# Kitu Life Financial Model Super Coffee (brand of Kitu Life) is a better-for-you RTD coffee brand - 0g sugar, 10g protein, 200mg caffeine - distributed nationally through Anheuser-Busch DSD and major retailers. - Canonical: https://finamodel.com/startups/kitu-life - Excel download: https://finamodel.com/startup-models/kitu-life.xlsx - Category: Consumer/DTC - Model type: Unit-economics / DTC - Funding round: Series C - Funding: $400k - Founded: 2019 - Geography: United States (national); international expansion explicitly excluded from projections [DECK, slide 21]. - Customer: B2C ## About the company Kitu Life's Super Coffee is a better-for-you ready-to-drink coffee brand with zero sugar, 10 grams of protein, and 200 milligrams of caffeine. Its range also includes creamers, espresso shots, multi-serve products, and pods or grounds. The company sells nationally through retail, e-commerce, and direct-store-delivery distribution, including Anheuser-Busch and major retailers. It was raising $50 million in a Series C, with distribution expansion, shelf velocity, and gross-to-net economics more important than subscription-style metrics. The model builds beverage revenue by channel from retail doors, velocity, SKU mix, wholesale price, and DTC orders. Trade spend, distributor margin, COGS, marketing, inventory, and working capital flow through to EBITDA and cash requirements. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Core product: RTD bottled coffee (12 oz), positioned as "0g added sugar, 10g protein, 80 cal, 200mg caffeine" - replaces coffee + energy drink. - Product portfolio (with launch years): - Super Coffee 12oz (2016) - Super Creamer 25.4oz (2018) - Super Coffee Multi-Serve 32oz (2019) - Super Espresso 6oz (2019) - Super Coffee Pods 10ct (2020) - Super Coffee Plant-Based 11oz (2020) - Super Coffee Grounds 10oz (2021) - Price point: $0.27/oz for Super Coffee RTD (among highest in category); competes with La Colombe at $0.29/oz and above Starbucks/Dunkin at $0.21/oz. - Positioning: "MAYA" framework - most advanced yet acceptable; mass-market healthy energy, not niche wellness. - Distribution: 5 sections of grocery store (Dairy, Beverages, Tea/Coffee, Deli, Café). ## Market - Combined addressable market (coffee + functional + energy): $45B - Coffee: $17B, +6% CAGR - Functional: $14B, +4% CAGR - Energy: $14B, +7% CAGR - Bottled coffee category CAGR: 6.5% - Target audience: "Healthy Hustlers" (18–64, active/wellness-oriented) - US Adults 18–64: 194.1M - Broad Healthy Hustlers: 40.5M (21% of US adults 18–64) - Core Healthy Hustlers: 17.4M (9% of US adults 18–64) - Current penetration: 2.3M customers (1.4% of US adults 18–64) - Customer growth targets: 3MM (2021) → 4.5MM (2022) → 6.5MM (2023) → 10MM (2024) - No formal SAM/SOM breakdown provided; deck frames audience penetration as proxy for SOM. ## Revenue model - Product revenue only - no subscription tier shown for retail; DTC has subscription component on Shopify. - Channels and 2021E mix: - Grocery: 60% of RTD volume - Mass: 8% - DTC (Shopify): 11% - Amazon: 7% - C-Store: 4% - Natural: 4% - Drug: 3% - Club: 2% - Dollar: 1% - Ecom = ~20% of total revenue; of online sales: 65% from drinksupercoffee.com (Shopify), 35% from Amazon. - Shopify DTC split (2021E): $5M subscription + $6M one-time + $7M Amazon = $18M total ecom. - Retail distribution: 35,000 accounts (2021); AB DSD network covers 350,000 potential accounts. - Pricing (per oz) vs. competitors: $0.27 RTD, premium to mass-market ($0.10–$0.16) and at parity/slight discount to La Colombe ($0.29). - Valuation anchor: 7x multiple on $65M TTM net sales. Implies net sales ≈ gross sales less trade/discounts. ## Traction & metrics - Gross sales history: - 2017: $0.7M - 2018: $4.0M - 2019: $26M - 2020: $56M - 2021 Budget: $93M - 5-year CAGR (2018–2021E): 167% - TTM net sales (at time of raise): $65M - Gross sales projections: - 2021: $93M - 2022: $160M (EBITDA