A & I Sauces L.L.C.

Mission Statement
To be the best tasting and highest quality food products that you can buy.

Vision
...
Non-Disclosure and Confidentiality Agreement




The undersigned ( “Recipient”) hereby agrees that all financial and other...
A & I Sauces Personnel
Angela Louise Lehart, 4Years of Business Management Experience
Chief Executive Officer
(419) 569-70...
Brokers

All State Brokerage, Inc., 200 Years of Experience ( Kroger Contacts )
4663 Executive Drive
Columbus, Ohio 43220
...
A & I Sauces Business Plan

1. Executive Summary
  A & I Sauces is ready to move its manufacturing into a more controlled ...
food products for distribution. We have been making food products for more than threefour years.
It was just 6 years ago, ...
predictability. This allows a long term relationship to be built and maintained with those who are
necessary in our produc...
This gave us the inspiration to produce a cookbook using the salsa in all the recipes giving
another use of our salsa besi...
7 Business Goals
  The company has established income goals of $100,000 in 2008 and $2,200,000 in 2009.
  We anticipate a ...
A & I Sauces Eighteen Month Plan

Mission Statement
To be the best tasting and highest quality food products that you can ...
Inventory
A & I Sauces projects to invest into inventory for the following reasons:

            •                        ...
Operations
Acquire and maintain facilities

            •                                                                 ...
Our Current Client Base

Kroger
   • Cincinnati Division
         1. Indiana
         2. Kentucky
         3. Ohio
   • Gr...
Future and Expanding Clients
                 Wal-Mart              6,600 Stores
             
             •            ...
2008bus. Plan
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2008bus. Plan

