Eddy Nye, a regenerative agriculturist and Scott Triana, founding member of Bailey Nelson joined the Ideas2Business program with an idea for a range of sparkling water beverages infused with native ingredients.
The SOTA team identified significant growth opportunities in a global market that is currently valued at $13B and predicted to double in the next 5 years. The success of healthier options such as Kombucha (valued at $200M) indicated that Australian consumers (and overseas markets) were actively looking for alternatives to soft drinks and a growing demand for natural, sustainably sourced ingredients.
I think for me, it's how we do market research and proof of concept through the interview process. We had an idea of process but then to have the skills that we were on the right path which has shaped the business model moving forward.
After diving into customer research with their target segment, the team developed deep insights into consumer purchase behaviours, consumption occasions and problems with existing solutions which indicated huge potential for an Australian brand that delivered on taste and impact.
Through the program, the team evolved their business model to focus on food service channels, identified critical strategic co-manufacturing partners who could deliver on the product attributes required, and developed a deeper understanding of their value chain with a clear focus on establishing partnerships with Indigenous Enterprises to promote Australian natives.
Eddy and Scott have identified their go-to-market strategy which includes the release of 3 x SKU's and a focus on brand aligned food service outlets, boutique grocers and developing strong partnerships with distributers. SOTA's growth forecasts see the team reaching $680K in revenue by 2022 increasing to $2M with national distribution by 2023. The team will begin to explore export markets by year 3. SOTA plans to be a leader in the flavoured sparkling water category and are currently preparing to raise their first round of seed funding.