1. BUSINESS PLAN
Sun Flour Baking Company
TRANSFORMING THE FOOD INDUSTRY
Rey Ortega
916-524-0487
rey@sunflourbaking.com
2. 2
This document contains forward-looking statements. In addition, from time to
time, we may make forward looking statements orally or in writing. We base
these forward-looking statements on our expectations and projections about
future events, which we derive from the information currently available to us.
Such forward-looking statements relate to future events or our future
performance, including our financial performance and projections, our growth in
revenue and earnings, and our business prospects and opportunities.
You can identify forward-looking statements by those that are not historical in
nature, particularly those that use terminology such as âmay,â âshould,â
âexpects,â âanticipates,â âcontemplates,â âestimates,â âbelieves,â âplans,â
âprojectedâ, âpredicts,â âpotential,â or âhopesâ or the negative of these or
similar terms. In evaluating these forward-looking statements, you should
consider various factors, including our ability to change the Company's direction,
our ability to keep pace with new technology and changing market needs, and
the competitive environment of our business.
These and other factors may cause our actual results to differ materially from
any forward-looking statement. Forward-looking statements are only
predictions. The forward-looking events discussed in this document and other
statements made from time to time by us or our representatives may not occur,
and actual events and results may differ materially and are subject to risks,
uncertainties, and assumptions about us.
We are not obligated to publicly update or revise any forward-looking
statement, whether as a result of uncertainties and assumptions.
Disclaimer
Forward Looking Statements
3. 1. Executive Summary
2. Company Description
Our Mission
Founderâs Statement
Business Activity Intro
Business Goals
Testimonials
Social Responsibility
3. Management Team
4. Business Opportunity
The Market Problems
The Market Opportunities
Our Solution & Value Proposition
Our Offering
Tractions
5. Market Analysis
Vegan Confectionery Market Size
Vegan Confectionery Market Trends
6. Customer Analysis
Customer profile & Behaviour
Demographics
3
Page of Contents
7. Competitorsâ Analysis
Top 3 Competitors Analysis
Our Competitive Advantage
8. SWOT Analysis
9. Marketing Plan
Pricing Strategy
Marketing Channels
10. Operations Plan
Operations Process
Factory Plan
Hiring Plan
11. Financial Plan
Business Model - Revenue Streams
Investment Need
Profit & Loss
12. Business Development
Planning
Achievements & Next Steps
4. 4
Founderâs Background: A pioneer within the plant-based sector with over 30
years of experience, Rey Ortega founded Alternative Baking Company in 1994 as
one of the first vegan cookie brands on the market. He developed (and still
owns) all recipes and formulas, which generated ~$1 Mn in sales in 1995/96.
Business Background: Sun Flour Baking Company was founded by Rey in 1997
to create new flavors, tastes, textures, and nutrition products with a longer shelf
life and higher profit margins. The company's clients included major airlines
such as Continental Airlines, Sodexho Marriott Food Service, and Whole Foods
Market.
The problems we address: Low-quality plant-based products ⢠Environmental
impact ⢠Allergens.
The market opportunities we address: High demand for sustainable plant-based
products among the growing and younger generations ⢠No competition in
offering diverse, quality, and tasty plant-based confections and snacks.
Our solution: Build a trusted and consistent brand that customers can rely on to
satisfy their sweet tooth without compromising their health or the environment.
Direct Customer: Retail and wholesale companies interested in selling plant-
based cookies and snacks ⢠Companies interested in co-packing and private
label services.
End Consumers: Vegetarians; Animals lovers; Environmentally aware ⢠Lactose
intolerant, health-conscious individuals ⢠Sweets lovers and curious individuals.
Market Validation: The US Vegan Confectionery Market is estimated to reach
USD 381.87 Mn in 2022, CAGR 2022-2030 of 11.3%.
Financials: ~$5.2Mn total investment estimated to ensure profitability in the
2nd operational year.
1. Executive Summary
1. Executive Summary
6. 6
Creating a sense of curiosity among consumers and
encouraging them to discover new flavors and textures.
