WHAT DOES THE COMPANY DO?
This Canadian-based “Company” has successfully developed a highly targeted community and experiential marketing platform that connects 3 stakeholder groups – food and drink lovers, restaurants, and lifestyle brands, capitalizing on the emerging trend of experiential food entertainment.

For food loving consumers, the Company provides an e-commerce marketplace where users can seek out, discover, and buy unique culinary experiences hosted by top chefs, bars, and restaurants.

For restaurants, the Company provides an event management and marketing platform allowing restaurants to market their food and drink events to an engaged community, fill unused inventory during off peak times, and create valuable awareness and trial.

For brands, the Company provides rich experiences to connect with food and drink lovers through live event activation and social media amplification. Each event also delivers valuable content that brands can action in their digital marketing channels.

ACQUISITION HIGHLIGHTS
The Company has built an exceptionally valuable community of 20,000 socially active, affluent, urban, millennial foodies. This highly targeted demographic spans the Toronto and Vancouver markets and the Company will be expanding into Montreal shortly. Annual member churn is an extremely low 3% and 94% would recommend to others.

Consumer revenue streams are multi-faceted and come from event ticketing and soon to be introduced paid member subscriptions with an industry leading LTV/CAC ratio of 12X. Corporate revenues are derived from paid corporate memberships and lucrative sponsorship and advertising deals from major brands in the food, drink, and lifestyle verticals targeting this hard to reach demographic. Current clients include Mastercard, Molson Coors, Beam Suntory, Wines of Argentina, Wines of New Zealand, Moosehead Breweries, and Samuel Adams. The platform can also be licensed on a SaaS basis.

The Company’s proprietary technology platform offers event management, e-commerce ticketing, and advanced data analytics capabilities tailored to the food/drink space, providing a critical competitive advantage.

As events are produced and executed on a turnkey basis by its network of restaurant partners and food and drink sponsors, the Company’s business model lends itself to rapid and low-cost scaling.

WHY IS THE COMPANY LOOKING FOR A BUYER?
The Company is well positioned to take advantage of the explosion in niche community building, social influencer marketing, and experiential entertainment in the North American food and drink space. As such, the Company is interested in leveraging a strategic buyer’s reach and resources to fuel international growth and maximize existing brand client revenues.

WHY MIGHT A BUYER BE INTERESTED?
The ideal buyer will achieve the ability to:
• Grow a data-rich, hyper-targeted and valued community
• Access blue chip brand clients currently contracted with the Company
• Cross-sell buyer’s current clients and attract new ones to the Company’s curated experiential marketing program
• Acquire a multi-dimensional proprietary tech platform uniquely focused on the food/drink space

HIGH-LEVEL FINANCIAL DATA
Revenues are split 40% consumer event ticketing and 60% corporate sponsorship/advertising and are C$450,000 for 2018 and projected to be $750,000 in 2019. Revenues have grown 250% YoY for the last 3 years. Gross profit margin is 58%. Since inception in 2015, the Company raised $900,000 primarily from angel groups. The North American addressable market is $4B.

 

Click here to download a printable PDF of this case study.