Mungalli Creek Dairy Pty Ltd
By Mungalli Creek Dairy Pty Ltd
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AU $771,138 pledged
411 people pledged
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AU $500,000 minimum target
Pledges will only be confirmed if the target is reached by: 13/05/2019 at 8:00 PM (AEST)
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Mungalli Creek Dairy Pty Ltd
Mungalli Creek Dairy Pty Ltd (ACN 095 509 407) are offering up to 2,000,000 fully-paid ordinary shares at $1 per share to raise a maximum of $2,000,000. This Offer is made under the CSF regime in Part 6D.3A of the Corporations Act 2001 (Corporations Act).
The general public in Australia can buy up to $10,000 worth of shares in this company, as part of the new equity crowdfunding legislation (Note: there is no cap on how much Sophisticated Investors can invest). Please make sure to read the risk warning statement, offer document, and understand the Cooling-Off rights. Instructions on how to register to invest and pledge are here.
Letter from the founders
At Mungalli we have always been driven by big dreams.
We dreamed of regenerating our land using innovative Biodynamic farming methods so that we can produce healthy food without poisons, GMO’s or salty fertilisers.
… of rejuvenating our local communities that had been devastated by the deregulation of the dairy industry.
… of supporting family dairy farms, by helping them earn a fair price for their milk.
And then we filled our dreams with delectable cheeses, yoghurts, milk and cultured products made the traditional way with minimal processing.
Over the past twenty years we have been chipping away at our dream, first as a family and then as a team as more and more amazing people resonated with our vision. We are proud to say that we have turned those dreams into a reality.
Mungalli employs 50 staff (FTE), supports eight other family farms and turned over $10.6 million in sales in 2018. Last year the farms we support produced 3.9 million litres of milk across our two brands. Mungalli Creek Dairy which produces Biodynamic Certified milk, yoghurt and cheese and Misty Mountain Farms which produces Jersey milk and cream.
Until recently, our growth has been hampered by the amount of milk we could ethically and sustainably produce. So in 2015 we decided to act and purchased additional farms to convert to Biodynamic and organic farming methods. It’s a 3 year process but by July 2019 we can proudly announce that we will have an additional 1,000 acres of land fully certified Biodynamic with Demeter Australia. This will double our capacity and ensure we can meet the ever-growing demand for our Biodynamic milk.
With more supply, our original processing area needed a major upgrade to handle the increased volumes of milk. So in August 2018 we commissioned a new state of the art processing facility that is both cyclone and fire proof; constructed to optimise production flow, reduce contamination issues, be fully compliant and allow us to obtain export accreditation - the final touches to the fitout are happening as we write this and due for completion in July 2019.
With a new state of the art facility and a consistent supply of milk we are now ready to scale up.
To do this we need working capital to fund things like machinery, vats, churns, ice-cream and butter making equipment as well as product and market development costs. We also want to offer sustainable packaging methods just as much as you! As every parent knows, growth spurts are expensive. To be able to do these things sooner we are offering our crowd a chance to invest in Mungalli Creek via Equity Crowdfunding.
Our success has always been a result of the support of our customers and community, our greatest advocates, so it makes sense to bring our crowd along on the journey.
Become part of the Mungalli Creek family and invest in your food future.
We want to make a difference sooner and with your help we can.
Thanks
Rob & Dan Watson
Invest in your food future
“As never before, the Earth as a living being is calling out to us for recognition, for healing, for sacred and sustainable ways of tending her soil, plants, animals, and landscapes.” (biodynamics.com)
Our vision has always involved the health of the people and the land. We believe as the current caretakers of this beautiful land, we have a responsibility to leave it better than before, so that this pristine part of Queensland is here in all its beauty for future generations.
Biodynamic Farmers use no pesticides, fertilisers or herbicides. We estimate that on the Watson 500 acre home farm alone, they have prevented the burning of 22,500 tonnes of fossil fuels by farming Biodynamically. That’s the amount of fossil fuels needed to make fertilizers like urea. It takes approximately 5 tons of coal to make a ton of urea. That’s costly for the farmer and the earth!
We have also regenerated and converted 30% of our farms back to native rainforest. These trees can absorb up to 3.67 tonnes of carbon dioxide for every 1 tonne of their own dry mass. That’s a huge reduction of carbon dioxide in our atmosphere.
We’re not interested in simply being carbon neutral, we go beyond achieving net zero carbon emissions to actually create an environmental bene t by removing additional carbon dioxide from the atmosphere with our regenerative practices.
Your investment buys shares in Mungalli Creek, which helps us make a difference by:
Our purpose
To sustain good health and vitality in all that we do – across our farms; food production; business development; families, staff and community with Biodynamic principles at the core of our actions.
What is Biodynamics
Biodynamic agriculture is a fully certified enhanced method of natural farming that treats the farm as a living system – to build healthy living soil and dynamic life giving food. It is the next level of farming beyond Organics and at the forefront of regenerative agriculture. Our business and farms have been certified A Grade Demeter Biodynamic since 2000.
Mungalli Creek Dairy is Queensland’s only certified Biodynamic Processor and one of only 2 Biodynamic Milk processors in Australia.
Who are we
Mungalli Creek Dairy Pty Ltd (MCD) is a family owned, on farm, boutique processor of Biodynamic and premium dairy products. Established in 2000, our company produces over 25 different Biodynamic dairy products and supports 9 family farms.
We have now been farming using regenerative farming practices for 30 years and have brought on board and mentored other farmers and now support 9 family farms. We believe in paying our farmers a good fair price so they can be sustainable and look after their land.
And it is here on our ecologically balanced farm, surrounded by ancient rainforest, that our family produces over 25 different product lines including biodynamic milk, yoghurts, cheese, cream, premium flavoured milk, kefir and bio-eggs. We employ 70 staff (50 FTE’s) across our farms, distribution, café and production.
Our premium range of Biodynamic milks, yoghurts, cream and cheese are sold predominantly in Queensland with smaller established markets in Sydney and Melbourne.
Our values & impact
“Sustaining Health and Vitality”
The core of our business is happy cows, healthy earth, great tasting food and sustainability way into the future. We strive to demonstrate best practice regenerative farming as a solution to environmental issues – our motto is “regenerate the earth one farm at a time”. To this goal, we have four pillars we focus on:
- Promoting sustainable land management
- Ensuring the health of our customers
- Our community & social impact
- Helping farmers look after & stay on the land
The industry
The opportunity
The organic market is growing rapidly across Australia, which creates a large market opportunity for us. Australians are increasingly choosing organic food options as they become more prevalent and consumers are no longer limited to health food stores to buy organic groceries.
- Between January 2017 and January 2018, it is estimated that the organic grocery market rose by $1.1 Billion, up 13.6% compared to 2016 (refer to Australian Organics - include reference)
- In 2018, 384 000 more households claimed to purchase organic grocery products compared with 2016.
- According to the Australian Organic Market Report - household penetration of Australian dairy products in the year ended January 2018 is 33.9%
- 77% of organic buyers say that a certification mark increases their trust in the product
Currently, the five major Dairy Processors account for 79% of milk volume nationally. All five of these companies are internationally owned. But with movements like the Go local, and Cream of Australia campaign consumers are increasingly choosing to buy local dairy. Our customers want both organic and local dairy. In our region there are no other local organic dairy farms.
The organic dairy industry is growing at a rate of approximately 10-20% per year and we see a great opportunity to expand our offerings and our market share.
What we’ve done to date
In 2016 we started planning for growth, Our two main focus areas were to ensure more certified Biodynamic Milk and improving our processing capacity.
- Converting land - In 2016 we started buying and leasing land to convert to Biodynamics. One of these farms is now fully certified Biodynamic and the other farm will be as of July 2019. This will give Mungalli Creek Dairy (MCD) a very secure and ever increasing supply of milk to meet the growing market demand.
- Updating the production facility - To go hand in hand with this increase in certified biodynamic milk intake, MCD has commenced a significant upgrade to our production facility. The new state of the art facility will be completed with all cold rooms fitted and operational by July 2019.
The plan
We intend to focus on the growing dairy market by doing what we love best – making delicious dairy products and making it as accessible to you as we can!
With the foundations laid for our growth, out next challenges are sourcing and funding the equipment to make new products, choosing the right products and doing the associated market and product development so we can bring our newest product ideas to market.
We have identified that demand for organic dairy is growing worldwide by 10-20% per year with the strongest growth areas being fermented foods, no added sugar, lactose-free and full-fat dairy – perfect!
1. New products
Our new production facility will provide us with the space to make ice-cream, butter, cream and specialty cheeses. This will require an investment in specialised equipment to make these new product lines. We will also investigate more sustainable methods of packaging and distributing our products is also high in our sights and to have the most impact here we need to raise the maximum amount.