Offer high-quality and nutritious plant-based sweets in
different forms.
Build a trusted, reliable, consistent brand that customers can
rely on to satisfy their sweet tooth without compromising their
health or the environment.
We aim to improve people's health and
well-being through vegan bakery products.
Our Mission
Healthier and tastier products by:
2. Company Description
7. Founderâs Statement
For our Investors
As part of our efforts to ensure
scalability and profitability, we will
constantly look for ways to access
new markets and increase market
share. We will operate at optimal
productivity levels to reduce costs
and increase profit margins.
For our Clients
We strive to provide the industryâs
finest flavor and texture. This will
enable our corporate clients to
maintain competitive margins in
the retail channel.
Transparency
builds strong
relationships
Rey Ortega
7
For our Team
We provide a safe, secure,
and pleasant work
environment that
encourages productivity
and knowledge sharing.
Moreover, we
offer competitive
salaries and benefits to
keep our employees
satisfied and attract new
talents.
2. Company Description
8. 8
Business Intro
We started with a simple premise:
if we could create cookies that
tasted at least as good as the
traditional but were healthier for
people and the planet, everyone
would win. And thatâs what weâve
done.
Over approximately 30 years, we
have formulated, manufactured,
and sold millions of cookies
without using eggs or dairy.
Through our vegan baking
innovating facility and combining
sustainable ingredients, we have
made delicious plant-based
cookies suitable for everyone.
Name
Headquarter
Business radius
2464 Marconi Ave Sacramento, CA 95821
Sun Flour Baking Company
Our core activity
US
Driving the transformation of the food industry
2. Company Description
9. Business Goals
Expand the line into larger chain stores within two years.
Distribution
Increase national food service stores by approx. 50%
within one year of operations.
Stores
Increase the number of private label and co-packing
customers by X4 within one year of operations.
Private label and co-packing
Become the UU.S. Vegan snack food & confectionary market
leader and develop the finest formulas for plant-based sweets.
Positioning
9
Expand and modernize the manufacturing facility within
one year (reaching 20,000 square feet).
Vegan facility development
2. Company Description
10. Testimonials
âWhen I first met Rey Ortega more
than 20 years ago, I was struck by his
drive, passion, and
entrepreneurial spirit. Two decades
later, I am still in awe of what he can
create and accomplish. Rey is
someone who sleeps and breathes
business, and who understands the
importance of hard work and
relationship building.
It is an honor to know Rey Ortega,
and I count him as one of my most
valued business advisors.â
Colleen Holland - Publisher & Co-
Founder VegNews
10
âIâve know Rey for over 20 years, and
I admire how he combines activism
with entrepreneurism to encourage
justice, sustainability, and
compassion through his business
ventures.
His leadership and dedication to
creating a kinder world provide an
inspiring example for others, and Iâm
deeply grateful for our longstanding
friendship.â
Gene Bauer - President & Co-
Founder Farm Sanctuary
2. Company Description
11. Social Responsibility
11
Be empathetic and encourage empathy
Farm Sanctuary: founded in 1986 to
fight animal agriculture's devastating
effects on animals, the environment,
social justice, and public health
through rescue, education, and
advocacy.
American Society for the Prevention
of Cruelty to Animals: founded in 1866
as a national animal welfare
organization to prevent animal cruelty
throughout the United States.
Our charitable donations
support the following
organizations:
Our desire to protect the planet has
led us to be a disruptor of the dairy
and egg industry.
Our refusal to use ingredients of
animal origin helps to conserve
resources, reduce animal agriculture,
and improve the environment,
ensuring long-term food industry
continuity.
Moreover, we support organizations
working to end animal abuse and
create a more compassionate world.
