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Daan van Well & Martijn Snelder team 7
Daan van Well & Martijn Snelder Hilversum, NL

à BLOC - Bicycle Beer

Cycling is growing exponentially and demand for craft beer is higher than ever. We love both and created à BLOC Bicycle Beer

$124,523 INVESTED
47%
$266,440 16
Required Days left
7.00% 5 years
Interest rate Duration
The concept

WANT TO BECOME THE CO-OWNER OF A CRAFT BEER?

Join us in bringing together two of our favorite worlds: cycling and craft beer. Cycling’s popularity is rapidly growing, and the demand for craft beer is higher than ever. We blended these together and put them into a bottle, creating à BLOC Bicycle Beer, a refreshing, unfiltered blonde beer, rich in proteins and vitamins. Riding "à bloc" means going "flat out". Our beer is the perfect drink for after a ride. And because we want you to ride your bike and drink our great tasting beer every possible day of your life, we’ve added Alpine Minerals to improve rehydration and recovery. 

This is your chance to become part of à BLOC’s success. It’s your chance to become co-owner of a genuine craft beer brand. And let’s be honest, doesn’t that sound like a dream?


OUR BUSINESS MODEL

We’ve structured the business quite differently from the typical craft breweries. We think globally, but act locally. Our unique recipe was created with our brewer in The Netherlands, and we then work with local craft brewers around the world to actually brew the beer with the finest ingredients. Many breweries have overcapacity that we can use. This enables us to brew our beer without having to invest in any equipment or buildings, close to the cycling communities we serve around the world, making for a better quality beer. It’s a win-win for everyone.

Once brewed, we sell to distributors and straight to bike channels whenever possible. But this is even bigger than selling beer. It’s about the friendships and stories that reflect why we enjoy cycling. We are creating a worldwide cycling community around the brand with group rides (topped off with à BLOC beer, of course), cycling challenges, cafés, workshops, and more. What we’re building is a lifestyle brand for cyclists, one that energizes and motivates us to enjoy life, and ride our bicycle as much as possible. 


WHAT YOU GET

In return for your investment, you get a very decent 7% interest on investment and a 30% discount on the share price when you become a shareholder, to fully gain from the benefits. Investors become part of a unique business that welds together two global trends, cycling and craft beer, thus creating a highly scalable lifestyle brand. Besides becoming an investor, you become member of the à BLOC Cycle Club and you can also get free beers, discounts on team kit, rides with pros (depending on the amount invested). And you can even win a cool Fara Bike (www.faracycling.co).

In addition to that, we’ll also be throwing in a few neat bonuses for you, such as tickets for the London Bike Show 16-19 February 2017, and free beers at the à BLOC Bars at the Car Park Climb on 21 January, 2017 in Adelaide, Australia during the Tour Down Under. 


INVEST NOW AND JOIN THE RIDE WITH US!

Unique Selling Points

  1. Early Mover: we have a first mover advantage with a great and cool product and brand proposition combining craft beer with the cycling experience, and building a community around "we share the ride".
  2. Global: à BLOC is a global craft beer without the burden and geographical limitations of traditional craft breweries. Cycling is a global sport and à BLOC wants to be where the cycling communities are, around the world.
  3. Alpine Minerals: we added Alpine Minerals (trade marked by us) making à BLOC the perfect refreshing beer after a ride. We are not aware of any other beer with added alpine minerals.
  4. Bicycle Beer: we position à BLOC Bicycle Beer as a bicycle related lifestyle accessory, rather than solely another craft beer.
  5. Community: we're building a community around à BLOC called "WE SHARE THE RIDE" for sharing and celebrating cycling experiences and organising challenges.
  6. Cool and distinct design: appealing to cycling and its rich heritage.
  7. Smart brewing: We use the structural and seasonal overcapacity of the craft beer industry to brew à BLOC in the local craft breweries we team up with, based on our own proprietary recipe. By using this overcapacity, we don't have to invest in expensive brewing equipment or buildings.

Revenue model

We make use of the structural and seasonal overcapacity within the craft beer industry to have our beer brewed by craft brewers based on our own recipe. By using this overcapacity, there is no need for investment capital in expensive brewery equipment and buildings. We have ensured sufficient capacity for the next 18 months based on our sales projections and we are actively working to increase the number of brewing partners in order to ensure sufficient capacity going forward, while maintaining consistent quality. We reserve our brew slots on a 12 Month rolling basis to be confirmed 2 months in advance.

Once brewed, we sell to distributors who distribute through the craft beer/wine channels, and bicycle channel where possible. We closely work together with our distributors to train their sales force and execute our sales strategy in each country/area. In some countries we may sell the beer ourselves, and work with separate logistics partner to process and deliver orders on our behalf.

