2014 - Avogado industry anaylsis in Peru.

1. By Swiss Corpoarte Advisors SAC
Creating the first
exclusive Eco – cosmetic
brand in Perù !
April 2014

2. Important: Disclaimer and Confidentiality Statement
This information memorandum (hereafter "Memorandum") is based on information received from the Board of FAMILY (hereafter the "Board") and
from other sources believed to be reliable, which has not been independently verified by Swiss Corporate Advisors SAC (hereafter “SCA"). This
Memorandum has been prepared by SCA along with and on behalf of the Board, legal representative of FAMILY (hereafter the “Company") for the
purpose of providing interested parties with general information to assist them in their evaluation of the Company’s project of development
(hereafter the “Project"). This Memorandum is for information purposes only and does not constitute, and shall not be interpreted as being, an offer
for sale or the basis of a contract. Only those representations and warranties made in a definitive, written financing agreement, and subject to such
limitations and restrictions as may be specified therein, shall have any legal effect.
By accepting this Memorandum the recipient agrees to keep permanently confidential all information contained herein, as well as any other
subsequent written or oral communication transmitted or otherwise made available to a prospective investor/lender. This Memorandum may only be
made available to the recipient's members of staff or their professional advisors directly involved in its appraisal. Neither the Memorandum, nor the
information which is subsequently furnished, shall be duplicated or made available under any circumstances to any other party without the prior
written approval of SCA. The paragraphs herein stipulated in Disclaimer and Confidentiality Statement shall be treated as being in addition to, and not
replacing, the terms of the Non-Disclosure Agreement (NDA) which was signed by the recipient prior to receipt of this Memorandum.
This Memorandum has been completed in good faith. However, neither SCA nor the Board accepts any responsibility for the information contained in
this Memorandum or in regard to the assets and business to be financed, or for any omission, and shall not be liable for any loss or damage arising as a
result of reliance on this Memorandum. Any prospective investor must make his own investigations as to the accuracy and completeness of this
information, and may rely solely on any express representations, warranties and undertakings included only in any final financing agreement entered
into.
The Board reserves the right to negotiate with one or more prospective investors/lenders at any time and enter into definitive agreement for the
financing of the Company and or related assets without prior notice to the recipient or other prospective investors. Further, they reserve the right not
to finance the Company and or related assets and to terminate at any time further participation in the investigation and proposal process by any party
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In supplying this Memorandum, neither SCA nor the Board commits to subsequently supplying the recipient with additional information. Nothing
contained in the Memorandum is, or shall be considered as, a promise or representation as to the past or the future performance of the Company, nor
shall be considered as an indication that there have not been changes in respect of the business or assets of the Company subsequent to the date of
preparation of this Memorandum.
SCA has been exclusively retained by the Board as its financial advisor for this transaction and does not consider any other person or entity (whether
they have received this Memorandum or not) as its client in relation to this transaction. We suggest that any prospective investor interested in the
Company retains its own financial advisors in this regard. SCA acts as agent for the Board, and shall incur no personal liability under any contract which
may be entered into with the purchaser.
This numbered copy of the Memorandumremains the propertyof SCA and must be returned upon termination of the recipient's appraisal process.
April 2014

3. Executive Summary
1. Avocado Sector in Perù: Perù produced only 4% of the World Avocado fruit output in 2012. It
expects to become the world # 2 production country of avocado fruits, with >190 tons within 3 years.
Therefore, Perù mostly export fruits and no by-products, because of absence of transformation
sectors, lack of technology & skills. Emergence of a manufacturing player will start the development
of the sector and create a new dynamism within the super-fruits by-products manufacturing industry.
2. The Company: It is a Peruvian family company which purchases, conditions raw materials,
manufactures semi and finished products and commercialises avocado fruits & lucùma powder to
national clients. Fortunately, the Company is a fully integrated manufacturer, from grower to
avocado fruits exports. It will create new manufacture to transform avocado fruits into finished
avocado based cosmetic by-products and will develop manufacturing processing capacities in
Huanta, the central region of Perù…
3. Market opportunity: World personal luxury goods industry, in particular cosmetics enjoyed
strong growth and this trend is expected to continue up to 2020. The luxury cosmetic industry worth
42 billion, in 2012. France and USA are the leader in manufacturing luxury cosmetics and owns the
major Groups and brands. Avocado oil is perceived as an excellent material for Eco-luxury
cosmetics. Only few Luxury brands are sourcing avocado nutriments directly from the local farmers.
4. Company development project: The Company is one of the few manufacturers of avocado
by-products who will be fully integrated and ideally located to organize the production sector and
develop new manufacturing know-hows and skills. With enhancement of avocado fruits quality, it
shall become a “Supplier of Choice” of Eco-luxury cosmetic brands. This initial development project
request a financing of USD 800’000, for interested partners, in order to benefit of a reliable high
quality “Supplier of Choice”. Partnerships, Joint-Ventures and strategic alliances are welcome…
April 2014