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2008bus. Plan

  1. 1. A & I Sauces L.L.C. Mission Statement To be the best tasting and highest quality food products that you can buy. Vision Our vision is that our products be sold in every retail grocery store in America. Company Values Integrity ● Quality ● Customer Care ● Fair Pricing ● Creativity ● Contact Information: Angela and Jeff Lehart 624 West Church Street Galion, Ohio 44833 Cell: 419-569-7084 Website: www.aandisauces.com This document contains confidential information. It is disclosed to you for informational purposes only. It's contents shall remain property of A & I Sauces and shall be returned to A & I Sauces when requested. This is a business plan and does not imply an offering of securities.
  2. 2. Non-Disclosure and Confidentiality Agreement The undersigned ( “Recipient”) hereby agrees that all financial and other information (“Information”) that it has and will receive concerning A & I Sauces, is confidential and will not be disclosed to any individual or entity without prior written consent The information shall remain the property of A & I Sauces and shall be returned to A & I Sauces promptly at it's request together with all copies made thereof. Recipient acknowledges that no remedy of law may be adequate to compensate A & I Sauces for a violation of this Agreement and Recipient hereby agrees that in addition to any legal or other rights that may be available in the event of a breach hereunder, A & I Sauces may seek equitable relief to enforce this Agreement in any Court of competent jurisdiction. _________ ______________________________ Date Signature This is a business plan and does not imply an offering of securities. The figures on the following pages were attained by past knowledge of the market, industry averages, directly contacting industries who perform services needed and agreed upon costs with our board of directors.
  3. 3. A & I Sauces Personnel Angela Louise Lehart, 4Years of Business Management Experience Chief Executive Officer (419) 569-7084 In charge of all day to day operations including all sales and production. Jeff A. Lehart, 4 Years of Business Management Experience Chief Visionary Officer (419) 569-7088 In charge of guiding corporation to attain present and future goals. Mary Ortega, 40 Years of Administrative Assistance and Customer Service Experience Chief Financial Officer (937) 570-7296 In charge of company finances, record keeping and financial reporting. Dr. Rick McCartney, 20 Years of Business Administration Experience Chief Operations Officer (419) 569-7089 Oversees day to day production and helps set and attain production and distribution goals. Dr. Michael Mack, 20 Years of Business Administration Experience Chief Strategy Officer (419) 565-1921 In charge of creating, communicating, executing and sustaining strategic initiatives for the corporation. Contact Information Manufacturers American Culinary Concepts 1849 West 24th Street Cleveland, Ohio 44113 Contact: Jim Cox (216) 566-0300 Fax: (216) 566-5456 Endorphin Farms 3255 Parker Drive St. Augustine, Florida 32084 Contact: Scott Martin (904) 824-2006 Fax: (904) 429-0091 Jes Foods 1800 Industrial Road Celina, Ohio Contact: William Freed (419)586-9999 Fax: (419) 586-1234
  4. 4. Brokers All State Brokerage, Inc., 200 Years of Experience ( Kroger Contacts ) 4663 Executive Drive Columbus, Ohio 43220 Contact: George Union (614) 451-2333 or 800-466-2848 Fax: (614) 451-7772 Windy City Brokerage, 25 Years of Sales Experience (Chicago area contact) 10413 South Terry Drive Palo Hills, Illinois 60465 Contact: David Bartkowiak Kevin Kross The Anderson's and Chief Stores 5909 Brookestone Villa Lane Sylvania, Ohio 43560 R & R Sales ( Nash Finch Broker ) 1 Morley Plaza PO Box 1908 Saginaw, MI 48605 Contact: Ralph Furlo Jerry Young, 32 Years of Sales Experience 7402 Bitter Sweet Lane Medina, Ohio 44215 (330) 321-2558 Fax: (330) 769-8548 Jerry Gillium Jungle Jim's Store 8043 Tollbridge Drive Westchester, Ohio 45069 Shell Campbell Kroger Mid Atlantic Division 1568 Mount Pleasant Church Road Fincastle, VA 24090 David Young 892 Hiwassee Street Murphy, NC 28906
  5. 5. A & I Sauces Business Plan 1. Executive Summary A & I Sauces is ready to move its manufacturing into a more controlled facility and the marketing of their exciting Hillbillie line of products from local stores in Central and Southeast Ohio to a more regional approach. Regardless of what the local economy is doing in our country, food sales continue to grow, especially in the area of snack foods/ sauces. The success experienced in our 4 years on the market indicates a market that is ready for a premium salsa such as our own. While providing a superior product, our entry level price helps us to gain market share that would otherwise be unavailable to us. 1.1 Business Opportunity The unique flavor of Hillbillie Salsa positions the company for a fast start in the food industry. Hillbillie Salsa is already in Kroger, Meijer Sam's Club and a number of small grocery and deli stores in the Central and Southeast Ohio area. Reception has been very good. Kroger is now in the process of taking our salsa nationwide as well as Meijer stores. Sam's Club has given us the opportunity to do Road Shows in all 596 locations throughout the country. We are also in smaller chains in the mid Ohio area as well. We are in a position to take a part of the market share that appeals to the sweet flavor that sets our salsa apart from all the competition. 