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CPG Brand in the Reusable Cups Vertical – Design & Utility Patents in Key Regions – Excellent Results in Crowdfunding – Strong Net Margins

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Website Closers® presents an early stage opportunity designed and developed by a highly experienced CPG Team. In 2022, the company raised $220,000 in 30 days via crowdfunding and presold 9,000 units. Management will soon launch their D2C offering before selling to wholesale, retail, and corporate clients. The product is an innovative, reusable, and collapsible cup that helps protect the planet while negating spills, leaks, and odors that competitors have failed to accomplish.

Market Demand

The world is drowning in disposable cups. Currently, 500 billion are used annually, and 99% of those are destined for landfills. One hundred million consumers and retailers worldwide will be forced to look for reusable alternatives as lawmakers are signing bills to reduce plastic waste, forcing a move towards sustainable options. Big coffee chains, for example, plan to phase out disposable cups by 2025, and in China, Starbucks alone uses 2.6 million daily. Over 130 countries have adopted legislation to regulate single-use plastics and are looking for viable alternatives.

Sixteen billion disposable cups enter the waste disposal system annually in the US, 59 billion in Europe, and 1.8 billion in Australia. Management has obtained design and utility patents in Canada, the European Union, Australia, and China and has patents pending in the US, addressing the need for this environmentally friendly product in all major markets as the issue of disposable cups moves to the forefront.

Customer segments include the following:

  • Individuals who care for the planet, particularly millennials and Gen Z
  • Outdoor enthusiasts such as hikers, campers, travelers, and fitness fanatics
  • Cafe outlets
  • Corporate gifts
  • Wholesale partnerships

Logistics

The detail with which this opportunity has been prepared, from product design and protective patents pending to foreign manufacturing agents and agreements, competitive analysis, production capabilities, foreign and domestic warehousing and management, shipping, and website and market exposure, is unparalleled.

The Product

Reusable cups promised to help ease plastic pollution, however portability and stability issues are limiting their adoption. This company’s innovative solution is sure to make its mark in the drinkware space as it gains traction by meeting consumers’ needs for convenience, practicality, and social responsibility. Their locking technology and design prevent unexpected collapses – the key flaw of today’s collapsible cups. Since disposable cups meet the demand for phase-out, 220 million consumers in the US alone will be looking for alternatives to conveniently carry their favorite beverage, whether hot or cold.

The superior cup is constructed from 304 food-grade stainless steel with gaskets of food-grade silicone used in small parts to provide a leakproof seal. Stainless steel was selected as the main body of the product for easy cleaning after use at any time, rather than silicone, which requires immediate washing to prevent the retention of food taste. Additionally, stainless steel does not react with acidic or alkaline foods, ensuring that drinks retain flavor without any unwanted chemical reactions.

Moreover, it is durable, long-lasting, and genuinely recyclable through standard methods. In contrast, silicone products require a specialty process and are often discarded into landfills with a long degradation cycle as a result. When finished, this cup can be collapsed using its patent-pending technology, which provides a leakproof system and can be stored away for subsequent use and cleaning when convenient.

Projections

By the end of 2024, the brand is projected to have successfully entered the market with a first-year revenue target of $1.1 million and 24,000 units sold. Income is expected to bifurcate between direct-to-consumer and business-to-business at 45% and 55%, respectively. It is then estimated to proliferate after the first year with 400% year-over-year growth in 2025, corresponding to $5.4 million and DTC sales increasing to 62%.

In 2026, revenue is expected to grow by 56% to $8.4 million, with 184,000 units sold, and by the end of 2027, sales are anticipated to reach $15,5 million with $6.7 million in net earnings.

Team

The founder and CEO worked as a technology lead at various prominent investment banks and is a serial entrepreneur and sustainability advocate who previously founded a fitness company that a private equity firm acquired. If the buyer desires, she is prepared to participate post-acquisition in transactional and management consulting roles with equity retention.

The product advisor invented and founded one of the largest water bottle brands in the US. A second advisor founded a supplements company and expanded it to nearly 100 international markets before a New York Stock Exchange-listed company acquired it. The fourth member of the executive team is an entrepreneur and former COO with 12 years of supply chain experience.

Summary

This is an excellent strategic acquisition opportunity for a purchaser who can manage operational efficiencies, thereby realizing high profit margins while utilizing the supply chain that is already developed and in use. Production times and schedules to market have been established, order quantities and manufacturing capabilities determined, and landed product cost per SKU has been calculated. Foreign agents, manufacturing facilities, warehousing, and logistics are currently operational, providing first-run products to the market.

This Company is Represented by:

WebsiteClosers.com

Technology, Internet & eCommerce Business Brokers

WC 3253

Asking Price
$ 6,000,000
Cash Flow
$ 6,750,000
Gross Income
$ 15,500,000
Year Established
2022
Employees
3

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