Australia, Western Australia
Australian CSF Offer
Agriculture ,
Foods ,
Technology
Reasons to Invest
- Track record and ready to scale – Existing farms in Adelaide and Perth selling to wholesale, restaurants, and grocery segments since 2021
- $6 million ARR – secured in future commercial sales agreements
- Strong Margins – current operations delivering over 50% gross margin
- Two revenue models delivering – Build Own and Operate (BOO) and Farming as a Service (FasS), both with proven and future revenue booked
- Smart and sustainable – Our vertical farms use 98% less water and only 1/10 of the space of traditional farming
- Strong and diverse crop profile – with 60 varieties for the food and non-food sector, going beyond leafy greens with edible flowers, mushrooms, and seedling crops
- Future Food Company – with strong diversification opportunities including new and exciting ready-to-eat/cook segments
What is Eden Towers?
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The Problem The current fresh produce value chain is overly complicated. Too many different groups handle produce across many carbon miles before it is sold to you – the consumer. And at the end of this journey, the farmer barely makes a margin while the middle-men and retailers mark-up the value of their produce. We’re left with a system where consumers pay a high price and get days-old produce that is not fresh. |
Our Solution Our farms use a direct Farm to Buyer model, streamlining the old-fashioned existing supply chain and maximising freshness and sustainability into a new value chain. Eden Towers utilises an integrated revenue model without ‘middle-men’ across the sales and distribution supply chain. This model maximises returns for Eden Towers, and importantly freshness for the consumer, reducing food waste, carbon miles and profit leakage. Best of all, the consumer gets fresher produce, at a better price, all grown locally. |
Edible and Non-edible Crops: Eden Towers' produce is better tasting and better for you - we grow better than organic, delivering superior nutritional value and flavour with no nasty sprays or preservatives.
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Edible Crops Our fresh produce includes over 60 crop types which include the following edible crops:
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Non-Edible Crops Our crop diversification program has successfully grown non-edible crops for industries like:
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Our Future Food Production: We utilise our vertical farms to provide us with the fresh produce inputs we need to create ‘future foods’, which have superior flavours, colours and varieties that provide our customer with alternatives to heavily processed and import channels for products like – health powders, flavour enhancers and alternative protein production. Eden Towers is one of the first integrated vertical farm to future food manufacturers globally.
ESIC Tax Benefits
Eden Towers Equity Crowd Funding raise is eligible for the Early Stage Innovation Company Tax Incentive (ESIC) benefits. This means that as an investor you are eligible for a 20% non-refundable tax offset, and also no capital gains for 10 years (after a qualifying 12 months post-investment date). More details of this scheme can be found on the ATO site here.
Mission & Objectives
Mission
Eden Towers’ underlying mission is to grow sustainable produce that promotes a healthier & tastier future through innovative technology application, sustainable natural resource uses, and smart use of land and location. Our sustainability approach is culture-led; our team believes in sustainable thinking and supporting a cleaner and better planet.
Business Objectives
- Provide Australia with the best and freshest produce with minimal impact on the planet
- Provide a cleaner future food system incorporating farm to ready to eat food production
- Reduce farm waste streams by input reduction and recycling
Business Model
The traditional farming model has 8 to 10 process steps, many food miles, carbon emissions and flavour-losing activities (like washing fresh produce with bleach). At Eden Towers, our process is very simple. We use a 3-step only approach which is all integrated in our facilities - wrapped in freshness and done with love for the plants:
1. Farming (from seed)
2. Processing (Harvest, Pack)
3. Distribution
We have expanded into downstream processing, which is integrated in our facilities. Utilising our fresh crops to produce all natural products, powders, flavours and additives for a variety of hugely growing sectors. Our farms use a direct Farm to Buyer model, streamlining the fresh value chain and putting value back into freshness and sustainability. The revenue model has two fast growing service offerings with contracts booked for future revenue of over $6m annual recurring:
1. Build, Own, Operate – where we own and operate the farm
2. Farming as a Service – where we provide farming expertise and contract growing to third party farm owners
Industry
The fresh produce market in Australia is worth over $1 billion annually (Source: Statista, 2023), with the Vertical Farming market experiencing a growth rate of 11.4% from 2021 to 2022 (Source: Marketsandmarkets, 2023). Major floods, fires and logistic disasters are impacting food production and creating huge prices the consumer pays at the shop – remember when a single head of lettuce was over $20?