positive) - 2023: $250M - 2024: $385M - EBITDA %: negative through 2021; turns positive at $160M sales in 2022; chart shows it approaching ~20–25% range by 2024. - Customer loyalty: 62% loyalty rate, #1 among independent RTD brands; 40% repurchase rate maintained through pandemic. - Household penetration: 0.8% (2019) → 1.4% (2020). - Dollars on deal (promo): 44% (2019) → 27% (2020), now equal to Starbucks/La Colombe. - New customers added in 2020: more than any other coffee brand; Dunkin RTD lost 1.4M, High Brew lost 3.9M. - Ecom revenue: $1M (2018) → $4M (2019) → $11M (2020) → $18M (2021E). - Shopify conversion rate: 4.9% vs. 2.1% F&B industry average. - Distribution growth: +108 TDPs (trailing 12 weeks, leading all RTD brands). - Near-term identified sales opportunity: $50.6M from expanding existing SKUs across 10 key retail accounts. - Stop & Shop retailer spotlight: TDPs +96% YoY, $ sales +121% YoY. - Target: TDPs +71%, $ sales +176%. - Albertsons: TDPs +94%, $ sales +181%. - Current avg RTD SKUs per store: 11.6. - Total US MULO ACV: 51.5%, 245 TDPs. - AB DSD partnership: exclusive coffee partner, access to 350,000 accounts and 10,000 employees. ## Unit economics - Gross margin: Not explicitly stated. EBITDA % line shown in charts is deeply negative pre-2022 (appears in the -60% to -100% range in early years, improving to ~-20% by 2020, and trending to positive by 2022). - No gross margin figure disclosed. - No CAC or LTV stated. - Promo/trade spend declining: from 44% of dollars on deal (2019) to 27% (2020) - structural margin improvement signal. - Price premium (~$0.27/oz) vs. competitors provides positive gross margin headroom. - DTC conversion rate 4.9% (above industry avg 2.1%) suggests efficient digital funnel. - Advertising reach in 2020: 30M impressions; 80% targeted at 25–54 age group. ## Competition / moat - Competitors referenced: Starbucks RTD (#1 overall by loyalty at 76%), Monster (#2 at 72%), Dunkin RTD, La Colombe, Private Label, Forto. - Super Coffee is #3 overall in loyalty (62%) and #1 among independent brands. - Competitive differentiation: - Health credentials: 0g sugar, 10g protein, 80 cal, 200mg caffeine, nothing artificial. - Distribution moat: exclusive AB DSD partnership (largest US beer DSD network). - Category creation: stealing share from energy ($14B) and functional ($14B) adjacent categories simultaneously - cited as "#1 threat" in Mintel 2020 Energy Drink Report. - Shelf space gain: category managers reducing Dunkin (-449 TDPs) and Starbucks shelf space in favour of Super Coffee. - Net new customer addition: 71% of Pod sales and 77% of Creamer sales at a national grocery retailer were net new/expanded customers. - Strategic investors noted: S2G Ventures, Jõ Capital, Z Ventures, RX3. ## Team & funding ask / use of funds - Co-founders: Jimmy, Jake & Jordan DeCicco (CEO, CRO, COO respectively). - CFO: Rosanna Godden. - CMO: Tori Hanna. - Other VPs: Ben Knox (SVP Digital), Lauren Davidson (VP National Accounts), Jacquelyn Jeanes (VP Operations), Carl Ekman (VP Insights), Jennifer Marshall (VP Finance), Greg Lorenzo (SVP Strategy). - Prior experience backgrounds: Kroger, Amazon, Whole Foods, Red Bull, Spotify, Goldfish/Campbell's, Under Armour, Nestlé Waters, Soylent. - Raise: $50M Series C, targeting August 2021 close. - Pre-money valuation: $450M. - Valuation basis: 7x multiple on $65M TTM net sales. - Use of funds: Not explicitly broken out. Growth plan references investment in mass/club/C-store distribution expansion and a summer 2021 marketing campaign (social, digital, PR, experiential, retail sampling, partnerships). ## Recommended financial model - **Archetype + why:** DTC/CPG multi-channel revenue P&L with gross-to-net bridge. Super Coffee is a high-growth CPG brand with identifiable revenue by channel (retail, ecom/DTC, Amazon), a clear gross sales → net sales → gross margin → EBITDA structure, and distribution-driven growth as the