A responsible business model
2. Company Description
13. Management Team
A pioneer within the plant-based sector with >30 years of experience
Owning 5 plant-based brands; Designed 3 facilities
Extensive knowledge across the entire product lifecycle
Highly experienced formulator within the industry
Rey Ortega
Founder
13
Bachelor of Science in Accounting
As an accountant, she worked on multi-million dollar blockbuster
films, like âBatman Beginsâ
She was the producer of the LA annual plant-based event for 8 years
Jill Hahn
Financial ⢠Production management ⢠Quality control
With entrepreneurial experience; Bachelor of BA in Marketing
Member of SAG-AFTRA Self-marketed fashion model
Volunteer within the Humane Society
She promotes a plant-based lifestyle
BJ Hollifield
Business Advisor
Masterâs in journalism
âBest of the West features headline writingâ awards
Public information officer at California Department of Transportation
Sacramento Magazine - monthly column on sustainability
Reed Parsell
Business Advisor
3. Management Team
15. 15
Low-Quality plant-based products ⢠Environmental impact ⢠Allergens
Vegan and gluten-free bakery and snack options
available on the market are less tasty than those
containing animal ingredients.
Thus, the lack of flavor discourages vegans and
non-vegans from consuming such products, even
though they are a healthier alternative.
Unsavory options
Eggs and dairy-based bakery products have a
shorter shelf life, resulting in lost revenues, more
waste, and lower profit margins.
The challenge for vegan and gluten-free bakery
businesses is to come up with creative solutions
that not only preserve the flavor and texture until
the expiration date but also create products that
remain budget-friendly for the company.
Short shelf life
In many cases, the producers use GMOs
(genetically modified organisms) and artificial
additives that are difficult or impossible for the
human body to digest.
These products often lead to allergic
reactions and other health issues, especially
for sensitive individuals.
GMO usage
The Market Problems
4. The Business Opportunity
16. 16
Snacks, whether vegan or not, do not typically
contain a nutrient-dense formula.
Unfortunately, that does not help consumers
reach their daily recommended intake of
vitamins, minerals, fats, proteins, and
carbohydrates.
Missing the nutrients
Even though plant-based ingredients require less
energy and resources than animal agriculture,
they are not yet considered a viable alternative.
The Silent Generation, Baby Boomers, and
Generation X are still reluctant when it comes to
vegan food.
Wasting energy
Considering the latest discoveries (i.e. by
Switch4Good and Food Engineering), dairy
products and eggs are believed to be harmful to
our health.
D-galactose, for instance, promotes the
inflammatory process, and the hormones and
antibiotics administered to the birds will be
transferred to the eggs.
Allergens
The Market Problems
4. The Business Opportunity
Low-Quality plant-based products ⢠Environmental impact ⢠Allergens
17. 17
The vegan, vegetarian, and
flexitarian population has grown.
The demand for dairy-, egg-, and
gluten-free products has increased,
especially for Gen Z and Millennials.
The purchasing power of Millennials
has increased.
High demand for sustainable
plant-based products among
the growing and younger
generations
There is a gap in the market; plant-
based sweets and snacks can be
produced considering many other
recipes with many other ingredients
and flavors.
There is a wide variety of products
on the market; however, it is
essential to constantly update the
offering, recipes, and ingredients to
satisfy the customers' constantly
changing needs and preferences.
No competition in offering
diverse, quality, and tasty
plant-based confections and
snacks
Market Opportunities
4. The Business Opportunity
High demand ⢠No competition
18. 18
Our Solution
Value
Proposition
Acting as the dairy
and egg industry
disruptor: driving
the change through
bakery products
since people are
more likely to try a
dessert or snack
than an alternative
to meat.
Vegan and
gluten-free
Offer an alternative to
customers who are
curious, vegan, or
require a specific diet
for medical reasons.
Delicious with
better texture
Use nutrient-dense
ingredients for a richer
taste and a more
appetizing texture.
No contaminants
Our sweets are free of
cholesterol, hormones,
pesticides, and
antibiotics. Furthermore,
we ensure to use only
sustainable and high-
quality ingredients.
Healthy sugar
Use patented sugar made
from grape juice and
brown rice syrup. It is a
healthier alternative to
traditional sweeteners
like refined sugar and
corn syrup.
A longer shelf life
Provide plant-based
sweets that do not
contain eggs, dairy, or
GMOs. The lack of
these perishable
ingredients results in a
shelf-stable product
with a longer lifespan.