2. New markets
Currently demand is outstripping our supply, however with more milk and our new production facility we will be able to distribute further afield. With your help we will expand our marketing and sales teams so that people across Queensland and Australia have the chance to access our unique Biodynamic Dairy Products.
Our new production facility has the potential to be export accredited. With a strong emerging export market on our doorstep there is opportunity to expand further afield. Global demand for Australian dairy continues to rise and higher commodity prices have boosted the value of this trade.
Where we want to go
Intended use of funds
Research & new product development ($50,000 - $250,000)
Research and New Product Development. With a minimum subscription, a lot of this will be done internally. With the maximum subscription, we can outsource this work to consultants and food technologists bringing greater skills, experience and more offerings to the table.
Processing equipment and room upgrade ($150,000 - $350,000)
Purchasing new plant and equipment, Ice cream machines, blast chillers, butter and specialised cheese manufacturing equipment. Upgrade of the existing yoghurt manufacture room With a minimum subscription the existing yoghurt room will be upgraded and equipment finance will be used to purchase new manufacturing equipment. With a maximum subscription then a wider range of equipment will be purchased with these funds.
Trialing & researching sustainable packaging options ($20,000 - $250,000)
We are very interested in reducing plastic wastage and looking at more sustainable packaging options. Money will be spent exploring and trialing new ways of offering sustainable packaging and recycling to our customers.
Sales and marketing ($100,000 - $250,000)
We plan to grow and expand our geographic market area significantly. This will require an innovative approach and increasing our Sales Team. We also plan to purchase multiple chiller vans to service farmers markets to help grow sales and employ Sales staff to look after these markets.
Working capital ($150,000 - $270,000)
We will require a reserve of working capital to deal with new product development costs, the production of ice-cream and long maturation cheese in times of summer milk supply. Working Capital will also provide reserves when changes to our production schedules occur from fluctuations in sales & distribution requirements
Upgrade to our farmhouse cafe & retail outlet ($0 - $200,000)
The movement of the processing equipment into the new processing facility will free up space for our Farmhouse Cafe to expand. This will allow us to upgrade these spaces for groups, buses, and an ice cream making area
External works around our new facility ($0 - $250,000)
Our new production facility is funded and fully compliant. We do however require additional funds to complete external works including hard sealed driveways, car parks, and landscaping. A new factory office, change rooms, and lunchroom needs to be constructed for our team.
Offer Costs ($30,000 - $120,000)
The costs of the Offer include the Intermediary’s fees under the hosting agreement between the Company and the Intermediary. These fees are 6% of the total raised (GST inclusive) which would equate to $120,000 if the maximum goal is reached.
TOTAL: $500,000 - $2,000,000
Our risks
An investment in the Company should be seen as high-risk and speculative. A description of the main risks that may impact our business is included in our offer document. Investors should read this section carefully before deciding to apply for shares under the Offer. There are also other, more general risks associated with the Company (e.g. risks relating to general economic conditions or the inability to sell our shares).
Our team
Robert Watson - Managing Director & CEO
Rob is a strong visionary and has completed the Australian Rural Leaders Program in 2014. He is responsible for the financial monitoring and overseeing of the Business and Product Development. Rob also brings a passion in and many years experience in Biodynamic Farming & Soil Regeneration.
Daniel Watson - Director & Farm Manager
Dan brings a down to earth practicality to the business and is responsible for Farm Management, Herd Health & Maintenance. He works jointly with Rob on overseeing Mungalli. Dan’s strength is in building sustainable farms and strong staff relations and in the early days, he was our Cheesemaker.
Alain Martigner - B. Mech Engineering - Plant & Operations Manager (5 yrs)
Alain is at the helm of where the Mungalli magic happens. He’s responsible for all facets of production and successfully negotiates the busy schedule with his loyal team. He oversees the plant and manufacturing operation and our Distribution hubs.
Michelle Bell-Turner B. Bus (Tourism) - Marketing & PR (14 years)
Michelle is primarily responsible for Business Strategy, Business Development, Marketing, and Public Relations and is a keen negotiator, facilitating future planning with prowess. She holds a Business Degree in Tourism Management and has a strong background and passion with Organics & Biodynamics.
Trish O’Shea - Quality Assurance Manager (18 years)
Trish has been with us from the very beginning. Responsible for Compliance, Quality Control and Certification Auditing, her 25 years of research and dairy laboratory experience means our products are in safe hands.
Deris Marin - Diploma of Mgt - Sales Manager (17 years)
Deris is responsible for ensuring that the Mungalli products and message are shared. His approach and customer relationship management skills have cemented Mungalli Creek as an iconic and trusted brand of the Far North.
Alison Steele - Finance Officer (10 years)
Alison is responsible for the overall financial health of the organisation, providing regular reports, budgets, and direction to the Executives. She is also responsible for Payroll.
Elizabeth Watson - B. Creative Writing (Hons) - Social Media Marketing (2 yrs)
Beth has a strong understanding of the Millennial generation, thinks outside the box and has a flair for writing and design, has travelled and worked internationally and bring those insights to the table.
Lachlan MacDonald - Farmhouse Cafe Manager (1 year)
With over 30 years of hospitality experience, training, and team building we know our Farmhouse Cafe is in good hands. Lachlan ensures we offer a great customer experience and innovative ways of showcasing our products.
Neale Johnston - HR & WHS Advisor (Our newest team member)
Neale brings over 25 years of experience in Human Resources, Planning, and Industrial Relations. He ensures our compliance across these key areas as well as working with our Managers on team happiness as we navigate the next stage of our growth.
Information about Investor Rights
- Cooling-off Rights - You have the right to withdraw your pledge for any reason (including if you change your mind about investing in the Company). You must do so within five business days of making your application (the Cooling-off Period) by emailing [email protected] with your full legal name and number of shares you pledged for.
- Communication Facility for the Offer - You can ask questions about the Offer on the Question tab above.
- Effect of the Corporate Governance Concessions - there are some concessions around the Annual Report, Takeovers and Related Party Transactions.
Note from PledgeMe
We have completed background checks on the Company (Mungalli Creek Dairy Pty Ltd) and the Board of Directors (Robert Watson and Daniel Watson). We found no adverse findings in our checks. Please read the warning statement, offer document and ask questions before choosing to invest. PledgeMe will receive 6% (GST inclusive) of the funds raised, if the goal is met by the deadline.
Updates 6
An Update on our Equity Crowdfunding Campaign
07/06/2019 at 10:45 AM
It’s all happening now!
PledgeMe have been very busy verifying your identities and processing pledges. At this point, they have verified most of Mungalli’s newest Shareholders! If you haven't heard from PledgeMe, check the notifications on your profile or your spam folder, or contact them direct on [email protected] Otherwise get in contact with us, we are here to help!
We've issued the first shares to those who have already paid and will be sending out share certificates in the next week or so. If you haven't paid your pledge yet, please do so ASAP. We will issue the final shares once the final pledges have been processed.
While PledgeMe are busy wrapping everything up in regards to our Equity Crowdfunding campaign we’ve been busy finalising things like our new production facility. Everyone has been working hard to see the new production facility complete by the end of June.
Which is perfect timing really because we are almost ready to start collecting milk from our newest farm in Ravenshoe as well. It will be fully certified in the next few months! Everyone had better be ready to take one for the team and eat twice as much Mungalli goodies as usual, because that’s a 40% increase in our milk supply! ;)
Thanks again for joining our company and our family. We can’t wait to see what we build together.
Cheers,
Farmer Rob and the whole Watson family
Today is the day we see how far we can reach our goals !!!
13/05/2019 at 4:11 PM
THANKS FOR BELIEVING IN US!!
Last night at around 6pm we passed our minimum raise requirements thanks to all you wonderful supporters. We are so grateful to our soon to be shareholders that have helped us get us over the line.
Since then we have been shooting for the stars to see how close we can get to our $2M target. The closer we get to our $2M goal the more we can do for you, the environment and the community. The Food Connect Shed raised an extra $1M in their last day so we always believe everything is possible with a little help from our friends and supporters.
Thank you to everyone who has bought shares so far in Mungalli - from people in our team to old school teachers, and everyone else who wants to be a part of a sustainable food future. 🎉🍾🥂
We have just 4 hours left to see how close we get to our big goal of $2M.
So if you know anyone else that was considering being a shareholder you best give them a nudge....... thanks for your support and welcome aboard.
We are so keen to start working on the projects that we can with the raise that we have.
Once the campaign closes tonight- then the team at Pledge me will start verifying shareholder details. Credit card payments will come out in 3 to 5 days and direct deposit requests will be in 5-10 days time and then once all that's processed share certificates will be issued.
Thanks once again for your pledges and support
Lots of love, the entire Mungalli Team 💚
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4 days to go! Check out our processing plant, comments, and more.
09/05/2019 at 1:07 PM
We’ve had over 60% of our investment goal pledged, thank you, thank you, thank you! We have four more days to hit our goal. If we don’t hit our goal, your investment won’t be processed. If we do hit it though, we can spend your investment on our growth plans.
