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Whitepaper



SpicePaper

            
SpicyCoin
  
Copyright by Spice King International
Startup Project
2021




Abstract
 

Project Summary
 
Spice King International Startup (further shortened to Spice King ®), fully independently operated business – the premier innovative Supplier of all-natural spices and authentic blends of superior quality for ethnic dishes of cuisines of all continents for creative tasty and healthy eating – rises the strategic height in the crypto plane with its own already workable MVP, e-shops ready-to-sell worldwide and the brand new coin offers to cryptoholders and traders to tokenize Global Spices Market and to become New Times Kings/Queens him-/herself with their investment portolio, simply by investing, buying and holding new SpicyCoin crypto following the majestic traditions of many generations of the world’s largest monarchical dynasties that once founded the spice market through numerous wars and today actors finally organizing the market in a peaceful civilized way.

 
MVP
 
Minimal Viable Prototype is ready, it is the Inventory Set of hundred author’s blends have commercially approved on testing market mode traded for fiat money and cryptos.



Team
 

Startup’s Team description
 
Startup's Founder and CEO – Mr. Thomas Brand, BSc, MA.
 
Market studying, research & development of industrial samples, branding of design of labels and copywriting, sourcing and work with hundreds of suppliers of ingredients and packing worldwide, work with target groups of customers, direct sales for HoReCa segment, development and launching web-sites for commerce for customers from each segment, work with payment systems (PayPal, VISA/MasterCard, crypto), participation in the international quality contests and trade fairs, contacts with chefs in top restaurants.



Customers
 

Segments of customers
 
MVP-customers
 
B2B HoReCa Segment – professional chefs in top restaurants worldwide. members and graduates of leading national and international culinary schools, courses and contests, authors of their own schools, master classes, video-blogs and working coaches for setting up a kitchen of a restaurant.
 
B2C Segment – private (household) cooks and individual gourmets – culinary pioneers who experiment with food and tastes, which cook themselves or have impact to relatives who do cook.
 
 
SpicyCoin-customers
 
Cryptoholders (top managers and corporations) from the Global Spices Market (producers and world traders) and world commodities exchanges.



Problem
 

Problem (for business with MVP)
 
Urgency to patent a large number (about 100) of industrial samples successfully operating in the market testing mode and their protection.
 
Urgency to equip production facilities to intensify craft manufacturing, transition to scaling business with its own crypto plane shield.
 
Necessity of continuation of wider international promotion of the ready MVP through participating in prestigious independent contests with confirming a quality of production (Great Taste Awards, London, UK, International Taste Institute ITQI, Brussels, Belgium) and covering chefs in top restaurants worldwide from guides and ratings like Michelin, Gault&Millau, TheWorld’s50BestRestaurants, LaListe, etc.
 
Necessity to cooperate with popular chefs and cooks with their own video-blogs and with TV-programs.


Evident alternatives
 
1. Developing and start SpicyCoin ICO for beginning tokenization Global Spices Market.
 
2.1. Medium-term (for starting) and medium-cost scenario. To patent industrial samples and the transition to the franchise model with transferring rights to master franchisees by country and their local customers with penetration on markets of countries and spreading firm mono-branding points of sale the branded Spice King ® production.
 
Transition to contract co-manufacturing of the Startup’s private label at ready facilities of other companies in different possible countries in EMEIA region – to supply points of sale of the franchise network with the branded Spice King ® production.
 
2.2. Long-term (for starting) and higher cost  scenario. To patent industrial samples and transition to the development of own industrial scale production and own production facilities – the factory of packed spices and blends.
 

Sources of income (current)
 
Sale of samples at market prices in the market testing mode to cover the break-even point of their development, create a wide portfolio and primary awareness in the professional community of chefs.
 
 
Solution for the problem
 
Finding an individual investor (person or company), group, investor platform, startup accelerator, crowdfunding, ICO.
 
