Monday, 1 June 2015
What has happned to Righteous and Cauli Rice?
Righteous make salad dressings. They have raised money on Crowdcube at least twice, the first time in 2012. The same founder has also recently raised £500k on Crowdcube for her latest venture Cauli-Rice.
Righteous was a very popular pitch on Crowdcube. The product was already listed by major chains in the UK and the company had orders from the US and Canada. Projections used to sell the equity showed 2014 sales of £1.15m. Actual sales for Righteous for 2014 are reported (by the company) to be £350k. Yet the company website has almost 300 UK stockists, around another 100 in the US and most of the major UK supermarket on line market. That clearly means that the stockists are not really selling very much of the product. Overseas 'contracts' have failed to materialise or been cancelled.
On the back of this 'success', they decided to launch Cauli Rice. A first apparently, although Cauliflower rice has been around for quite a while - just not in a packet. The company had had success on Crowdcube, so came here to raise £300k at the end of 2014. It ended up raising £500k valuing the company at well over £1m. Not bad for a company pre sales with a track record of non delivery on its promised turnover. Especially when you consider the ease with which you can rustle up fresh cauli rice with your very own favourite flavourings.
Cauli Rice projects turnover in 2015 of 1.4m. As of today the product is not listed anywhere apart from the UK Cauli Rice website, which seems to be under development. It just seems a little unlikely to us. Both products have their place and are popular within their limits. Forcing unrealistic sales figures out of them will only end in tears. Righteous shareholders know this only too well.