This document summarizes the business plan of Sun Flour Baking Company, a plant-based bakery company. The company aims to disrupt the food industry by offering healthier, delicious vegan and gluten-free baked goods as an alternative to dairy and egg-based products. The company was founded over 30 years ago and produces a variety of baked goods. It has an experienced team and utilizes an efficient production model. The document outlines the company's mission, products, competitive advantages, growth strategy, financial projections, and timeline to achieve national and international expansion.
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2. Our Mission
We aim to improve the health and well-being of those seeking vegan bakery products.
HEALTHIER & TASTIER by:
Stimulating curiosity and inspiring people to try new tastes and textures.
Offering high-quality and nutritious plant-based sweets in different forms.
Creating a trusted, reliable, consistent brand through our vegan baked goods facility.
3. About Us
Drive, relationship building,
and sustainability
“When 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.”
Colleen Holland - Publisher & Co-Founder VegNews
“I’ve 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
I’m deeply grateful for our longstanding friendship.”
Gene Bauer - President & Co-Founder Farm
Sanctuary
Founder’s 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, generating ~$1 Mn in sales
in 1995/96.
Sun Flour Baking Company
Background: the 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.
4. The Problems We Address
Mediocre plant-based products • Environmental impact • Allergens
Unsavory options
Flavorless vegan and gluten-free
bakery and snack options.
Missing the nutrients
Snacks (whether vegan or not)
do not typically contain a
nutrient-dense formula.
Short shelf live
Eggs and diary-based bakery
products have a shorter shelf life,
resulting in lost revenues, more
waste, and lower profit margins.
Wasting energy
Despite requiring less energy and
resources (vs. animal
agriculture), plant-based
ingredients are not yet
considered a relevant substitute.
GMO usage
In many cases, the producers use
GMOs (genetically modified
organisms) and artificial additives
that are difficult or impossible for
the human body to digest.
Allergens
Considering the latest discoveries,
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.
5. Value Proposition
Driving the transformation of the food industry
Acting as the dairy and
egg industry disruptor
Our experience over the past 30
years has shown that using only
plant-based ingredients can be a
successful recipe for baking
companies.
Driving the change through
bakery products
People are more likely to try a dessert or
snack than an alternative to meat.
Offering healthier, delicious
plant-based products
Vegan and gluten-free cookies, cakes,
muffins, brownies and more.
A vegan, therefore
responsible business model
Saving the animals from any form of abuse.
Saving energy and resources to ensure
long-term food industry continuity.
6. Our Solution
Healthier and delicious plant-based products: cookies, cakes, muffins, brownies, truffles, macaroons, and more
Vegan and gluten-free
An alternative for a wide range of customers: the curious, the vegans,
or requiring a specific diet for medical reasons.
Delicious, unique taste and texture
Achieved through nutrient-dense ingredients.
No contaminants
Free of cholesterol, hormones, pesticides, and antibiotics.
A longer shelf life
Use all-natural ingredients, no eggs, dairy, or GMOs
Healthy sugar
Use a patented sugar made from grape juice and brown rice syrup.
7. Tractions
Proving our Business Model’s efficiency
The first M&A project
Sun Flour Baking recently acquired Michy’s Foods, which are currently sold through approx. 25 Ralphs stores.
Before the acquisition we offered them co-packing services.
Products variety
Vegan, GMO-free, gluten-free,
organic, and kosher prepared in a
4000 square foot certified facility
Wide
Clients
B2C: retail
B2B: retail and bulk (co-packing,
private labelling)
Returning
Revenues in 2022
95% generated by out top 5 clients
~70% higher compared to 2021
~$300k
Net Income in 2022
Representing between 20-30%
of sales
~$70k
8. 8
Market Validation
US Plant-based bakery and confectionery trends
$343.2Mn
2021vegan bakery &
confectionery market;
11.3% CAGR 2022-2030
North America dominated the market for
vegan confectionery in 2021 with over a 37%
share of the global revenue.
Sources: Grand View Research, 2021 report
North
America
37%
Rest of
the World
63%
$3.26Bn
Plant-based food
ingredient market size
in 2020
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.
Sources: Statista, 2020 report
922.1
148.6
553.9
91.6
109.5
156.4
98.7
115.3
172.2
86.1
803.9
Others
RTE & RTC meals
Meat substitutes
Sweet and savory
Bakery & Confectionery prod.
Other plant-based milk…
Plant-based butter
Plant-based yogurt
Plant-based ice cream
Plant-based cheese
Plant-based milk
40%
The chocolate product
segment dominated the
market in 2021
Demand for plant-based chocolate
confectionery has grown significantly due to
its low fat and low cholesterol properties.
Sources: Grand View Research, 2021 report
Chocolate
40%
Sugar &
Flower
60%
80%
Offline
sales
in 2021
The plant-based food industry has been
promoting its products by entering into
partnerships with grocers and retail chains
Sources: Grand View Research, 2021 report
Offline
80%
Online
20%
9. Amazon
Offering gift baskets
and cookies
Business Model
8 Revenue Streams to start with
Private label
Current clients: O’Meals, MRE
Meals Ready to Eat (US Military)
Co-Packing
Current clients: Renewal Mills,
Rawkin Raw, Michy’s Foods*
(*before company acquisition)
Our website
Online, on-demand sales
Food Service
Airline, hotels, restaurants,
colleges, hospitals
Online retail platforms
RangeMe, ECRM Marketgate
Apps Delivery
Grubhub, DoorDash, Uber Eats
Traditional Retail
Kroger, Safeway
10. Operation Model
Our baking flowchart
Mixing and
preparation
Raw materials: flour,
water, ingredients
Cutting
equipment
Dough, pastry, etc.
cutting and shaping
Baking
Double rack or
tunnel ovens
Cooling
area
The cooling rack allows air to
circulate completely around the
food removing the moisture
Horizontal
wrapping machine
Including
quality control
Storing in climate
control rooms
And prepare for shipping in
packs or pallets
11. Healthy eating today means cutting back on
sugar, processed food, fat, salt, and red meat.