1.2 Product/ Service Description Hillbillie Salsa is a sweet salsa with a bit of a punch. It distinguishes itself from other salsas currently on the market and touches a market that has been untapped. Preliminary sales have proven that the market exists for this product. Interest is growing from both customers and selling points. Bandito BBQ Sauce, Roscoe's Sloppy Sauce, and Hobo Pepper Butter are in different phases of development as well as no sugar added versions of our regular salsas. With help from financial help we can have these to market by the fourth quarter of 2008. Preliminary sampling for these products indicates that all of these products will enjoy similar success as they receive the necessary approval of government agencies. 1.3 Current Business Position This is not a start up business. What started in the kitchen of the principals a couple of years ago has grown into a fledgling business. Marketing efforts continue to reach out to broaden our base, but the salsa has enjoyed success in the early stages of sales. Meijer and Sam's Club are stocking the products in Central and Southeast Ohio. Kroger has taken us into about 9 states so far including Ohio. Some local delis and small grocery stores enjoy consistent sales of the salsa. Now that we signed a national distributor we are taking the salsa nationwide with the chains like Kroger, Meijer, Sam's Club and Value City to name a few. A & I Sauces LLC is also minority and EDGE certified which gives us options to bid on government and state contracts. 1.4 Financial Potential Hillbillie Salsa got started from family, friends, co-workers, acquaintances and referrals requesting more and more of this product. Sales started in 2004 at approximately $2,700. In 2005 sales rose to $7,000. Sales in 2006 hit around $13,000. 2007 saw sales near $30,000. In 2009, with help from financial backing we feel we will hit sales of over $2,200,000 going up to near $4,000,000 in 2010. 1.5 The Request A & I Sauces LLC has grown through the financial support of the principals who have invested near $200,000 of their own money into this company. The principals now turn to outside investors for the $600,000 needed to keep up with the continuous growth of the company. These funds will be allocated for inventory ( $240,000 ), marketing ( $150,000 ), personnel ( $112,000 ), innovation ( $45,000 ), developing new clients( $35000 ) and operations ($18,000). 2. Company Background A & I Sauces, creator of Hillbillie Salsa, is a small Ohio based company which manufactures
  6. 6. food products for distribution. We have been making food products for more than threefour years. It was just 6 years ago, though, the company started producing salsa for friends and relatives. Our product is a little different than most companies. We give the salsa a little sweetness followed by a nice little burn. We currently sell the salsa at Kroger, Meijer, Value City, Sam's Club and many small local stores around Ohio and the East Coast. We are in the process of major expansion which has caused us to need the money for financing our growth. Our company strives for perfection and this goes for those companies who produce it for us. We have been approved by the Food and Drug Administration and the Department of Agriculture. The facilities we use are regularly inspected by their local health departments. 2.1 Business Description A & I Sauces is an LLC registered company in Ohio that manufactures a variety of sauces. The original product is Hillbillie Salsa, known for the delicate blend of heat and sweet that sets it apart from all other salsas on the market. Pilot programs have proven this product has a niche that attracts individuals looking for as unique flavor in their salsas. 2.2 Company History Hillbillie Salsa started in June of 2004. Our father, Tony, who is a big salsa lover, challenged us to come up with a salsa that wasn’t watered down or super hot. He wanted it with a great flavor and a nice texture that had a little bite to it. After many recipes and lots of changes, we had a recipe that filled his request. His reaction encouraged us to take the product to market and that is exactly what we did. 2.3 Current Position and Business Objectives Currently we are in a growth phase. Sales in 2004 were around $2,700 and climbed to around $4500 in 2005. 2006 saw sales go up to near $13,000 fueled by a couple of Meijer and Kroger stores we were given. So far, the founders, Jeff and Angela Lehart have funded every part of this venture. Development of our upcoming BBQ sauce, and our no sugar added salsas are scheduled to launch starting around the second quarter of 2009. We are now with a national distributor which gives us access to many more markets that we were not able to be in. This will exponentially increase our sales growth. We are committed to making the best products with the best ingredients we can buy. We plan on becoming the standard to which all other companies are compared to. We plan to grow into a $4 million dollar per year business by 2010. This will be achieved by using the current manufacturer of our products until we build our own cannery in the mid Ohio area. The cannery will produce products for other companies as well as our own and lease out part of the facilities to offset overhead expenses. 