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Blendtopia

Pre-portioned, ready-to-blend frozen superfood smoothie kits

59%

Investors

41

Time to Invest

Security Offered

Convertible Note

Minimum Investment: $100

  • Smoothie kits are currently available in 1,013 stores across the U.S.

  • Began partnership with Whole Foods in April 2018 to sell products in 364 locations nationwide

  • Year to date as of October 2018, Blendtopia has generated almost $400,000 in revenue

  • 2018 revenue has increased 83% over the previous year

Perks

$150: $10 gift certificate for online use on Blendtopia’s website (Limit one (1) per investor)

$300: A free thirty-minute health coaching session from Founder Tiffany Taylor (Limit one (1) per investor)

*You are investing in Crowd Notes in this offering. Perks are meant to be a thank you from the company for investing. The perks above are inclusive of lower dollar amount perks.

Terms

Security Type: Crowd Note

Round Size: Min: $25,000 Max: $107,000

Valuation Cap: $1,500,000

Interest Rate: 5%

Conversion Provisions: In connection with equity financing of at least $1,000,000, the Company has the option to convert the Crowd Note into shares of a series of non-voting preferred stock, at the prices per share of the new preferred stock sold in the equity financing, or a valuation cap of $1,500,000, whichever results in a lower conversion price. Please refer to the Crowd Note for a complete description of the terms of the Crowd Note, including the conversion provisions.

Overview

Opportunity

For consumers who value convenience and ease of preparation, finding healthy, nutritious meals on-the-go can be challenging. According to a 2017 Food & Health survey, 75% of consumers are swayed to choose processed foods to make their lives easier. Ease of consumption isn’t the only deterring factor for consumers looking for healthier options. Over 40% of consumers say that a longer shelf life plays an important role in choosing processed or packaged foods.i While it appears that consumers are taking steps to prioritize healthy eating,ii concerns remain.iii

Blendtopia provides consumers with a solution to the lack of convenience posed by many healthy food options. With its line of ready-to-blend, nutritious smoothie kits, the Tennessee-based company offers consumers a healthy meal replacement that only requires added liquid and a blender to make. Developed by Founder Tiffany Taylor, a raw food and holistic nutritionist, Blendtopia offers smoothies with purpose while delivering on a promise of convenience without compromise.

Tiffany's Story

Founder Tiffany Taylor, a Certified Raw Food Nutritionist, Certified Holistic Health Coach, and Life Coach, discovered early on that the key to healthy living is whole food nutrition. What started out as a personal lifestyle choice, blossomed into a passionate idea and took shape as a flourishing business venture.

Tiffany’s story began with a passion for clean eating and the idea that she wanted to create a superfood product line unlike anything else on the market today. The idea sparked some serious kitchen inspiration resulting in months of experimentation with whole foods and nutrient-dense superfoods. For Tiffany, the science behind the blends are as important as the ingredients that go into them.

Product

Blendtopia offers customers pre-packaged, frozen smoothie kits containing fiber-rich, whole foods and nutrient-dense superfoods for all-in-one convenience. Globally sourced from countries including Peru and China, these exotic superfood ingredients aim to raise the nutritional intake of the blends. The smoothie kits are pre-portioned, seven-ounce pouches that require 12 ounces of blending liquid and a blender to produce 18 ounces of finished product. Every Blendtopia product is vegan, gluten-free, soy-free, dairy-free, Non-GMO Verified, and 99% organic. When properly stored, Blendtopia smoothie kits can last for many months in the freezer.

Blendtopia currently offers eight different varieties of pre-packaged smoothie kits, with each blend formulated to target a specific health benefit*. Products include:

Detox

Aims to flush toxins from the body while helping to raise alkalinity and improve digestion. Ingredients include kale, celery, pineapples, lemon, chlorella, and cayenne.

Immunity

Seeks to boost immune systems with antioxidants and nutrients like vitamin C. Ingredients include strawberries, blueberries, pineapples, chia seeds, and goji berry powder.

Strength

Aims to deliver a complete source of protein boasting essential amino acids with ingredients rich in fiber, antioxidants, and omegas. Ingredients include spinach, avocados, hemp seeds, sacha inchi and wheatgrass powders.