4. 1. World avocados production
1.1 World production of Avocados
The world production of Avocado fruits have reached 2’300’000 tons in 2012. Perù is the 4th leading
avocados producer. It represents 4% of the world output. Perù produced very high quality avocado
fruits (>90% of unsaturated fatty acids, instead of 80% average).
8%
Chile 10%
Mexico
48%
Perù 4%
USA 8% Israel 3%
S-Africa 3%
Spain 3%
Rest of
World 15%
Asia 7%
Exports of Peruvian avocados increased by 28% over 7
years, and tends to continue growing even faster. Perù
expect to become the World 2nd exporter by 2017.
April 2014

5. 1. Peruvian avocados sector
1.1 Avocado supply-chain & market size
Peruvian avocado sector is structured in two major parts: The avocado fruits (Production of raw
material) and the transformed avocado products (Manufacturers I & II, known as “by-products”).
Production of avocado fruits represents an equivalent of 81% of all Peruvian avocado products
exported in 2013. The manufacturing sector is not well developed.
184 mio Market size230 mio 345 mio 485 mio
Avocado
Perù
Source: SCA
April 2014

6. 1. Peruvian avocados sector
1.2 Avocado fruits production / exports
There are approx. 10’000 independent farmers and 85 companies in Peru who produces 130’000
tonnes of avocado fruits in 2013, cultivated on 14’600 Ha of land. These companies are exporting
directly and selling the raw fruits at USD 1,3/kilo “en chacra” to international food importers. Often
with less than 1 hectare, farmers earn < USD 350 monthly. Top 5 companies of producers
concentrates 50% of the market. Avocado fruits represent a market size of USD 184 million in 2013.
For conditioning purpose, avocado fruits are harvested, cleaned and calibrated. There are 2 major
variety of avocados (Haas and Fuerte) in Perù. The Haas worth USD 1,25/kg and the Fuerte USD
1,5/kg. Depending on the regions, 1 Ha produces 8,9 tons of fruits/year. 9% of the production is
unsold for aesthetic reasons and is dedicated to by-products! Conditioned avocado fruits represents
a market size of USD 194 million. Peru exports 81% of avocado fruits.
1.3 Avocado oil and by-products manufacture I & II
There are several specialized manufacturers of avocado oil in Perù. The five majors avocado oil
manufacturers are concentrating 65% of the sector. Most of them are located in Lima, Trujillo or
Huaras, the main production areas of avocado in Perù. Price of 1 liter of pure avocado oil reaches
up to USD 17,25 (10kg of fruits produces 1liter of oil). So, Avocado oil market size represents USD
230 million. Peru exports only 13% of avocado oil and other by-products with oil.
There are no specialized cosmetic manufacturer of avocado base products in Perù. Related
avocado based cosmetics products shall represent a potential market size of USD 345 million. Peru
only exports 5,3% of avocado oil as cosmetic, an estimated 0,3% of avocado other cosmetic by-
products and 0,2% of branded cosmetics with avocado oil content. Peru has one major cosmetic
group Belcorp, therefore it is not relevant in Peruvian avocado exports and luxury cosmetic industry.
April 2014