We’ve spent a lot of time talking about the ice-cream, butter and other dairy goodies we plan to make if we hit our goal, now we want to show you where we plan to make them. Join Rob behind the scenes as he walks you through the new plant and explains what will go where. The facility is due to be finished at the end of the month - you have no idea how excited we are! If we hit our goal, we can buy more equipment, to make more new yummy products.
Did you see our Facebook Live with Emma-Kate from the Food Connect Shed in Brisbane? Emma-Kate and her partner Rob were the first people in Queensland to use Equity Crowdfunding to help them reach their goal of a sustainable food future. Emma-Kate talks about what it was like bringing her “Careholders” on board, and the milestones they crushed. They managed to raise over $1million in the final few days of their equity campaign. Here's the Facebook Live.
Did you know you could leave a comment when you pledge? Some of you have left us some absolute beauties! Here are just some of our favourites!
"So great that I can in a small way contribute to regenerative agriculture and supporting local farmers to produce nutritious healthy food. " Melissa
“We are so excited to be part of this. We’ve been Mungalli fans for years and we can’t wait to see what is happening next." Angus and Rachel
"Surely we need to practically support the dairy industry." Don
"My renovations can wait - the Earth can't! So happy to be involved." Sue
"Mungalli Creek is a brand that I not only wholeheartedly support, but genuinely love. I am excited to be a part of this unique initiative and look forward to watching the brand grow and an increasing array of delicious products finding their way to new consumers. " Taeha
"Support our local farmers, support our local communities. " Lyle
"I believe Bio-Dynamics is important for the health of everyone." Sue
"If only in a small way, I am thrilled to be able to support this wonderful local business and its excellent products which have been a part of my family for many years. Good luck with the campaign!" Carol
Thank you, everyone, we are really feeling the love at the moment! We never imagined we would be surrounded by such an amazing community of people.
Often a lot of pledges come through in the final days of a campaign. People pledge to a deadline! If you could share why you invested with your crowd, they might get on board. Here are Tropic Now's article on the 11 reasons you should buy shares and invest in our company: https://www.tropicnow.com.au/2019/april/17/here-are-11-great-reasons-you-should-consider-investing-in-mungalli-creek-dairy.html
Want to hang out with us?
We have set up different Meet and Greets over the weekend, in both Cairns and Brisbane for anyone who wants to talk about what being a Shareholder in Mungalli will look like, what your investment will go towards, and anything else you want to discuss! Please come and see us even if it’s just to say hi!
- The Organic Farmers Co-op Atherton - Thur 9 May 2-4.30pm
- Rusty’s Market Cairns - Fri 10 May 6.30am-9am; 12.00-1.30pm & 3-4.00pm & Sat 11 May 7-10am
- The Kelvin Grove Village Markets - Sat 11 May 6-12am
- The Milton Markets - Sun 12 May 7-12am
Thank you again,
Farmer Rob and the whole Mungalli team
10 day to go, over 100 pledgers & almost 40% funded!
03/05/2019 at 5:58 PM
We’re almost 40% of the way to our goal. Thank you so much to those that have pledged, you are amazing.
In order to process the investment and deliver on our plans, we need to be at least all of the way to our $500,000 minimum pledge goal by our deadline and of course we will still shoot for the stars and aim for the $2M in pledges. That’s 10 days away! If you want to help us hit our goal, and make more yummy products, please share our campaign with at least five of your friends.
We’ve been busy on the farm (and off it) over the last week spreading the message of the importance of sustainable farming.
Michelle did an extensive interview with News & Views see the link above (the main story starts 50 seconds in) and then on Thursday I ventured to Ashgrove Cheese in Tasmania to inspect some ice-cream and butter making equipment before heading up to Greenwoods Biodynamic Orchards in Northern Victoria for our annual Biodynamic Conference where I presented to fellow Biodynamic Farmers about our vision for a sustainable food future.
Then on the way home I had a day in Brisbane at a Business Growth Seminar for CEO’s hosted by our business bank ANZ. In amongst it all there was a 5AM roll call for me to appear on the ABC Breakfast Radio with Craig Zonca & Loretta Ryan (you can listen here).
On the farm we’ve also been busy planting winter pastures between the rain and today Michelle was looking after a film crew shooting some footage for Master Chef.
We’ve had over 100 people pledge to our campaign so far, for shares in our company and so we can grow to meet the demand we have for our dairy products. One of our pledgers, Betty, has been using our milk in her ice-cream for over the last 12 years.
We have such a great community, and with you, we believe we can take Mungalli to the next level. We already process over 3.9million litres of milk a year, but with your investment we’re aiming to scale that, to make more tasty dairy treats, investigate sustainable packaging and support more farmers to stay in our region and thrive. In the past two decades, it’s become harder and harder to stay on family farms, but we believe we are part of the solution to changing that while scaling a strong business.
One of our friends, Robert Pekin from Food Connect down in Brisbane, has the same goal. His organisation, Food Connect, helps local food producers make a good living selling to local consumers. Late last year he helped raise over $2.1 million in investment through equity crowdfunding.
On Monday 6 May at 7PM, we’re going to do a Facebook Live with him to talk about the future of food and investing in businesses that do good and do well. We’d love to have you there listening (and asking questions).
Thank you so much for your investment and support.
Farmer Rob, Michelle, Dan and the whole Mungalli team
PS - Here is a copy of our Courier Mail Article
Almost 30% funded for our minimum raise and it's all thanks to you!
26/04/2019 at 3:55 PM
Thank you for your support!
We are so grateful to say that we are now almost 30% funded for our minimum raise and it's all thanks to you! The staff and the cows are dancing with excitement and anticipation of reaching our goal of $2 million! Think of all the yummy new products.
Did anyone see us in the press???
The team have been working hard to get the word out on our equity crowdfunding campaign! We're quite chuffed to say that we were splashed across a few different newspapers this week! We made the front page of the Tablelander, and we were in the Courier Mail on Monday and the Cairns Post last Wednesday. Keep your ears peeled because you might hear us on the radio soon as well! You might also see us in a few magazines or in digital print too!
It's awesome to see our local media outlets jumping on board and showing their support. You guys have a voice too! Share the news with as many people as you can so that we can reach our goal!
We are also supporting Foster Care week this week to encourage more carer’s – it’s such an important thing for kids to have access to fantastic carers.
See the full story in the Cairns Post here and what an important cause it is.
Ice-Cream
If you follow us on Facebook you might have seen us asking for ice-cream flavour suggestions. We are quietly confident we are going to reach our goal and have leapt ahead to when we have all the right equipment for ice-cream. What flavours do you guys want to see?
There have been some ripper suggestions! So far we've seen:
- Avocado & Lime
- Davidsons' Plum
- Hokey Pokey
- Rum & Raisin
- Macadamia & Vanilla
- Passionfruit
- Pistachio
- Green Tea
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That's just to name a few! Do you have any suggestions for us? We want to hear them!
Cheese
Farmer Rob has headed to Tassie today to check out some cheese vats so we can bring you some more wonderful cheese – fingers cross his explorations go well and then he’s off to our Annual Biodynamic Conference in Victoria.
Keep Sharing
Please keep sharing our campaign so we can reach our goals and thanks again for your support.
Farmer Rob, Michelle, Dan & the Mungalli Team
We're almost 20% funded!
12/04/2019 at 5:51 PM
Thank you so much to all our wonderful pledgers for investing in us! We’re almost at the 20% mark, and we just launched to the public yesterday.
For our followers, now is your time to invest! You can read the offer document here, and ask us any questions through the Questions tab on our campaign page.
If you want to learn more about our campaign, our company, and our team, we’re also doing a Facebook Live with the whole family on Monday night at 7 pm. Just follow us on our Facebook page to be notified when we go live.
We really want to raise our maximum goal of $2 million, because if we do that we can make things like ice-cream, butter, and boutique cheeses. We also want to investigate sustainable packaging options but to do that we need your help!
To invest, people need to know that they have the opportunity to buy shares in Mungalli. So please help us get the word out if you have pledged. Tell your mother, brother, girlfriend and best friend. Pop your head over the fence and tell your neighbour about it. We want people shouting it from their rooftops! Let them know that they are supporting a family business that sits right in their backyard. The more people who own shares in Mungali, the stronger we believe our community business will be.
Did you know that currently, the five largest dairy processors in Australia account for 79% of milk volume nationally? But all five of these companies are internationally owned. We want to change that. And with your investment, we believe we can.
Cheers,
Farmer Rob, Dan & the whole Watson family
Details
Offer Details
| Current Valuation | 15,000,000 |
| Raise Minimum | 500,000 |
| Raise Maximum | 2,000,000 |
| Share Price | 1.00 |
| Maximum Shares Offered | 2,000,000 |
Company Documents
Director Details
| Name | Role | Profile URL | Invested? |
|---|---|---|---|
| Robert Watson | CEO / Director | https://www.mungallicreekdairy.com.au/ | ✔ |
| Daniel Watson | Director | https://www.mungallicreekdairy.com.au/ | ✔ |
Questions 10
Ask a Question (You must login to ask a question)
Good morning,
I'm a big fan of your business and am very happy to have the opportunity to be involved.