Achieved so far

Netherlands

  • 40,000 bottles produced
  • 3rd batch in production
  • New clients including the cycling hotspots “Velosoof café” in Eindhoven and “Parkhotel” in Valkenburg
  • Exclusive distribution agreement with Van Bieren, with national coverage: in-line, retail, wholesale
  • Beer sponsor of the Strongher festival in 2016 and 2017 (largest women’s cycling event in The Netherlands)
  • Beer partner for “Ronde van Nijmegen”, 2016 and 2017
  • New 75cl luxury bottle with champagne cork and gift pack developed and ready for the holiday season
  • New website live
  • Sponsorship deal with two Dutch pro cycling team Team Roompot and anopther men’s and women’s teams in progress
  • Detailed marketing and communication strategy developed with partner agency Talefisher now being rolled out
  • Talefisher joined as shareholder and Jeroen Kramers and Bart de Voogd joined the management team
  • Names and logos “à BLOC” and “Alpine Minerals” registered internationally as trademarks
  • URLs abloc.beer, abloc.nl, abloc.co.uk, abloc.club, wesharetheride.com, wesharetheride.cc, alpineminerals.cc, alpineminerals.fit registered 
  • Facebook, Twitter, Instagram accounts live
  • London-based social media management partner 
  • 2017 Team Kit developed with our partner 36, official supplier of the Roompot Pro Cycling Team
  • à BLOC available at cycling web shop cyclostyle.com
  • Great review in Blog “Banana Cycling” (28K followers) 
  • Numerous initiatives in the pipeline to collaborate with ‘icons’ of the cycling industry

UK

  • Agreement in principle with distribution partner - an industry leading drinks agency with a successful track record of bringing new and exciting craft drinks into the the UK market. 
  • Launch in the UK during the prestigious Rouleur Classic, organised with Telegraph Media Group in London between November 3-5 2016
  • 2-year deal with Telegraph Media Group for “Rouleur Classic”, and to host the à BLOC Cycling Bar at the London Bike Show 16-19 February 2017 (50K visitors) with option for 2018 
  • Available at the London-based cycling café “Look Mum No Hands” amongst the best cycling cafés in the world - and more to follow soon!

Australia

  • Creation of subsidiary A BLOC Australia PTY with our local partner Mr Ash Bleeker (managing the business in Australia)
  • Signed partnership with Corporate Cycling (click here for their website)
  • Signed local brew partner, Cavalier arewing Co, to brew à BLOC locally
  • Distribution in Adelaide, Melbourne, Sydney, Brisbane through our distribution partner Festival City Wines
  • Part of the Dutch trade mission accompanying the official state visit of the Dutch King and Queen to Australia
  • Launch at the Tour Down Under with a number of stunts and events, including a Car Park Climb in Adelaide on the 21st of January with à BLOC Rooftop Party with up to 5,000 guests
  • Company locally funded with AUD 110,000 paid in capital

Spain:

  • Softlaunch at “La Fabrica”, located Girona, Spain, one of the worlds iconic cycling hot spots. La Fabrica is one of the most well-known cycling bars in Girona, where most pro riders live during the winter. à BLOC is available at “La Fabrica” and “Espresso Mafia”
  • Great review in international blog “The Nomad Barista” (15K followers) http://www.thenomadbarista.com/la-fabrica-coffee-roasters

Required investment and purpose

  • Total need: EUR 350,000
  • Aim crowdfunding: minimum EUR 250,000
  • Raised in Australia: AUD 110,000
  • Deployment of funds: Marketing activation costs in The Netherlands, The United Kingdom and Australia, working capital

For the Investor

  • 5 year Convertible Loan
  • 7% interest
  • 30% discount at conversion


Special benefits for the highest amounts invested

  • 80 tickets for the London Bike Show 16-19 February 2017
  • 10 tickets for the “Six-Days of Rotterdam” 5-10 January 2017
  • Invitation to the Car Park Climb, 21 January 2017 in Adelaide, Australia during the Tour Down Under with free à BLOC at the à BLOC  Party


Perks per investment level

Less than EUR 499

  • Membership of the à BLOC Cycle Club: invitations to à BLOC events with (former) pro riders
  • 10% discount on à BLOC Pro Team Kit
From EUR 500 – EUR 999

  • Membership of the à BLOC Cycle Club: invitations to à BLOC events with (former) pro riders
  • 15% discount on à BLOC Pro Team Kit
  • 75cl à BLOC Beer*
From EUR 1,000 to EUR 4,999

