How did you reach the company valuation? Where does it come from?
We took into account the valuation of similar stage Estonian drink companies when they have raised money - positioned ourselves just above the average there based on the broad international reach of our products. At the same time, we took into account also EV/sales valuation of roughly 5x in the wider drinks industry, putting our valuation roughly on par with larger peers which have fewer risks, but also fewer growth opportunities.
What drives down your own costs?
Growing scale and moving production to Saaremaa will be the key drivers for lowering the cost base.
What people will you need to hire next?
Most likely they would be the second salesperson, a full-stack marketing person and production help. We have good people in our Lahhentagge network who could likely fill most, if not all, of the positions.
You mention 1,300 POS target, how do you manage that with just two salespersons?
We see that the majority of the point of sales will be part of different retail chains, which lowers significantly the potential number of contacts for one salesperson to handle.
Why did you rebrand tonic waters?
We initially launched them for adult Estonian market under Lahjentagge brand which worked for that demographic well, but we saw two developments which caused rebranding 1) an increasing amount of children started to buy and consume the drink 2) it started to get early traction on some export markets. There were ethical and language reasons behind rebranding them to Estonic Soda, but we would not rule out introducing Lahhentagge tonics for an adult audience.
You also plan to have white label production, what would that be?
We have already several requests from Estonian brands to produce their drinks.