Just a comment regarding section 2.13 Risks facing the business, I notice there is no mention of animal rights activism in there. Given the news this week I think it would be pertinent for some thought to be put into an animal rights activism scenario. Do you have basic security measures in place like security cameras and lockable gates etc?
Kind regards,
Simon
Simon
Thanks so much for your email - It is a discussion we will have at our Family Advisory meeting next week. The Company is the processor only for all the milk from the farms. It is something that so far we have been OK on, that said yes a risk mitigation strategy is definitely something to consider- both Safe Food Queensland and Queensland Dairy Farmers Organisation have sent out guidelines and recommendations in the last few weeks. Many thanks Michelle
Answered on 09-04-2019 by Mungalli Creek Dairy Pty Ltd
I just saw this notice come up: "Thank you for your pledge! We'll be in touch once the campaign meets its goal, and again when it closes, so you know we'll be charging your card."
I opted to direct debit. Does this mean if I forget to transfer the deposit?
Posted on 10-04-2019 by Reece and Lyn GoreHi Reece and Lyn,
yes, that's correct! We'll only charge your card if your deposit doesn't come through within the set time frame. Thank you for your pledge!
Anna (from PledgeMe)
Answered on 11-04-2019 by Mungalli Creek Dairy Pty Ltd
Hi - I am interested in this offer -Just wondering if and when one wants to sell shares one has bought what is the process? Thanks and best wishes
Regards Mike W
Hello Mike
Whilst the Company is unlisted it would be a matter of finding a buyer and listing your shares for sale based on the current valuation of the Company.
Normally people buy shares knowing it is a long term investment and that they are getting in at the ground floor level and they reap the rewards of the growing value of the Company down the track.
If Mungalli decided to publicly list over time then the normal share market mechanisms will operate.
I hope that helps and if you have any further questions please let me know.
Thanks
Michelle (from Mungalli Creek)
Answered on 23-04-2019 by Mungalli Creek Dairy Pty Ltd
We are big fans of your brands. We only became aware of this capital raising when we saw a tag on a bottle of milk in the supermarket. But only on one bottle amongst dozens!!! So are you making efforts to ensure more bottles are tagged?
Posted on 05-05-2019 by Rick RavenshoeHey Rick
So glad you saw that tag and thanks for the feedback - which store was that - we have had some issues with the stores taking them off and the design also is a little tricky - that said we think we have overcome some of the store issues and will go with a different design with any future tags. We would love for you to share the campaign details with any friends or colleagues to help us spread the word and please feel free to call me direct on 0438 171 248 if you have any queries. Kindest Regards Michelle and Rob
Answered on 05-05-2019 by Mungalli Creek Dairy Pty Ltd
I have been trying to get a few investor friends interested in investing in the Company. They want to know, long term, will there be dividends paid on their investment?
Brian
Posted on 05-05-2019 by Brian OrganicsHello Brian
That's fantastic and thank you so much for your support - it means a lot to us. The initial focus in the short-term (1-3 yrs) will be building the business, products and market share to grow and add to the value of the business for our shareholders. Dividends are at the discretion of Directors based on business performance and capacity. We certainly hope there is good growth and performance and scope for dividends. There is also the possible intention of an IPO down the track in the longer term - possibly 5 year time frame. Brian please feel free to call us direct on 0438 171 248 if you have further questions or would like additional information. Kindest Regards Rob
Answered on 05-05-2019 by Mungalli Creek Dairy Pty Ltd
Love Mungalli - been drinking the milk and eating the yogurt on and off for more than a decade.
Question 1:
How is a $15Mn pre-money valuation justified? I played with the financials a few different ways (looking at growth, assets, net revenue) and I couldn't make it work.
Question 2:
What is the investment for? I feel like you're trying to do lots of different things, but worry about focus - $2mn doesn't go far! I also see expenses like "external works including hard sealed driveways, car parks, and landscaping." - how is this going to generate a return?
Thanks in advance!
Posted on 07-05-2019 by Nathaniel ArmerHi Nathaniel thanks for your question.
Re the Valuation: The value of the company was calculated professionally by On Market - Bookbuilds an investment firm.
In their words “This valuation has been prepared on the basis of 'Market Value' and values 100% of Mungalli at the Valuation Date. The generally accepted definition of 'Market Value' (and that applied by us in forming our opinion) is the value that should be agreed in a hypothetical transaction between a knowledgeable, willing, but not anxious buyer and a knowledgeable, willing, but not anxious seller, acting at arm’s length”.
They did a comparable transaction analysis of similar sized boutique dairy producers that have sold in the past few years
Nov-17 Paris Creek Dairy Acquisition by Primary Opinion (ASX:POP), now Longtable EV/EBITDA 20.4x
Aug-18 St David Dairy Acquisition by Longtable (ASX:LON) EV/EBITDA 8.7x
Jul-11 Bead Foods Acquisition by Agro Farma (Chobani)
Dec-14 Longwarry Food Acquisition by Parmalat
A full copy of the report can be sent to you if you require.
Question 2:
What is the investment for? I feel like you're trying to do lots of different things, but worry about focus - $2mn doesn't go far! I also see expenses like "external works including hard sealed driveways, car parks, and landscaping." - how is this going to generate a return?
We have been investing significantly in our growth over the last 3 years to the tune of $3M - the foucs being on two key areas of the business that generate our returns on investment.
1. The construction of the new state of the art processing facility to increase our capacity on Milk packaging, yoghurt manufacture and cheese making both soft and hard.
2. The Watson farming partnership has also invested significantly into new certified biodynamic farms to maintain milk supply. Another 1,000 acres comes in in July.
The new processing facility (which is undergoing final fitout) will allow us to increase throughput more efficiently and allow us to make a broader range of products that will also include icecream and possibly butter. It will also enable us to be export accredited which gives us access to both established and new markets out of Cairns.
The investment we raise via equity crowd funding will be used primarily for intangibles such as marketing and sales, working capital, new product development and the purchase of specialist manufacturing equipment e.g. icecream machines and investigating alternative packing and delivery.
The hard sealed driveways and landscaping are only going to be done if we raise the entire 2 million via crowdfunding this will help us meet the local council expectations and also complete the aesthetics of the project. We always also put back in these growth stages any available working capital from the business.
Please feel free to give us a call on 0438 171 248 to discuss in more detail.
Kindest Regards Rob Watson CEO
Answered on 08-05-2019 by Mungalli Creek Dairy Pty Ltd
G'day, I pledged to pay via direct debit and have not received any instructions yet. I do remember that pledge had to be paid within set time or my credit card will be charged. What is the current status of processing, and when and how will I be instructed to pay? Thank you
Posted on 20-05-2019 by Theo UtzingerTheo the current status is 163 shareholders verified and 300 still going through the required checks. I will get Liz to send you a status update in regard to your checks and if she needs anything further. Many thanks Rob
Answered on 21-05-2019 by Mungalli Creek Dairy Pty Ltd
Hi we pledged to pay via direct deposit & have not received any notification regarding payment, I do not want my credit card charged & we are close approaching day 10. Could you please advise what account details are thanks Kym Baker
Posted on 21-05-2019 by Kym Baker & Rob HornHello Kym & Rob
The verification process that is required by ASIC is taking a bit longer than planned. I will get Liz to give you an update in the morning about your direct deposit notification. Thanks for your patience. Kindest Regards Michelle, Rob and the Mungalli Team
Answered on 21-05-2019 by Mungalli Creek Dairy Pty Ltd
HI Guys,
I have noticed that the time has closed yet pledges are still going in is there another way to pledge now??
Thanks.
Hi Georgie
Some of the postal pledges have taken longer to verify and process. Send me an email to [email protected] with what you were hoping to do and we can go from there.
Answered on 26-05-2019 by Mungalli Creek Dairy Pty Ltd
I bought 2 lots of 250.....does that register me as a shareholder of 500?