Energy

Seeks to provide immediate and sustained energy combining protein, healthy fats, and adaptogens. Ingredients include bananas, blueberries, coconut milk powder, chia seeds, and maca powder.

Awake

Aims to energize and focus with phytonutrient-rich components. Ingredients include banana, cucumber, avocados, fair-trade cold brew coffee, mesquite and cacao powder.

Refresh

Boasts a refreshing mint chip flavor profile while providing high-density, nutrient-rich vitamins, minerals, and antioxidants. Ingredients include peppermint essential oil, bananas, spinach, avocados, cacao nibs, and mesquite powder.

Glow

Strives to promote healthier hair, skin, and nails with plant-based collagen boosters. Ingredients include mangos, pineapples, bamboo silica extract, goji berry powder and turmeric.

Seven Day Reset Cleanse

Blendtopia's seven day reset cleanse attempts to aid in proper digestion by flushing waste and toxins from the body. The cleanse seeks to slow digestion, rather than stopping it. Cleanses are meant to replace two meals per day, while a nutritious, balanced dinner is suggested as a third meal. Seven day cleanses consist of three Clean blends, three Glow blends, four Detox blends, and four Strength blends.

Clean

Seeks to balance and restore the body with probiotics, vitamin C, and antioxidants. Ingredients include kale, apples, ginger, lemon, chlorella, and goji berry powder powder.

* Blendtopia products are not intended nor should they be used to diagnose, treat, cure, or prevent any illness, disease or condition and should not be used as a substitute for professional diagnosis or treatment in any way. You should consult with your health care provider with any specific health questions or concerns prior to use. 

Use of Proceeds

If the minimum $25,000 is raised, Blendtopia will use the proceeds as general working capital. Should it raise the maximum $107,000, the company will use the funds to enhance existing packaging, improve social media marketing, and increase visibility at trade show events.

Blendtopia plans to expand its current smoothie kit offerings to include blends featuring more adaptogens and medicinal mushrooms, as well as a line developed specifically for kids. In the near future, the company plans to introduce new products emphasizing portability and convenience while continuing to utilize powerful combinations of whole foods and superfoods.

Business Model

Blendtopia generates revenue from the sale of its smoothie kits, which are sold individually and on a subscription basis.

Individual salesBlendtopia smoothie kits typically retail for $6.99. Customers can purchase smoothie kits in select natural food and grocery stores across the U.S., as well as directly through the company’s website. For online purchases, a 12-smoothie minimum order is required. In the future, Blendtopia hopes to broaden its retail channels to include club stores and expand to more food service establishments (gyms, hotels, coffee shops, etc.)

Subscription service: Blendtopia offers subscription services for its Variety Pack, 7-Day Reset Cleanse, and Super Pack. Customers can choose to have any of the three offerings shipped every two, four, or six weeks with a minimum of two shipments required. Customers are not charged a shipping fee on the subscription shipments.

Blendtopia products are marketed to retailers by a nationwide sales team through a partnership with iLevel Brands, a health and wellness brand sales broker. Through its network of major distributors, iLevel Brands works with large retailers such as Whole Foods, Albertsons, and Publix.

User Traction

Starting in only 15 store locations in 2015, Blendtopia has been able to expand its product reach substantially in the past three years. In 2017, Blendtopia expanded to 450 locations nationwide due to its partnership with iLevel Brands. As of November 2018, Blendtopia sells its products in 1,013 retail stores across the U.S. The company’s retail partners include Whole Foods, Kroger, Wegmans, Earth Fare, Big Y, Lucky’s, Roche Brothers, Market of Choice, and various independent grocers.

Historical Financials

Year to date as of October 2018, Blendtopia has generated $397,522 in revenue, up 83% from 2017 when the company generated $216,830 for the year. Revenue growth in 2018 has been driven by increased product sales as the company expands its product availability to more retail locations. Growth spiked in Q1 2018 due to increased product sales in March. In 2016, Blendtopia generated $111,071 in revenue.

Year to date as of October 2018, expenses totaled $435,395, compared to $332,173 in all of 2017. In 2016, expenses totaled $213,598 in 2016. In Q4 2016, the company realized roughly $85,000 of depreciation expenses for a new production facility built in the same year, which caused expenses to increase.

