Fundraising and launch of a new sports drink business

Background/ Situation

Our client was two small importers who approached MACHUS Solutions regarding import and distribution of a unique sports drink which would be available in Australia and New Zealand. The drink formula was radically different to the usual sports drinks because it acted as a recovery agent rather than as an energy beverage. The product was manufactured in Europe and would be available to our clients exclusively for the Australian and New Zealand markets. MACHUS was engaged to help launch the business, including formalisation of exclusive rights for Australia and New Zealand, fund raising and a comprehensive launch plan.

Initial Findings

The clients conducted limited research in Australia and concluded that the drink could be sold in reasonable volumes by targeting the upper end of the quality market. There was universal attraction to the drink as it was considered healthier than the sugar-based products which were at the time available in the market.

Well into the planning stage, one of the partners pulled out of the project. The remaining partner was enthusiastic about the direction recommended by MACHUS so work proceeded at great speed toward the launch.

Solutions, Strategies and Recommendations

Due to our client’s limited market research and lack of funding, it was decided to proceed with a “soft launch”. MACHUS successfully sourced investors to fund this launch. The action plan for the launch was prepared and full projections of volumes and cash flows were prepared. Full funding pledges were secured within three weeks from initial contact with investors. The project was ready to go.

Implementation and Results

Days before funding was formalised the client decided to withdraw support and re-think the project due to personal reasons. From MACHUS’ perspective the project was properly planned, funded and ready to launch as we successfully met the brief.