Posted on 16-06-2019 by ChristineYes that's right - Share Certificates will start to come out in the next week
Answered on 16-06-2019 by Mungalli Creek Dairy Pty Ltd
Pledgers 411
2019-06-28 16:18:07 +1000
2019-06-14 08:03:50 +1000
2019-06-09 07:03:43 +1000
"To be held jointly with husband, David Smith"
2019-06-04 14:42:42 +1000
2019-05-27 12:24:00 +1000
2019-05-27 11:55:50 +1000
2019-05-27 09:48:14 +1000
2019-05-24 14:10:04 +1000
2019-05-24 13:59:24 +1000
2019-05-22 09:44:49 +1000
2019-05-22 09:38:49 +1000
2019-05-22 09:33:46 +1000
2019-05-22 09:26:14 +1000
2019-05-22 09:13:59 +1000
2019-05-22 08:37:23 +1000
2019-05-21 07:38:33 +1000
2019-05-21 06:52:52 +1000
2019-05-15 13:37:14 +1000
2019-05-15 13:19:55 +1000
2019-05-14 15:10:39 +1000
2019-05-14 13:35:52 +1000
2019-05-14 13:19:20 +1000
2019-05-14 12:07:44 +1000
2019-05-14 11:17:26 +1000
2019-05-14 10:24:46 +1000
2019-05-14 09:49:59 +1000
2019-05-14 09:18:32 +1000
2019-05-14 08:24:17 +1000
2019-05-13 19:57:44 +1000
2019-05-13 19:54:14 +1000
Mungalli Creek Dairy Pty Ltd
Mungalli Creek Dairy Pty Ltd (ACN 095 509 407) are offering up to 2,000,000 fully-paid ordinary shares at $1 per share to raise a maximum of $2,000,000. This Offer is made under the CSF regime in Part 6D.3A of the Corporations Act 2001 (Corporations Act).
The general public in Australia can buy up to $10,000 worth of shares in this company, as part of the new equity crowdfunding legislation (Note: there is no cap on how much Sophisticated Investors can invest). Please make sure to read the risk warning statement, offer document, and understand the Cooling-Off rights. Instructions on how to register to invest and pledge are here.
Letter from the founders
At Mungalli we have always been driven by big dreams.
We dreamed of regenerating our land using innovative Biodynamic farming methods so that we can produce healthy food without poisons, GMO’s or salty fertilisers.
… of rejuvenating our local communities that had been devastated by the deregulation of the dairy industry.
… of supporting family dairy farms, by helping them earn a fair price for their milk.
And then we filled our dreams with delectable cheeses, yoghurts, milk and cultured products made the traditional way with minimal processing.
Over the past twenty years we have been chipping away at our dream, first as a family and then as a team as more and more amazing people resonated with our vision. We are proud to say that we have turned those dreams into a reality.
Mungalli employs 50 staff (FTE), supports eight other family farms and turned over $10.6 million in sales in 2018. Last year the farms we support produced 3.9 million litres of milk across our two brands. Mungalli Creek Dairy which produces Biodynamic Certified milk, yoghurt and cheese and Misty Mountain Farms which produces Jersey milk and cream.
Until recently, our growth has been hampered by the amount of milk we could ethically and sustainably produce. So in 2015 we decided to act and purchased additional farms to convert to Biodynamic and organic farming methods. It’s a 3 year process but by July 2019 we can proudly announce that we will have an additional 1,000 acres of land fully certified Biodynamic with Demeter Australia. This will double our capacity and ensure we can meet the ever-growing demand for our Biodynamic milk.
With more supply, our original processing area needed a major upgrade to handle the increased volumes of milk. So in August 2018 we commissioned a new state of the art processing facility that is both cyclone and fire proof; constructed to optimise production flow, reduce contamination issues, be fully compliant and allow us to obtain export accreditation - the final touches to the fitout are happening as we write this and due for completion in July 2019.
With a new state of the art facility and a consistent supply of milk we are now ready to scale up.
To do this we need working capital to fund things like machinery, vats, churns, ice-cream and butter making equipment as well as product and market development costs. We also want to offer sustainable packaging methods just as much as you! As every parent knows, growth spurts are expensive. To be able to do these things sooner we are offering our crowd a chance to invest in Mungalli Creek via Equity Crowdfunding.
Our success has always been a result of the support of our customers and community, our greatest advocates, so it makes sense to bring our crowd along on the journey.
Become part of the Mungalli Creek family and invest in your food future.
We want to make a difference sooner and with your help we can.
Thanks
Rob & Dan Watson
Invest in your food future
“As never before, the Earth as a living being is calling out to us for recognition, for healing, for sacred and sustainable ways of tending her soil, plants, animals, and landscapes.” (biodynamics.com)
Our vision has always involved the health of the people and the land. We believe as the current caretakers of this beautiful land, we have a responsibility to leave it better than before, so that this pristine part of Queensland is here in all its beauty for future generations.
Biodynamic Farmers use no pesticides, fertilisers or herbicides. We estimate that on the Watson 500 acre home farm alone, they have prevented the burning of 22,500 tonnes of fossil fuels by farming Biodynamically. That’s the amount of fossil fuels needed to make fertilizers like urea. It takes approximately 5 tons of coal to make a ton of urea. That’s costly for the farmer and the earth!
We have also regenerated and converted 30% of our farms back to native rainforest. These trees can absorb up to 3.67 tonnes of carbon dioxide for every 1 tonne of their own dry mass. That’s a huge reduction of carbon dioxide in our atmosphere.
We’re not interested in simply being carbon neutral, we go beyond achieving net zero carbon emissions to actually create an environmental bene t by removing additional carbon dioxide from the atmosphere with our regenerative practices.
Your investment buys shares in Mungalli Creek, which helps us make a difference by:
Our purpose
To sustain good health and vitality in all that we do – across our farms; food production; business development; families, staff and community with Biodynamic principles at the core of our actions.
What is Biodynamics
Biodynamic agriculture is a fully certified enhanced method of natural farming that treats the farm as a living system – to build healthy living soil and dynamic life giving food. It is the next level of farming beyond Organics and at the forefront of regenerative agriculture. Our business and farms have been certified A Grade Demeter Biodynamic since 2000.
Mungalli Creek Dairy is Queensland’s only certified Biodynamic Processor and one of only 2 Biodynamic Milk processors in Australia.
Who are we
Mungalli Creek Dairy Pty Ltd (MCD) is a family owned, on farm, boutique processor of Biodynamic and premium dairy products. Established in 2000, our company produces over 25 different Biodynamic dairy products and supports 9 family farms.
We have now been farming using regenerative farming practices for 30 years and have brought on board and mentored other farmers and now support 9 family farms. We believe in paying our farmers a good fair price so they can be sustainable and look after their land.
And it is here on our ecologically balanced farm, surrounded by ancient rainforest, that our family produces over 25 different product lines including biodynamic milk, yoghurts, cheese, cream, premium flavoured milk, kefir and bio-eggs. We employ 70 staff (50 FTE’s) across our farms, distribution, café and production.
Our premium range of Biodynamic milks, yoghurts, cream and cheese are sold predominantly in Queensland with smaller established markets in Sydney and Melbourne.
Our values & impact
“Sustaining Health and Vitality”
The core of our business is happy cows, healthy earth, great tasting food and sustainability way into the future. We strive to demonstrate best practice regenerative farming as a solution to environmental issues – our motto is “regenerate the earth one farm at a time”. To this goal, we have four pillars we focus on:
- Promoting sustainable land management
- Ensuring the health of our customers
- Our community & social impact
- Helping farmers look after & stay on the land
The industry
The opportunity
The organic market is growing rapidly across Australia, which creates a large market opportunity for us. Australians are increasingly choosing organic food options as they become more prevalent and consumers are no longer limited to health food stores to buy organic groceries.
- Between January 2017 and January 2018, it is estimated that the organic grocery market rose by $1.1 Billion, up 13.6% compared to 2016 (refer to Australian Organics - include reference)
- In 2018, 384 000 more households claimed to purchase organic grocery products compared with 2016.
- According to the Australian Organic Market Report - household penetration of Australian dairy products in the year ended January 2018 is 33.9%
- 77% of organic buyers say that a certification mark increases their trust in the product
Currently, the five major Dairy Processors account for 79% of milk volume nationally. All five of these companies are internationally owned. But with movements like the Go local, and Cream of Australia campaign consumers are increasingly choosing to buy local dairy. Our customers want both organic and local dairy. In our region there are no other local organic dairy farms.
The organic dairy industry is growing at a rate of approximately 10-20% per year and we see a great opportunity to expand our offerings and our market share.
What we’ve done to date
In 2016 we started planning for growth, Our two main focus areas were to ensure more certified Biodynamic Milk and improving our processing capacity.
- Converting land - In 2016 we started buying and leasing land to convert to Biodynamics. One of these farms is now fully certified Biodynamic and the other farm will be as of July 2019. This will give Mungalli Creek Dairy (MCD) a very secure and ever increasing supply of milk to meet the growing market demand.
- Updating the production facility - To go hand in hand with this increase in certified biodynamic milk intake, MCD has commenced a significant upgrade to our production facility. The new state of the art facility will be completed with all cold rooms fitted and operational by July 2019.
The plan
We intend to focus on the growing dairy market by doing what we love best – making delicious dairy products and making it as accessible to you as we can!
With the foundations laid for our growth, out next challenges are sourcing and funding the equipment to make new products, choosing the right products and doing the associated market and product development so we can bring our newest product ideas to market.