4. The Business Opportunity
Using only plant-based ingredients can generate a successful company
19. Our Offering
Snacks ..and more
19
Cookies Cakes
Muffins Brownies
Truffles Coconut Macaroons
4. The Business Opportunity
Healthier and delicious plant-based products
20. Tractions
We recently acquired Michyâs Foods, which are sold
through approximately 25 Ralphs stores. Before the
acquisition we offered them co-packing services.
B2C: retail through our store (used as a marketing tool).
B2B: retail and wholesale for co-packing (clientsâ recipe and
label) and private labelling (our recipe with clientâs label) .
Returning clients
Estimated to reach $300k by the end of 2022.
2022 revenues were ~70% higher compared to 2021.
95% of the revenues it is generated by out top 5 clients.
Revenues in 2022
Estimated to reach ~$70k by the end of 2022.
Representing between 20-30% of sales.
Net income in 2022
20
Our current 4000-square-foot facility is vegan, non-GMO, kosher,
gluten-free, and organic certified.
We managed to stay in operation throughout the Pandemic and
reached pre-covid production levels in 2022.
Large facility that survived the Pandemic
Our first M&A project
4. The Business Opportunity
22. Market Size & Growth
22
Vegan Confectionery Market - US
Vegan Confectionery Market - Global
The market is estimated to reach USD 1.24 Bn in 2022.
CAGR 2022-2030 of 11.8% resulting in a projected market volume of
USD 3.02 Bn by 2030.
The market is estimated to reach USD 381.87 Mn in 2022.
CAGR 2022-2030 of 11.3% resulting in a projected market volume of
USD 899.24 Mn by 2030.
Plant-based Food
Ingredients Market - US
Market size in 2020: $3.26Bn
Plant-based milk sales in the
US market were valued at
~$804 Mn in 2021. By 2026,
this figure is expected to
reach $1.4 Bn.
5. Market Analysis
23. Market Trends
⢠The chocolate product segment
dominated the market with around
40% of the total revenue in 2021.
⢠Demand for plant-based chocolate
confectionery is growing significantly
due to its low-fat and low-cholesterol
properties, especially among
millennials and centenarians.
Therefore, manufacturers in the
industry have been introducing new
products targeting these population
groups.
Product Insights
Vegan Confectionery Market â Overview
⢠In recent years, consumers have switched to plant-based diets due to lifestyle
disorders and health concerns, fueling the growth of the global market.
⢠Social media posts on the vegan lifestyle and its benefits encourage consumers
to adopt plant-based diets, thereby contributing to market growth.
⢠The increased number of people with lactose intolerance has raised the
demand for dairy-free confections worldwide.
⢠Large retail chains, including Walmart, are interested in offering a wider variety
of plant-based products.
⢠These factors are expected to accelerate the market's growth in the next years.
23
Chocolate
40%
Sugar &
Flour
60%
5. Market Analysis
24. Market Trends
⢠The online distribution channel is projected to witness faster growth during
the forecast period.
⢠The increasing number of online retailers with competitive pricing is boosting
the development of this segment.
⢠Moreover, the growth can be attributed to the rising dependency of
generation X, millennials, and generation Z on the internet and e-commerce.
Distribution Channel Insights - Online
Distribution Channel Insights - Offline
⢠The offline channel held a significant revenue share of over 80% in 2021.
⢠The plant-based food industry promotes its products mainly through
partnerships with grocers and retail chains. Thus, around 95% of grocery stores
in the U.S. sell plant-based products, including vegan confectionery.
⢠Market participants are expanding their offline distribution channels to reach a
wider audience.
⢠Manufacturers have begun listing vegan candies in vitamin and supplement
stores due to their large clientele of health-conscious consumers and fitness
enthusiasts.
24
Offline
80%
Online
20%
5. Market Analysis
25. Market Trends
Regional Insights
North America dominated the market
for vegan confectionery in 2021 with
over a 37% share of the global
revenue.
Plant-based food sales through
groceries have grown much more
than the total retail food sales in the
United States. Therefore, major
players in the industry are opening
new stores to cater to the growing
population of vegan enthusiasts in
the region.
