Bar.on 1A

Equity

Digital Beverage Enterprise

€2,751,770

total amount raised in round

Backed by over 70 investors
Eligible for a tax reduction

This campaign ended and is now negotiating with select business angels

Idea Market Team Risks Discussions

The Problem

Consumers today face a limited choice when it comes to functional beverages.

Although there are numerous functional beverage brands, these options are rarely found on the drinks menu in bars, restaurants or events. Retailers often prefer to stock well-known brands that produce large sales volumes or smaller brands that offer high profit margins. Additionally, the functional beverages that are available are not customizable and generate significant packaging waste.

While draft systems are profitable and produce lower waste, traditional draft systems typically do not offer functional drinks. Instead, they predominantly provide alcoholic beverages or very standard soft drinks, with no options for customization.

The Solution

Bar.on's OneTap Pro addresses these issues by offering a revolutionary draft machine that mixes high-quality ingredients into a beverage that is always fresh and fully customizable. Unlike traditional methods that use syrups mixed with water, Bar.on's solution ensures superior taste and quality by utilizing advanced molecular mixing technology based on a set of flavor cartridges.

This innovative approach also provides optimized functional ingredients for each occasion, significantly enhancing consumer value.

Furthermore, the OneTap Pro reduces packaging waste and lowers the carbon footprint associated with beverage transportation. Additionally, the OneTap Pro is ideally suited for data capture and community building, offering valuable insights and engagement opportunities.

Importance of Functional Drinks

Functional beverages are rapidly gaining traction in the beverage market, driven by a growing consumer focus on health and wellness. These drinks, which contain ingredients that offer benefits beyond taste and hydration, are perfectly aligned with modern lifestyle trends and the increasing demand for non-alcoholic options. For Bar.on, incorporating functional drinks into the OneTap Pro's product portfolio is not just a strategic move, it's essential for meeting consumer expectations and driving market growth.

Functional beverages are designed to provide health benefits, stress reduction and pleasure, making them highly appealing to today's health-conscious consumers. These drinks often contain ingredients like adaptogens, nootropics and CBD each offering unique benefits.

The functional beverage market has evolved significantly over the past few decades, transitioning from niche products like energy drinks and vitamin-infused water to a broader category that encompasses a variety of non-alcoholic drinks. This evolution reflects a shift in consumer behavior, where there is a rising demand for drinks that offer specific health benefits. By expanding into the functional drinks category, Bar.on can cater to a wider audience and tap into the lucrative wellness market.

Source: SevenFiftyDaily - Functional Beverages Are Big Business

One of the unique selling points of the OneTap Pro is its ability to personalize beverages according to individual preferences. Functional drinks fit seamlessly into this model, allowing users to customize their drinks with specific functional ingredients that cater to their personal health goals. Whether a customer wants a drink to help them unwind after a long day or to boost their mental clarity during work, OneTap Pro can provide tailored solutions that go beyond traditional beverage offerings.

Functional drinks also align with Bar.on’s commitment to sustainability and innovation. By creating beverages on demand, the OneTap Pro reduces the need for packaging and transportation, significantly lowering the carbon footprint. Additionally, the ability to produce a wide range of functional beverages from a single tap showcases Bar.on’s innovative approach to beverage technology, setting a new standard in the industry.

Launching the OneTap Pro with a focus on non-alcoholic functional drinks allows Bar.on to position itself as a leader in the growing non-alcoholic beverage market. This strategy not only differentiates Bar.on from traditional beverage providers, but also establishes a strong foothold in the health and wellness sector. As the market for functional beverages continues to expand, Bar.on is well-positioned to capitalize on this trend and drive long-term growth.

In summary, including functional drinks in the OneTap Pro's product portfolio is a crucial step for Bar.on. It aligns with current market trends, meets consumer demand for health-focused products and leverages the unique capabilities of Bar.on’s innovative beverage technology.

No Limits to Personalization

Personalization is at the core of the OneTap Pro's value proposition, allowing users to customize their beverages to suit their individual tastes and preferences. This capability sets OneTap Pro apart from traditional beverage options and enhances the overall drinking experience.

The digital nature of the beverage recipes allows for dynamic adjustments based on user settings and time of day. For example, a user might prefer non-alcoholic drinks after midnight. The software can automatically adjust the recipes to ensure that any drink ordered after this time is alcohol-free. Similarly, a user might prefer energy-boosting ingredients in their drinks late at night. Again, the software can adapt the recipes accordingly without the user needing to make additional requests.

Users can create profiles with their preferred drinks and settings. These profiles can store information about flavors, nutritional additives and alcohol levels. Based on stored preferences, the OneTap Pro can auto-adjust drink recipes to match the user's profile. This feature ensures that users consistently receive beverages tailored to their liking, enhancing the personalized experience. Personalized drink recommendations based on the user's historical preferences and consumption patterns have become an easy standard.