Our Customer
In 2022, 46% of the US population
considers Flexitarianism life-style
Across all ages, consumers have been looking
for significantly healthier foods since COVID-19
Flexitarianism has gained popularity: it centers on eating
plant-based food, with only occasional meat consumption.
Consumers buy plant-based products for
their health even if they don’t like the taste.
Sources: McKinsey, 2022
12. Competitive Landscape¹
Make the most of our competitor’s weaknesses and:
1. Implement a highly efficient business model that will generate higher revenues/employee
2. Ensure a targeted, SEO-driven digital marketing campaign
-
1
2
3
4
5
6
7
8
9
10
Vegan &
Allergens free
Range of products:
cookies, snacks, other
Revenues /
employee per year
Social Media (new
followers/month)
Website
performance
Google
reviews
Alternative Baking - Vegan alternatives to traditional baked goods
Lenny & Larry’s - Baked goods that include protein
Enjoy Life Foods - Gluten-free, dairy-free, and nut-free cookies
Sun Flour Baking
¹The spider-web model was developed considering as input information from: competitor’s websites, zoominfo, platforms assessing website and social media performance, qualitative research
13. Marketing Channels
A targeted marketing campaign
• Facebook: targeting the Millennials >35 years and older generations
• Instagram & Tik Tok: targeting early Millennials and Gen Zs
• LinkedIn & Twitter: create a professional network
• Collaborations with Influencers promoting a healthy lifestyle
• YouTube channel: interviews, content creation
Social Media Strategy
Digital Presence
• An informative, easy-to-navigate website
(including professional design) aiming to
attract and keep visitors engaged
• Search Engine Optimization
• Reviews on relevant platforms
Traditional Approach
• Mini-size products and cookies samples
• ..together with informative printed flyers
on healthy ingredients and recipes
14. Rey Ortega
Founder
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
Jill Hahn
Financial • Production management • Quality control
Bachelor of Science in Accounting
As an accountant, she worked on multi-million
dollar blockbuster films, like “Batman Begins”
She was the producer of the LA annual plant-
based event for 8 years
BJ Hollifield
Business Advisor
With entrepreneurial experience
Member of SAG-AFTRA Self-marketed
fashion model
Bachelor of BA in Marketing
Volunteer within the Humane Society
She promotes a plant-based lifestyle
Reed Parsell
Business Advisor
Master’s in journalism
“Best of the West features headline writing” awards
Public information officer at California Department
of Transportation
Sacramento Magazine - monthly column on
sustainability
Our Team
Passionate and highly experienced team members
15. Financials
~$5.2Mn investment to ensure profitability in the 2nd operational year
Plant based food
manufacturing: 66% out of
total revenue
Co-packing: 17%
Private labelling: 17%
Revenue
Building & Equipment Y1: 1.5 Mn
COGS Y1: 0.53 Mn
Office team Y1: 0.56 Mn
Marketing Y1: 0.24 Mn
Other Y1: 0.22 Mn
COGS Y2: 1.3 Mn
Office team Y2: 0.57 Mn
Marketing Y2: 0.29 Mn
COGS: 47% out of total Costs & Expenses -
covering the bakery team, ingredients,
delivery etc.
Expenses: 45% covering the office team,
marketing, construction (20.000 sq. ft
floor plan; details in the Business Plan),
equipment, legal, insurance, etc.
Income taxes: 8%
Costs & Expenses
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
Profit & Loss in $ Mn
Investment Need Building &
Equipment Y1
29%
COGS Y1
10%
Office team
Y1
11%
Marketing Y1
5%
Other Y1
4%
COGS Y2
25%
Office team Y2
11%
Marketing Y2
5%
$5.2 Mn
The estimations are covering both, Sun Flour Baking and Michy's Foods potential growth
16. Timeline
Reach international exposure in the next three years
Achievements
UNFI Approved vendor for Whole
Foods distribution
2020-2021 Stayed in operation
throughout the Pandemic
2022 Going back to pre-covid
production levels
2022 Michy’s Foods acquisition
2023 – Funding & Growth
New equipment to improve production
time, reduce cost and add new products
New product lines gluten-free, 4 brownie
lines, toaster cookies, stuffed cookies
New visual identity design & packaging
Funding round and bigger facility
construction planning
Introduce Michy’s cookies into the
entire Kroger chain
Obtain PCQI certifications to get into
Target, Trader Joe’s , Whole Food,
Safeway markets
2024 – Construction
Start the construction of the state-of-
the-art, larger production facility (two
line bakery to expand to four lines in
the upcoming years)
National expansion
New revenue stream re-introduction
into the airline food industry
Introduce Sun Flour Baking products
into thousands of stores
2025 – New facility in place
Complete the construction of the new
facility
International expansion
Customer and market trends research
to identify new revenue streams
IPO concept and strategy in place
prepare for 2026-2027 IPO phase
17. Media Appearances
Demonstrating our commitment to more nutritious food through all our brands
“Unable to stomach
cookies, baker goes vegan,
set his own.”
“Sun Flower Baking Co,
one of the largest
manufacturers of vegan
cookies in the country.”
“More nutrients, less
cholesterol the way to go.”
“Sun Flower Baking
Company breaks the
cookies mold.”
18. R e y O r t e g a
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