Paradiset, Sweden’s healthiest food chain, was hit hard by the Corona pandemic through a crashed financing and went bankrupt earlier this year. The brand is now resurrected through the initiative “Paradiset2.0” and creates a membership club for sustainable and healthy food online at Sweden’s best prices. At the same time, it will be the latest company to be admitted to the accelerator Sting.
Paradise was established in 2015 with the goal of improving the way we shop for food in Sweden and increase knowledge and respect for raw ingredient, producer and planet. The concept has attracted considerable attention and has won several awards such as Retail Concept of the Year and Sustainable Priority of the Year.
At the end of March, the Corona pandemic led to a planned financing being canceled at short notice and the business went bankrupt. However, founder Johannes Cullberg managed to buy back the Paradiset brand from the bankruptcy estate.
− I have used the time after the bankruptcy to learn from my mistakes but also see what was really good and that we can use in the future. Due to Corona, the conditions in the grocery market have changed drastically and consumers have learned to buy food online. At the same time, the importance of taking care of one’s health and our planet has been recognized. It creates exciting opportunities for Paradiset, says Johannes Cullberg, founder and CEO.
The business model is based on a member-based online store for healthy and sustainable products that are purchased directly from local and international producers and sold directly to end customers. By removing all intermediaries, one can offer Sweden’s best prices, the single most important factor in getting more people to choose sustainable foods.
− We did a survey via social media and in 24 hours received answers from over 1500 people where 87% said they would like to become members and be able to buy from Paradiset’s online store. It was an absolutely fantastic response that really strengthened us to invest further, says Johannes Cullberg.
In June, Paradise was accepted by the accelerator Sting, which enables a startup investment of SEK 400,000 from Propel Capital, the investment company linked to Sting, and direct access to the approximately 40 business angels behind Propel. In addition, the entrepreneurs receive individual and tailor-made coaching in business development, financing and recruitment, and access to Sting’s broad international network of investors. Each year, about 500 startups apply and the 25-30 most promising companies are selected.
− Paradiset’s business model feels very right at the time and have a strong brand and a strong team in place, which is why we chose to admit the company, says Peo Nilsson, business coach at Sting.
Work has begun on building the future food market and the ambition is to launch at the turn of the year. Anyone who wants to become a member can register on Paradiset’s website paradiset.com.
Paradiset was established in 2015 and with four stores became Sweden’s most healthy food chain with only natural and organic products.