2.4 Ownership The principals, Angela and Jeff Lehart, are the sole owners of this company. The company currently has little debt. A banking relationship has been established with United Bank, N.A.. 3. Products The A & I Sauce family is made up of the initial product, Hillbillie Salsa. Our two BBQ sauces, pepper butter, wing sauce, and no sugar added salsas are next to come. Hobo Pepper Butter will be the first to come followed by the BBQ Sauces and the no sugar added versions of Hillbillie Salsa. The no sugar added salsas are due to demand by diabetics who would love to eat our salsa. We have already partnered up with Splenda to use their logo on our product when it is released. We hope to release these sometime in the second quarter of 2009. 3.1 Product Overview Hillbillie Salsa comes in 16 ounce jars that wholesale for around $27.00 per case ( with 12 jars in a case). Sales in 2008 are projected to be near $100,000 followed by near $2,200,000 in 2009. These sales will be helped with the help of an opportunity to serve our salsa in 3ounce pouches in the C store chains such as Speedway and the signing of a national distributor named Kehe Foods, which will take us across the United States in the next 12 months. These pouches will be able to go into many more stores due to it’s size and cost effectiveness. This packaging will also give us access to ballparks, arenas and prisons. 3.2 Suppliers and Inventory Currently, we use national suppliers to furnish their products for use in manufacturing our products. These suppliers allow for closer quality assurance checks for consistency and
  7. 7. predictability. This allows a long term relationship to be built and maintained with those who are necessary in our products being consistent and good. Our current manufacturers are American Culinary Concepts out of Cleveland, Ohio, JES Foods out of Celina, Ohio and Endorphin Farms out of St. Augustine, Florida. Endorphin Farms can produce over a thousand cases per day, JES Foods about 1000 cases daily and American Culinary can do about 300 cases per day. We have also started to work with Summer Garden Foods in Boardman, Ohio. We have a great working relationship with these facilities and they do great quality work that is consistently good. We have several brokerage firms working for us selling the product to new customers. I have them listed by name in the front of this plan. We also have 2 distributors that are working for us at this time with 4 more being negotiated with. One distributor, named Kehe Foods, out of Romeoville, Illinois, is the biggest food distributor in the United States and they service over 10,000 stores. Our other distributor is DPI Specialty Foods in Arlington Heights, Illinois who service around 6,000 stores. 3.3 Research and Development Research and development is the responsibility of the owners at the present time. They are always looking for other products to develop that consumers show an interest in having. 4. The Industry, Competition and Market The food industry shows consistent growth, year-after-year. Sales have reached over $1 trillion dollars in the United States and $3.2 trillion worldwide. Interest in snack foods, salsas and sauces, and quick, flexible products is continuously growing. This can only bode well for the future or our company. 4.1 Industry Definitions A & I Sauces’ products are snack food/sauces. This is a continuously growing market with an increasing number of competitors. Most of those competing in the field are targeting the market that wants hotter products. We have targeted the crowd that is looking for something different. We offer a sweeter, unique flavor that sets us apart from the rest of the competition. 4.2 Primary Competitors A & I Sauces has no direct competitors because of the niche we have pursued. We offer products that give the consumer a choice that is not just hot. Our indirect competitors come from brands such as Ortega, Pace, Emeril’s, Newman’s and Tostitos. New competitors enter the market regularly and some are establishing themselves in the niche they have found for themselves, but most are in local markets other than our target. 