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FORGOTTEN TASTE OF MILK ANDREY KUTEYNIKOV Co-founder and CEO, 30Sec Milk™ project May 2015
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FORGOTTEN TASTE OF MILK ANDREY KUTEYNIKOVCo-founder and CEO, 30Sec Milk project
May 2015
Packages of pasteurized milk falling behind cows tail in the process of milking? You kidding!
[email protected] +7 925 158 0238 www.30secmilk.com2
No, we are serious!30Sec Milk technology makes it happen!Filtered, pasteurized, chilled and packed in less than one minute while animal is milkedCompact all-in-one technology [email protected] +7 925 158 0238 www.30secmilk.com3
Traditional & 30Sec Milk Value Chains
[email protected] +7 925 158 0238 www.30secmilk.com4
How does it work
[email protected] +7 925 158 0238 www.30secmilk.com5
Why 30Sec Milk is different?Non-mixed comes from specific animalWhole - no physical impact historyNew taste every dayPasteurized or raw milk [email protected] +7 925 158 0238 www.30secmilk.com6
Will it be popular?Field research shows high interest (02-03.2013; UK, Germany, Holland, France)Farmers: 53% ready to test 30Sec Milk technology and buy license if viableRetailers: 100% ready to have 30Sec Milk on shelves at average 1,39 per 1L packageConsumers (Dairy fair, Paris): 33% ready to pay 1,40+ per 1L package of 30Sec Milk
[email protected] +7 925 158 0238 www.30secmilk.com7
Why retailers love it?Milk is a loss item. It attracts customers to shops, but retailers do not make money on it. Sec Milk is a premium product. Retailers will sell it at good margin.Retailers will look good citizens because Sec Milk produced locally Retailers will look trendy because Sec Milk is natural with minimum processing record (just pasteurization)[email protected] +7 925 158 0238 www.30secmilk.com8
Why farmers love it?Milk is a loss item. Farmers sell milk at cost or even lowerSec Milk let farmers make profit on milkSec Milk makes farmers independent from dairiesSec Milk provides farmers with strong brand/promo supportGuaranteed sales as [email protected] +7 925 158 0238 www.30secmilk.com9
Guaranteed sales means that 30sec Milk plans to negotiate that at least one regional retail chain in each regional market accepts 30Sec Milk from local farmers to their shelves. Farmers will have to sign profit-sharing deals with 30Sec Milk Group in exchange for such guaranteed sales.9
Western market realitiesEU-27 + North America numbers:Annual drinking milk consumption = 60,2M tonsMilk cows = 33M; dairy farms =1,8M (with 1,6M in EU)EU cost at farm = 25-28 cents/kg, selling price = 25-26Market shape: () processors with mass-market products in supermarkets (b) farmers with limited processing/distribution capability100% of milk is mixedOver 99% of milk processed in some [email protected] +7 925 158 0238 www.30secmilk.com10
Where money comes from?Licensing to farmers and entrepreneursLicensees will produce premium branded product with low cost and promo supportMajor Income sources: Sale of licenses to farmers and entrepreneurs (hardware lease included into license)Sale of packages with royalty component in price of each package for 30Sec Milk brand support Service [email protected] +7 925 158 0238 www.30secmilk.com11
Monthly income by source, [email protected] +7 925 158 0238 www.30secmilk.com12
Success factorsTechnology control at first link of value chainThe only non-mixed native milk unique product wanted by consumersShort trade [email protected] +7 925 158 0238 www.30secmilk.com13
Major Assumptions, [email protected] +7 925 158 0238 www.30secmilk.com14Q1Q2Q3Q4Year 2Year 3
Projected license price incl. one 30Sec Milk milking unit, Euro24 90026 90029 900
Royalty per one pack of milk, Eurocents121212121212
Percent of royalties spent on brand promotion757575754040New licensees per one sales rep per month112234Sales reps, end of period51015153045
Pre-sale trip to England, Germany, Holland and France in Feb-March 2013 showed that 53% of farmers are interested in buying 30Sec Milk licenses. 100% of retailers are ready to collaborate, too.14
Projections after launch, [email protected] +7 925 158 0238 www.30secmilk.comPre-launchQ1Q2Q3Q4Year 2Year 330Sec Milk sales, tons per period216/
259909/
10902376/
28775 369/
6 55195 097/
135 839247 020/
595 824Dairy farms participating, end of period24/
3658/
87146/
219254/
381926/
17251958/
378730Sec Milk Basic units operational at farms, end of period24/
3658/
87158/
241283/
4331 272/
2552 2 977/
6909
15Pre-launchQ1Q2Q3Q4Year 2Year 330Sec Milk sales, tons per period4578743 3884 668107 210423 271Dairy farms participating, end of period 15 40110 200 1 100 3 02030Sec Milk Basic and Robotic units operational at farms, end of period 150400 1190 22401 219117 3 415494Sales &Cash Flow per period, 000 euro0- 1 346 426 -407779-1863 1353103 916-19658 42215 174181 51358 041
In medium scenario, 30 percent of farms start adding on average 2 extra Basic units after 6 months of a trial period. Robomilk units (compatible with milking robots) start to replace Basic units in 20% of farms from year #2 . One Robotic unit will replace on average two Basic Units. Basic units will serve average herds of 15 cows each. Robotic units will serve herds of 50-60 cows each.15
Current status, as of May 2015Russian invention patent received 10. 2012. European patent application (PCT) filed 02.2014. German patent received 03.2014Prototype field test finishedSerial production engineering finishedFirst MVP in production with tests and certification to followNegotiations with potential investors in [email protected] +7 925 158 0238 www.30secmilk.com16
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The TeamBusinessDr. Andrei Kuteinikov. Serial entrepreneur and business angel. 15-years of experience at/with global pharmaceutical companies. PhD in economics of innovations.Fredrik Svensson Business Development Mgr, Europe. Europe-wide sales experience with fine wines.
R&D Prof. Alexandr Belonosov. Serial inventor and innovator. Co-Chairman of U.S.-Soviet Program of Nuclear Tests Control in late [email protected] +7 925 158 0238 www.30secmilk.com17
Next capital infusion [email protected] +7 925 158 0238 www.30secmilk.com
Round A: 500K EU incorporation, EU patenting, EU certification, EU market test Round A+: 1,8MBusiness launch to break-even
6-9 . . 500 . - .18
LIBERTY TO FARMERS NATURAL TASTE TO [email protected] +7 925 158 0238 www.30secmilk.com19