7. 1. Avocados of Huanta
1.4 Production in Huanta, Perù
In the Ayacucho department, the Huanta province is one of the major producer of very high quality
avocados in Perù. It benefits from a perfect location in the center of the country (between Lima, Ica,
Arequipa), has a close airport and concentrates various micro-climates such as “Alta Amazona” a
tropical region and the “Cordillera oriental” in the Andean mountains. Its many different micro-
climates offer exceptional so called “super-fruits” and “super-vegetables” to grow all year.
Temperature remains between 15 to 25 degrees, with an average of 17 degree. Fields are supplied
by Andean spring sources, and Apurimac and Mantero rivers, all year long. Huanta region benefits
in its agriculture sector from World-class assets:
■ Exceptional and well diversified raw materials (super-fruits and super-vegetables) available
in the Huanta region, because of its various climates (tropical and mountains).
■ Perfect location in the center of Peru, with direct roads to Lima, Arequipa and Ica, and its
close Airport located in Ayacucho at 40 minutes drive from Huanta (with daily flights to Lima).
■ Available labour forces in the region, with young local population of hard workers. Huanta
has strong farmer activity, significant history and expertise in growing fruits and vegetables.
■ Existing of craftsmanship and deep expertise in producing high quality ceramic and
precious wood products. Huanta has long agriculture tradition a many experienced craftsmen
in its region.
■ Rare possibility to grow, source, supply quality and highly diversified raw materials in order
to process finished (by-)products 100% In-House, at the same location, in the Huanta region,
Perù.
April 2014

8. 1. Peruvian avocados sector
1.5 Production opportunity statement
Unfortunately, the Peruvian avocado fruits sector remains ineffective in production (atomized),
underdeveloped in manufacturing by-products and suffers from a lack of know-how (technology)
and skills (qualified professionals) to boost the international markets and the Peruvian exports.
■ Lack of investments in industrial production infrastructures for farmers and local fruits
producers to increase capacity and enhance long term quality of super-fruits and vegetables.
■ Ineffective and costly organisation system of raw fruits harvest and collection between
family producers and major avocado manufacturers/exporters (intermediates), where prices
increase sharply without providing any added-value to the product.
■ Lack of competition for avocado by-product manufacturing and bottle-necks for specialized
Avocado exporters to support substantial R&D activities and offer constant high quality fruits,
oils and innovative by-products in volume to the national and international customers.
■ Absence of manufacturing capacity of avocado fruits to provide serious supply alternatives
of complex by-products and offer significant avocado by-products diversification (oil,
cosmetics,...) to national and international customers.
The is an opportunity for a new strong manufacturer of
avocado fruits and related-oil products in Perù
April 2014

9. 2. Company profile
2.1 The selected Company
It is a Peruvian registered company, with offices in Huanta, province of Ayacucho in Perù. The
company is active for over 25 years in avocados and lúcuma fruits production. It grows, harvests,
processes, conditions and commercialized avocado fruits and lúcuma powder for the national
market. It is a family-owned company which has its manufacturing facility in the city of Huanta. The
two brothers – both hold an MBA in Economics for the Pacifico University in Lima - are managing
the company and benefit from a significant expertise and a wide experience in this field.
The Company owns its own avocados fields in Huanta surroundings, where it grows, its harvests
avocados fruits, lúcuma fruits and also collect wild Honey. It purchases additional avocado
production to local partners (Huanta community) and support them in enhancing their productivity
and to optimize their natural resources (water).
Presently the Company has its own lúcuma powder manufacture and avocados fruits warehouse.
The manufacture employs 10 local workers and owns an additional infrastructure to build a new
avocado oil facility, near the Company’s office. It presently produces between 1’000 tons of avocado
fruits and 120 tons of lúcuma powder, yearly.
The Company commercializes two variety of avocados, the main variety in volume is “Haas” and
the other is “Fuerte”. It commercialized its products mainly to national food & beverage companies
in Perù (ice creams, juices, cakes, …) and also to few international chains of food retailers (US and
Europe). Unfortunately, a significant part of the avocado fruits production (approx. 9% or 90
tons/year !) doesn’t fulfil aesthetic criteria requested by such international clients.
April 2014

