IceMakersTM: A Guide to Investing 1
IceMakersTM: A Guide to Investing
Unit 4—Business Report
Laura M. Weiss
August 9, 2007
Writing for Careers/EN215.1ONP1
Professor Gretchen Haertsch
IceMakersTM: A Guide to Investing 2
IceMakersTM: A Guide to Investing
IceMakersTM is a medium-sized, family owned company that sells and services
commercial ice machine equipment. The company has been in business since May 2000. Our
customers are restaurant owners, hospitals, nursing homes and convenience stores. Our desire is
to expand our company. Presently, we service the Delaware Valley area, but we would like to
expand to the New York and New England areas. This expansion would require added personnel
and vehicles. In order to do this, we are offering investors the opportunity to join in our
IceMakersTM is a start-up company founded in May 2000, in a garage of our home in
Feasterville, Pennsylvania. The company began with just two employees: sister and brother
Laura and David Weiss. In March 2007, we have moved to a 100,000 sq. ft facility located on
East Street Road in Feasterville, Pennsylvania. The reason that we did this was to facilitate
volume purchases of inventory for better pricing. The employees now consist of a
secretary/receptionist, a service manager, and four mechanics. We also employ two Product
Specialists and 12 outside sales professionals. David and Laura are the Product Specialists.
The industry that IceMakersTM participates in is very competitive and fierce. We are in
competition with other ice machine companies, like Manitowoc, Scotsman, Hoshizaki, Ice O-
Matic, etc. What makes our product different from other ice machine companies is the excellent
product technology and innovation that goes into the ice machines every single day. We are
always trying to modernize the technology that goes into our ice machines to help them stay very
high quality. The repairs (or services) begin with the initial installation of the ice machine and
IceMakersTM: A Guide to Investing 3
continue on for as long as the customers own the product. This helps us stay true to our product
and customers. This also assures that our customers will be satisfied and buy more from us.
A small business loan of $50,000 was procured to start the company. Seven years later,
the projected income for 2006-2007 is $1.5 million in gross sales. The small loan was paid off in
2002, and no other loans are outstanding.
Interview with Robert S. Weiss
Robert S. Weiss has been involved with the ice making industry for over 35 years. He
has been a Sales Manager, Service Manager and Vice President of Manitowoc Ice Products at
United Refrigeration in Philadelphia, Pennsylvania. He is very well-known and respected in the
ice machine business. Following, are questions and answers posed to him about the industry.
When I asked Mr. Weiss, what is the approximate value of ice machine business in the
Delaware Valley area, he replied that for the past five years, the approximate value of the ice
machine business has been about 12 million dollars. This includes both large and small
companies. I asked if dealers are available in New York and New England. He told me that at
this point in time there are probably in excess of 40 quality food equipment dealers ready,
willing and able to take on our products and sell it well. Finally, I asked if Mr. Weiss felt that
expanding to a new territory a good idea. He stated that expansion is always a good idea if you
explore first (R.S. Weiss, personal communication, July 10, 2007).
The Business of Ice Makers
Joseph Durocher (paragraph 2, 2002) states in his article that “Foodservice operations
consume huge quantities of ice”. Ice making is one of the few businesses that are virtually
inflation-proof. You only need to look at the way ice is used to see this. Ice is utilized in the
health care sector. Hospitals and nursing homes constantly need ice for patients and other
IceMakersTM: A Guide to Investing 4
purposes. Schools use ice for food service reasons. No matter how bad the economy gets,
people will always go out for dinner on occasion. Restaurants require ice for chilling food and
drinks. Also, some restaurants have salad bars that must be kept chilled. Scott Hume (paragraph
8, 2004) states that “ice is a nearly universal service element for foodservice”.
Industry and Competitive Information
There are four major brands of ice machines. They are Manitowoc, Enodis USA
(Scotsman Ice Systems and Ice O-Matic), Cornelius and Hoshizaki.
Manitowoc is a worldwide company that uses distributors to sell their ice machine
products. They have been in the ice machine business since the mid-1960s. By this time, they
had developed refrigeration expertise and became America’s number one selling brand of ice
machines. Their corporate headquarters is in Manitowoc, Wisconsin
Scotsman Ice Systems and Ice O-Matic Ice Machines are both owned by Enodis USA.
Scotsman Ice Machines have been on the market for 50 years and are sold worldwide. As
Enodis website states, they are headquartered in Vernon Hills, Illinois. Located in Denver,
Colorado, Ice O-Matic manufactures, distributes and supplies a diverse line of ice products
(http://www.enodisusa.com, n.d.). Both of these companies are constantly improving their
products in order to satisfy their customers.