We have identified that demand for organic dairy is growing worldwide by 10-20% per year with the strongest growth areas being fermented foods, no added sugar, lactose-free and full-fat dairy – perfect!
1. New products
Our new production facility will provide us with the space to make ice-cream, butter, cream and specialty cheeses. This will require an investment in specialised equipment to make these new product lines. We will also investigate more sustainable methods of packaging and distributing our products is also high in our sights and to have the most impact here we need to raise the maximum amount.
2. New markets
Currently demand is outstripping our supply, however with more milk and our new production facility we will be able to distribute further afield. With your help we will expand our marketing and sales teams so that people across Queensland and Australia have the chance to access our unique Biodynamic Dairy Products.
Our new production facility has the potential to be export accredited. With a strong emerging export market on our doorstep there is opportunity to expand further afield. Global demand for Australian dairy continues to rise and higher commodity prices have boosted the value of this trade.
Where we want to go
Intended use of funds
Research & new product development ($50,000 - $250,000)
Research and New Product Development. With a minimum subscription, a lot of this will be done internally. With the maximum subscription, we can outsource this work to consultants and food technologists bringing greater skills, experience and more offerings to the table.
Processing equipment and room upgrade ($150,000 - $350,000)
Purchasing new plant and equipment, Ice cream machines, blast chillers, butter and specialised cheese manufacturing equipment. Upgrade of the existing yoghurt manufacture room With a minimum subscription the existing yoghurt room will be upgraded and equipment finance will be used to purchase new manufacturing equipment. With a maximum subscription then a wider range of equipment will be purchased with these funds.
Trialing & researching sustainable packaging options ($20,000 - $250,000)
We are very interested in reducing plastic wastage and looking at more sustainable packaging options. Money will be spent exploring and trialing new ways of offering sustainable packaging and recycling to our customers.
Sales and marketing ($100,000 - $250,000)
We plan to grow and expand our geographic market area significantly. This will require an innovative approach and increasing our Sales Team. We also plan to purchase multiple chiller vans to service farmers markets to help grow sales and employ Sales staff to look after these markets.
Working capital ($150,000 - $270,000)
We will require a reserve of working capital to deal with new product development costs, the production of ice-cream and long maturation cheese in times of summer milk supply. Working Capital will also provide reserves when changes to our production schedules occur from fluctuations in sales & distribution requirements
Upgrade to our farmhouse cafe & retail outlet ($0 - $200,000)
The movement of the processing equipment into the new processing facility will free up space for our Farmhouse Cafe to expand. This will allow us to upgrade these spaces for groups, buses, and an ice cream making area
External works around our new facility ($0 - $250,000)
Our new production facility is funded and fully compliant. We do however require additional funds to complete external works including hard sealed driveways, car parks, and landscaping. A new factory office, change rooms, and lunchroom needs to be constructed for our team.
Offer Costs ($30,000 - $120,000)
The costs of the Offer include the Intermediary’s fees under the hosting agreement between the Company and the Intermediary. These fees are 6% of the total raised (GST inclusive) which would equate to $120,000 if the maximum goal is reached.
TOTAL: $500,000 - $2,000,000
Our risks
An investment in the Company should be seen as high-risk and speculative. A description of the main risks that may impact our business is included in our offer document. Investors should read this section carefully before deciding to apply for shares under the Offer. There are also other, more general risks associated with the Company (e.g. risks relating to general economic conditions or the inability to sell our shares).
Our team
Robert Watson - Managing Director & CEO
Rob is a strong visionary and has completed the Australian Rural Leaders Program in 2014. He is responsible for the financial monitoring and overseeing of the Business and Product Development. Rob also brings a passion in and many years experience in Biodynamic Farming & Soil Regeneration.
Daniel Watson - Director & Farm Manager
Dan brings a down to earth practicality to the business and is responsible for Farm Management, Herd Health & Maintenance. He works jointly with Rob on overseeing Mungalli. Dan’s strength is in building sustainable farms and strong staff relations and in the early days, he was our Cheesemaker.
Alain Martigner - B. Mech Engineering - Plant & Operations Manager (5 yrs)
Alain is at the helm of where the Mungalli magic happens. He’s responsible for all facets of production and successfully negotiates the busy schedule with his loyal team. He oversees the plant and manufacturing operation and our Distribution hubs.
Michelle Bell-Turner B. Bus (Tourism) - Marketing & PR (14 years)
Michelle is primarily responsible for Business Strategy, Business Development, Marketing, and Public Relations and is a keen negotiator, facilitating future planning with prowess. She holds a Business Degree in Tourism Management and has a strong background and passion with Organics & Biodynamics.
Trish O’Shea - Quality Assurance Manager (18 years)
Trish has been with us from the very beginning. Responsible for Compliance, Quality Control and Certification Auditing, her 25 years of research and dairy laboratory experience means our products are in safe hands.
Deris Marin - Diploma of Mgt - Sales Manager (17 years)
Deris is responsible for ensuring that the Mungalli products and message are shared. His approach and customer relationship management skills have cemented Mungalli Creek as an iconic and trusted brand of the Far North.
Alison Steele - Finance Officer (10 years)
Alison is responsible for the overall financial health of the organisation, providing regular reports, budgets, and direction to the Executives. She is also responsible for Payroll.
Elizabeth Watson - B. Creative Writing (Hons) - Social Media Marketing (2 yrs)
Beth has a strong understanding of the Millennial generation, thinks outside the box and has a flair for writing and design, has travelled and worked internationally and bring those insights to the table.
Lachlan MacDonald - Farmhouse Cafe Manager (1 year)
With over 30 years of hospitality experience, training, and team building we know our Farmhouse Cafe is in good hands. Lachlan ensures we offer a great customer experience and innovative ways of showcasing our products.
Neale Johnston - HR & WHS Advisor (Our newest team member)
Neale brings over 25 years of experience in Human Resources, Planning, and Industrial Relations. He ensures our compliance across these key areas as well as working with our Managers on team happiness as we navigate the next stage of our growth.
Information about Investor Rights
- Cooling-off Rights - You have the right to withdraw your pledge for any reason (including if you change your mind about investing in the Company). You must do so within five business days of making your application (the Cooling-off Period) by emailing [email protected] with your full legal name and number of shares you pledged for.
- Communication Facility for the Offer - You can ask questions about the Offer on the Question tab above.
- Effect of the Corporate Governance Concessions - there are some concessions around the Annual Report, Takeovers and Related Party Transactions.
Note from PledgeMe
We have completed background checks on the Company (Mungalli Creek Dairy Pty Ltd) and the Board of Directors (Robert Watson and Daniel Watson). We found no adverse findings in our checks. Please read the warning statement, offer document and ask questions before choosing to invest. PledgeMe will receive 6% (GST inclusive) of the funds raised, if the goal is met by the deadline.
An Update on our Equity Crowdfunding Campaign
07/06/2019 at 10:45 AM
It’s all happening now!
PledgeMe have been very busy verifying your identities and processing pledges. At this point, they have verified most of Mungalli’s newest Shareholders! If you haven't heard from PledgeMe, check the notifications on your profile or your spam folder, or contact them direct on [email protected] Otherwise get in contact with us, we are here to help!
We've issued the first shares to those who have already paid and will be sending out share certificates in the next week or so. If you haven't paid your pledge yet, please do so ASAP. We will issue the final shares once the final pledges have been processed.
While PledgeMe are busy wrapping everything up in regards to our Equity Crowdfunding campaign we’ve been busy finalising things like our new production facility. Everyone has been working hard to see the new production facility complete by the end of June.
Which is perfect timing really because we are almost ready to start collecting milk from our newest farm in Ravenshoe as well. It will be fully certified in the next few months! Everyone had better be ready to take one for the team and eat twice as much Mungalli goodies as usual, because that’s a 40% increase in our milk supply! ;)
Thanks again for joining our company and our family. We can’t wait to see what we build together.
Cheers,
Farmer Rob and the whole Watson family
Today is the day we see how far we can reach our goals !!!
13/05/2019 at 4:11 PM
THANKS FOR BELIEVING IN US!!
Last night at around 6pm we passed our minimum raise requirements thanks to all you wonderful supporters. We are so grateful to our soon to be shareholders that have helped us get us over the line.
Since then we have been shooting for the stars to see how close we can get to our $2M target. The closer we get to our $2M goal the more we can do for you, the environment and the community. The Food Connect Shed raised an extra $1M in their last day so we always believe everything is possible with a little help from our friends and supporters.
Thank you to everyone who has bought shares so far in Mungalli - from people in our team to old school teachers, and everyone else who wants to be a part of a sustainable food future. 🎉🍾🥂
We have just 4 hours left to see how close we get to our big goal of $2M.
So if you know anyone else that was considering being a shareholder you best give them a nudge....... thanks for your support and welcome aboard.
We are so keen to start working on the projects that we can with the raise that we have.