By collecting data on drinking behaviors and preferences, Bar.on can gain valuable insights into consumer trends. This data can be used to refine product offerings and create new, innovative beverages that meet evolving consumer demands.

Users can provide feedback on their drink experiences, allowing for continuous improvement of recipes and customization features.

By incorporating these personalization features, the OneTap Pro ensures that each drink is a unique and tailored experience. This level of customization not only enhances customer satisfaction, but also positions Bar.on as a leader in the evolving beverage industry, where personalized and functional drinks are becoming increasingly popular.

Unparalleled Convenience

The OneTap Pro offers significant convenience advantages over traditional keg systems used in bars, restaurants and events. Keg systems typically involve heavy lifting, frequent replacements and considerable storage space, which can be cumbersome and labor-intensive. The OneTap Pro on the other hand uses lightweight, easily replaceable flavor cartridges. This reduces the physical strain on staff and simplifies inventory management.

Additionally, unlike kegs, where unused beer can expire and lead to waste, the OneTap Pro creates each beverage fresh from the tap. This ensures that every drink is served at its peak quality and reduces waste. Bars and restaurants can easily update their beverage offerings without worrying about inventory waste. For example, if a "beer of the week" doesn't sell well, it doesn't expire or take up unnecessary space.

In summary, the OneTap Pro offers unparalleled convenience compared to traditional keg systems. Its use of easily replaceable flavor cartridges, fresh beverage creation and operational efficiency make it an ideal solution for modern bars, restaurants, and events. This convenience, combined with the ability to provide a wide range of personalized and functional beverages, positions Bar.on at the forefront of the beverage industry innovation.

Market Segment

While it might seem logical to target bars initially, a compelling case can be made for focusing on the health and wellness sector first, specifically high-end gyms, fitness centers and spas.

Health & Wellness Market:

Constant Growth: The health and wellness segment is continuously expanding, driven by increasing consumer awareness and demand for healthier lifestyle choices.
Willingness to Pay Premium Prices: Consumers in this segment are willing to pay a premium for health and wellness drinks, yet they still face a very limited choice in on-trade channels.
Lack of Customization and Feedback Solutions: The current health and wellness beverage market lacks profitable customization solutions and mechanisms for consumer feedback.
Bar.on's Competitive Advantage: Bar.on’s OneTap Pro can solve these problems by providing a customizable, fresh and functional beverage solution. Bar.on has proven that the technology works and has clear indications of consumer interest.

Focusing on the health and wellness sector offers several key advantages:

Higher Profit Margins: Premium products at premium prices result in significantly higher profit margins.
Consumer Desirability: The OneTap Pro meets the growing consumer demand for personalized health and wellness beverages.
Business Viability: The premium pricing strategy ensures a profitable business model.
Operational Feasibility: The technology and infrastructure required for the OneTap Pro are readily implementable within the health and wellness market.

Bar.on’s OneTap Pro is a game-changer in the beverage industry. By targeting the health and wellness segment initially, we can capitalize on the growing demand for premium, customizable functional beverages, achieving higher profit margins and establishing a strong market presence.

Bar.on has already developed several recipes that fit well with the health and wellness target group, such as fruit beer, ginger beer, coffee beer, and even iced teas and tonics. With a main focus on fermented drinks with or without functionality, most of Bar.on’s beverages are distinct from what is usually found in flavored drinks coming from typical beverage dispensing machines found in the market today.

Bar.on’s OneTap Pro offers a unique solution by providing a fresh, customizable beverage experience that stands out from typical offerings. This strategic focus on the health and wellness market not only ensures higher profitability, but also positions Bar.on as an innovator in the beverage industry, paving the way for future expansion into other segments.

Comparison with Bars

In our analysis, the profitability metrics for Bar.on’s OneTap Pro in bars and high-end health and wellness establishments was compared. To maintain the same profitability of 70% in bars, we identified the following adjustments:

Profit Margin: The profit margin per drink would need to decrease.
Sales Volume: The number of drinks sold per week would need to almost double.

While achieving these targets is theoretically possible, several additional challenges must be considered:

Market Demand: Non-alcoholic beers, with or without functional additives, may not currently be a top priority for many bars.
Space Constraints: Bars typically have limited space, making it difficult to find room for the OneTap Pro.
Consumer Preferences: A beer-loving audience might be more critical of beers that have not undergone a traditional brewing process.

As a side note, focusing on non-alcoholic beverages provides specific advantages:

Temperature Control: The exothermic reaction that occurs when mixing water with alcohol, which increases the temperature by 5 degrees, is avoided.
Regulatory Simplification: Lengthy regulatory discussions regarding categorization and excise tax are not necessary for non-alcoholic beverages.