Frugalpac, the British clean technology company behind the world’s first and only commercially available paper wine and spirits bottle, has launched an equity fund-raising to raise up to £5m to support its next phase of global growth, including developing paper paint pots.
£1 million has already been secured from existing and new investors ahead of the crowdfunding launch.
The Ipswich company is inviting customers, partners, individuals and members of the Crowdcube’ investor community to make an investment and become shareholders in a business transforming the packaging industry.
Frugalpac’s flagship product, the Frugal Bottle, is made from 94% recycled paper with a carbon footprint 84% lower than glass. It is five times lighter than a traditional glass bottle, recyclable and already widely adopted by the drinks industry. Since its launch over three million Frugal Bottles have been produced and by more than 50 brands in 128 different wines and spirits across 27 countries.
The bottles have been stocked by major global retailers, including Sainsbury’s, Aldi, Laithwaites, Ocado, Target, Whole Food Markets and 7-Eleven. Brands who’ve used the bottle include Greenall’s Gin, Silent Pool, When in Rome Wine and Bonny Doon.
Malcolm Waugh, CEO of Frugalpac said: “Our mission is simple. We’re offering a scalable alternative to glass that reduces emissions, supports circularity and is already being embraced by the drinks industry. This crowdfunding allows eligible investors to back a proven technology at a crucial moment – and help us accelerate our impact around the world.”
Frugalpac has raised over £23.5 million to date from a loyal group of investors. £1 million has already been secured from existing and new investors ahead of the crowdfunding launch on Crowdcube.
The company generates revenue by selling its proprietary Frugal Bottle Assembly Machines (FBAMs) to packaging companies and contract bottlers, while earning recurring royalties on every bottle produced.
Machines have already been sold and exported to Monterey Wine Company (USA) and KinsBrae Packaging (Canada), with another order from Mother of Pearl Vodka in Australia. A new high-speed model – FBAM2 – is in development..
Demand is rising rapidly: Frugalpac is currently handling over 2,000 enquiries, with 100 live customer quotations and 50 serious expressions of interest for machine purchases including from packaging companies in India and South Africa and Europe.
According to Euromonitor, the global market for 750ml wine and spirits bottles is 33 billion units annually. Frugalpac aims to capture 0.58% of that market (191 million bottles per year) by 2029 through the deployment of 22 machines — a goal that would generate £51 million in annual revenue.
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