Once the campaign closes tonight- then the team at Pledge me will start verifying shareholder details. Credit card payments will come out in 3 to 5 days and direct deposit requests will be in 5-10 days time and then once all that's processed share certificates will be issued.
Thanks once again for your pledges and support
Lots of love, the entire Mungalli Team 💚
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4 days to go! Check out our processing plant, comments, and more.
09/05/2019 at 1:07 PM
We’ve had over 60% of our investment goal pledged, thank you, thank you, thank you! We have four more days to hit our goal. If we don’t hit our goal, your investment won’t be processed. If we do hit it though, we can spend your investment on our growth plans.
We’ve spent a lot of time talking about the ice-cream, butter and other dairy goodies we plan to make if we hit our goal, now we want to show you where we plan to make them. Join Rob behind the scenes as he walks you through the new plant and explains what will go where. The facility is due to be finished at the end of the month - you have no idea how excited we are! If we hit our goal, we can buy more equipment, to make more new yummy products.
Did you see our Facebook Live with Emma-Kate from the Food Connect Shed in Brisbane? Emma-Kate and her partner Rob were the first people in Queensland to use Equity Crowdfunding to help them reach their goal of a sustainable food future. Emma-Kate talks about what it was like bringing her “Careholders” on board, and the milestones they crushed. They managed to raise over $1million in the final few days of their equity campaign. Here's the Facebook Live.
Did you know you could leave a comment when you pledge? Some of you have left us some absolute beauties! Here are just some of our favourites!
"So great that I can in a small way contribute to regenerative agriculture and supporting local farmers to produce nutritious healthy food. " Melissa
“We are so excited to be part of this. We’ve been Mungalli fans for years and we can’t wait to see what is happening next." Angus and Rachel
"Surely we need to practically support the dairy industry." Don
"My renovations can wait - the Earth can't! So happy to be involved." Sue
"Mungalli Creek is a brand that I not only wholeheartedly support, but genuinely love. I am excited to be a part of this unique initiative and look forward to watching the brand grow and an increasing array of delicious products finding their way to new consumers. " Taeha
"Support our local farmers, support our local communities. " Lyle
"I believe Bio-Dynamics is important for the health of everyone." Sue
"If only in a small way, I am thrilled to be able to support this wonderful local business and its excellent products which have been a part of my family for many years. Good luck with the campaign!" Carol
Thank you, everyone, we are really feeling the love at the moment! We never imagined we would be surrounded by such an amazing community of people.
Often a lot of pledges come through in the final days of a campaign. People pledge to a deadline! If you could share why you invested with your crowd, they might get on board. Here are Tropic Now's article on the 11 reasons you should buy shares and invest in our company: https://www.tropicnow.com.au/2019/april/17/here-are-11-great-reasons-you-should-consider-investing-in-mungalli-creek-dairy.html
Want to hang out with us?
We have set up different Meet and Greets over the weekend, in both Cairns and Brisbane for anyone who wants to talk about what being a Shareholder in Mungalli will look like, what your investment will go towards, and anything else you want to discuss! Please come and see us even if it’s just to say hi!
- The Organic Farmers Co-op Atherton - Thur 9 May 2-4.30pm
- Rusty’s Market Cairns - Fri 10 May 6.30am-9am; 12.00-1.30pm & 3-4.00pm & Sat 11 May 7-10am
- The Kelvin Grove Village Markets - Sat 11 May 6-12am
- The Milton Markets - Sun 12 May 7-12am
Thank you again,
Farmer Rob and the whole Mungalli team
10 day to go, over 100 pledgers & almost 40% funded!
03/05/2019 at 5:58 PM
We’re almost 40% of the way to our goal. Thank you so much to those that have pledged, you are amazing.
In order to process the investment and deliver on our plans, we need to be at least all of the way to our $500,000 minimum pledge goal by our deadline and of course we will still shoot for the stars and aim for the $2M in pledges. That’s 10 days away! If you want to help us hit our goal, and make more yummy products, please share our campaign with at least five of your friends.
We’ve been busy on the farm (and off it) over the last week spreading the message of the importance of sustainable farming.
Michelle did an extensive interview with News & Views see the link above (the main story starts 50 seconds in) and then on Thursday I ventured to Ashgrove Cheese in Tasmania to inspect some ice-cream and butter making equipment before heading up to Greenwoods Biodynamic Orchards in Northern Victoria for our annual Biodynamic Conference where I presented to fellow Biodynamic Farmers about our vision for a sustainable food future.
Then on the way home I had a day in Brisbane at a Business Growth Seminar for CEO’s hosted by our business bank ANZ. In amongst it all there was a 5AM roll call for me to appear on the ABC Breakfast Radio with Craig Zonca & Loretta Ryan (you can listen here).
On the farm we’ve also been busy planting winter pastures between the rain and today Michelle was looking after a film crew shooting some footage for Master Chef.
We’ve had over 100 people pledge to our campaign so far, for shares in our company and so we can grow to meet the demand we have for our dairy products. One of our pledgers, Betty, has been using our milk in her ice-cream for over the last 12 years.
We have such a great community, and with you, we believe we can take Mungalli to the next level. We already process over 3.9million litres of milk a year, but with your investment we’re aiming to scale that, to make more tasty dairy treats, investigate sustainable packaging and support more farmers to stay in our region and thrive. In the past two decades, it’s become harder and harder to stay on family farms, but we believe we are part of the solution to changing that while scaling a strong business.
One of our friends, Robert Pekin from Food Connect down in Brisbane, has the same goal. His organisation, Food Connect, helps local food producers make a good living selling to local consumers. Late last year he helped raise over $2.1 million in investment through equity crowdfunding.
On Monday 6 May at 7PM, we’re going to do a Facebook Live with him to talk about the future of food and investing in businesses that do good and do well. We’d love to have you there listening (and asking questions).
Thank you so much for your investment and support.
Farmer Rob, Michelle, Dan and the whole Mungalli team
PS - Here is a copy of our Courier Mail Article
Almost 30% funded for our minimum raise and it's all thanks to you!
26/04/2019 at 3:55 PM
Thank you for your support!
We are so grateful to say that we are now almost 30% funded for our minimum raise and it's all thanks to you! The staff and the cows are dancing with excitement and anticipation of reaching our goal of $2 million! Think of all the yummy new products.
Did anyone see us in the press???
The team have been working hard to get the word out on our equity crowdfunding campaign! We're quite chuffed to say that we were splashed across a few different newspapers this week! We made the front page of the Tablelander, and we were in the Courier Mail on Monday and the Cairns Post last Wednesday. Keep your ears peeled because you might hear us on the radio soon as well! You might also see us in a few magazines or in digital print too!
It's awesome to see our local media outlets jumping on board and showing their support. You guys have a voice too! Share the news with as many people as you can so that we can reach our goal!
We are also supporting Foster Care week this week to encourage more carer’s – it’s such an important thing for kids to have access to fantastic carers.
See the full story in the Cairns Post here and what an important cause it is.
Ice-Cream
If you follow us on Facebook you might have seen us asking for ice-cream flavour suggestions. We are quietly confident we are going to reach our goal and have leapt ahead to when we have all the right equipment for ice-cream. What flavours do you guys want to see?
There have been some ripper suggestions! So far we've seen:
- Avocado & Lime
- Davidsons' Plum
- Hokey Pokey
- Rum & Raisin
- Macadamia & Vanilla
- Passionfruit
- Pistachio
- Green Tea
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That's just to name a few! Do you have any suggestions for us? We want to hear them!
Cheese
Farmer Rob has headed to Tassie today to check out some cheese vats so we can bring you some more wonderful cheese – fingers cross his explorations go well and then he’s off to our Annual Biodynamic Conference in Victoria.
Keep Sharing
Please keep sharing our campaign so we can reach our goals and thanks again for your support.
Farmer Rob, Michelle, Dan & the Mungalli Team
We're almost 20% funded!
12/04/2019 at 5:51 PM
Thank you so much to all our wonderful pledgers for investing in us! We’re almost at the 20% mark, and we just launched to the public yesterday.
For our followers, now is your time to invest! You can read the offer document here, and ask us any questions through the Questions tab on our campaign page.
If you want to learn more about our campaign, our company, and our team, we’re also doing a Facebook Live with the whole family on Monday night at 7 pm. Just follow us on our Facebook page to be notified when we go live.
We really want to raise our maximum goal of $2 million, because if we do that we can make things like ice-cream, butter, and boutique cheeses. We also want to investigate sustainable packaging options but to do that we need your help!
To invest, people need to know that they have the opportunity to buy shares in Mungalli. So please help us get the word out if you have pledged. Tell your mother, brother, girlfriend and best friend. Pop your head over the fence and tell your neighbour about it. We want people shouting it from their rooftops! Let them know that they are supporting a family business that sits right in their backyard. The more people who own shares in Mungali, the stronger we believe our community business will be.