  • Membership of the à BLOC Cycle Club: invitation and free access to à BLOC events with (former) pro riders
  • 25% discount on à BLOC Pro Team Kit
  • Case of à BLOC 24x33cl*
EUR 5,000 or EUR 9,999

  • Membership of à BLOC Investment Club: invitation and free access to annual networking event and exclusive dinner with à BLOC partners, including (former) pro riders
  • Membership of the à BLOC Cycle Club: invitation and free access to à BLOC events with (former) pro riders
  • 1 complementary à BLOC team kit every year (and 30% discount on additional orders)
  • 6 cases of à BLOC 24x33cl per year*
EUR 10,000 or EUR 49,999

  • Name of choice** on team kit 
  • Member of à BLOC Investment Club: invitation and free access to annual networking event and exclusive dinner with à BLOC partners, including (former) pro riders
  • Membership of the à BLOC Cycle Club: invitation and free access to à BLOC events with (former) pro riders
  • 2 complementary à BLOC team kits every year (and 30% discount on additional orders)
  • 12 cases of à BLOC 24x33cl per year*
EUR 50,000 or more:

  • All of the above plus:
  • Name and logo of choice** on team kit and car 
  • Invite to culinary beer dinner with management team and partners in January in Adelaide, February in London and/or March in Amsterdam
  • Possibility to organise event with à BLOC once per year
*pick up at local brewer, distributor or at events
**first come first serve basis, subject to availability of space and compatibility with previous engagements

Exit policy

We remain focussed on the development of the à BLOC brand and of the international distribution network for the next 5 years. We are open to new sustainable partnerships based on our "share-share" principle for the benefit all involved. An obvious collaboration would be in the fields of distribution and brewing of beer. Alternative collaborations are with other brands and communities active in the cycling industry or with the intention to enter into the cycling industry.


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Daan van Well
Directeur Sportif - CEO

Daan is a passionate cyclist and entrepreneur. He holds an MBA from HEC Lausanne and a Masters’ degree in law and speaks fluent English, French, German and Dutch. After graduating from law school, Daan worked as a lawyer in a law firm before joining a multinational food retail company. Since 2009, Daan has successfully established and managed the law business for PwC in Geneva, Switzerland.

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Martijn Snelder
Directeur Sportif - COO

Martijn is a passionate cyclist, business developer, and skilled negotiator. After his law studies, he decided to specialise in Real Estate. He has a broad and international experience in development of commercial retail real estate, project management and contract negotiation. Martijn worked for large real estate companies until 2014, when he started his own business in real estate consulting.

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Jeroen Kramers
Caravane publicitaire - Marketing and Communications

Jeroen held a number of marketing positions before becoming the head of marketing, communications, and branding for the Dutch public television and online platforms of the Dutch public media organisation NPO, where he stayed until 2015. In 2015, he started the independent marketing and communications agency “Talefisher” with Bart de Voogd.

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Bart de Voogd
Caravane Publicitaire - Marketing and Communications

Bart started his career as a journalist, and then was working in communications when he met Jeroen after becoming the head of marketing and communications for the Dutch public radio. In 2015, they decided to create their own independent marketing and communications agency Talefisher.

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Ashley Bleeker
Directeur Sportif - General Manager Australia

Ashley is a passionate cyclist, riding with Melbourne-based TKM (The King's Men). He has successfully worked across different industries in strategy and business development. Ashley is an effective leader with a strong track record of helping people-based businesses build capacity and improve performance through planning and execution. Ashley and Daan met through a mutual friend in 2016.

Legal structure

Gran Fondo B.V. is a private limited liability company duly organised and validly existing under the laws of the Netherlands. 


Shareholders

The company has 3 shareholders:

  • Daan van Well (47.5%)
  • Martijn Snelder (47.5%)
  • Talefisher B.V. (5%)
Subsidiaries

The Company established one subsidiary in Australia and is in the process of establishing another subsidiary in the United Kingdom. 

The majority if A BLOC AUSTRALIA Pty Ltd is owned by Gran Fondo B.V. The remainder of the shares are owned by Ashley Bleeker (General Manager à BLOC Australia) and Corporate Cycling Pty Ltd. A BLOC AUSTRALIA Pty Ltd is locally funded and has issued and paid in share capital of AUD 110,000.

Human development

Daan and Martijn are running the business on a day-to-day basis. Daan has a particular focus on international expansion, strategic alliances, legal and fincance, and is heavily involved in building the business in Australia and the UK, while Martijn focuses on operations and commercial development and in The Netherlands on business development and strategy. 

Bart and Jeroen are responsible for brand development and marketing.