10. 2. Company profile
2.2 Infrastructure, know-how & local fruits
The Company is one of the major producer of avocado
fruits in the Ayacucho department, in Perù, with a fully
integrated infrastructure and production know-how, with
activities starting from growing avocado seeds to the
production of finished products of avocado oil, including
their commercialization.
It is one of the very few significant manufacturer of
avocado oil to be present in the center of Perù, with a
dedicated manufacturing facility (Huanta). It is also the
heart of the Andean region where its micro-climates
produce exquisite avocados and other local fruits.
Processing quality avocado oils and cosmetic products
request a specific know-how and represents significant
innovation opportunity for demanding international
customers.
It will developed advanced social responsibility
management programs for its own employees at the
manufacturing site, and for its partners representing the
local Andean community. Other programs, including fair
trade programs and natural resources management
(water & energy) are planed for future implementation.
Source: SCA
Perù
Avocado fields in Perù
April 2014

11. 2. Company profile
2.3 Company opportunity statement
The unique location of the Company manufacture in Huanta, at only 8 hours drive from Lima (via
Ica) offers the Company an exceptional opportunity of development. The central region of Perù -
with one of the healthiest micro-climates -, even more than the whole country suffers from:
■ Very limited investments in industrial production infrastructures for the Company to
increase capacity and to maintain quality of avocado fruits, in particular for avocado oil.
■ Absence of networking organisation between local suppliers of raw materials, family
avocado growers and the Company, where prices can be fixed in providing long term
production capacity (via agreements) from the Company to the local community.
■ Lack of avocado oil manufactures and total absence of specific cosmetics production
capacity in the central region of Perù.
■ Absence of manufacturing capacity of specific avocado oil and related cosmetics to
provide a differentiated supply and to offer innovative Eco-luxury cosmetics lines to
demanding national and international customers.
There is a unique opportunity for the Company
to develop an avocado oil and cosmetics manufacture
in the center of Perù, where there are no competitors.
April 2014

12. 3. Market opportunity
3.1 Organic avocado oil as Eco-luxury raw material
Organic is a restricted natural raw material. Few regions of the World which benefit from a
remarkable micro-climate have the possibility to produce exceptional Organic avocado oil:
■ LIMITED AVAILABILITY: Avocado oils, processed with very high quality fruits
have a restricted production capacity, due to the limited production in these
special regions with micro-climates, due to the sustainability standards of Organic
cultivation and due to the high rate of fruit transformation to obtain exceptional oil.
■ EXCELLENT HEALTH PROPERTIES & USER FRIENDLY: It has exceptional
health properties, recognized by the oldest human civilisations (Aztecs). It is easy
to apply on the skin, and does not suffer from many allergy warnings.
■ NATURAL & ORGANIC: High end eco-oil produced is
100% natural and organic. It is handcrafted in limited
volumes and preserves sustainability conditions. As
natural and organic products it is used internally (food) or
externally (cosmetics) to the human body.
■ GOOD TASTE, SMELL & IMAGE: Avocado oil has a
well appreciated taste and is easily recognized in Europe,
Americas and Asia. It is used daily in main meals around
the world and is perceived as a very healthy product for
human consumption.
April 2014

13. 3. Market opportunity
3.1 Organic avocado oil/soap in luxury communication
Avocado oil is a rich natural raw material, and benefits of exceptional qualities (vitamins A,B2,D, E
minerals and >80% of unsaturated fat. It is recognized to have exceptional skin and cells
regeneration characteristics within the cosmetic industry. It is natural and can be perceived, as:
■ ARTISANAL ECO -
PRODUCTION:
Could be an limited edition,
handcrafted, with natural colour,
without design and raw material
treatments. Rough texture
offering limited comfort. Pure,
natural, artisanal and organic…
Pure “modern BRANDING”.
■ SEMI-INDUSTRIAL ECO -
PRODUCTION:
Product rough (still 100%
organic, not refined) with natural
colours (?) but already with
luxury design and modified
texture for image and comfort
concerns. Still perceived as Eco-
Luxury with some treatments, as
“old LUXURY” style.
■ INDUSTRIAL LUXURY
PRODUCTION:
Product completely refined,
looks like natural but with luxury
design, modified texture and
refined raw material. Not
perceived as Eco-Luxury, but as
Luxury. Soft texture, adapted
design, artificial colour. It is
“LUXURY without souls”
April 2014

14. 3. Market opportunity
3.2 Luxury cosmetic oil alternatives
Avocado oil is one of the World most appropriate oil for luxury cosmetics, due to his health properties,
among others such as argan oil, olive oil and other oils.
Oils have unsaturated fat between
75% to 95%, and is healthier to
use for cosmetic purposes.
Luxury brands are offering
avocado oil products 30%
cheaper than olive oil.
Source: SCA
April 2014

