L'Orto di Jack

L'Orto di Jack ("ODJ") is an innovative startup and an omnichannel and digitally evolved player in the Italianfruit and vegetable market. We focus on 3 main channels:

• B2B: the core of the company is the distribution of fruit and vegetables to the HoReCa channel, for which we have started a digital transformation process.
• B2C: during the lockdown, with very limited investments, we opened an e-commerce, which we aim to grow in a balanced and profitable way.
• Retail: we completed the company'somnichannel approach by opening a physical store. The opening of further selected locations will also serve as a showcase for our brand and will support B2B/B2C last mile logistics .

We focus on "first choice": our fruits and vegetables are of the highest quality. In addition, we have a stake in a professional laboratory for the production of processed foods.

The company has already grown by 100% per year in the last 2 years without investments in digital and with positive EBITDA around 10% (except in the last year, due to the impact of the Coronavirus). We closed 2020 with €2.1 mln in revenue and are raising funds to continue our growth path.

We will deploy the capital raised to:

• Complete a complete digital platform, with a dedicated HoReCA e-commerce front-end, and a back-end covering purchasing, logistics and management/accounting functions.
• Introduce transparent and dynamic automated pricing based on procurement prices.
• Develop an algorithm that creates volume discount plans based on predefined parameters (restaurant place settings, area, type).
• Equip ourselves with modern logistics (pick and pack scanners, route optimization systems and delivery tracking).
• Create a platform forupstream integration with manufacturers, who will be able to see ODJ's purchase requests and directly enter information about the products supplied.
• Develop ad hoc business intelligence and forecast functions for agro-food procurement.

ODJ was founded in late 2017 by combining the skills of a traditional "retail wholesaler" (sourcing, product selection and logistics) with successful experiences in the restaurant industry.

1. B2B channel: Digitizing the fruit and vegetable procurement process for HoReCA.

In this sector the digital transformation has not yet begun (the standards are manual paper bubbles, absence of reporting and manually managed orders). There is therefore a clear possibility of disruption.

Having experienced the problems of the current model, we have decided to make the purchase/sale process leaner, more traceable and transparent, with clear benefits in terms of efficiency and marginality both for us and for our customers.

2. B2C Channel: Bringing the "chefs' choice" to people's homes.

In March 2020, we launched a B2C e-commerce that reached approximately 9,000 customers and fulfilled up to 300 orders per day. Sales after the lock down have physiologically dropped, but customers continue to buy, even without marketing investment.

We differentiate ourselves by offering "the chefs' first choice": higher quality than mass retail and special features (e.g. purple cabbage) usually distributed in B2B.

Generally, B2C e-commerce is burdened by high logistics and customer acquisition costs, which translate into growth achieved at the expense of profitability. Our B2C channel is ancillary and will grow in a balanced and lossless manner, thanks to synergies with an already scaled B2B channel.

3. Retail Channel: Developing a "smart"retail network

The first location opened in January 2021 (where a fruit and vegetable business with 40 years of history operated). Growth will take place by prioritising profitability over speed in openings, supported by our successful experiences in the restaurant sector. Why a Retail network?

• Multichannel: true omnichannel player in the sector
• Brand: improved visibility and location for influencer marketing activities (cooking demonstrations, etc.)
• More customer touchpoints: with modern and attractive design and wide offer (centrifuges, healthy snacks and products from our laboratory)
• Operations: small warehouse / pick-up point for B2B and B2C channels, improved margins and overall cash flows