Year to date as of October 2018, Blendtopia has realized a net loss of $37,872. In 2017, the company had a net loss of $115,343, versus $102,526 in 2016. Blendtopia experienced a signifcant loss in Q4 2016 due to $85,000 of depreciation expenses it realized for a new production facility built in the same year.

Industry

The global organic food and beverage industry is expected to grow significantly over the next few years. The industry is projected to grow at a compound annual growth rate of 14.56% from nearly $125 billion in 2017 to reach $323 billion by 2024 according to market research firm Zion. North America accounts for roughly 40% of the global market.​iv​​​

Health conscious consumers seeking products sourced using natural ingredients have driven an increase in organic good sales. U.S. organic sales totaled $49.4 billion in 2017, up 6.4% from 2016. The organic beverages segment accounted for sales of $5.9 billion in 2017, a 10.5% rise from 2016.v As the market for organics grows, more households have become open to the idea of purchasing healthy, clean options. According to Nielsen, 88% of U.S. households purchased organic food or beverages in 2017. Organic products are also becoming more readily available in retail locations that are not natural food-focused. Retail channels like warehouse or club stores now account for 27% of all organic spending.vi


The global smoothie market is projected to experience a steady growth rate over the next few years due to the significant demand for healthier food and beverages. The global smoothie market was valued at $14.98 billion in 2016 and is projected to grow at a CAGR of almost 9% to reach $22.62 billion by 2021. Some of the drivers attributing to the growth of the sector include increased demand for on-the-go meals and growing awareness of smoothies’ health benefits.vii

Competitors

Bright Greens: Founded in 2015, Bright Greens offers frozen smoothie cubes that produce a 10 to 12-ounce green smoothie by simply adding water and shaking. The company currently offers four varieties of smoothies: Bright Blueberry, Mintergreen, Peaches & Green, and Pineapolis. Bright Greens adopts a subscription-based business model via its website, with options varying in both price and number of smoothies per week. Current tiers are as follows: seven smoothies per week at $6.99 per smoothie, 14 smoothies every two weeks at $5.99 per smoothie, or 24 smoothies per month at $4.99 per smoothie. One-time orders are also available but are subject to a $9.95 shipping cost. In addition to direct website sales, Bright Green smoothie cubes are also available in stores across the U.S., including major grocer Whole Foods.viii

Daily Harvest: Launched in 2015, Daily Harvest is a subscription--based health food delivery service that offers soups, chia parfaits, harvest bowls, and smoothies, among other products. The smoothie cups require liquid and a blender to produce 16 ounces of finished product. Each of Daily Harvest’s 18 ready-to-blend smoothie varieties have ingredients frozen on-site at farms within 24 hours of harvest to preserve freshness and nutrient integrity.ix Available subscription options are six smoothies per weeks at $7.99 per cup, nine smoothies per week at $7.75 per cup, 12 smoothies per week at $7.49 per cup, and 24 cups per week or month at $6.99 per cup.x

Pitaya Plus: Founded in 2008, Pitaya Plus offers frozen dragon fruit smoothie packs and smoothie cubes. Each product is comprised only of dragon fruit and can be blended to make smoothies or smoothie bowls. Available in the freezer sections of stores across the U.S., Pitaya Plus also allows customers to purchase larger quantities of each product directly from its website. Website purchasing options for cubes range from four 12-ounce packages for $39.99 to 24 12-ounce packages for $134.99. Smoothie pack options range from 20 packs for $54.99 to 60 packs for $109.99.xi

Thrive!: Unveiled in 2018, Thrive! ready-to-blend smoothies come in pre-portioned frozen cups. Thrive! products are vegan and gluten free, with no added sugars or preservatives. By simply adding a liquid and blending, each cup produces 16 ounces of product. Thrive! smoothie cups are available exclusively in Target retail locations and are priced at $4.99 per 7.41-ounce. The brand currently offers five different smoothie blends: Defend, Green, Energy, Glow, and Rise.xii


Team

Tiffany Taylor

Founder & CEO

Tiffany is the product developer and brand visionary of Blendtopia. A certified Raw Food Nutritionist and Holistic Health Coach, Tiffany has over 16 years of advertising and marketing experience. She has previously held management positions at advertising firms in San Francisco and London. Tiffany is a graduate of the University of Tennessee, Knoxville, majoring in Communication, Marketing, and Advertising.

Discussion

Endnotes

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