15. 3. Market opportunity
3.2 Prestige avocado oil and potential oil alternatives
Avocado oil (Persea americana) with 80% - 85% of unsaturated fatty acids, is complementary to other
luxury oils within the industry, in particular with olive and argan oils, which has similar characteristics:
■ Oil of Sacha-Inchi (Plukenetia volubilis)
Produced in Peruvian Amazonia, it is - from far - the best vegetal oil on Hearth for its exceptional
health properties. Its oil contains approx. 95% of unsaturated fat, incl. 45%-50% of Omega 3, 35%-
40% of Omega 6 and 8%-10% of Omega 9. It is mainly distributed in pharmacy or drugstores, as an
healthy medicine. Its unique flavour is unknown and its oil suffers from customers’ taste adaptation as
a key nutriment. Presently, it is rarely used in cosmetics !?
■ Oil of Olives (Olea Europaea)
Produce in the Mediterranean countries (Greece, Italy, Spain), olive oil has up to 85% of unsaturated
fat (incl. Omega 3 <1,5%, and Omega 6 from 9% to 20%). It has well recognized health properties for
the skin, based on 4’000 years of history.
■ Oil of Argan (Argania spinosa), Oil of Cocoanut (Cocos Nucifera) and others
Produced in Marocco, oil of argan has similar properties. Its oil has 80% unsaturated fatty acids.
Depending on the extraction method, argan oil is more resistant to oxidation than olive oil. Because of
its healthy properties, it is often used as component in cosmetics (as Serum) mixed with other
elements. Cocoanut oil has only 9% of unsaturated fatty acids, incl. 2% of Omega 6 and 6% of
Omega 9. Some rarer vegetable oils are used in cosmetics for their healthy properties, such as
Walnuts and Hazelnuts Oils, both rich in unsaturated fat (approx. 90%).
April 2014

16. 3. Market opportunity
3.3 Luxury markets & (Eco)-Luxury cosmetics sector
Luxury goods industry is one of the world fastest growing market, with 33% constant sales increase
during the last 7 years. Luxury cosmetics represents USD 42 billion in 2012 (20%), and the sector was
facing sustainable growth. Eco-luxury cosmetics is expected to face double digits growth up to 2020.
France and USA are the leading Eco-Luxury industry with world recognition. Major French Eco-Luxury
brands benefit from this positive growth and strong demand.
Source: Bain & Co
Source: Bain & Co
April 2014

17. 3. Market opportunity
3.3 Luxury market & exclusive Eco-cosmetic niches
The various distribution channels (luxury/health/mass) and the wide range of products (skin, body &
hair care) make the sector having heterogeneous players. Except few leading brands, there are so
many international and national Eco-Prestige brands. They have limited communication & sales.
Some well-known names are the Global Luxury brands (Chanel/Dior), the Specialist brands (3Lab/Kiehl’s),
the Modern brands (Sisley, Brown), the Prestige brands (La Prairie) and the Eco-brands (L’Occitane/La Mer).
April 2014

18. 3. Market opportunity
3.4 Weakness of the Prestige Eco cosmetic sector
The low barriers of entry of new players and brands is atomising the sector, and niches are very
difficult to define clearly. In addition, the vast and high quantity of certification rules and institutions
make the cosmetic sector an real jungle.
Presently, most of the Prestige Eco cosmetic
brands have been founded in industrial
countries, directly in line with the global luxury
goods industry (France, Italy, UK and USA).
The reason is the availability of luxury brands
management skills, able to create new brands.
Therefore, most of their «high quality raw
materials» are sources in emerging countries !
Prestige Eco-cosmetic sector is facing an
extremely strong demand, as consequence of
the increasing trends of wealthy consumers
who are looking for more natural products.
Pressure is transmitted to producing countries.
Prestige Eco-cosmetic sector is highly
fragmented, with very few world-known brands
and so many small independent companies –
the Exclusive Eco-Brands (EEcoC).
April 2014

