Branded Beverages is a multicultural company with its headquarter in Madrid. We currently have a team of 12 highly skilled, extremely motivated professionals in 4 countries, with 6 different nationalities.
We design, create and distribute premium quality, high end functional drinks, without processed sugars and based upon 100% natural ingredients, as well as a unique energy drink.
PHILOSOPHY AND TARGET GROUP
Almost all the established and new brands / start ups in the beverage industry globally work the same way: they all try to detect the trends in the market, most of them choosing Millennials as the main target group, create the best/ most innovative drink in each segment, most of them manage to create a drink that corresponds to the current trends, like natural, healthy, no sugar and sometimes even tasty, and then create a brand name and brand image around the product, offer it on a small, local scale (proof of concept), and then search funds for a step by step expansion.
Keeping this in mind we thought “What offers our home country Spain that people all over the world consider as cool and aspirational?” The answer was easy: Ibiza, and more in general, the what is considered a premium, mediterranean lifestyle: a combination of nice beaches, the world’s best parties & DJ’s, a healthy but tasty diet, a balanced, active life, natural, organic, a sense of freedom & happiness.
A DIFFERENT APPROACH
Middle and upper middle class Millennials and the “Generation Z” in developed countries and in emerging economies is growing fast. They grow up with technology, and have a relatively high spending and low savings habit. Most of this new generation is sentitive to premium brands they can identify themselves to, and are willing to spend on those brands if they find a connection that they consider as cool.
We needed to create a product and product range that is potentially good to get a high volume of sales. In spite of all the negative publicity around energy drinks and its health risks, the sales are still growing - sometimes even with double digits - in the countries where we plan to launch first: Spain, Mexico and India. Energy drinks still have a high acceptance amongst our target group, although there is a growing trend towards healthier drinks, also supported by stricter legislations. So here is where our idea was born to create an energy drink without the negative effects on your health, followed by the launch of a range of natural, functional drinks,
free of processed sugars, each recipe with a specific effect on body and mind. We start with the launch of an energy drink with no taurine, less sugar and a different, refined, natural taste, and a sugar free version of the same.
Next launch scheduled for Q4, 2019 or Q1, 2020 is the family of natural, functional drinks, the recipes of which are formulated to work on specific functions of the body and mind, free from artificial ingredients and processed sugars.
Before we even chose our product, we decided to create a logo and brand identity that reflects the before mentioned. This is clearly shown in the 4 main elements that most people instantly identify with Ibiza: the palm tree, the dancing girl, the airplane and of course the DJ. As a background we chose a disco ball that with its color choice also reflects the famous Mediterranean sunset at the beach.
Initially, our intention for the brand name was Ibiza Life, but as it is not possible to use a geographic location to promote a consumer brand, we decided on using the Ibiza Airport code, IBZ, which is also more aspirational, pronounced the same way and known by everyone who visited Ibiza or wants to visit it.
Another reason for choosing this particular logo and brand name was our brand positioning. For our energy drink and other functional drinks, we want to position ourselves as a premium brand, mainly between the global brand leaders RedBull (generally associated with extreme sports) and Monster (generally associated with lower middle class (Erik = is it not also true that Monster targets very early users, i.e. adolescents?), and with a strong presence in motor sports). Our challenge was, how do we get the attention of potential buyers with an unknown brand, and invite them to at least grab our can and try our drinks between those leaders? We believe that we managed with this particular logo and brand identity.
After a long battle, we managed to have our logo and brand name registered and protected for a lifetime (10 years with automatic renewal) in Spain, and because of the “Madrid Convention”, this registration is valid in over 100 countries around the world. This means that we do have to register our brand and brand name separately in each country of our interest, but that each other party in those countries cannot register a similar brand, unless we approve it.
As from January 1st 2019, it is not possible anymore to register any brand name that could be associated (in) directly to a geographic location, which makes it legally imposible for any party to copy our brand. This change of legislation makes our brand even more valuable.
LABORATORY, PRODUCTION AND DISTRIBUTION
A least initially, we produce our products in Mexico for the following reasons:
1. Including the cost of logistics and import, the cost price is considerably lower to have our products produced in Mexico, than anywhere in Europe.
2. Production capacity of the factory is considerably higher than in any factory in Europe, and capable to attend high growth.
3. One of our most important target markets to get a high volume of sales is Mexico.
4. We have a local Joint Venture partner in Mexico, T&S Brand Management, who controls the complete process of product development via our own laboratory, the production processs, logistics and security.
5. The JV partner also is a registered supplier of the main retail chains in Mexico, amongst others Chedraui, Walmart and 7 Eleven, and is specialized in the import, introduction, distribution and consolidation of new brands in food & beverage
CORE TEAM MEMBERS
* Mark Nuyten: founding partner, Dutch, entrepreneur and marketeer with a strong background in international branding, brand positioning and repositioning
* José Luis Martinez: founding partner, Spanish, CFO, telecom engineer, expert in cyber security
* Apul Kala: founding partner, Indian, responsible for business development in India, strong background in jewelry and luxury products
* Hitech Chaturvedi: Indian, responsible for global business development, currently board member of an important IT consulting company
* Vanessa Gutierrez: Spanish, our Key Account Manager for El Corte Inglés, strong background in events, introduction of consumer brands, branding
* Erik Plas: Dutch, former CEO in farmaceutical industry, strong background in start ups, financing, retail, marketing
* Juan Manuel Corchado: Spanish, top scientist blockchain technology and artificial intelligence
* Vibhor Kala: Indian,Country head India, register accountant
* Ajaj Singh Ahluwalia: Indian,Key Account Manager
* Joi Marx: Joint Venture partner, from Mexico, strong marketing background, specialized in introducing new consumer
* Alexander Kenskii: responsible for the complete creative part & visuals from day one
Advanced negotiations for distribution with prestigious retail chains:
o Spain: El Corte Inglés (Hipercor/ Supercor/ Repsol - Supercor Stop & Go): 100+ POS’s in costal/tourist areas, Balearic & Canary Islands, Madrid, Barcelona and Seville. Expected confirmed sales volume 2019-2023: 3.000.000€
o Mexico: (through our JV with T&S Brand Management) Chedraui, 7 Eleven, Wal-Mart, Oxo: mayor cities and tourist/ coastal areas. Expected confirmed sales volume 2019-2023 12.300.000€
Net cash flow from 215.000€ at closing 2019 to 2.500.000€ end of 2023
Profit margin after taxes from 10% in 2019 to over 40% in 2023
Control of the processes: infrastructure, suppliers, manufacturers, transport and logistic
Local partners & teams of highly skilled professionals to manage and supervise each phase
M&A campaigns specifically adapted to the target audience in each of the markets, with a strong focus on social media, events and campaigns BTL with measurable results
MARKETING, PROMOTION - SPAIN
Launch at initially 100 Points of Sale of El Corte Inglés
Main areas for marketing and promotion:
Social media/ influencers: story telling around our core #LIVEIBZLIFE
In store promotions
Promotion/ sponsoring at events (eg día del Orgullo Gay, launch party in Ibiza)
Promotion/ sponsoring of a completely new Spanish invention with world patent, Aquakart
Outdoor advertising at strategic points