4.3 Market Size According to the USDA, there are more than 340,000 grocery stores in the United States. Additionally, there are 94,745 other stores that sell food. Of course, there are a wide variety of sizes, types and markets that these stores represent, but there are in excess of 435,000 potential store outlets for our products. Kroger, alone, operates more than 2,500 grocery retail stores in the United States under almost 24 banners. We are already in this chain and will be in a multitude of these stores. Kroger is present in 34 of the 50 states. They have supermarkets, price impact warehouse stores, convenience or C stores and multi department stores. Meijer is another chain we are in and they have over 180 locations in 6 states. They also have C stores at all these locations as well doubling the amount of stores we can be in at Meijer. Sam's club has around 600 clubs all over the country and is the second biggest club food store in the United States. Wal-Mart boasts 6,600 stores all around the world. We are looking at becoming a vendor in the near future for Wal-Mart. Take these stores and add internet sales, home delivery and mail order sources there is not limit on how much growth can take place. 4.4 Market Growth All reports, including those from the USDA, indicate continued growth in the food industry. Americans are eating out more and more, yet their grocery purchases are on the incline as well. The average consumer is developing a taste that lends itself to our products. People want products that are simple, quick and versatile, all of which points to our products.
  8. 8. This gave us the inspiration to produce a cookbook using the salsa in all the recipes giving another use of our salsa besides an awesome chip dip. It is estimated that only 10 - 15 % of Americans use products such as ours. This, too, indicates future growth that will make A & I Sauces an established commodity in the industry. Since we are an expanding company, our growth depends solely on our ability to produce the product. 4.5 Customer Profile The people who buy are salsa vary in age, gender and nationality. Males tend to have the personality of a risk taker who is looking for their next adventure, whether it be in recreation or the food they eat. They are a high energy person wanting to experience the newest, greatest and most exciting aspects of life. In choosing a product like ours, they are looking for something new, available, has alternatives and is high quality. Gourmet foods fit this type of personality extremely well. Women and children are starting to be attracted to these specialty products as well. Our sweet taste appeals to this demographic because they are driven by taste, versatility and convenience. 5. Marketing Plan A & I sauces relationship with Kroger stores is the foundation of its marketing plan. The willingness of this grocery chain to work with A & I Sauces encourages them to move ahead with confidence. Sam's Club is also willing to work with A & I Sauces with it's expansion through it's many stores and it's Road Shows provides them with direct feedback from the samples they provide to the customer. 5.1 Competitive Advantage The main competitive advantage that A & I Sauces has is the unique flavor of our products. We have steered away from the traditional products, giving ourselves a better chance at growth and acceptance. People are willing to try and recommend our product because it tastes different that the other like products found on the shelf. The best advertising for us is word of mouth. Once people find something they like, they quickly tell others about their discovery. It is not unusual for consumers to invite others over for an event where their new discovery is shared first hand. We have found that those trying our products spread the word freely. 5.2 Distribution Channels A & I Sauces markets it’s salsa through food brokers who go to potential customers to get them to buy our products. This has resulted in being part of the Kehe Foods, a national distributor, to take our product nationwide. Kehe services over 10,000 stores. We also signed with DPI Specialty Foods who works with over 6,000 stores nationwide. We are also dealing with several other distributors such as Tree of Life and Nash Finch to name a few and collectively they add another near 20,000 stores. We are also going to do Sam’s Club Road Shows where we sell our products directly to consumers while giving them a place to try it. 5.3 Promotional Plan To date, Angela Lehart has set up the local stores, Kroger, Sam's Club and Meijer stores. Since we hired food brokers we now have a sales team who take our product to places we could never have gone. Our new promotion will include a commercial that will be done by a company named Precinct 13 in Crestline, Ohio. This commercial will be shown in every big city where we are to be located in theaters and local TV stations around the second quarter of 2009. Our product has also found its way into a movie that was filmed in August 2007 called The Dead Matter which should hit television in early 2009 on the Sci Fi channel. Our product will be shown through a poster and the actors eating it as well. 6. Operating Plan A & I Sauces operates on a small scale currently. A home office suffices for all administrative functions at the present time. Manufacturing is done in Cleveland, Ohio at American Culinary Concepts but can also be done at JES Foods in Celina, Ohio and our other options are Endorphin Farms in St. Augustine, Florida and Summer Garden Foods in Boardman, Ohio. These operations are managed by company Chief Executive Officer Angela L. Lehart.