Ashley Bleeker is responsible for the business development and strategy of à BLOC Australia.

We want to remain as lean as possible, and we intend to limit the number of FTEs as much as possible. We focus on both strategic alliances and on-demand services from our partners and free-lancers in order to be able to measure and control the value of the activities. However, for 2017 we intend to hire an assistant in The Netherlands and we are considering commission-based sales force on all countries.

The product

We wanted to create the perfect beer to drink after a hard ride with friends. From that seed of an idea, we’ve developed an outstanding craft beer for cyclists, à BLOC Bicycle Beer. It is fresh, full flavoured, and yet an easy to drink unfiltered blond beer, naturally rich in proteins and vitamin B, with added Alpine Minerals to make it the perfectly refreshing beer to savour with friends after a ride.

We've developed our own proprietary recipe for à BLOC with Alpine Minerals, and as far as we know, we're the only craft beer in existence with added Alpine Minerals. The term/Alpine Minerals’ is protected as our trademark.

The design we'veve developed is cool and distinct, appealing to cycling and its rich heritage. When making the design and developing the à BLOC and Alpine Minerals brands, we took scalability as a key consideration so as to be able to expand well beyond being simply about beer.

Unique Selling Points

à BLOC Bicycle Beer is more than yet another craft beer. à BLOC is about our passion for cycling, and the unique stories we tell from experiencing a life on two wheels. à BLOC is interwoven with the cycling lifestyle and its experiences. To help the à BLOC community experience cycling to the fullest, we’ve teamed up with pro cycling teams, former pro riders, event organisers, and cycling media. 

With à BLOC, we’re building a community around the sharing and celebrating of cycling experiences, bringing together cycling enthusiasts from across the globe. Our cool and distinct design appeals to cycling and its rich heritage, and à BLOC Bicycle Beer is positioned as a bicycle related lifestyle accessory, rather than solely as a craft beer.

Alpine Minerals: we added Alpine Minerals (trade marked by us). These minerals not only make à BLOC the perfect refreshing beer after a ride, but assist in recovery so that we can do it all over again the next day. We are not aware of any other beer adding Alpine Minerals.

Unlike most craft beers, we are a global craft beer. à BLOC is where cycling achievements are celebrated and stories are told, all around the world. And we work with local craft brewers around the world to carefully brew à BLOC, close to the cycling communities we serve, making us global and local at the same time.

We have a first mover advantage with a unique product and brand proposition combining craft beer with the cycling experience, and building a community around “We share the ride”. 

Revenue model

We make use of the structural and seasonal overcapacity within the craft beer industry to have our beer brewed by craft brewers based on our own recipe. By using this overcapacity, there’s no need for us to invest in expensive brewery equipment and buildings. We want to expand the number of brewing partners we work with in order to ensure a sufficient capacity that finds the right balance between economies of scale and cost of transportation. We reserve brew slot options on a 12 Month rolling basis, with each individual brew slot option able to be lifted 3 months in advance, depending on expected demand. The shelf date of à BLOC beer is 18 months, which is beneficial to us, our distributors and our final customers.

Our recipe was developed in The Netherlands with De Gooische Bierbouwerij, and we will start brewing in their new brewery located in Hilversum, The Netherlands in 2017. Until that time, à BLOC is brewed by Brouwerij Jopen, an established craft brewery of The Netherlands. In Australia, we're brewing the first batch with our new artisan beer brewing partners of the Cavalier Brewing Company.

Once brewed, we distribute through craft beer/wine channels and bicycle related channels where possible. We will work closely with our distributors to train sales forces to properly execute our sales strategy in each country/area.

In the Netherlands, we work with Van Bieren, a distribution company that specializes in craft beer distribution, with national coverage through on-line, retail and wholesale channels. We train their sales force to become à BLOC ambassadors and we closely work together with them in the planning and execution of our sales strategy. The initial focus is on renowned cycling venues in key locations in The Netherlands. We aim to have 50 points of sale by April 2017, in time for the start of the new cycling season.

In the UK, we’ve reach agreement in principle with a distribution partner specialised in managing and growing premium drinks brands in the UK to improve customer demand, increase sales and grow the distribution nationwide. 

In Australia, we started a collaboration with Festival City Wines, a distribution company specialised in import and distribution of quality wines, beers, and fine food from Europe. Festival City Wines has national coverage in Australia and sales force based in Adelaide, Melbourne, Sydney, Brisbane and Perth.

Scalability

Geographical

We’re currently in The Netherlands, the United Kingdom, and in Australia and our ambitions are global. This partners well with our marketing strategy, which is aimed at story sharing, because the best language to share stories globally is English.