The vertical farming industry sector is growing globally at a rapid rate, with Global vertical farming market expected to reach US$36,955 million by 2032 (Source: Globe Newswire, 2023). In Australia vertical farming is still in its early days, Eden Towers is one of the first movers!
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Consumer demand for organic produce is growing at a rate of 20 to 30% a year (Source: BetterHealth, 2022).
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55% of households opted to buy leafy greens with an average of 221 grams purchased per shopping trip (Source: Orchardtech, 2020)
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Consumers are constantly expressing a want for fresher and cleaner produce (Source: MDPI, 2022)
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Australia has seen a Compounded Annual Growth Rate (CAGR) of 13% since 2012, with the number of certified organic operations increasing by 38% since 2011 (Source: BetterHealth, 2022).
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It is estimated that more than 6 out of every 10 Australian households now buy organic foods (Source: BetterHealth, 2022)
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Organic greens is the no. 1 growth sector (Source: Austrade, 2023)
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Organic greens are difficult to source due to the lack of farms and the demand far exceeds the supply (Source: Graincentral, 2020).
Organic greens are difficult to source due to the lack of farms and the demand far exceeds the supply (Source: Graincentral, 2020).
Eden Towers has arrived with a mission to support cleaner, healthier and more accessible fresh produce at better price points!
Competitive Advantage
- Lowest cost of operation providing profitable vertical farming fresh produce
- Key defence strategy levers for productivity, cost of production, yields and farm design
- Best of breed technology which is highly scalable and complimented with our IP to deploy optimised CAPEX model for farms
- Network of farms allows or incredibly rich data collection and consumption to improve yields and profits
- Highly diversified crop-mix for food and non-food crops
- Plant-Led strategy developing new IP in the next wave of Vertical Farming and Future Foods
Capital raised goes into farm expansion not expensive operational costs like other vertical farming companies.
Business Achievements
Since our Crowdfunding Raise in June 2021, our key business achievements have been as follows:
- Secured large scale commercial sales arrangements in Perth and Adelaide worth over $6m of annual recurring revenue
- Expanding product portfolio into specialty mushrooms with sales arrangements in place to a value of $1m of annual recurring revenue
- Secured substantial capital for technology deployment in Perth and Adelaide
- Deploying a new farming model in Sydney to service hyper local retail locations
- Development of new Plant-Led Intellectual Property for Plant Operating Systems, farm plant data layer, mushroom growing technology, plant inputs and plant recipes
- Development of two unique revenue streams - Build Own Operate (BOO) farms and Farming as a Service (FaaS)
- Successful development of downstream business diversification
Risks
Eden Towers manages financial and operational risk through our teams' knowledge and expertise. Our risk insights have equipped us to build a strategy that is primed for success. Grow with us and we will do something amazing together!
Eden Towers is moving to industrial scale farming. We see four key risks to manage:
- Technology Risk: Our tech is proven and to industrial scale. Our farm is live now and producing daily.
- Crop Diversity: The selection, quality and variety of our produce is fine tuned with our crop scientists.
- Energy: Energy usage is the highest component on the cost curve. We use renewables, microgrids and other tech to reduce our carbon footprint and lower costs.
- Market: Ready to eat and organics are the rage. We grow crops part of everyone's healthy diet. This is our sweet spot - local, fresh and healthy.
Use of Funds
The funds we are raising with Swarmer will be used for two purposes:
- To expand our current market position into the east coast of Australia and support our commercial farm build
- To provide capital for R&D and food production innovation - deploy our new ready-to-eat/cook and consumer products, for example alt-protein products, ready to drink products and health powders
We have secured a significant funding package to construct and operate our commercial farms in Perth and Adelaide.
About Swarmer
Swarmer is an Australian equity crowdfunding platform connecting businesses and investors. Designed to support start-ups, growth companies and scale-ups we allow everyday investors to own a share in businesses that are the future. We hold Australian Financial Services License (AFS License #507867).
Find out more about becoming a shareholder via Equity Crowdfunding through Swarmer.