25
Offline
80%
Online
20%
5. Market Analysis
27. Customer Profile
Retail and wholesale companies
interested in selling plant-based
cookies and snacks
Companies interested in co-packing
and private label services; These
entities share common values with
Sun Flour Baking.
Direct Customers
Vegetarians, vegans, flexitarians
Animals lovers; Environmentally aware
Mostly Millennials, Gen Z, and Gen X
Health motivation: lactose intolerant,
health-conscious individuals
Sweets lovers and curious individuals
End Consumers
27
6. Customer Analysis
28. Demographics
and Behavior
End Consumers
People are increasingly concerned
about animal cruelty, personal
health, and the environment
worldwide. As a result, more and
more individuals are looking for a
plant-based alternative that tastes
great and offers health benefits.
1 In 2019, ~75% of the population was lactose intolerant which
represents a wide consumer base for the vegan dessert market.
A lactose-intolerant global population
2 As per a survey by the Vegetarian Resource Group in 2020,
around 3% of respondents were vegan in the U.S.
Low vegan% in the US considering all generation
3 25% of the U.S. population aged between 25 to 34 years old
was vegetarian or vegan in 2018.
Millennials & Gen Zs: interested in plant-based foods
4 The purchasing power of Millennials has increased, making
them the target audience today.
Growing power for the growing generations
28
6. Customer Analysis
29. 29
Demographics and Behavior
Younger consumers are likelier to have a longer list of
ingredients they seek to avoid. The 18- to 24-year-old
cohort, in particular, prioritizes reducing their consumption
of red meat, dairy, and gluten. It is worth noting that
younger consumers report food allergies and intolerances at
much higher levels.
Healthy eating today means cutting back on
sugar, processed food, fat, salt, and red meat.
One in two worldwide consumers surveyed said that the
pandemic changed how they eat, and one in six made major
changes. The changes are especially pronounced in the
younger generations, who are much more likely than older
consumers to report having made some or even major
changes in their eating habits, especially eating fewer
animal products and buying more food from small or new
brands.
Across all ages, consumers have been looking
for significantly healthier foods since COVID-19
6. Customer Analysis
30. 30
Demographics and Behavior
Flexitarianism has gained popularity as conscious consumers
aspire to eat little or no meat. Often called casual
vegetarianism, flexitarianism centers on eating plant-based
food, with only occasional meat consumption.
Globally, just a small percentage of the consumers surveyed
identify as vegan or vegetarian (3 to 6 percent across the
markets studied), and that number has increased only
slightly over the years. Meanwhile, more than half of
consumers in France and Germany and almost half in the
United Kingdom and the United States consider themselves
flexitarians.
According to our Global Protein Survey, most flexitarians (73
to 93 percent) plan to further reduce their meat
consumption. Only 27 to 31 percent of frequent meat eaters
share that aspiration. The market, therefore, is clearly
bifurcating.
Flexitarianism has gained popularity: it centers
on eating plant-based food, with only
occasional meat consumption.
6. Customer Analysis
31. 31
Demographics and Behavior
While consumers are eating more plant-based products,
about 50 percent of those surveyed still greatly prefer the
taste of animal protein products over their plant-based
alternatives.
Plant-based categories that consumers find more palatable
(for example, plant-based milk and meat) will grow faster
than categories in which taste technology is still maturing
(for instance, plant-based cheese).
This has great implications for consumer-packaged goods
manufacturers, as many players look to expand their plant-
based portfolio.
Consumers buy plant-based products for their
health, even if they donât like the taste.
6. Customer Analysis
32. 32
7. Competitorsâ Analysis
The spider-web model was developed considering as input information from:
competitorâs websites, zoominfo, platforms assessing website and social media
performance, qualitative research
33. Competitive Advantage
Make the most of our competitorâs
weaknesses and develop a targeted, SEO-
driven digital marketing campaign.
33
Implement a highly efficient business model to
generate higher revenues per employee and
lower production costs.