Product range

We’re expanding our product range to extend the à BLOC brand into the physical and on-line cycling channels easily without limitations of applicable alcohol regulations. We've developed a professional à BLOC team kit with our clothing partner 36 to be on sale as of January 2017. We're launching à BLOC Mineral Water in Australia at the Tour Down Under and we're working on a number of other products.

Franchise à BLOC Café & workshop

We've developed a franchise model for an à BLOC Café & Workshop. The first flagship will be opened in Melbourne in 2017.

On-line business model

We’re building a community around à BLOC called “We Share the Ride” for sharing and celebrating cycling experiences. We are developing an on-line platform where cyclists can meet, share stories, be inspired to organise cycling trips together. 

Current status

à BLOC Bicycle Beer is in production since September 2016. Initial sales exceed expectations and we're now preparing the 3rd batch. We had a soft-launch in Girona, Spain in October 2016 and successfully launched in the UK in November at Rouleur Classic generating lots of demand and many more leads. We are currently brewing the first batch in Australia.

We continue to increase our points of sale and we intend to have 50 points of sale by April 2017 in The Netherlands, 30 in the UK, and 30 in Australia at that same time.

For the holiday season, we have developed a gift pack which is produced and ready for sale, and for which sales are well under way.

Planned developments

The development of the “We Share the Ride” concept is pending and expected to be ready to be launched before the start of the 2017 cycling season kicks off in March 2017.

We are preparing the first batch of à BLOC Mineral Water from the Beloka Spring in the Australian Alps, to be launched in January in Adelaide, Australia. The first à BLOC Café & Workshop concept space will be opened in Melbourne in 2017.

We are talking to a number of parties interested in distributing à BLOC to other countries, including Spain, Italy, Belgium, Germany, Canada and the US. We are open to partnerships, but we remain focused our management attention on the development in The Netherlands, UK and Australia.

Target group

  • Sportive cyclists, (this includes those who ride a road cyclo-cross, mountain bike, BMX, gravel bike, fixie, trekking bike), and riding as a sports enthusiast at least 12 times per year
  • 30Y+, Male and Female
  • Characteristics: well educated, working professional, relatively high disposable income, traditionally wine drinkers, high willingness to pay for premium cycling related products (e.g. Rapha) and experiences (travel, cyclo sportive, cycling adventures)
  • Trends: social riding and experiences (growing) versus traditional racing (flat). Sunday rides, multiple day trips in groups, cycling as a lifestyle, cycling as means to stay healthy and fit.

Market size

The number of sportive cyclists (see above) is growing fast around the world. We aim to target sportive cyclists, and we measure our markets by the number of sportive cyclists per country:

  • Netherlands: 1.2M
  • Australia: 3.7M
  • United Kingdom: 5.7M
  • Germany: 5.4M
  • France: 3M
  • Italy: 2.6M
  • Spain: 2.3M
  • US: 47M
  • Japan: 19M

Market trends

  • The Bicycling industry is growing in all countries globally between 5% and 8% per year (measured by sales of new bikes , as well as bicycle accessories, clothing, but excluding travel and participation to events)
  • Largest growth in number of cyclists are men 35+ switching from football, rugby and field-hockey to cycling, and women 30+
  • New communities of likeminded people, who focus on quality of life, and who value spending on experiences and time with friends
  • The more discerning consumers within the cycling community looking for unique quality products related to cycling
  • Health: combining busy lifestyles with good health
  • Craft beer market continues to grow and winning market share from main stream industrial brewers, gaining momentum as an alternative to wine in traditional wine countries

Competition

  • Netherlands/Belgium: Oude Kwaremont, Amstel Radler (beer and lemonade mix), Vedette
  • Germany: Erdinger (alcohol free)
  • Australia: Bicycle Beer
  • Switzerland: Velosophe

Customer feedback

Netherlands

  • Van Bieren (Amsterdam, Utrecht)
  • Velosoof (Eindhoven)
  • Parkhotel (Valkenburg)
  • Villeneuve (Maastricht)
  • Rendez-Vous (Mijdrecht)
  • Cyclostyle

United Kingdom

  • Look Mum No Hands (London, 2 locations)

Spain

  • La Fabrica (Girona)
  • Espresso Mafia (Girona)

Customer feedback

Customer feedback has been positive without exception, both from our ’end consumers‘, distributors, beer experts and marketing agencies.


