2. BackGROUND
Smokey’s premium cured, wild Salmon and Tuna is obtained from only the finest
sashimi grade fillets and loins. Our fish have been bled, eviscerated, impeccably cleaned,
and then frozen immediately after being taken from the deep cold waters of the North
Pacific. In addition we also utilize and produce sashimi grade Big Eye and Yellow fin Tuna
loins at our fish facility located in the Marshall Islands within the Central Pacific. The loins
of these Tuna are specially cured and slow smoked with real Coconut Husk Chips, hand
packed with solid loin meat, and canned with fresh Virgin Coconut Water; providing a very
different, and exquisite taste treat. As much as possible, we utilize only those fish that have
been caught with Troll Lines from offshore fishing boats, and are at the peak of maturity,
and of a uniform sustainable size.
Smokey’s curing recipe has evolved over the past 35 years between our facility in the
Central Pacific, and in Corona, California. Through trial and error, and the tasting and fine
tuning of our secret ingredients, that together with our slow smoking methods using real
Alder and Hickory Wood, we have been successful in achieving a very unique, and smooth
smoked flavor that has no equal.
Smokey’s Real Smoked Seafood Products contain no preservatives, nor artificial
coloring. All of our fish are caught wild in the open ocean, and we never use a farmed or
cultured seafood product for Smoking or Canning. In addition, it would be intolerable for us
to even consider utilizing any Purse Seine (nets)caught Tuna.
2
11. Funding Required to provide Pre-
Production Samples to viable
markets
1. Costs and Expenses to produce 3400 - 200g (7oz) Aluminum, Easy-Open cans of
Sockeye, Chinook, or Keta Salmon, and Albacore Tuna as marketing samples.
Costs
(a) 1000 lbs. of Raw Frozen Salmon ……… @$5.50 per lb. …………… $ 5,500
(b) 700 lbs. of Albacore Tuna Loins ………. @$6.50 per lb. …………… 4,550
(c) Shipping/Handling (to Corona, Ca) 1700 lbs. @ $.20 lb. ………….. 425
(d) Misc. Curing & Smoking supplies ……………………………………… 500
(e) 3 employees @ $2,000 each to cure, smoke & can 3400 samples ..$ 6,000
16,975
Total Investment Funding From Future Equity Partner…..(rnd to)….$20,000
Note:
We have sufficient supplies of cans to produce up to 10,000 cans of smoked product. We also have
can sealing equipment, as well as smoking facilities to produce up to 100 to 150 cans of smoked
product per day. It will take two to three weeks of curing, smoking, and canning to produce the
3400 sample cans.
11
12. Costs to set-up smoked fish production
facilities in Rifle Colorado – 3 month Initial
start-up Period
1. Facility in Rifle, Colorado Costs
(a) Lease of land with one metal bldg., 80’ by 30’ … $850 per mon. X 12 = $ 2,550 (3 mon.)
(b) First & Last month rent with $1,000 deposit …. ……………………….. $ 2,700
(c) City Permit/License …….. Approximately ……………………………….. 300 yr.
(d) Water, Gas, Electric, Telephone, Liability Ins., etc., Approx. ………..…...$ 4,000 (3 mon.)
(e) Quarters for 6 employees – construction cost …………………………… 3,000
(f) Food supplies - $250 per mon., misc. utensils, blankets, etc. $800+750 1,550 (3 mon.)
(g) Walk-in Freezer/Reefer (used) Includes racks, shelves, etc. …………. 8,000
(h) Stainless Steel Fish Cutting Tables, (used) Misc. tools/knives, etc. ..... 6,000
(i) Two (used) Smokers with racks (500 lbs. cap. each) ……………………. 10,000
(j) Aprons, gloves, boots, etc., etc. …………………………………………….. 500
(k) Packing Boxes & shipping materials, includes “GiftPak” boxes ……… 5,000
(l ) Hand Trucks, one Forklift (used) ……………………………………………. 10,000
(m) One (used) Pick-up ……………………………………………………………. 15,000
2. Cost of Raw Frozen Fish Product
(a) Salmon (Sockeye, Chinook, Keta) @ av. $4.75 lb., 4,000 lbs …………… 19,000
(b) Albacore Tuna @ av. $4.50 lb., 5,000 lbs. ………………………………….. $ 18,000
3. (c) Reserves, Misc. ……………………………………………………… $10,000
Total Cost s for Facility & Intial Raw Product Supply (3 months) … $115,600
Start-up Capital Required (Includes Logistics & Personnel Costs
Of $52,350 for 3 mon. Period) …………………… $167, 950
12
13. Logistics Marketing
personnel
1. Shipment of Raw Fish Product From Oregon, Washington, Vancouver
Costs
(a) First 3 months supply of Salmon ……… 4,000 lbs @ $.25 lb. .. $1.000
(b) “ “ “ Albacore Tuna . 5,000 lbs @ $.25 lb. .. 1,250
Truck Shipping Cost for Raw Frozen Fish ………………. $2,250
2. Personnel
(a) 3 Smoking/Canning Technicians @ $2,000 ea. Per mon. …. $6,000
(b) 1 Foreman @ $2,500 Per mon. …………………………………. $2,500
(c) 1 Office/Marketing Administrator @ $3,700 per mon. ……… $3,700
(d) 1 Overall Operations Manager @ $4,500 per mon. …………. $4,500
2A. Three Months Operations – Wages & Salaries … $16,700 x 3 = ..$50,100
Total Costs Logistics/personnel for initial 3 months …………$52,350
Cont. Next Slide
13
14. Revenue Profit & Loss
1. Three Months Full Operations
( A. ) Gross Revenue From Sales Revenue
(a) Total of 18,000 200g cans (3 month)
(b) Sale of single cans in “high-End Markets”
(1) 5,000 cans of Smoked Sockeye Salmon @ $10.00 per can = $50,000
(2) 5,000 cans of Smoked Albacore Tuna @ $8.00 per can = $40,000
(c) Sale of Special SeaSnakPaks through Website/Custom Markets
(3) 4,000 single can Tuna or Salmon SeaSnakPak @ $15.00 ea. $60,000
(4) 4,000 cans for 2,000 double can SeaSnakPak @ $25.00 ea. $50,000
Total Gross Revenues Generated From Sales ……………… $200,000
Total Operating Costs & Expenses (not Including Taxes)… $167,550
3 Months Initial Net Profit (before Taxes) ………………. $37,450
14
15. Three Year Revenue Assumption
We have a profound confidence in our Smoked Products that allows us to
forecast a continuous, intensified expansion, and the broadening of our
profitable revenue picture, over the next 3 years of operations.