  9. 9. 7 Business Goals The company has established income goals of $100,000 in 2008 and $2,200,000 in 2009. We anticipate a net profit of 15% by the end of year two. One of our main goals of the company is to become established in business practices that prepare us for the future to withstand the test of time. We are committed to building the business so that it does no depend on us, to produce a consistent, predictable product, and to grow at a pace that is fitting to the market. 7.1 Future Plans Future plans include the addition of 4 new products mentioned earlier that will hit the market in 2008. We are also coming out with a revolutionary way of packaging the salsa in a pouch that will stand by itself on the shelf or hang from a hook that won't require shelf space. We also are in the works of a special packaging using several of our products we are calling the Hillbillie Six Pack that will be marketed in the bulk food stores like Sam's Club, Costco, BJ's Wholesale, QVC, Sysco, GFS and United Food Service. A cannery is planned for no later than 2010 that will allow us to produce our own products as well as co package products for other companies as well. If a better way is found in the meantime, we will research that avenue and make the appropriate action. 7.2 Exit Strategy A & I Sauces taking the market strong with this investment will make us viable for a merger or possible acquisition from bigger companies like Kraft, Nestle, Pespsico and Sara Lee who are industry giants. These possibilities makes us a great investment in an industry that is one of the few who continue to grow. Contact has already been made with some of these companies.
  10. 10. A & I Sauces Eighteen Month Plan Mission Statement To be the best tasting and highest quality food products that you can buy. Vision Our vision is that our products be sold in every retail grocery store in America. Company Values • Integrity • Quality • Customer Care • Fair Pricing • Creativity Projected Spending With Investment Monies New Clients Expand our current customer base. • $10,000 Meeting with Corporate Vendors to ensure quality pricing for ingredients for all stocked products • $15,000 Free product samples for regional store sampling • $10,000 One boxed trailer for weekend road shows and samplings • $35,000 Total Marketing Expand our current marketing. • $15,000 Commercial Creation • $10,000 Movie Ads • $10,000 Distribution of Samples • $100,000 Television Ads • $15,000 Promotional Items • $150,000 Total
  11. 11. Inventory A & I Sauces projects to invest into inventory for the following reasons: • $20,000 Product Availability/ Storage and Distributions • $200,000 Product Ingredients • $20,000 Time Managed Product Manufacturing • $240,000 Total Personnel Salary investment for essential personnel to the company in the following amounts: • $41,600 Chief Executive Officer • $29,600 Chief Visionary Officer • $13,000 Chief Financial Officer • $13,000 Chief Operations Officer • $10,000 Chief Strategy Officer • $2,000 Accountant • $2,800 Attorney • $112,000 Total Innovation A & I Sauces strong suit is its innovative ideas: • Νew products $25,000 • Innovative Packaging $20,000 • $45,000 Total
  12. 12. Operations Acquire and maintain facilities • $4,000 Business Phones/Service • $6,000 Company Vehicle/Lease • $2,500 Office Equipment • $4,000 Computers • $1,500 Software • $18,000 Total Exit Strategy A & I Sauces projects to merger or to be acquired by a larger company such as Kraft, Nestle or Pepsico within a 36 month period. A & I Sauces has already had contact with these companies who are interested already. Return on Investment Projected return on investment is 12 to 15 percent within 48 months. Projected Sales We project over $2 million in sales based on the following: • New distributors • New clients • Marketing • Expansion of current client base
  13. 13. Our Current Client Base Kroger • Cincinnati Division 1. Indiana 2. Kentucky 3. Ohio • Great Lakes Division 1. Michigan 2. Ohio 3. West Virginia • Delta Division 1. Arkansas 2. Kentucky 3. Mississippi 4. Missouri 5. Tennessee • Mid Atlantic Division 1. Kentucky 2. North Carolina 3. Ohio 4. Tennessee 5. Virginia 6. West Virginia • Central Division 1. Illinois 2. Michigan 3. Missouri 4. Ohio Meijer Stores • Ohio Buehlers • Ohio Giant Eagle • Pennsylvania Friedman's • Pennsylvania Waynes Country Market • Ohio Stoodts Super Valu • Ohio Phil's Deli • Ohio Sam's Club • Ohio
  14. 14. Future and Expanding Clients Wal-Mart 6,600 Stores  • 5,700 Stores Walgreens • 6,200 Stores CVS Pharmacy • 1,600 Stores Speedway • 175 Stores Meijer Sam's Club 592 Stores  • 1,740 Stores Safeway • 600 Stores Bob Evans • 1,500 Stores Kroger Target 1,500 Stores  K Mart 1,193 Stores  Dollar General 8,952 Stores  Food Lion 1,200 Stores  Publix 900 Stores  Bi Lo Foods 300 Stores  Acme Savon 134 Stores  H.E.B. 300 Stores  Albertson's 564 Stores  Costco 376 Stores  Super Valu 1,134 Stores  Winn Dixie 520 Stores  • 557 Stores Cracker Barrel Piggly Wiggly 616 Stores  • QVC • 65 Stores Discount Drug Mart • 225 Stores Giant Eagle • 300 Stores Trader Joe's • 1200 Stores Save A Lot • 50 Stores Bass Pro Shops • 180 Stores BJ's Wholesale • 44,973 Stores Total These stores only represent about 10% of the available market.

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