“nice clean fresh strong taste” (The Velo House)

“It’s very nice, very easy drinking” (Boutique Beer Brands)

“perfect look and feel – lives and breathes cycling” (Rouleur)

“spot on” (Bastion Connect)

“You really taste the freshness of the Alpine Minerals” (Banana Cycling)

“Love the design of the logo, very stylish, very cycling” (La Fabrica)

New customers

We continue to increase our points of sale and we intend to have 100 points of sale by the end of 2017 in The Netherlands, 100 in the UK, and 50 in Australia.

Sales pitch

à BLOC Bicycle Beer is more than just yet another craft beer. à BLOC is created from within cycling, and is about sharing the unique stories that we experience through it. With à BLOC, we’re building a community that revolves around sharing and celebrating our cycling experiences, joining together fellow cycling enthusiasts into a global peloton, a club of many that makes us all better cyclists and people.

Our marketing and communication strategy is aimed at reaching the cycling communities worldwide, and promoting story sharing amongst all cyclists. à BLOC wants to be where cycling achievements are celebrated: at events, races, in cycling cafes, bike shops, and on-line.

We call our story-sharing platform ’We Share the Ride‘. We share our stories through our website, creating enthusiasm for more rides and cycling challenges amongst cyclists. With social media, we also partner with local ambassadors and professional cycling teams who will join and occasionally lead the peloton, allowing us all to enjoy each others passion for all things in cycling.

Our events, stunts and stories will also be shared through vlogs, blogs, and social media to be visible internationally. à BLOC’s partners and ambassadors do the same, along with our community, when à BLOC is available at key events and bars where cyclists gather.

We’ve partnered up with credible cycling teams, current and former pro cyclists, and opinion leaders in cycling who endorse the cycling promise of à BLOC.

Marketing & sales channels

Story sharing – “pull” strategy

  • Website (abloc.beer, wesharetheride.com)
  • Social media (Facebook, Twitter, Instagram, YouTube)
  • Partnering with pro teams (1 Continental Tour team signed, in talks with 1 World Tour team and another Continental Tour team)
  • Cycling events with pop-up cycling café “à BLOC – CLUB CYCLISTE DU MONDE”

Hospitality and retail

  • Selected locations targeted by trained sales force
  • Table-stands and beer mats introducing and facilitating challenges (“let’s climb Mont Ventoux next year”) in connection with à BLOC Bicycle Beer
  • Selected key cycling locations to become “flag ship bars” to become à BLOC clubhouse (contract required to commit to hosting rides and events with pro riders and other opinion leaders in cycling, watching races, specific opening hours (Sundays) and promote à BLOC)
  • 3 pack and 75cl champne bottle – attractive gift item as alternative to bottle of wine/champagne 

Traditional Advertising

  • Preferred: advertorials (story sharing) – about 10 advertorials in the pipeline for 2017 (blogs, website, print)
  • Paid advertisement (print and on-line) as support only and only if good opportunity (e.g. Rouleur Classic, London Bike Show)

Marketing objective

Our vision

Performance and challenging each other to greater efforts are some of life’s treasured experiences. Through them, friendships are forged, especially in cycling. Wherever we ride, we always carry with us a portion of our sports rich legacy. And when we ride, we wait at the top of the climb, and return together, because our performances are of little value if we cannot share our accomplishments with friends. By telling each other our stories, our lives are enriched, and bonds strengthened. 

Our mission

à BLOC wants to be where cycling achievements are celebrated and stories are told. It’s made with the finest ingredients, so we can ride again tomorrow, making and strengthening friendships along the way.

Partnerships

Netherlands:

  • De Gooische Bierbrouwerij: development recipe, main brewing partner, “home” brew pub, shared offices
  • Talefisher: marketing and communications, graphic design
  • Van Bieren: distribution and sales partner
  • TwoTone: sales and PR
  • Sumedia: web development
  • Roompot Pro Cycling Team
  • Strongher, organisation promoting women’s cycling (international)
  • Ronde van Nijmegen, third largest amateur cycling event in The Netherlands

UK

  • Telegraph Media Group: event organizing (rouleur classic, The London Bike Show)
  • Rouleur: cycling magazine
  • Spin Brands: social media management
  • Boutique Bar Brands sales and distribution partner
  • Bastion Connect: Sales & PR, sports advertisement
Australia

  • Mr Ash Bleeker: local manager
  • Corporate Cycling: event organising, franchise development
  • Cavalier Brewing Company: local craft brew partner
  • Festival City Wines: distribution partner
  • Rann Strategy Group: strategic PR

Turnover so far

2015: EUR 15,000

2016 YTD: EUR 30,000 (September, October, November months only)

Projected turnover

2016: EUR 38,000

Low scenario:

  • 2017: EUR 136,314
  • 2018: EUR 631,552
  • 2019: EUR 3,243,430
  • 2020: EUR 7,516,443
  • 2021: EUR 16,548,930

High scenario:

