Investment FAQs July 24, 2019 10:45
To help you find some answers to your burning investment questions, we've listed some of the most popular and toughest questions we have received. We have nothing to hide so here if you can't find your answer, please email our CEO firstname.lastname@example.org who will get straight back to you and upload it here for everyone else to read.
If your questions are more related to the product rather than the business, please refer to our product FAQ page here.
There appears to be a movement towards vegetarianism/veganism in the UK. Does this cause you any concerns in the medium to long-term and have you considered this as part of your projections?
Veganism in the UK accounts for roughly 1% of the population, incredible really when you think just how big their share of voice is. You can't really move in the supermarket for stumbling over vegan brands. 9% of the population is vegetarian and about 30% are actively reducing their meat intake. That leaves 60% of the population continuing to eat the same amount of meat as before.
So the customers whom are reducing their meat intake will be looking for a more premium meat when they do eat it. The entry-level value brand is likely to be affected by this and Snaffling Pig as a premium but affordable mid-range brand is positioned to pick up this new customer. £6 billion is spent every year by consumers on pork meat and there are really only a few brands within this category. Compare that to veganism, in which it's a fraction of the market and literally indunated with hundreds if not thousands of brands. So basically, our focus on pork meat at a time when its sexy to be a vegan brand means we have an open door to a category that is £6 billion and isn't going anywhere for a very long time.
Is pork meat environmentally unfriendly?
According to the Environmental Working Group's meat-eater's guide, beef and lamb are the worst offenders for the enviroment. We know more can be done in the pig industry and we will do our bit to continue to drive improvements. We call this "Doing Piggin' Good".
We love what we do and from day one, we wanted to make sure that we could share that love around where we could. As a result, we decided that core to the business will be the idea of doing Piggin’ Good. That belief manifests itself in a variety of ways, such as being active partners with our local schools & colleges, providing work placements and apprenticeships and leaving this planet far better than we found it. This isn’t a side of the business we ever plan to really shout about. We don't use it to sell more pork snacks, we do it because we sleep better at night knowing we are doing the right thing and that our kids will be proud of the actions we take. There’s lots of people out there doing amazing things at a much bigger level, but you have our word it is something we aim to always champion internally and as we grow, so will our efforts.
Why are you crowdfunding, why not raise money from a Venture Capitalist or Private Equity firm?
We need to raise money as we want to invest those funds into growing our business through brand activation & improving our on-trade distribution network. We know investing a considerable amount of money in the right way, the smart way, will ensure we have a complete step-change in our business. Instead of gaining investment from just one firm of suited and booted chaps with a passion for bottom line growth we want our customers to own us. Thousands of brand ambassadors who demand Snaffling Pig down their local. Ambassadors who host a family BBQ at their house and their friend asks them, "Tasty sausages Linda, where are they from?" and you say, "They're from MY company". That recomendation alone is more powerful than any advert.
We create an army of like minded people who share the same values of us (Do Great Things, Have Some Fun, Don't Be A Dick), who talk about THEIR company to anyone who will listen, who buy THEIR brand in the shops over any other brand, who give us critical honest feedback so we can improve, who email supermarket head offices demanding they list THEIR new lines and who celebrate with us when we all out-perform our expectations.
You've heard of Six Degrees of Kevin Bacon (the serendipity is not lost on us). If we have 2,000+ owners, we become connected to everyone in UK and beautiful things can happen when people connect. So if you want to invest, why not see if you're friend will also stick in a tenner. Hold onto your piggin' hats. Snaffling Pig could be a serious force in the food & drink industry.
Will you sell the company?
Yes at some point we will. We know this won't happen within 3 years though. We have a very detailed strategy to take the company to £30m revenue within 3 years and we want to be the ones to guide the company through this period. This is our expertise. We know how to grow a brand and how to build a rock solid culture. Once we get to this revenue level though we will have to grow up a little and we know we may not be the right team to lead the business from £30m to £100m. Companies fail when the founders stay around too long. We know our strengths and we know the importance of surrounding ourselves with people far cleverer than we are. At this point a company out there will be willing to pay a premium for the brand and they will have the operational capabilty to take the foundations we have built and turn it into the UK's biggest pork brand.
Selling the company does not mean we are just in it for the money though. Absolutely not. We are focussed on building a great brand with heart and soul that resonates with people. If we do that, money will come, but if money was our single motivator we'd make the wrong decisions for the brand and I guarantee we would have collapsed already.
We just know that if we don't hand it over to a grown-up at some point it could wither and die. Brands like us need distribution and investment in national media campaigns. Like a seedling potting up from a germination tray to the piggin' Chelsea Flower Show. When Innocent & Costa sold to Coke, Ben & Jerry's & Dollar Shave Club to Unilever, it doesn't mean the founders lost interest, it just means they know, like us, the only way to get their brand into as many households as possible, is to let a Goliath take it over.
If I invest am I a shareholder?
Yes. We are operating a nominee structure. Rather than issuing the shares to you directly, the shares are instead issued to a nominee company: Crowdcube Nominees Limited. The nominee is named in the company’s register of shareholders and will be the legal holder of the shares. The company will communicate directly with the nominee and will also send you updates directly.
The nominee will hold the shares on trust for you, the beneficial owner, and Crowdcube will administer the holding on the terms set out in the Investor Terms to safeguard your rights and entitlements.
You should read the legal review which will be attached to the email you are sent after the pitch closes to investment and the Investor Terms, which apply to every investment.
What happens if the company is sold or pays a dividend?
Returns on your shares (e.g. dividends or the proceeds of any sale) would be transferred to you by the nominee, Crowdcube Nominees Limited. In these circumstances, you would be asked to confirm your bank details.
Can I sell my shares after I have bought them?
Yes. However you will have to offer them to the other Snaffling Pig shareholders first who have a right to first refusal. If they do not want to buy them, you will need to find a buyer to sell them to, and inform Crowdcube.