Ice machines are a small part of IMI Cornelius’ business. They also manufacture and
distribute beverage dispensing systems. They have 12 plants in six countries. They are a
subsidiary of a British-based company. This is one company that is very tuned into the
environment and the community. They feel that protecting the environment will also protect
IceMakersTM: A Guide to Investing 5
their customers. Their American office is located in Osseo, Minnesota
Peachtree City, Georgia, is the home of Hoshizaki Ice Machines. Hoshizaki is the
world’s second largest manufacturer of commercial ice machines. This company is the most
technologically advanced of all. Their production is assisted by automated manufacturing
facilities. Hoshizaki is the newest of all of the ice machines on the market. They started
production in 1986 (http://www2.hoshizaki.com, n.d.).
The following chart shows market share of each of the above mentioned companies:
Ice Machine Market Share
IMI Cornelius, 5%
Enodis USA, 30%
Manitow oc, 43%
(Information obtained from the Manitowoc Ice Machines website)
Manitowoc, Enodis USA (Scotsman & Ice O-Matic), Hoshizaki and Cornelius are ice
machines that IceMakersTM sells and service to its customers.
Our plans to expand our company have been “in the works” for the last eighteen months.
Through research and investigation, we have found that growing our company is a profitable
plan. This growth will encompass the purchase of a new office/warehouse, four additional
IceMakersTM: A Guide to Investing 6
service vehicles and personnel to staff the new facility. We are sure that this expense will be
justified by increased profits due to sales growth in the new Northern territory. This is why we
are offering investors interest on their money.
New York/New England Market
IceMakersTM desires to expand its business to the New York and New England markets
because there is room for another ice machine business in that area. Recently, when I
interviewed Mr. Robert Weiss, I asked him to the best of his knowledge, what is the approximate
value of ice machine business in New York and New England. Mr. Weiss said that New York
and New England are two separate markets. The New York market is basically the area around
New York City and Long Island. The New England market will also encompass Northern New
York, i.e. Albany, Syracuse, Buffalo and Rochester. The geography of the dealers dictates this
to happen. The approximate value of the ice machine business in these markets is 18-20 million
dollars. I then asked if climate conditions have any effects on ice machine sales and service.
The reply was that the climate is not that much different in the Northeast as compared to our
current location. The winters are slightly more active weather wise, but the business climate for
ice products is virtually the same (R.S. Weiss, personal communication, July 10, 2007).
Obviously, Mr. Weiss’ statements give us the initiative to look to the New York/New
England territory as our next large endeavor. We know that our company is capable of going
into a new environment and being successful. We have the people and the know-how to set up
and run an efficient company. Making an investment in IceMakersTM is a safe and secure way
for any investor to profit.
IceMakersTM: A Guide to Investing 7
As an investor, it is easy to see that IceMakersTM is a profitable company that sells and
services commercial ice equipment. Your investment will help this company to grow. We have
decided that all monies invested in the company will be repaid in two years’ time. This
repayment will also include seven percent interest that will be paid at end of two years’ time.
The actual sales for IceMakersTM is $1.5 million for 2006-2007, and the projected sales
for 2008-2009 for the company is $2.1 million with the expansion to New York and New
England areas. This figure includes time to contact new customers and start the new business in
the North. Below, the investors will find a chart that shows the actual and projected sales for
IceMakersTM. The investors will notice an increase of approximately $600,000 in two years.
IceMakersTM Actual Sales for 2006-2007
Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-
06 06 06 06 06 06 07 07 07 07 07 07
IceMakersTM: A Guide to Investing 9
Durocher, Joseph. Cubism 101. Restaurant Business. New York: March 1, 2002. Vol. 101,
Issue 4; pg. 67, 2 pgs. Received on July 17, 2007.
Enodis USA. Received on July 12, 2007. http://www.enodisusa.com
Hoshizaki America, Inc. Received on July 12, 2007. http://www2.hoshizaki.com/machine.asp?
Hume, Scott. Foodservice on Ice. Restaurants & Institutions. Chicago: April 15, 2004. Vol.
114, Issue 9, pg. 65, 2 pgs. Received on July 17, 2007. http://morholt.arcadia.edu:2096/
Ice O-Matic United States. Received on July 12, 2007. http://www.iceomatic.com
IMI Cornelius, Inc. Received on July 12, 2007. http://www.cornelius.com
Manitowoc Ice Machines. Received on July 12, 2007. http://www.manitowocice.com
Scotsman United States. Received on July 12, 2007. http://www.scotsman-ice.com