Did you know that currently, the five largest dairy processors in Australia account for 79% of milk volume nationally? But all five of these companies are internationally owned. We want to change that. And with your investment, we believe we can.
Cheers,
Farmer Rob, Dan & the whole Watson family
Offer Details
| Current Valuation | 15,000,000 |
| Raise Minimum | 500,000 |
| Raise Maximum | 2,000,000 |
| Share Price | 1.00 |
| Maximum Shares Offered | 2,000,000 |
Company Documents
Director Details
| Name | Role | Profile URL | Invested? |
|---|---|---|---|
| Robert Watson | CEO / Director | https://www.mungallicreekdairy.com.au/ | ✔ |
| Daniel Watson | Director | https://www.mungallicreekdairy.com.au/ | ✔ |
Ask a Question (You must login to ask a question)
Good morning,
I'm a big fan of your business and am very happy to have the opportunity to be involved.
Just a comment regarding section 2.13 Risks facing the business, I notice there is no mention of animal rights activism in there. Given the news this week I think it would be pertinent for some thought to be put into an animal rights activism scenario. Do you have basic security measures in place like security cameras and lockable gates etc?
Kind regards,
Simon
Simon
Thanks so much for your email - It is a discussion we will have at our Family Advisory meeting next week. The Company is the processor only for all the milk from the farms. It is something that so far we have been OK on, that said yes a risk mitigation strategy is definitely something to consider- both Safe Food Queensland and Queensland Dairy Farmers Organisation have sent out guidelines and recommendations in the last few weeks. Many thanks Michelle
Answered on 09-04-2019 by Mungalli Creek Dairy Pty Ltd
I just saw this notice come up: "Thank you for your pledge! We'll be in touch once the campaign meets its goal, and again when it closes, so you know we'll be charging your card."
I opted to direct debit. Does this mean if I forget to transfer the deposit?
Posted on 10-04-2019 by Reece and Lyn GoreHi Reece and Lyn,
yes, that's correct! We'll only charge your card if your deposit doesn't come through within the set time frame. Thank you for your pledge!
Anna (from PledgeMe)
Answered on 11-04-2019 by Mungalli Creek Dairy Pty Ltd
Hi - I am interested in this offer -Just wondering if and when one wants to sell shares one has bought what is the process? Thanks and best wishes
Regards Mike W
Hello Mike
Whilst the Company is unlisted it would be a matter of finding a buyer and listing your shares for sale based on the current valuation of the Company.
Normally people buy shares knowing it is a long term investment and that they are getting in at the ground floor level and they reap the rewards of the growing value of the Company down the track.
If Mungalli decided to publicly list over time then the normal share market mechanisms will operate.
I hope that helps and if you have any further questions please let me know.
Thanks
Michelle (from Mungalli Creek)
Answered on 23-04-2019 by Mungalli Creek Dairy Pty Ltd
We are big fans of your brands. We only became aware of this capital raising when we saw a tag on a bottle of milk in the supermarket. But only on one bottle amongst dozens!!! So are you making efforts to ensure more bottles are tagged?
Posted on 05-05-2019 by Rick RavenshoeHey Rick
So glad you saw that tag and thanks for the feedback - which store was that - we have had some issues with the stores taking them off and the design also is a little tricky - that said we think we have overcome some of the store issues and will go with a different design with any future tags. We would love for you to share the campaign details with any friends or colleagues to help us spread the word and please feel free to call me direct on 0438 171 248 if you have any queries. Kindest Regards Michelle and Rob
Answered on 05-05-2019 by Mungalli Creek Dairy Pty Ltd
I have been trying to get a few investor friends interested in investing in the Company. They want to know, long term, will there be dividends paid on their investment?
Brian
Posted on 05-05-2019 by Brian OrganicsHello Brian
That's fantastic and thank you so much for your support - it means a lot to us. The initial focus in the short-term (1-3 yrs) will be building the business, products and market share to grow and add to the value of the business for our shareholders. Dividends are at the discretion of Directors based on business performance and capacity. We certainly hope there is good growth and performance and scope for dividends. There is also the possible intention of an IPO down the track in the longer term - possibly 5 year time frame. Brian please feel free to call us direct on 0438 171 248 if you have further questions or would like additional information. Kindest Regards Rob
Answered on 05-05-2019 by Mungalli Creek Dairy Pty Ltd
Love Mungalli - been drinking the milk and eating the yogurt on and off for more than a decade.
Question 1:
How is a $15Mn pre-money valuation justified? I played with the financials a few different ways (looking at growth, assets, net revenue) and I couldn't make it work.
Question 2:
What is the investment for? I feel like you're trying to do lots of different things, but worry about focus - $2mn doesn't go far! I also see expenses like "external works including hard sealed driveways, car parks, and landscaping." - how is this going to generate a return?
Thanks in advance!
Posted on 07-05-2019 by Nathaniel ArmerHi Nathaniel thanks for your question.
Re the Valuation: The value of the company was calculated professionally by On Market - Bookbuilds an investment firm.
In their words “This valuation has been prepared on the basis of 'Market Value' and values 100% of Mungalli at the Valuation Date. The generally accepted definition of 'Market Value' (and that applied by us in forming our opinion) is the value that should be agreed in a hypothetical transaction between a knowledgeable, willing, but not anxious buyer and a knowledgeable, willing, but not anxious seller, acting at arm’s length”.
They did a comparable transaction analysis of similar sized boutique dairy producers that have sold in the past few years
Nov-17 Paris Creek Dairy Acquisition by Primary Opinion (ASX:POP), now Longtable EV/EBITDA 20.4x
Aug-18 St David Dairy Acquisition by Longtable (ASX:LON) EV/EBITDA 8.7x
Jul-11 Bead Foods Acquisition by Agro Farma (Chobani)
Dec-14 Longwarry Food Acquisition by Parmalat
A full copy of the report can be sent to you if you require.
Question 2:
What is the investment for? I feel like you're trying to do lots of different things, but worry about focus - $2mn doesn't go far! I also see expenses like "external works including hard sealed driveways, car parks, and landscaping." - how is this going to generate a return?
We have been investing significantly in our growth over the last 3 years to the tune of $3M - the foucs being on two key areas of the business that generate our returns on investment.
1. The construction of the new state of the art processing facility to increase our capacity on Milk packaging, yoghurt manufacture and cheese making both soft and hard.
2. The Watson farming partnership has also invested significantly into new certified biodynamic farms to maintain milk supply. Another 1,000 acres comes in in July.
The new processing facility (which is undergoing final fitout) will allow us to increase throughput more efficiently and allow us to make a broader range of products that will also include icecream and possibly butter. It will also enable us to be export accredited which gives us access to both established and new markets out of Cairns.
The investment we raise via equity crowd funding will be used primarily for intangibles such as marketing and sales, working capital, new product development and the purchase of specialist manufacturing equipment e.g. icecream machines and investigating alternative packing and delivery.
The hard sealed driveways and landscaping are only going to be done if we raise the entire 2 million via crowdfunding this will help us meet the local council expectations and also complete the aesthetics of the project. We always also put back in these growth stages any available working capital from the business.
Please feel free to give us a call on 0438 171 248 to discuss in more detail.
Kindest Regards Rob Watson CEO
Answered on 08-05-2019 by Mungalli Creek Dairy Pty Ltd
G'day, I pledged to pay via direct debit and have not received any instructions yet. I do remember that pledge had to be paid within set time or my credit card will be charged. What is the current status of processing, and when and how will I be instructed to pay? Thank you
Posted on 20-05-2019 by Theo UtzingerTheo the current status is 163 shareholders verified and 300 still going through the required checks. I will get Liz to send you a status update in regard to your checks and if she needs anything further. Many thanks Rob
Answered on 21-05-2019 by Mungalli Creek Dairy Pty Ltd
Hi we pledged to pay via direct deposit & have not received any notification regarding payment, I do not want my credit card charged & we are close approaching day 10. Could you please advise what account details are thanks Kym Baker
Posted on 21-05-2019 by Kym Baker & Rob HornHello Kym & Rob
The verification process that is required by ASIC is taking a bit longer than planned. I will get Liz to give you an update in the morning about your direct deposit notification. Thanks for your patience. Kindest Regards Michelle, Rob and the Mungalli Team
Answered on 21-05-2019 by Mungalli Creek Dairy Pty Ltd
HI Guys,
I have noticed that the time has closed yet pledges are still going in is there another way to pledge now??
Thanks.
Hi Georgie
Some of the postal pledges have taken longer to verify and process. Send me an email to [email protected] with what you were hoping to do and we can go from there.
Answered on 26-05-2019 by Mungalli Creek Dairy Pty Ltd
I bought 2 lots of 250.....does that register me as a shareholder of 500?
Posted on 16-06-2019 by ChristineYes that's right - Share Certificates will start to come out in the next week
Answered on 16-06-2019 by Mungalli Creek Dairy Pty Ltd
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