-
1
2
3
4
5
6
7
8
9
10
Vegan, Gluten-free,
Nut-free
Range of products:
cookies, snacks, other
Revenues /
employee per year
Social Media (new
followers/month)
Website
overall
performance
Google
reviews
Alternative Baking Lenny & Larryâs Enjoy Life Foods Sun Flour Baking
7. Competitorsâ Analysis
34. Top 3 Competitors
alternativebaking.com
Website
lennylarry.com
Website
enjoylifefoods.com
Website
34
United States
Business Radius
30 countries worldwide
Business Radius
North America
Business Radius
Vegan & gluten-free bakery
Core Business
Vegan & gluten-free bakery
Core Business
Vegan, gluten-free & nut-
free bakery
Core Business
Cookies
Products
Cookies and snacks
Products
Cookies, cakes, muffins,
brownies, snacks
Products
USD 20 Mn
Revenue
USD 11 Mn
US Revenue
USD 32 Mn
US Revenue
7. Competitorsâ Analysis
35. Top 3 Competitors
3.9/5 (31)
Google reviews
4.5/5 (219)
US Google reviews
3.6/5 (27)
US Google reviews
35
10,396 followers
Facebook
107,552 followers
Facebook
335,854 followers
Facebook
3,216 followers
Instagram
172,000 followers
Instagram
135,000 followers
Instagram
11 followers
TikTok
59,300 followers
TikTok
No account
TikTok
Performance: 29%
Accessibility: 85%
Best performances: 100%
SEO: 100%
Website
Performance: 6%
Accessibility: 90%
Best performances: 75%
SEO: 92%
Website
Performance: 17%
Accessibility: 77%
Best performances: 83%
SEO: 86%
Website
708 followers
Twitter
7,212 followers
Twitter
32,400 followers
Twitter
7. Competitorsâ Analysis
37. 37
SWOT Analysis
Strengths
Management team with extensive knowledge across the
entire product lifecycle: packaging and web design, recipe
formulation, operations and maintenance, budgeting, cost
management, sourcing, negotiations, etc.
Lessons Learned available as the founder owns 5 plant-
based brands and designed 3 facilities in the past.
S
Weaknesses
Funding is required to build a bigger vegan facility and
further scale the business.
The Management team (2 people currently) might feel
overwhelmed with the daily workload.
W
Opportunities
Targeting a growing market: the US Vegan Confectionery
Market is estimated to grow at an 11.3% CAGR 2022-2030.
Targeting the needs of the growing generations: Millennials
and Gen Zs are more interested in plant-based foods.
Threats
Competition may try to copy our business model and
targeted digital marketing campaign.
The competition that delivers flavorless dairy- and egg-free
cookies leads to a negative reputation for âvegan" entities
in general, resulting in a lack of trust among potential
clients.
T
8. SWOT Analysis
39. Pricing Strategy
This category includes cookies,
muffins, brownies, and more
prepared according to standard
recipes.
Mid-range
The products in this category
include cakes, truffles,
macaroons, and snacks since they
are prepared according to more
complex recipes and processes.
Special cookies, muffins, and
brownies might also fall under this
category in the case of special
tailored-made orders.
Premium
Our pricing strategy varies depending on the product's size and weight, the
packaging materials, the recipe, and the complexity of the process.
However, due to our economy of scale, both our direct customers (retail
bulk buyers) and our final consumers (the individuals) will enjoy a fair price
for the quality of our products.
39
9. Marketing Plan
40. Marketing Channels
⢠Facebook: we will be targeting the
Millennials over 35 years and older
generations as they are the main users
of this platform
⢠An informative, easy-to-navigate
website (including professional
design) aiming to attract and keep
visitors engaged
⢠Search Engine Optimization
included
⢠Reviews on relevant platforms i.e.,
Google, Trustpilot
⢠Online marketing i.e., Google adds
Digital Presence Traditional Marketing
Social Media Strategy
40
⢠Networking and membership
within various trade organizations
(i.e., Rangeme - which connects
manufacturers with retailers)
⢠Exhibiting at food trade shows
⢠Advertise in food manufacturing
trade magazines
⢠Mini-size products samples
together with informative flyers on
healthy ingredients and recipes
9. Marketing Plan
⢠Instagram & Tik Tok: we will be targeting the Millennials and Gen Zs as they are
the main users of this platform
⢠LinkedIn: create a professional network, company and team achievements
⢠Twitter: create for our tweets around #vegancookies #healthycookies etc.
