Paper bottle pioneer Frugalpac has kicked off a £5m crowdfunding campaign to support its next phase of growth around the world and develop new products.
The Ipswich-based business has already secured £1m from existing and new investors ahead of the launch of the campaign on the Crowdcube platform.
Frugalpac creates and supplies recycled paper-based products, launching its flagship Frugal Bottle in 2020, which it claimed as the world’s first and only commercially available paper bottle for the wines and spirits industry.
The Frugal Bottle is made from 94% recycled paper and has a significantly lower carbon footprint than its traditional glass alternative.
Since its launch, in excess of three million Frugal Bottles have been produced for more than 50 brands across 128 different wines and spirits in 27 countries.
The bottles have been stocked by major global retailers such as Sainsbury’s, Aldi, Ocado, Whole Foods Market, Laithwaites, Target and 7-Eleven.
Frugalpac is now seeking to raise up to £5m from the crowd to expand its bottle machines worldwide and launch new sustainable packaging such as paper paint pots.
“Our mission is simple,” said CEO Malcolm Waugh. “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 more than £23.5m to date from its investors, with the latest round valuing the business at £25m.
The company generates revenue by selling its proprietary Frugal Bottle Assembly Machines 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 in the US and KinsBrae Packaging in Canada, with another order from Mother of Pearl Vodka in Australia.
The global market for 750ml wine and spirits bottles is 33 billion units annually, according to Euromonitor.
Frugalpac said it aimed to capture 0.6% of that market (191 million bottles per year) by 2029 through the deployment of 22 machines, forecast to generate annual revenues of £51m.
The business is working on other new products for the food and drink industry, including a takeaway beverage Frugal Cup and Frugal Pots.
“We’re not just building packaging, we’re building a better future for the planet,” Waugh added.
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