Contract/Commercial Snail Breeding for export to Cyprus, Europe, America & Asia. Already has a purchase agreement with a Client in Cyprus for EUR13.52 Million worth of snails per annum.
Current Status
We have executed Purchase Agreement for 3,380 metric tonnes of snail with a snail processor from Cyprus, who is also our turnkey technical partner for the setup, parent stock, breeding and contract execution. A total of 32.4 hectares of suitable land have been acquired for the project, and operational details worked out.
Market
According to Aristotle University of Thessaloniki, Global market size annually is USD12Billion, with USD1.2Billion coming from breeders and Tripplea Foods targeting USD180Million of the market.
France, Spain and Portugal are amongst the biggest European consumers of Helix Aspersa snails. Global consumption is 400.000 – 450.000 tons per year, of which only 15% comes from snail breeding units, while the remaining 85% comes from snails collected from nature.
The European market is in deficit at 60.000-80.000 tons per year.
Far East, notably Japan, USA and developing Arab states are increasingly turning to this product because it is a characteristic of the Mediterranean cuisine - diet and because it is consistent with the dietary fashion.
Problem or Opportunity
Big Opportunity: 450,000 mT of snails valued @ US$12B globally.
Strong Team: Deep market/technical/execution experience
Significant Traction: Guaranteed 100% production evacuation by Touchstone Snails, Cyprus of 3,380 mT @ EUR4.00 / kg = EUR13.52M or US$14.872M in annual turnover. Local market consumption of processed snail not yet included, which provides backup for the export market. Other sales channels are
Processors EUR4.00 / kg
Direct sales EUR8.00 / kg
Restaurants EUR12.00 / kg
Competitors
Breeders in Europe & Africa
Advantages or differentiators
1. Low production cost
2. Market lock down
3. Partnership with the biggest off-taker
Finance
Company TRIPPLEA FOODS NIGERIA LIMITED
Project Contract/Commercial Snails Breeding & Export
Currency USD
Startup Loan 102,068
Moratorium One Year
Year 0 (983,164)
Year 1 EBITDA (568,674)
Year 2 EBITDA (5,922,280)
Year 3 EBITDA 9,084,573
Year 4 EBITDA 14,872,000
Year 5 EBITDA 14,872,000
Year 6 EBITDA 14,872,000
Year 7 EBITDA 14,872,000
Year 8 EBITDA 14,872,000
Year 9 EBITDA 14,872,000
Year 10 EBITDA 14,872,000
Total Returned 107,266,294
Multiples 109.10
IRR 106%
Loan terms
60 months
Interest rate, %
4
Business model
Contract breeding
Solution (product or service)
Production and supplies shall be as follows -
Year 1 - 26mT
Year 2 - 260mT
Year 3 - 2600mT
Year 4 and onwards - 3380mT
1. Not meeting up with requirements - We have daily monitoring system and possibility of on-site consultants from off-taker
2. Payment risk - covered by contract
3. Off-taker going bankrupt - Others to the rescue.