19. 3. Market opportunity
3.5 Market opportunity statement
Eco-Luxury cosmetic sector is facing strong World demand and is requesting reliable suppliers of rare
and healthy raw materials such as avocado oil. Luxury, in particular Eco luxury cosmetic industry is:
■ Facing strong 5% average grow rate since 2006, and it will continue up to 2020 !
Luxury is crisis resilient and is highly profitable with high margins.
■ Luxury cosmetic brands are looking for strategic access to rare raw materials, in
order to secure supply and keep exclusive differentiation potential from the competition.
■ Avocado oil offers a new & innovative luxury raw material with high potential of
differentiation (mix with other nutriments) and with a well-recognized healthy image.
■ As producer of high quality avocado oil and many other natural raw materials, Perù
and Huanta in particular represent the right partner for eco-luxury cosmetic brands to
purchase natural raw materials and transformed simple or semi-complex products.
There is an exceptional opportunity in Huanta, Perù
to create manufacturer of quality organic
raw materials and become a reliable supplier
of the major Exclusive Eco-cosmetic Brands (EEcoB).
April 2014

20. 4. Project of Development
4.1 Create a traditional manufacturer of avocado oil in Huanta
The company has the possibility to diversify its production of avocado fruits into an new manufacturer
of organic cosmetics in Central Perù. It will optimize supply-chain, secure integration of all
manufacturing processes internally and develop its own production (handcrafted & semi-industrial).
The Company will:
a) organize the purchase of avocado fruits in all the Huanta region, with dedicated purchase
agreements with the local partner of the community, based on Fair Trade and long term Natural
Resources management practices. It shall offer the local community reasonalbe financial
resources and income security for their avocado production and some other natural products
(camu-cau, lucuma, miel) including sustainable packaging (ceramics, wood, etc…).
b) build an new manufacturing facility of 8’000m2 in order ot process avocado oil (and
confectionning), in order to create new manufacturing capacity of >10’000 liters of oil yearly. To
reach production costs of USD 7,5 per liter of 100% virgin oil (cold process) or 50% more
affordable than other avocado oil in Perù (salaries are 1/3 lower than in Arequipa, Ica and Lima).
c) respect strictly eco production processes of natural cosmetics (SGS certified). It will condition
appropriately (use of sustainable materials, clean environment, quality controls) all purchased
raw materials in the manufacture, process the adequate oil in order to produce high end Eco
cosmetics requested by the international standards. It offers substential competitve advantages
to process all steps locally, to disclose origin of raw materials and to produce in-house, by
increasing quality controls, meeting international standards and reducing delivery times.
April 2014

21. 4. Project of Development
4.2 Develop an authentic Organic cosmetic manufacturer
In a second step, and with the support of an industrial partner, the Company will catch know-how and
integrate technology in order to purchase and manufacture specially high quality fruits and process
crude, virgin and organic avocado oil in Hunata.
a) To develop a technical centre of competence for manufacturing top quality avocado oil with
dedicated installations and machineries. With the support of the regional Government, the
Company will implement the project of manufacturing first quality avocado oil.
b) To investments in appropriate installations (water and energy) and in machinery (centrifugal) in
order to implement the complete facility and to start processing high quality avocado oil from the
Huanta region. With the support of an industrial partner, the Company will fix technology,
administrative processes, start teaching employees, and developing innovation skills. In addition,
quality standards will be clearly defined and systematic controls duly implemented, in order to
reach the international Organic standards requested by the international consumers.
c) To structure a learning program with the family growers to enhance the management of natural
resources (water & energy) and optimize their uses. In addition, another learning program will be
simulteanously implemented on the “methods of organic prodcution” and its standards / controls.
Incentive programs could be applicable for promoting high quality avocado production in the
growers community in the Huanta region.
April 2014

22. 4. Project of Development
4.3 Become an Exclusive Eco cosmetic Brand, made in Huanta, Perù
…. Interested to know more
about the additional Project
of Brand Development … ?
Please contact
pmuller@swisscorpadvisors.com
April 2014