We expect no downward level in the availability of our Raw Fish supplies for our
expanding markets. As a matter of fact we can expect a decided increase in the
supply of fish; especially Big Eye and Yellow Fin Tuna from the Central Pacific.
We will increase our use of more raw tuna from the Central Pacific as it is much
lower in overall costs then our Salmon or Albacore Tuna from the North Pacific
area.
It is also our sense that we must look to Asia for the “Upper Tiered Markets” that
will show-case the higher value-added quality of our premium, one of a kind,
smoked products. Once we gain a comfortable security, and a sound knowledge
of the upward predictability of our Asian Gourmet Markets; It is expected that we
will base the majority of our operations out of our processing facilities in the
Republic of the Marshall Islands.
For the interested Equity Partner Investor, it should be very plain that our
Smoked Seafood Products are not only a high profit commodity, but
extraordinarily expandable as well. 15
16. Three year revenue profit &
loss
1. Final 9 months of 1st full year of Operations Costs
(a) 30,000 lbs of Raw Product purchased at an av. of $4.50 lb. …………….. $135,000
(b) Recurring Costs + 10% last 9 months of the year …………………………. 172,845
Total Costs during last 9 months of the year ……………………………. $307,845
(c) Gross Revenues on Sales of 60,000 cans – Revenues
(1) 40,000 cans of smoked Tuna & Salmon at av. $9.00 per can ………... $360,000
(2) 20,000 SeaSnakPaks at av. $20.00 per Pak ……………………………… 400,000
Total Gross Revenue during last 9 months of the year …………………. $760,000
Net Revenue at end of First Full Year of Operations (before taxes)
(Includes 1st three months Net Revenue of $37,450) … $797,450 Net Profit
2. Second Year of Operations (Rifle, Colorado) Revenues
(a) Gross Revenues on Sales of 180,000 cans of Tuna & Salmon (includes
35,000 SeaSnakPaks at av. of $25.00 per Pak (1,2,&3 can Paks) ………$ 875,000
(b) 125,000 single cans sold @ av. of $9.00 per can …………………………. 1,125,000
Total Gross Revenues 2nd full year of operations …………………… $2,880,000
(c) Recurring Costs + 10% during 2nd full year of operations ……………… $ 190,130
(d) Cost of 90,000 lbs of Salmon & Tuna @ av. of $4.50 lb. ………………… $ 405,000
$ 595,130
Total Net (before taxes) Revenues 2nd full year of operations $1,542,070 Net Profit
(Cont. On next slide)
16
17. Third year profit & loss expanding
facilities in the Marshall Islands
1. Third Year of Smoked Seafood Production in Rifle, CO, and the Marshall Islands (RMI)
(a) Agenda Summary: begin partial operations during 3rd year, in RMI: $300,000 funding will be
advanced from 2nd year gross profits to start-up buying & processing facility in Majuro (RMI).
Sashimi grade Big Eye and Yellow Fin Tuna will be purchased from selected Japanese vessels when
arriving in port to refuel, etc. These fish will be from 60 to 120 lb size (which is below the size
desired by the fishing vessel). We would pay about $1.00 to $2.00 per lb. for these fish. Later we
would expand our operation by providing our own vessel(s) to catch and transport fish purchased in
the Outer Islands, and caught by the local fishermen.
(b) Combined Gross Revenue on Sales of 225,000cans of Tuna & Salmon (Includes 75,000
SeaSnakPaks @ av. of $25.00 per Pak (1,2,3 can Paks) Gross Revenue ….. $1,875,000
(c) Sales of 150,000 single cans sold at av. of $9.00 ea. Gross Revenue……..$1,350,000
Probable Sale of 30,000 cans Smoked Big Eye Tuna @ $10.00 ea. (RMI) …$ 300,000
Total Combined (Rifle & RMI) Gross Revenues 3 rd year $3,525,000
(d) Recurring Costs + 10% in Rifle during 3rd year production …………………. $ 209,143
(e) Costs of 112,500 lbs. Raw Fish @ $4.50 per lb. ………………………………… $ 506,250
(e) Start-up costs in RMI – Implementing Facility + limited production costs… .$ 300,000
Total Combined Costs during 3 nd year ………………………… $1,015,393
Total Combined Net Revenue 3nd year…………………………. $2,509,607
Note: Big Eye & Yellow Fin Tuna will be smoked with real Coconut Husk Chips and canned with pure
Coconut water. In the RMI - Revenue Tax is only 3%, and wages/salary tax is only 12%.
