrow loan with the total amount up to EUR 100 000 to satisfy demand on the product from one of the leading Latvian food retail chains ELVI. Funds will be used to purchase Zernoff factory products for distribution through ELVI shops on revolving basis, i.e. funds received from ELVI for sold alcoholic beverages will be used to finance the next delivery dedicated to ELVI etc.    

Estimations based on the existing cooperation with other shops and approved plans with ELVI show that EUR 100 000 of Zernoff products will be sold through ELVI each month or two months maximum.

This allows Organika Distribution Baltics to offer investors monthly repayment of the loan amount from second month and interest payments each month. The loan therefore will be repaid fully during 12 month period by similar installments.  Repayment of the loan is secured by first hand commercial pledge over all the stock at Organika Distribution Baltic warehouse (stock is pledged for amount up to EUR 100 000 based on production’s net cost for the company, i.e. pledged stock’s market value being much higher).    

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