⢠Collaborations with Influencers already promoting a healthy lifestyle
⢠YouTube channel: periodical interviews with nutritionists, chefs, and business
owners; cooking shows aiming to educate towards a healthy life
42. 42
Operation Model
Raw materials: flour, water, ingredients
Mixing and preparation
Dough, pastry, etc. cutting and shaping using special
equipment
Cutting
Double rack or tunnel ovens
Baking
The cooling rack allows air to circulate completely around
the food removing the moisture
Cooling
Including quality control and re-wrapping
Horizontal wrapping machine
Climate control rooms
Storing
Prepare shipping in packs or pallets
Shipping
10. Operations Plan
43. Factory Plan
43
10. Operations Plan
Freezer
Storage
2000 sq ft
Refrigerator
Storage
2000 sq ft
104
Quart
Mixer
Cookie
extruder
1
Cookie
extruder 2
Spiral
oven
Cooling
Tunnel
Work
tables
Packing
Wrapping
machine
Prep
area
Finished storage
Office
Employee
break area
Bath
room
Main operations area: 13 500 sq ft
Refrigerator storage: 2 000 sq ft
Freezer storage: 2 000 sq ft
Office space: 1 800 sq ft
Employees break area: 500 sq ft
Bathroom: 200 sq ft
Dedicated Plant Based
Factory 20 000 sq ft
Area 1: mixing, 2 cookies extruders
Area 2: prep area
Area 3: oven, cooling tunnel,
wrapping machine, packing
Area 4: worktables
Area 5: finished products storage
Main operations area
13 500 sq ft
44. Hiring Plan
Baking team structure was estimated considering the orders
volume and that each person can prepare 350 products/day
Year 1 (3 people): 2 already hired bakers; hire 1 baker assistant
Year 2 (6 people) : +1 baker; +2 baker assistants
Year 3 (11 people) : 3 already hired bakers; +5 baker assistants
Bakers & Assistants team
Supervising the automated
process
Year 1: hire the first packer
Year 2 (2 people): +1 packer
Year 3 (3 people): +1 packer
Packing team
Year 1 (1 person): hire the
first team member
Year 2 (1 person): no
additional hires
Year 3 (2 people): hire one
more team member
Sales & Marketing
Year 1 (1 person): hire the
first team member
Year 2-3 (1 person): no
additional hires
Graphic designer
The first 3 years: 3 team
members splitting the roles
of Business Development,
Operations, Finance, HR etc.
Team expansion starting
year 4.
Management Team
44
10. Operations Plan
46. Business Model
Three main Revenue Streams covering Sun Flour Baking and Michy's
Foods potential sales volumes
Sell our branded products, following our recipes through multiple channels:
Our website (Online, on-demand sales)
Amazon (gift baskets, cookies)
Apps delivery (Grubhub, DoorDash, Uber Eats)
Online retail platforms (RangeMe, ECRM Marketgate)
Traditional retail (Kroger, Safeway)
Food service (airline, hotels, restaurants, colleges, hospitals)
66% out of total 3-year revenue
Plant based food manufacturing
Sell products by using clientsâ recipes and labels.
Current clients: Renewal Mills, Rawkin Raw, Michyâs Foods (before acquiring
this company)
17%
Co-packing
Sell products by using our recipe with the clientâs label.
Current clients: OâMeals, MRE Meals Ready to Eat (US Military)
17%
Private label
46
11. Financial Plan
47. Phase 1
Building & Equipment Y1 1.5 Mn for a 20 000 sq ft facility
COGS Y1 0.53 Mn covering 4 production team members (the bakers and
packers' team), shipping, delivery, ingredients, merchant fees
Office team Y1 0.56 Mn: 5 team members (Sales & Marketing, Graphic
designer, Management team)
Marketing Y1 0.24 Mn: website development, advertising, etc.
