1Above’s key product is a ‘flight drink’ intended to combat jetlag and the effects of flying. It comes in tablet, concentrate or ready-to-drink form, with its hero component being ‘Pycnogenol’, a bark extract.
Chief executive Stephen Smith says the capital will be used to perform clinical studies which will validate the science behind 1Above’s product.
“Currently, we can only make very, very soft claims about what our product does because the clinical studies aren’t our own.”
Funds will also be used to invest in the category and the brand, supporting new customers and distribution points; drive shelf presence; increase marketing activity, and rate of sale. Smith says there’s new products in the pipeline, too.
“In order to become the leaders in travel wellbeing we need to think about additions to our range, which this capital injection will allow the company to do.”
1Above earned NZ$2.4m in revenue last year with forecast revenue for FY19 of NZ$12.87m. The business has partnerships with large-scale retailers like Amazon, WHSmith, and the owner of Aelia and Relay, Lagardère, but Smith has his eyes on bigger international players.
Ultimately, he hopes 1Above will attract a strategic investment from a significant global player, in which case shareholders will receive a payout.
The business has already raised NZ$1.5 million towards its goal of NZ$3 million through private investment from Movac and Sir Stephen Tindall’s investment vehicle K1W1 . Its equity crowdfunding campaign will be open to the public from August 22 to 9 September.
Smith says investing with 1Above makes sense for retail stockists: “By supporting our product, they’re supporting their investment. It’s a circular proposition.”