 

Unique Value Proposition
 

Unique Value Proposition (UVP)
 
UVP is the highly competitive by wideness (about 100 items) and quality portfolio of author's craft premium blends, authentic to countries of their historical or traditional origin, for ethno-dishes of cuisines of all continents, masterfully crafted from carefully selected entirely natural components, in principle always and completely without using any artificial additives - neither chemical, nor from the category of so-called "identical to natural".
 
According to the results of 2020, the UVP share of premium blends in the total sales in the market testing mode portfolio of the Spice King ® production by weight was 34.79% against 65.21% of the share of mono-spices, and it has reached many thousands of packed units or a several tons in total net weight for all times
(for example: if they traditionally take min. 15 grams of spices to cook 1 kg of meat, then, accordingly, 1 ton of spice blends are enough for cooking 67 tons of meat).
 
67 types of premium blends from UVP and 53 types of mono-spices were sold in 2020.


According to the results of the 1st Half Year 2021, the UVP share of premium blends in the total sales in the market testing mode portfolio of the Spice King ® production by weight has risen to 34.54% from 29.41% of the same share in the 1st Half Year 2020.


High-level concept
 
The concepts of proposals both for the general public and cryptoholders and traders are the following: despite its own name Spice King ® the Startup’s Trade mark/SpicyCoin offers the consumer to become the King/Queen him-/herself…
 
For MVP-customers:
 
in his/her kitchen (moreover, the King/Queen of any dynasty or country – by the origin of a spice blend) and easily reign at a table in a company or family, simply by taking the spice blend from Spice King ® and adding it to a dish.
 
For SpicyCoin-customers:
 
with their investment portolio, simply by investing, buying and holding new SpicyCoin crypto following the majestic traditions of many generations of the world’s largest monarchical dynasties that once founded the spice market through numerous wars and today actors finally organizing the market in a peaceful civilized way. 
 

Non-market competitive advantage
 
Availability of hidden advantage that complicates competitors' access to the market (patents, skills of the team, developed network of contacts): more than a decade experience and in-depth study of the international market of spices and seasonings, the understanding of its trends, which have led to the formation of highly competitive (both for the wideness of assortment and for the quality) of the portfolio of approved commercially workable products ready for patenting for further patently protected penetration into markets.
 

Customer Journey
Channels of contact with the MVP-customer
 
Knowledge
 
There is a problem or a need: the consumer uses a smartphone, tablet, laptop, computer or smart TV to look for a product - spices and seasonings (as a flavoring and aromatic additive for cooking) on the Internet, in thematic (culinary) and professional (chef) groups on social networks. The consumer is also looking for recipes for certain or even new dishes for him/her - on the Internet, in culinary video blogs on YouTube, in programs on general TV channels and on thematic culinary TV channels. The appearance of Spice King ® products in informational messages, in stories, publics, advertising, product placement can be a solution for him/her: there is an interest in the product.
 
Favorable conditions
 
Primary information about the Spice King ® product distinguishes it from others and increases the interest of both private and professional consumers. Interested consumers need more information and go directly to the Spice King ® online store website, where they receive comprehensive information or send private messages with questions via social networks or e-mail.
 
Reflection
 
After receiving all the information and answers to their questions, consumers are considering buying a Spice King ® product: they study prices, learn the assortment that interests them.
 
Purpose of purchase
 
The intention to make a purchase becomes more decisive due to the Unique Value Proposition, guarantee of convenient and safe international payments (in fiat and crypto), worldwide delivery, discounts (for voting for the brand and for bringing friends). And the unusual wideness of the assortment stimulates repeated purchases to try the next 3-5 types of spice blends (as for the minimum order) from about 100.
 
Conversion
 
The decision was made and the purchase was done.



