British coffee brand Halo has launched a £1.6 million equity fundraising campaign ahead of its global launch in the compostable coffee capsule sector.
The company was founded this February and has designed a compostable capsule which biodegrades in 90 days and can be thrown in the home compost bin.
Halo claims that 39,000 aluminium and plastic capsules go to landfill sites every minute globally, with 20 billion being produced each year. The company’s capsules are filled with a range of fresh coffees and are compatible with home Nespresso machines.
It is now seeking to raise £1.6m to ‘aggressively grow’ the business and is fundraising through private investor platform Growthdeck.
Founders Richard Hardwick and David Foster have experience of the premium coffee industry, sitting on the British Coffee Association Sustainability Committee.
Hardwick said: “We’re offering the market a product that doesn’t currently exist: the best coffees in the world, in a way that’s best for the world; a fully compostable coffee capsule filled with the finest, rarest and most desirable coffees.”
In 2015, Italian coffee company Lavazza and chemistry research group Novamont released compostable and biodegradable Italian espresso capsules which could also be composted.
And last year The Ethical Coffee Company launched capsules which are fully compatible with Nespresso coffee machines and manufactured from plant fibres. The brand claimed the capsules decompose within six months.
Head of investment at Growthdeck Gary Robins said: “The coffee capsule market is worth nearly £200 million in the UK alone, with the global market worth over £10 billion. Recent figures show capsule sales will soon overtake standard roast and ground coffee after an increase of 29.5% over the last 12 months.”
The Halo product range retails from £1 to £10 per capsule – the top end being for the Kopi Luwak from Indonesia, available in capsule format for the first time.
The brand has also developed Halo Pro, a larger compostable capsule and handle for professional espresso machines.
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