It's that time of the year that you have been waiting for.
You can finally leave the crowded cities and take a deserved summer holiday. And this year like no other, where many of us were forced into our homes for a few months, we are finally ready to travel off to enjoy the summer sun.
Whether you are travelling close by or far away, some of these essentials will always accompany you along the way. I am talking about fresh drinks, our favourite dairy products and a lot of water. That’s why for this month we have created a new product that will allow you to invest in some of the most desired food and beverage brands in the world. We have selected Coca-Cola, Danone and Nestlé, three of the largest and most known brands in the world that have thousands of products in their portfolio.
- You may be sipping a fresh Coke or adding Schweppes to make your favourite Gin Tonic,
- You may be starting your day with Actimel and fresh Evian,
- You may be satisfying your cravings with choc choc chip Haagen Dazs ice cream or taking a break with Kit-Kat.
Each time you enjoy one of these products remember that there are over 2 billion other people around the world that are also enjoying a drink or snack every day. This puts into perspective how big these companies are and how many people are enjoying them all the time. This is why Coca-Cola Company, Danone and Nestlé are worth nearly 570 billion dollars combined.
But other than enjoying snacking, you can also think about your financial future with the new Capital Protected Product and these are 3 reasons why:
- Like comfort snacks it always brings a smile to your face 😄
By investing in Snack Time, at 5 years maturity you will receive your full initial investment no matter what happens in the market.
2. The cherry on top 🍰
Like Take Care, Snack Time will provide a certain return of 5% on top of your initial capital at the end of the 5 years. This means that for example, by investing €10,000, you will get a minimum of €10,500 at the end of the 5 years maturity.
3. Flexibility and Freedom 🥤
Even though it is thought of as a longer term product, Snack Time will give you the opportunity to disinvest at any time after the first 100 days. You can invest as little as 100€ and top up until the 2nd of September when the subscription period will close.
What is the potential payout?
Capital Protected products are a way to see your money grow without the risk of losing the initial capital invested. If you compare the potential performance of Take Care to our Fixed Rate product assuming you invest in it for 5 years you can think of your potential return as per the KIIDs positive scenario as follows.
Why did we select food and beverage now?
During lockdown, you might expect that major food and beverage brands outperformed the market, but given the strict closing of restaurants and bars and generally convenience stores, and people staying outside less, actually some of these categories suffered from decreasing sales in the away-from-home channels. This was not enough to be sustained in at-home channels, especially considering that the global reach of many of these companies was impacted by countries closing borders.
We believe that as lockdown measures loosen and the summer kicks, these companies will see a natural growth following the slow quarters of Q2 2020. This is obviously not certain but we want to give our users the opportunity to invest in an industry with strong global presence, huge brand value and a very fast reactive management of their companies to face global challenges. Coca-Cola has over 500 sparkling and still drink brands with nearly 3,900 beverage choices whilst Nestlé sells over 10,000 products. Growth through innovation or acquisition in these companies is never shy.
The stay at home and remote working trends can be a strong catalyst to grow customers in the at-home channels and even though many of the products are not essential, clearly customers cannot live without them. Be part of an industry that accompanies your day and choose a sweet investment with Snack Time.
The product is intended to be offered to retail investors who fulfill all of the criteria: they are sophisticated and experienced in trading complex securities; they are looking for an investment opportunity that reflects an expectation that the underlyings will increase in value over time; they are looking for an investment opportunity that guarantees the capital and a premium at maturity; and they have a medium-term investment horizon.
Oval does not offer investment advice. If you are not sure that the product we offer is suitable for you, contact a financial advisor. Product information documents are available in the app.