  • 2017: EUR 406,103
  • 2018: EUR 1,781,465
  • 2019: EUR 6,643,679
  • 2020: EUR 23,833,793
  • 2021: EUR 55,404,270

Assumptions

Financial assumptions

  • Average sales price EUR 1.15 (low) and EUR 1.27 (high) for 33cl, EUR 2.96 (low) and EUR 3.27 (high) for 75cl and production cost based on current levels in The Netherlands
  • Revenues from sales of merchandise (including team kit, glasses and Alpine Minerals salt tablets) assumed to equal 10% of revenues beer sales
  • Income from adds and banners on WESHARETHERIDE.COM starting in 2019 at a rate of 5% of revenues previous year
  • Production cost vs 2016: -5% 2018, -25% by 2022 (economies of scale)
  • Minimum salary levels in 2017, 2018 and 2019
  • Marketing budget coming down from 25% of revenues in 2017 to 5% in 2022
  • Admin and general expenses 5%
  • Average growth rate number of cyclist between 1% (low scenario) and 3% (high scenario) p/a

Market entry assumptions

Low scenario:

  • 2017: Netherlands, Australia, United Kingdom
  • 2019: Belgium, USA
  • 2020: Germany, Denmark
  • 2021: France, Italy, Spain
High scenario:

  • 2017: Netherlands, Australia, United Kingdom
  • 2018: USA, Germany, Denmark
  • 2019: France, Belgium, 
  • 2020: Italy, Spain
  • 2021: Switzerland, Austria

Invested so far

To date, Gran Fondo B.V. is fully financed by its shareholders. A total amount of around EUR 150K has been invested to date by the shareholders.

A total amount of AUD 110K is directly contributed to A BLOC AUSTRALIA PTY.

Investment requirement

  • Aim crowdfunding: minimum EUR 250,000
  • Raised in Australia: AUD 110,000

The total amount required to finance our 5 year international expansion strategy and roll-out in The Netherlands, Australia and the United Kingdom in 2017 is around EUR 350,000. We have secured an investment of AUD 110,000 and the remainder is to be financed through the Symbid crowdfunding campaign. 

The minimum amount we aim to raise through crowd funding is EUR 250,000 in order to execute our brand activation plans and roll out in The Netherlands, Australia and the United Kingdom and fulfil our commitments. 

The higher the amount raised, the faster we can execute our market entries and grow. 

We are also close to secure a significant amount of funding through 2 individual private investors in addition to the crowd funding campaign, giving us even more reach into the future. These investors would directly invest in class B shares in the company based on an enterprise value of around EUR 6 million. These investments are totally independent from and will not dilute the crowdfunding shares. The crowdfunding shares are issued in a separate class representing 49% of the total shares and held by the company. We're open to a maximum of EUR 1.5 million of funding in total.

Purpose of investment

  • Working capital to scale up production of beer and merchandise
  • Lager tank
  • Development WE SHARE THE RIDE platform and web development
  • Product development
  • Social Media Management
  • Brand activation
  • Marketing materials
  • Fees and operating expenses

Return

5 year 7% Convertible Loan with 30% discount

This is the most common way for early-stage investors to invest because it’s simpler, cheaper, and less time-intensive than an actual equity investment. For one, we don’t have to negotiate the value of the company when using a convertible loan - we can let the valuation be set in the future when it's much easier to do so.

A convertible loan is debt (it’s still a loan). The details differ, but a convertible loan is still expected to be paid back, along with interest. But of course, no one really wants that to happen. That’s because of the “convertible” part of the note. The upside is not in getting paid back with a decent return, the upside which should also cover for the early-stage risk of the investors, is the moment we’ll raise real venture capital. At that point, you can opt for the loan to become equity, and instead of having the right to get paid back, you will have shares in the company. And you can get those shares with a 30% discount, dependent on the time elapsed after your investment.

For the Investor

  • 7% interest on investment
  • 30% discount at conversion into shares

Special benefits for the highest amounts invested

  • 80 tickets for the London Bike Show 16-19 February 2017
  • 10 tickets for the “Six-Days of Rotterdam” 5-10 January 2017 (investment before 4 January  5PM CET to be eligible)
  • Invitation to the Car Park Climb, 21 January 2017 in Adelaide, Australia during the Tour Down Under with free à BLOC at the à BLOC  Party
Perks per investment level