23. 4. Project of Development
4.4 Promote Social Responsibility and new Commercial Values (CVs)
The Company started since its foundation in 1989 to develop Corporate Social Responsibility
programs (community), such as:
1. Corporate Social Responsibility: The manufacture in Huanta employs 10 local persons on a full
time basis. All employee benefit from the Company social security fund and local partners (ie
avocados growers from the community) will benefit from long term purchase agreements with fix
prices. In addition, the Company as well as the family owners uses to participate to many social
events of the community in Huanta and are part of the development of the region.
2. Climate Changes & Natural resources management: The Company management will make
aware small family growers of avocados of possible climate changes and probable living
consequences. It will provide information on how the care the environment and operate production
with possible climate changes.
3. Fair Trade: The Company is developing a long term purchase agreement system with family
producers of avocado fruits in Huanta region in order to offer them fixed and fair prices for the
avocado production sold. The Company will secure fix income to the producers, as far as possible.
4. Sustainable Production: The Company will develop a sustainable production program of the
natural cosmetics, from sourcing to delivery/exports. This program will explain how to reduce CO2
production, reduce energy and water volumes, and maximize bio-degradable materials.
April 2014

24. 5. The offer
The Company is initially looking for a strong partner who can provide its know-how (develop
quality cosmetic process), financial support (financing loan), pre-order of high quality Eco
cosmetics (turnover projections) base on a win-win situation. In this regard, it is looking for.
1. Loan of USD 800’000 within 5 years, at 5% fix interest rate with assets as collaterals: It
can offer assets base guaranty and provide 5 years Cash-Flow statement. It involves investment of
USD 150’000 for building of factory 8’000m2 extension, USD 150’000 in acquisition of installation and
purchase of new machines, USD 250’000 in purchase of raw material (working capital) and USD
250’000 dedicated to business development and so increase sales & exports of Eco cosmetics to
international markets (Europe, USA-Canada, Japan and GCC)
2. Industrial Partner in order to secure development and production of international high
quality standards of Eco cosmetics based on Avocado oil. It will create production
capacity of 10 Tons/year: It can offer medium and long term production capacity reservation of
high quality production as Strategic Alliance or JV agreement. Partner will be asked to provide
technical support/training to enhance production quality, efficiency and controls
3. Luxury Brand(s) Partner(s) to secure access to luxury goods industry for its luxury Eco
cosmetic production: It can offer attractive price within a long term purchase agreement and in
addition the participation to Social Responsibility programs for brand(s) communication. Partner will
be asked to advise on product trends, uses, prices & innovations and promote “100% Eco cosmetics,
HomeMade in Huanta, Perù” and any other trademarks.
April 2014

25. 6. Contact information
SWISS CORPORATE ADVISORS
San Isidro, Lima
PERU
E-mail smuller@swisscorpadvisors.com
Phone +51 980 795 980
Skype Pseudo SwissCAD001
SWISS CORPORATE ADVISORS
Geneva
SWITZERLAND
E-mail pmuller@swisscorpadvisors.com
Phone +44 7 452 373 748
Skype Pseudo SwissCAD002
April 2014

26. The Way
of Success !

27. A. Social Responsibility
Social responsibility:
The Company will integrate to all its structure of activity a complete social responsibility education (natural
resource management) and promote several efficient programs (skills enhancement):
1. Education in water and energy management: The Company will create a full program for
natural resources management (water management, recycling and cleaning/filtering issues), in
particular to enhance quality production of avocados, lucùma and other local fruits and vegetables (in
collaboration with Stat-of-the-Art international institutes).
2. Training for technical skills learning : The Company is also establishing a program of
technical skills training, in order to develop production know-how of the local community.
3. Social events for the community: The Company is also establishing a program of social events
which involves workers, families and the local community.
4. Participation of clients to local social programs: In the future, The Company will propose
client’s involvement into local community social events, in order to create closer ties between workers
and clients and share values.
April 2014

28. B. Susaintability
Production and products sustainability:
It is projected to implement a complete sustainable production and manufacturing activity in Perù, as far as
possible:
1. Efficient use of energy and water: Both are very precious element in the Andean region of Perù.
The Company will implement a continuous program of optimization of Energy (electricity) and Water
uses to minimize quantity of each to produce 1 liter of oil.
2. Use of recycled or organic materials: Special methods of production with recycling of water and
in particular using biodegradable packaging materials will be implemented. A specific attention to
natural coloured material will be developed to push such natural products instead of chemically
printed products.
3. Traceability of cosmetics from sourcing to retail: The Company will implement follow-up
program, with traceability from the harvest to the production of cosmetic products. Follow-up program
shall increase quality of harvest and increase quality of avocado oil production. In addition, fruits
output will be registered in order to track it directly from the harvest activity.
April 2014