Competitors (for MVP)
 

World market competitors-producers/sellers (main players):
 
1. Kikkoman Corporation
2. McCormick&Company Inc.
3. Olam International (USA)
4. Kerry Group Plc. (Ireland)
5. Sensient Technologies Corp.
6. Cargill Inc.
7. Doehler Gmbh (Germany)
8. Bart Ingredients Company Ltd.
9. Badia Spices (USA)
10. MDH Spices (India)
11. Everest Spices (India)
 

European market competitors-producers/sellers (main players):
 
1. Saigon Hanoi Imexco Ltd. (Baria Spices, Vietnam)
2. Doehler Group SE (Germany)
3. Fuchs Gruppe (Germany), Fuchs North America
4. Kerry Group Plc. (Ireland)
5. McCormick&Company Inc. (USA),
incl. its European brands:
5.1. Drogheria&Alimentari (Italy)
5.2. Ducros (France)
5.3. Kamis (Poland)
5.4. Margao (Portugal)
5.5. Shwartz (Germany)
5.6. Silvo (The Netherlands)
5.7. Vahine (Belgium)
6. Olam International (Olam Spices, USA)
7. Solina Group (France)
8. Husarich GmbH (Germany)
9. Euroma (The Netherlands)
10. Santa Maria (Sweden)
 

World market competitors-sellers:
 
1. iHerb – global eshop of healthy foods and spices
2. Spiceology – American craft producer of spice blends for the HoReCa segment.
3. Catalogue departments at Global online marketplaces: Amazon, Ebay, Etsy, alibaba (B2B), aliExpress (B2C)…
4. Local online marketplaces and e-shops of spices in countries worldwide.



Market (for MVP)
 

Global market
 
According to Mordor Intelligence, the Global Spices Market has the Compound Annual Growth Rate (CAGR%) +4.70% for 2016-2026.
 
According to Market Research Future, the Global Spices Market in 2024 will be $17.33B with the CAGR% +3.4% during 2019-2024. Their updated post-covid forecast for 2025 estimates the market size is already smaller - $14.5126B with higher CAGR% +3.89%.
 
According to Grand View Research, the wider Global market of spices and seasoning (incl. spices, herbs and salt with its substitutes) was estimated at $13.77B in 2019, $15.44B in 2020 and with the forecast at $22.46B in 2027, so for 2020-2027 has CAGR +6.3%. Segment of the very spices accounts for 40% of this wider market. 
 

European market
 
The largest market for spice consumption in the world is the European market with a forecast volume of 2025 at $8.45B and the CAGR% +4.33% for the period of 2016-2026 (Mordor Intelligence).
 
The largest markets-countries of consumption of spices in Europe are Germany, the Netherlands, France, Spain, Great Britain.
 
European import value of herbs and spices was slightly positive (CAGR%) +0.4% for 2015-2019 period: +11% in 2015-2017 to €2.7B in 2017, -8.1% in 2018, -1.6% in 2019 to €2.44B.
 
According to Eurostat, the annual growth of European imports of spices from developing countries in the narrow sub-market of spice mixtures slowed down during 2015-2019: 2016 => + 6%, 2017 => + 4%, 2018 => -1%, 2019 => 0% and amounted to €218M in 2019.
 

Market overview (for MVP)
 
Despite of the large number of mergers and acquisitions and constructions of new facilities (in particular, the Dutch Euroma acquired its competitor Intertaste in 2018, the American IFF acquired the Israeli Frutarom in early 2019, the Irish Kerry Group launched a new plant in Tumkur, India, with an area of 40,585 square meters and worth $22.8M in June 2019, and the French Solina Group absorbed the Canadian Berthelet in January and the German Hagesüd in June 2020, new Indian startups - Deccan Diaries, Masala Tokri, NaturLoc, Zizira also fuel the market competition), both global and European spice and condiment markets remain highly fragmented, highly competitive without dominant players, where 6 leading companies collectively hold a market share of nearly 15% and 70% of market share being captured by local players.
 

Market drivers (for MVP)
 
Key factors that are driving the seasoning and spices market growth include:
•          increasing consumers’ willingness to pay a premium for new flavors and ethnic tastes (despite of the international travel restriction) and
•          rising demand for ready-to-use spices mixes as convenient options in the foodservice industry (HoReCa consumer segment).