Less than EUR 499

  • Membership of the à BLOC Cycle Club: invitations to à BLOC events with (former) pro riders
  • 10% discount on à BLOC Pro Team Kit
From EUR 500 – EUR 999
  • Membership of the à BLOC Cycle Club: invitations to à BLOC events with (former) pro riders
  • 15% discount on à BLOC Pro Team Kit
  • 75cl à BLOC Beer*
From EUR 1,000 to EUR 4,999
  • Membership of the à BLOC Cycle Club: invitation and free access to à BLOC events with (former) pro riders
  • 25% discount on à BLOC Pro Team Kit
  • Case of à BLOC 24x33cl*
EUR 5,000 or EUR 9,999
  • Membership of à BLOC Investment Club: invitation and free access to annual networking event and exclusive dinner with à BLOC partners, including (former) pro riders
  • Membership of the à BLOC Cycle Club: invitation and free access to à BLOC events with (former) pro riders
  • 1 complementary à BLOC team kit every year (and 30% discount on additional orders)
  • 6 cases of à BLOC 24x33cl per year*
EUR 10,000 or EUR 49,999
  • Name of choice** on team kit 
  • Member of à BLOC Investment Club: invitation and free access to annual networking event and exclusive dinner with à BLOC partners, including (former) pro riders
  • Membership of the à BLOC Cycle Club: invitation and free access to à BLOC events with (former) pro riders
  • 2 complementary à BLOC team kits every year (and 30% discount on additional orders)
  • 12 cases of à BLOC 24x33cl per year*
EUR 50,000 or more:
  • All of the above plus:
  • Name and logo of choice** on team kit and car 
  • Invite to culinary beer dinner with management team and partners in January in Adelaide, February in London and/or March in Amsterdam
  • Possibility to organise event with à BLOC once per year
*pick up at local brewer, distributor or at events
**first come first serve basis, subject to availability of space and compatibility with previous engagements

Exit policy

We remain focussed on the development of the à BLOC brand and of the international distribution network for the next 5 years. We are open to new sustainable partnerships based on our "share-share" principle for the benefit all involved. An obvious collaboration would be in the fields of distribution and brewing of beer. Alternative collaborations are with other brands and communities active in the cycling industry or with the intention to enter into the cycling industry.


Risks

The risk factors pertaining to our business include:

  • Production capacity: risk of insufficient capacity due to the fact that we brew with 3rd party brewers. We aim to balance economies of scale with diversification of our brewing partners to ensure sufficient capacity at any time
  • Quality control: to overcome the risk that production does not correspond to the requirements, we test each batch during the production cycle before bottling. For new brewing partners, our brew master is closely involved in the brewing process for the first test batch and the first production batch.
  • Regulation limiting exposure for beer at sports events: we want to be where communities celebrate their achievements and share their experiences. This includes cycling events and races. We are working on non-alcoholic products to ensure we can associate the à BLOC brand with cycling. And we are of the opinion that having an à BLOC after a ride and enjoying a good time with friends is a good thing (as long as you drink responsibly)
  • Imitation: there is a risk that one of the big players (or a small player) comes in and tries to imitate our approach. We feel that we are well positioned to counter that. What we have is genuine passion for cycling, combined with being well connected within the cycling industry internationally. Finally, we have strong partners and ambassadors in the cycling world. Having more players in the same market space could even be to our advantage as this will reinforce the link between beer and cycling.
  • Shelf space: when “fighting” for shelf space, we focus on the fact that à BLOC is a brand with a story different from other craft beers: it is about the passion for cycling and sharing experiences.  As such, à BLOC generates traffic from a new customer segment that would otherwise not have come to the store. Finally, we also have Alpine Minerals as our unique ingredient. 
  • Cash flow: in the low scenario where we raise EUR 250,000 trough the Symbid crowdfunding campaign without overfunding and without an additional equity investor, the cash positions in 2018 and 2019 are low. We are discussing local credit lines with a number of banks in The Netherlands and Australia allowing us to make short-term cash drawings for working capital purposes. 

General risk factors while investing in convertible notes:

  • The Lender agrees that its claims against the Borrower under this convertible loan agreement rank below all other, non-subordinated, claims against the Lender as referred to in Section 3:277.2 Dutch Civil Code (‘BW’).
  • Lender issues a (subordinated) convertible loan to convert at a later stage to depositary receipts to become a shareholder of the company. Lender expects an (exponential) growth of value of the company with the possibility to sell the depositary receipts with a capital gain. However in most situations such capital gains do take more than an additional five years after conversion to be realized. In exchange for the possibility of a high return in case of a scenario of exponential growth of the value of the company, there is a risk the investment will be lost in case the company is not doing well.
  • Please read here carefully the risks while investing in shares or loans offered by the companies published on Symbid. Here you can also obtain insight in the default report of Symbid before deciding to invest.