29. C. Organic production
Andean community and family producers:
It is projected a Fair Trade system to increase family avocado producers revenue by 20% to 30% and offer
fix revenues plus incentives based on the quality and extra-quantity of the fruits production:
1. Very modest families of producers: In Perù as in many regions of the Andes, family producers
are very modest families. Owning less than 1 hectare of land (sometimes without titles), which
produces 3’500 to 5’000 kg of avocados per year and selling the raw fruits at USD 0,7 to 1 per kilo,
avocado producer families are living with monthly incomes < USD 350.
2. Lack of good living infrastructure: Families producers are often living in rude conditions in the
Andean “Alta Selva”, with limited water and energy infrastructure and suffering of lack of hygiene. In
addition, children have limited access to a very poor education.
3. Program of organic production with family producers: The Company with the support of the
State of Ayacucho will implement a organic production program directly with the producer families, in
order to obtain long term agreement of avocado fruits delivery based on fix prices. In this system,
farmers will have the possibility to have a fix and planed revenues from its avocado fruits production
activity, in addition to an incentive system for high quality avocado production.
April 2014

30. D. Exclusive Eco cosmetic Brand
Raw material, process and original:
It is projected to implement a complete sustainable production and manufacturing activity in Perù, as far as
possible:
1. 100% Organic elements: All raw materials shall strictly come from 100% organic production. Long
term partnership with local producers and deep understanding of the Andean community will support
efficient control of appropriate 100% organic production.
2. 100% Handcrafted: Traditional methods of production with recycling of water and in particular using
biodegradable material of oil processing will be implemented. A specific attention to 100% natural raw
materials will be developed to push such natural products instead of chemically processed or artificial
products. Avocado oil is sensitive to oxidation its properties cannot last over 9 months after being
processed.
3. 100% Original, “HomeMade in Huanta”: The Company will strictly respect the source of all its
raw materials, which shall be oriented from the Huanta region of Perù. All raw materials will be 100%
pure and organically produced by local and regional farmers, including recyclable packaging
materials. All finished products shall be produced 100% in Huanta, Perù and etiquettes will indicates
“HomeMade in Huanta, Perù”, as origin.
April 2014

31. F. Properties of Avodado Oil
THE USES OF AVOCADO OIL
Avocado oil is of great importance to the cosmetic industry in that it contains a sterol called phytosterol which has the same
penetrating abilities as lanolin.
This particular quality of avocado oil as reported by the Naarden Newsletter, Oct 1958, make it eminently suitable for skin
and massage creams, massage oils and all other preparations which are used for applying to, or rubbing into the skin.
The ability to penetrate the skin is no doubt the key to the success of avocado oil as a natural and effective beauty aid. The
quality of the oil makes it ideal as a carrier for other substances which are not capable of their own accord to permeate into
the skin. The flavour of the oil is bland and can replace unpleasant smelling oil such as codliver and turtle oils.
Avocado oil is also used in high-grade toilet soaps and contributes to the soap's superior lathering and cleaning qualities.
Avocado oil is easy to emulsify. Its low surface tension produces smoother creams and soaps and makes a superior
cosmetic oil.
According to Rolfe (1975) the impressive list of vitamins as listed in Table 3, is of benefit to the cosmetic industry, because
vitamin A helps to prevent a dry skin and vitamin E (Tocopherol) and vitamin D are effective against skin wrinkling. Due to
the abundance of unsaturated fatty acids in the oil, its fibrous proteins (about 4 per cent) act as a natural skin moisturiser.
Moisture is necessary to make the skin look soft and young.
Avocado oil also has some sun-screening properties. The ultraviolet radiation of the sun may act identical to the ageing
process of the skin. It dries the skin and also induces wrinkling.
It is most fortunate that we can gain the protection we need from something so completely natural as avocado oil, the
world's finest skin nutrient and truly nature's own cosmetics.
SOURCE: South African Avocado Growers’ Association Yearbook 1987. 10:159-162,
Proceedings of the First World Avocado Congress, Oil as a byproduct of the avocado,
TP HUMAN Northern Canners, PO Box 19, Politsi 0851, RSA
April 2014