BUS 599 – Assignments and Rubrics © 2019 Strayer Unive.docx

BUS 599 – Assignments and Rubrics
© 2019 Strayer University. All Rights Reserved. This document
contains Strayer University confidential and proprietary
information
and may not be copied, further distributed, or otherwise
disclosed in whole or in part, without the expressed written
permission of
Strayer University.
BUS 599 FACULTY GUIDE 1194 (4-4-2019) Page 35 of 44
Assignment 3 Operation, Technology, and Management Plan
with Financials
Due Week 8 and worth 100 points
Use the NAB Company Portfolio (see Required Course Files in
Week 1).
Write a 3–6-page paper in which you provide the following
information below.
Operations Plan (1–2 pages)
Note: Remember to assign a dollar amount to each operational
cost you find, as you will need these
figures for your income statement and cash flow in Week 8.
1. Create an operations plan for your NAB company using the
template in the text as a guide (p.
214 | Operations Plan Preparation Form). Extract appropriate
information from the NAB

Company Portfolio, where applicable. Other required items in
the template should be filled in
using your personal preferences.
• Note: Most of the research pertaining to the hints provided
here can be found in the
NAB company portfolio.
• Hints: Consider whether you will rent or buy your facilities or
outsource production to
an existing company.
• Hints: One of your biggest expenses as a startup non-alcoholic
beverage company
will be transitioning from a small-batch prototype of your
beverage to production on a
large scale. Research the equipment you will need (vats,
refrigerators, burners,
ovens, bottling equipment, and so on), whether you will rent or
buy, how you will
maintain and clean the equipment, and so forth. Consider how
you will ensure quality
control. What capacity do you intend to reach?
• Hints: Deliberate your inventory control. Where do your
supplies come from and what
is your turnaround time to produce your beverage once you have
received an order?
• Hints: Consider your distribution method. Refer back to your
notes for the SWOT
analysis assignment in Week 2 of the class.
• Hints: How will you stay abreast of new developments in your
industry? What new
products do you have in development now, in addition to your

flagship product?
2. Describe your research and development activities and
explain how they will contribute to the
company.
Technology Plan (1–2 pages)
3. Create a technology plan for your NAB company using the
template in the text as a guide (p. 227 |
Technology Plan Preparation Form). Extract appropriate
information from the NAB Company
Portfolio, where applicable. Other required items in the
template should be filled in using your
personal preferences.
• Hints: Consider the type of technology your company will use
to conduct the following
activities: managing personnel; taking, fulfilling, and tracking
orders; managing
inventory; communicating with customers and providing
customer service; and
producing your beverage.
Management and Organization (1–2 pages)
4. Create a management plan for your NAB company using the
template in the text as a guide
(p. 248 | Management Plan Preparation Form). Extract
appropriate information from the NAB

information
permission of
Strayer University.
Company Portfolio, where applicable. Other required items in
5. Using the flow charts on page 242 as a guide, outline your
company’s management
hierarchy. Note: Charts or diagrams must be imported/included
in the MS Word document.
Create an ethics and social responsibility plan (1-2 pages)
a. Describe the ways in which your company is committed to
being a good corporate citizen.
• Hints: Consider the following areas:
o Creating jobs
o Following the laws of every jurisdiction in which your
company operates
o Fair and honest treatment of employees
o Non-discrimination of employees and increasing diversity of
your work force
• Hints: If your company is designed as a social venture—in
which you have a primary
purpose of achieving a social or environmental goal—describe
what that goal is and
what aspects of your company are designed to reach that goal.
Provide a rationale

for why you have or have not chosen this to be a social venture.
b. Discuss how your company’s activities will affect the
environment and identify the steps you
will take to mitigate any negative impacts.
• Hints: As a beverage company, consider such issues as your
choice of packaging,
disposal of bottles/packages by consumers, and your use of
resources, such as
water in areas where water may be scarce.
c. Determine any health issues/claims related to the product you
are making, whether negative
or positive. Suggest the strategy your company will use to
mitigate any negative issues and
to ensure any positive claims are true.
d. Many beverage products have negative health impacts on
certain segments of a population
(e.g., children, pregnant mothers, etc.). Suggest your company’s
plan, through advertising,
distribution, and/or other methods, to target and reach only
appropriate market segments.
Format your assignment according to these formatting
requirements:
1. Cite the resources you have used to complete this exercise.