Other Y1 0.22 Mn: utilities, maintenance, cars, IT, contingency etc.
Year 1 â $3.1 Mn
Phase 2
In scope for Phase 2 we have only the key cost elements needed to
ensure operations. We assume that all the other cost elements will be
covered through the first sales of the 2nd operational year.
COGS Y2 1.3 Mn covering 8 production team members (the bakers and
packers' team), shipping, delivery, ingredients, merchant fees
Office team Y2 0.57 Mn same as in year 1
Marketing Y2 0.29 Mn digital marketing, food samples, networking
Year 1 â $2.1 Mn
Investment Need
47
~$5.2Mn total investment is
estimated to ensure profitability
in the 2nd operational year.
Building &
Equipment
Y1
29%
COGS Y1
10%
Office team
Y1
11%
Marketing Y1âŚ
Other Y1
4%
COGS Y2
25%
Office team Y2
11%
Marketing Y2
5%
11. Financial Plan
The estimations are covering
both, Sun Flour Baking and
Michy's Foods potential growth.
48. Profit& Loss Estimation
48
~$5.2Mn total investment is estimated to ensure profitability in the
2nd operational year
1.0
2.8
6.3
1.8
2.7
4.6
-0.8
0.1
1.7
Year 1 Year 2 Year 3
Revenue Total costs Net Income
PRO FORMA PROFIT AND LOSS
YEAR 1 YEAR 2 YEAR 3
Revenues 1,000,000 2,800,000 6,250,000
Cost of Goods Sold - 524,937 - 1,299,547 - 2,358,866
GROSS PROFIT 475,063 1,500,453 3,891,134
Building & Equipment, Utilities, Maintenance - 408,952 - 407,478 - 416,891
Office Team - 557,598 - 569,610 - 719,913
Marketing - 242,900 - 288,625 - 292,620
Other - 54,294 - 44,650 - 58,528
Contingency - 63,187 - 65,518 - 74,398
EBIT - 851,867 124,573 2,328,784
Interest Expense - - -
Income Taxes - - 37,172 - 694,909
PROFIT & LOSS - 851,867 87,400 1,633,875
11. Financial Plan
The estimations are covering both, Sun Flour Baking and Michy's
Foods potential growth.
50. Achievements & Next Steps
2025
2024
â Start the construction of the state-of-the-art, larger production facility (two
line bakery to expand to four lines in the upcoming years)
â Sign the first deal ensuring national expansion into thousands of stores (i.e.,
nationwide retailer or Amazon)
â New revenue stream: airline food industry
â Marketing and Sales Campaign to ensure international expansion
Construction
â Complete the construction of the new facility
â New equipment in place
â Sign the first deal ensuring international expansion (i.e., Amazon)
â Customer and market trends research to identify new revenue streams
â IPO concept and strategy in place to prepare for the 2026-2027 IPO phase
New facility in place
By
2022
â 4 000 sq ft factory constructed
â Stayed in operation throughout the Pandemic
â In 2022 we achieved pre-covid production levels
â In 2022 we closed out the first M&A deal: Michyâs Foods acquisition
Main achievements in the last years
2023
â Acquire new equipment to improve production time, reduce cost and add
new products i.e., gluten-free, 4 brownie lines, toaster cookies, stuffed
cookies
â Develop new brand identity: product and packaging design
â Launch the first funding round
â Design the 20 000 sq ft new facility & Plan the Construction
â Organize tenders for the new building and equipment, assess and select best
bidders, and contract signing
â Introduce Michyâs cookies into the entire Kroger chain
â Obtain PCQI certifications to get into Target, Trader Joeâs , Whole Food,and
Safeway markets
â Marketing and Sales Campaign to ensure national expansion
Funding & Growth
50
12. Business Dev. Planning
51. THANK YOU
Sun Flour Baking Company
Rey Ortega
916-524-0487
rey@sunflourbaking.com
TRANSFORMING THE FOOD INDUSTRY