Product (MVP)
 

Product
 
In terms of demand in the global spice market, Startup Spice King ® already today offers the ideal (both by wideness of assortment and for quality), highly competitive product – identical or superior to samples of the leading global players: McCormick, Badia, Spiceology, Kotanyi, Santa Maria, Everest Spices, MDH Spices, S&B, etc.
 
 


Token model
 

Token model
 
SpicyCoin (ticker: SPCY) is the official cryptocurrency token by Spice King International for tokenization Global Spices Market. It is the Payment-type ERC20 token (version 5.0.1) primarily working on the Ethereum’s blockchain under the smart contract (contract name: SimpleERC20) with the following features:
  • Fixed supply type (the deployer can’t increase or reduce total supply later);
  • Unstoppable transfer type (transfer can’t be stopped – everyone can always transfer his own tokens);
  • Token Source Code automatically verified on Etherscan;
  • Runs (Optimizer): 200.
 

Token sales model
 
Spice King International Project has structured the SpicyCoin token sales as a reward based crowdfunding campaign among the Community of spices traders and gourmets, where contributors will receive SpicyCoin tokens (SPCY) in return for their donations on a proportional refunds basis.

 

Token distribution
 
Based on the standard ERC20 token’s price $0.0333 per unit (as for Jul 05’2021 by coinranking.com), the total supply is aimed to 700,000,000,000 (700 billions) tokens generated (not minable) that has the worth comparable to the Global Spices Market size for 2022-2027 in USD equivalent ($22.46B), to be distributed as follows:
  • 60% - Public sales;
  • 20% - Team;
  • 5% - Developments and Growth Initiatives;
  • 7% - Commissions;
  • 3% - Marketing and PR Activities;
  • 2% - Advisors;
  • 3% - Reserves.



Finances
 

Finances
 
Both MVP-Startup and SpicyCoin ICO are the highly promising concepts that need investments for business scaling.
 
MVP-Startup
 
As for today, without attracting funds from third parties, Startup has already generated and mastered a total of over $120k for few last years for its self-sustaining activities (R&D and launch MVP in market testing mode).
 
SpicyCoin ICO
 
Pre-set SpicyCoin (SPCY) price = 1 ERC20 = $0.0333 per unit.
Total supply: 700,000,000,000 (700 billions) SPCY.
1 SPCY = 0.000015 ETH.
1 ETH = 66,826 SPCY (0.0000095% of Total supply).
(As for July 05’2021).




Result expectations
 
We consider such ways of development depending on the SpicyCoin ICO results:
 

Minimal strategic height
 
  • over SPCY15M (equivalent ETH225 or $500k) enough to realize Alternative 2.1. Medium-term and medium-cost scenario (Summer 2021 – Summer 2022) through initial stimulation of gross sales of the MVP Products with the SpicyCoin as the usage token (giving access to discounts for purchasing MVP Products) and further developing to the next Alternative 2.2.
 
Stable strategic height
 
  • over SPCY150M (equivalent ETH2,250 or $5M) enough to start develop Alternative 2.2. Long-term and higher cost  scenario (Autumn 2021 – Autumn 2023).
 
Persistent strategic height
 
  • over SPCY900M (equivalent ETH13,480 or $30M) or 0.13% of Total supply - premium investments enough to stabilize development forecasts of the very SpicyCoin to become fully cryptocurrency itself and to make its further rising to the highest long-term priority.
 
 

Welcome to the SpicyCoin ICO!






MetaMask public address for SpicyCoin:
0x3a4F9ca8D06040F5d9cB9C1689A4bA7705Bf0550 




GitHub

Project address at GitHub:
https://github.com/orgs/Spice-King-EU/projects
 
 




PayPal address:
info@spiceking.eu
 
 


Spice King ® - Entirely natural spices and authentic blends since 2011. Creative and delicious healthy eating without borders!

E-shop address:
https://www.spiceking.eu
 
SpicePaper (Whitepaper draft) address:

https://spiceking.eu/whitepaper