Waku is a food and beverage brand of natural and ethically sourced ingredients from Ecuador. They're aim is to help their...
Problem
70M Americans suffer from digestive issues every day
The gut is one of the most important organs of the body. 70% of the immune system lives there; it is the gatekeeper to our inflammation response. Yet about 70M Americans suffer from digestive issues every day—most commonly bloating, indigestion, constipation, etc. As a result, millions of Americans battle side effects like inflammation, brain fog, low energy, and mood dis-regulation on a daily basis.
Solution
Waku: a delicious, all natural revival of body and spirit that starts in your gut, leaving you feeling calm, replenished, and ready for whatever comes next
A moment to replenish. A moment to reconnect. A moment to gear up for whatever comes next. Waku celebrates those moments in life that lift us up and help us stay grounded. Steeped in goodness and brewed to perfection, our herbal teas draw on centuries of Ecuadorian knowledge and biodiversity to create a deliciously refreshing brew that does wonders for your digestion, helping you feel calm, revived, and rebalanced. It's a feeling unlike any other, like a sunrise on the inside. And once you experience Waku, it will become a gentle ritual you look forward to every day. Here's to inner brilliance and flavors that shine.
Waku. Find your sunrise.
Product
A deliciously replenishing herbal tea that supports a healthy gut
We put a modern twist on an ancient tea by using a centuries-old Ecuadorian recipe, the finest natural ingredients, low sugar, and anti-inflammatory botanicals to maximize the gut-healthy benefits.
Waku creates modern rituals for daily replenishment by drawing on the time-tested knowledge and homegrown flavors of Ecuador. We stand for flavors that shine, the purest ingredients, maximized for gut-health, and responsibly made in Ecuador—where we source all of our ingredients ethically and manufacture all of our products.
Product Development
After talking with thousands of consumers and getting their feedback, we are currently working on a brand refresh and reformulation:
- Adding prebiotic fiber to maximize the formula for gut-health
- Reducing the amount of sugar per bottle
- Increasing the sweetness with natural sweeteners like monk fruit
- Increasing the size of the bottle to 14oz
The new brand look and formulations are going to be released by November 2021. Stay tuned!
Traction
9X growth in revenue traction since our first year
Waku's revenue traction has grown more than 9X since our first year, increasing from $70K in 2018 to $650K in 2021 (projected). We now have thousands of customers all throughout the US, including Hawaii and Puerto Rico!
As of March 2021, we have a $450K+ run rate and 360%+ YoY growth compared to March 2020. Waku acquired 3.5K+ new customers in the past 12 months—with 40%+ of revenue coming from repeat customers.
In 2022, we will expand our distribution channels by getting into retail with focus on the natural channel (Whole Foods, Sprouts), and becoming an omni-channel brand.
Waku belongs to the Branch Venture Group as well as Boston Impact Initiative portfolio. We’ve been featured in The Boston Globe, Bevnet, SPINS and a variety of influencer blogs.
Customers
Rated 4.5 out of 5 stars from 550+ reviews
Many so-called "health drinks" are bland or off-putting, while tasty ones come loaded with added sugar, fake flavors, and empty calories. Waku delivers on amazing taste and function (gut-health) using only real ingredients and no/low calories.
Females in the 45-64 age range are our largest consumer base. They are drawn to Waku for the gut-health benefits and minimal sugar content. The second largest group are women between the ages of 35-44; they're drawn to Waku primarily by the taste and the low calories with gut health as a secondary benefit.
We’ve received huge praise for the digestive relief our teas bring people, and for the refreshing taste of our multiple flavors.
Business model
Primarily D2C with expansion plans into retail channels
Waku is projecting $650K in 2021 revenue, with 75% of sales being D2C and 25% coming from Amazon. Our average customer purchases 8 cases in a 2-year period. We’re planning on streamlining efficiency by moving from glass to more e-commerce friendly options, which we project will get us to a 40% gross margin and optimize the shipping process.
More than just a beverage company—we're a social impact driven company
The main driver behind why we started Waku ties back to our home-country Ecuador.
We are fighting poverty in the communities of smallholder farmers in the Andes Mountains of Ecuador by sourcing our ingredients directly from them at fair trade prices. As we keep growing as a company, we're going to be able to generate a bigger impact in the economy of Ecuador.
*projected average # of cases in a 2-year period
Market
$57B global gut-health market by 2025
Gut-health consumable products are a global consumer macro-trend experiencing explosive growth. The global gut-health market size is projected to grow to $57B in 2025. To capture this market, we are focusing on customer acquisition in the coming months by rolling out a multi-pronged market entry that includes paid social advertising, research-based SEO, and influencer programs.
Additionally, the ready-to-drink tea category is a $7B category and has significant household penetration in the US.
Competition
Disrupting the tea category & bringing gut-health functionality to the set
Waku has a unique and truly differentiated product. It uses a centuries-old Ecuadorean recipe, the finest natural ingredients, low sugar, and (soon) prebiotics to maximize the gut-healthy benefits. We're creating a truly unique value proposition. To our knowledge, Waku will be the first to market prebiotic tea! Our closest competitors are iced teas, which are loaded with sugar, fake flavors, and empty calories.
Waku also provides an alternative to consumers who want the gut-health benefits of kombucha but cannot stand its taste or carbonation.
Vision and strategy
Targeting successful exit of $200M+ with 10-15x ROI
We have a plan to get to $50M in sales by 2025 while creating immense economic impact for thousands of independent farmers in Ecuador. At that stage, we expect an exit of $200M or more.
Compared to 2020, we are on track to grow more than 4X during 2021. In the near future, we will launch new and improved products, multiple new flavors, and an awesome brand refresh!
For 2023, we are aiming to launch with national brands focused on health and wellness, such as Whole Foods, Natural Grocers, Sprouts, and others, becoming an omni-channel brand.
Funding
$1M raised from top investors like Branch Venture Group & Boston Impact Initiative
Prior to our Republic campaign, we raised $1M from seasoned investors both in the US and internationally. Our investor roster includes Branch Venture Group, Boston Impact Initiative, and seasoned angel investors with extraordinary experience in the retail and CPG industries.
This new round of funding will support our expansion plans. Funding will go towards marketing, product development, bringing on key hires, and launching our new and improved lines.
Invest in Waku now!