Berlin/Los Angeles, 17 February 2021. For the first time, Social Chain AG (WKN: A1YC99) is acquiring a US Direct-to-Consumer brand. The Social Commerce company has 51 percent of the shares in Coral LLC through an investment company it controls. Coral specialises in oral hygiene products and nutritional supplements made from all-natural ingredients. The calcium used comes from overseas coral concentrates, which are extracted in an EcoSafe-certified way. The products are almost exclusively sold directly to end customers via the company's own online shops such as coralcalcium.com and other digital points of sale. The acquisition of Coral LLC strengthens the position of Social Chain AG's Social Commerce vertical "Beauty & Healthcare" and accelerates its overall growth in the American market. Coral LLC operates a logistics centre with over 27,000 square metres of floorspace at the company's headquarters in Carson City, Nevada, which will also be used by other Social Chain AG brands in the future.
After the acquisition of Coral LLC, Social Chain AG will be able to increase its total revenue in the US business from USD 53 million in 2020 to around USD 100 million in 2021. So far, Social Chain AG has been operating in the US primarily through its own social media communities as well as through creative and tech services for social media marketing. Social Chain AG's social media communities currently count around 41 million followers in the US. This corresponds to almost half of the company's total of 86 million followers. The American subsidiary Social Chain Agency serves top clients such as TikTok, Zalando US und Amazon in New York and Los Angeles. The company A4D based in San Diego, California, which was acquired by Social Chain AG last year, is a US-wide specialist for digital performance marketing.
Wanja S. Oberhof, CEO of Social Chain AG: "The acquisition of Coral is the next logical step in our US strategy. With our own communities and strong social media marketing resources, we have created a scalable base for our Social Commerce activities in the US. With Coral, we are adding a large logistics centre which enables a complete marketing and supply chain for our Social Commerce brands." In 2021, Social Chain AG will also start marketing its own Social Commerce brands in the US. Lumaland, Urbanara and KoRo, for example, will be establishing marketing and sales in the US. In addition, Social Chain AG plans to acquire further Direct-to-Consumer brands in the US this year. Oberhof: "We are currently in promising negotiations. The US, with its particularly social media and e-commerce-savvy population, will be the most important market for us in the medium term."
Jake Wand, Founder & CEO: "I am thrilled to be working with Social Chain AG as a leading partner in the field of Social Commerce. Coral is a perfect fit for the product portfolio of Social Chain's Beauty vertical. I am convinced that Coral and other of Social Chain‘s Direct-to-Consumer brands will continue to expand into the American and European market."
Social Chain AG‘s activities and subsidiaries in the US:
The following companies and brands are currently part of Social Chain AG’s US business:
A4D Inc. (100% 2)
Specialist for digital Performance Marketing.
Company headquarters: San Diego
Revenue target 2021: 55m USD
Coral LLC (51%1)
Supplier of oral hygiene products and nutritional supplements with natural
ingredients based on EcoSafe certified extracted coral concentrate.
Company headquarters: Los Angeles/Carson City
Revenue target 2021: 15m USD
Social Chain Agency US (100%)
Social Media Marketing for top clients like TikTok, Zalando US and Amazon.
Company headquarters: New York/Los Angeles
Revenue target 2021: 10m USD
Further Direct-to-Consumer brands of Social Chain AG in the US
US market entry is planned for Lumaland Inc. (shareholding: 100%) the US market entry of further brands such as Urbanara (100%) and KoRo (57%) planned for 2021.
Revenue target US 2021: 20m USD
1 Via an investment company controlled by Social Chain AG
2 Voting rights
The Social Chain AG: Social Commerce on a global scale
Social Chain AG is reshaping the world of brands and commerce. Our strategy and our actions are "Digital first – direct to customer": from branding to marketing to direct sales of our products in the categories Food, Home & Living, Beauty, and Fitness. Our online shops are the most efficient points of sale for our Direct-to-Consumer brands. More than 70 percent of Direct-to-Consumer sales are performed by our owned and operated online shops. Our communities, with over 86 million followers worldwide, inspire our customers and amplify our brand messages. We manage the expansion of our Social Commerce system of communities, brands, digital points of sale and logistics via our integrated proprietary technology platform: LINKS which analyses interests, purchase intentions and product satisfaction along the entire digital customer journey.
The Social Chain AG‘s headquarters are in Berlin, with additional locations in Munich, London, Manchester, New York, San Diego and Los Angeles. The company employs a total of around 720 people. The Social Chain AG shares are traded on XETRA and several German stock exchanges.
The content of this press release is for information purposes only and does not constitute investment advice or other recommendations pursuant to the German Securities Trading Act by The Social Chain AG or its affiliated companies. The information provided cannot replace investment advice. The information contained in this press release is not to be construed as an assurance of possible price developments and should not be construed as a request to enter into a transaction. The information contained herein does not constitute an offer to sell or the solicitation of an offer to sell securities or rights, or a solicitation to trade in securities or rights. Accordingly, The Social Chain AG and its affiliates make no representations or commitments as to the accuracy, completeness or correctness of the information or opinions contained herein. We assume no liability for direct or indirect damages caused by and/or in connection with the distribution and/or use of this document. The statements correspond to the status at the time of the preparation of this document. They may become obsolete due to future developments without the document being changed.