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· Posted on
February 21, 2024

An Aussie plant-based chocolate maker is selling choccies and equity to its customers in a classic 2-for-1

Loving Earth has raised over $485,000 through equity crowdfunding and the goal is to use the money to regain market share in the choccy market.

What's the key learning?

  • Loving Earth is going to use the $485,000 it raised to regain market share in the $5 billion Australian choccy market and compete against its competitors, which have consolidated in the industry.
  • Industry consolidation occurs when companies in a specific industry acquire or merge with another company in the same industry to make themselves bigger and (hopefully) better.
  • While industry consolidation is a natural part of an industry’s life cycle, it often has the potential squeeze little players out.

👉 Background: Loving Earth is Australian vegan chocolate maker that sources its cacao from an indigenous Amazonian community. For its first decade or so of life, Loving Earth thrived thanks to the growing health food trend.

👉 What happened: But after struggling for a few years, Loving Earth has raised just over $485,000 from 307 investors through equity crowdfunding.

👉 What else: The goal is to use the money to regain market share in the $5 billion Australian choccy market and compete against its competitors, which have consolidated in the industry.

What's the key learning?

💡 Industry consolidation occurs when companies in a specific industry acquire or merge with another company in the same industry to make themselves bigger and (hopefully) better.

💡 While industry consolidation is a natural part of an industry’s life cycle, it often has the potential squeeze little players out. These consolidated businesses have more resources, a wider distribution network and even better access to capital.

💡In the health food space, we’ve seen global giants like Mondelez, Nestle and Mars Wrigley enter with their own healthy-food alternatives, which has made it difficult for smaller players like Loving Earth to compete.

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