primary lever. Not SaaS, not marketplace. The right model is a channel-segmented P&L with distribution build-out as the core growth driver - similar to a beverage/food brand model (think COGS, trade spend/promo, gross profit, brand marketing, SG&A, EBITDA). A light 3-statement is warranted given the raise size and EBITDA path. - **Forecast horizon & granularity:** 2021–2024 annual (matching deck projections), with monthly/quarterly optionality for 2021–2022 to track EBITDA inflection. Actuals available 2017–2020 for history tab. - **Key drivers & assumptions:** - Gross sales by year: $93M / $160M / $250M / $385M (2021–2024) - Gross-to-net discount rate (trade spend / promos): ~27% of gross in 2020; declining trend → model at 20–22% by 2024 as brand matures and AB DSD reduces reliance on deals - Channel mix - Grocery: 60% → declining to 45% by 2024 as Mass/Club/C-Store scale per deck narrative - Channel mix - Mass: 8% → growing to 15% by 2024 (Walmart/Target SKU expansion) - Channel mix - C-Store: 4% → growing to 10% by 2024 (pilot with Casey's/Pilot Flying J cited) - Channel mix - Club: 2% → growing to 8% (Sam's Club/BJ's cited as whitespace) - Channel mix - DTC (Shopify + Amazon): 18% → stable at ~18–20%; DTC growing in absolute terms ($18M → ~$70M by 2024) but share diluted by retail scale - DTC subscription share: ~28% of ecom in 2021E ($5M/$18M); growing to 35% as brand invests in subscription program - Shopify conversion rate: 4.9%; stable at 4.5–5% - Customer growth: 3M → 4.5M → 6.5M → 10M (2021–2024) - Loyalty / repurchase rate: 62% loyalty, 40% repurchase; stable - Distribution (TDPs): 245 TDPs US MULO today; target 400+ TDPs by 2024 to reach Dunkin/Monster parity (per deck whitespace slide 22) - Identified near-term retail sales opportunity: $50.6M from 10 accounts at current SKU expansion - EBITDA: Negative through 2021; positive in 2022 at $160M gross sales; EBITDA margin reaches ~8% in 2022, ~15% in 2023, ~22% in 2024 (consistent with maturing CPG brand, marketing leverage, fixed cost absorption) - Brand/marketing spend: ~25–30% of net sales in 2021 (pre-EBITDA positivity investment phase), declining to ~15% by 2024 - AB DSD distribution cost: embedded in COGS/trade; no separate line disclosed - Headcount/SG&A: grows with revenue but slower - fixed cost leverage is key path to EBITDA positivity - **Scenarios (Base / Bull / Bear - which variables flex):** - Base: Deck projections ($93M → $385M gross sales), EBITDA positive 2022, channel mix shifts as planned - Bull: AB DSD accelerates to 80K+ accounts in 2022; Mass/Club break faster; international upside (explicitly excluded from base) kicks in post-2024 - Bear: Retail velocity slows (competitors regain shelf), trade spend stays elevated (>30%), DTC plateaus; gross sales reach $160M by 2023 (1-year lag), EBITDA breakeven pushed to 2023 - **Required sheets / outputs:** 1. Assumptions / inputs tab (all drivers in one place) 2. Historical P&L (2017–2020 actuals) 3. Revenue build by channel (Grocery / Mass / Club / C-Store / DTC-Shopify-sub / DTC-Shopify-onetime / Amazon / Drug / Dollar / Natural) 4. Gross-to-net bridge (gross sales → trade/promos → net sales) 5. P&L: Net sales → COGS → Gross profit → Brand/marketing → SG&A → EBITDA (2021–2024) 6. Distribution build (TDP expansion by retailer, mapping to sales opportunity) 7. Customer funnel (customers, penetration %, repurchase rate, implied revenue per customer check) 8. Ecom detail (Shopify one-time, Shopify subscription, Amazon - monthly in 2021–2022) 9. Valuation bridge (TTM net sales × EV/Sales multiple → implied equity value vs. $450M pre-money) 10. Scenario toggle (Base / Bull / Bear) driving gross sales and margin assumptions 11. Dashboard: gross sales waterfall 2017–2024, channel mix donut, EBITDA bridge ## Frequently asked questions ### Is the Kitu Life financial model free? Yes. The Kitu Life model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.