Note: There is no minimum
requirement for the number of resources used in the exercise.
2. Be typed, double-spaced, using Times New Roman font (size
12), with 1-inch margins on all
sides; references must follow APA format. Check with your
professor for any additional
instructions.
3. Include a cover page containing the title of the assignment,
the student’s name, the professor’s
name, the course title, and the date. The cover page and the
reference page are not included in
the required page length.
The specific course learning outcomes associated with this
assignment are as follows:
• Recommend effective business strategies based on an analysis
of domestic and global operating
environments, market dynamics, and internal capabilities.
• Produce a comprehensive business plan.
Grading for this assignment will be based on answer quality,
logic/organization of the paper, and
language and writing skills, using the following rubric.

information
permission of
Strayer University.
Points: 100 Assignment 3 Part 1: Operation, Technology, and
Management Plan
Criteria Unacceptable Below 70% F
Fair
70–79% C
Proficient
80–89% B
Exemplary
90–100% A
1. Create an operations
plan for your NAB
company using the
template in the text as a
guide (p. 214 |
Operations Plan
Preparation Form).
Extract appropriate
Company Portfolio,
where applicable. Other
required items in the
template should be filled
in using your personal

preferences.
Weight: 16%
Did not submit or
incompletely
created an
operations plan for
your NAB company
using the template
in the text as a
guide.
Partially created an
operations plan for
your NAB company
using the template
in the text as a
guide.
Satisfactorily
created an
operations plan for
your NAB company
using the template
in the text as a
guide.
Thoroughly created
an operations plan
for your NAB
company using the
template in the text
as a guide.
2. Describe your
research and

development activities
and explain how they will
contribute to the
company.
Weight: 16%
Did not submit or
incompletely
described your
research and
development
activities and did
not submit or
incompletely
explained how they
will contribute to the
company.
Partially described
your research and
development
activities and
partially explained
how they will
contribute to the
company.
Satisfactorily
described your
research and
development
activities and
satisfactorily
explained how they
company.

Thoroughly
described your
research and
development
activities and
thoroughly
explained how they
company.
3. Create a technology
plan for your NAB
company using the
guide (p. 227 |
Technology Plan
Preparation Form).
Extract appropriate
Company Portfolio,
preferences.
Weight: 16%
Did not submit or
incompletely
created a
technology plan for
your NAB company
using the template
in the text as a
guide.

Partially created a
technology plan for
your NAB company
using the template
in the text as a
guide.
Satisfactorily
created a
technology plan for
your NAB company
using the template
in the text as a
guide.
Thoroughly created
a technology plan
for your NAB
company using the
as a guide.
4. Create a management
plan for your NAB
company using the
guide (p. 248 |
Management Plan
Preparation Form).
Extract appropriate
Company Portfolio,

Did not submit or
incompletely
created a
management plan
for your NAB
company using the
as a guide.
Partially created a
management plan
for your NAB
company using the
as a guide.
Satisfactorily
created a
management plan
for your NAB
company using the
as a guide.
Thoroughly created
a management plan
for your NAB
company using the
as a guide.

information
permission of
Strayer University.
preferences.
Weight: 16%
5 Create an ethics and
social responsibility plan.
Weight: 16%
Did not submit or
incompletely
created an ethics
and social
responsibility plan.
ethics and social
Satisfactorily
created an ethics
and social
Thoroughly created
an ethics and social

5. Using the flow charts
on page 242 as a guide,
outline your company’s
management hierarchy.
Note: Charts or diagrams
must be
imported/included in the
MS Word document.
Weight: 10%
Did not submit or
incompletely
outlined your
company’s
management
hierarchy, using the
flow charts on page
242 as a guide.
Partially outlined
your company’s
management
flow charts on page
242 as a guide.
Satisfactorily
outlined your
company’s
management
flow charts on p.
242 as a guide.

Thoroughly outlined
your company’s
management
flow charts on p.
242 as a guide.
6. Clarity, writing
mechanics, and
formatting requirements
Weight: 10%
More than 6 errors
present
5–6 errors present 3–4 errors present 0–2 errors present
information
permission of
Strayer University.
Assignment 3 Part 1: Operation, Technology, and Management
Plan

Use the “NAB Company Portfolio” (see: Course Required Files
in Week 1).
Write a three to six (3-6) page paper in which you provide the
following information below.
Operations Plan (1 – 2 pages)
Note: Remember to assign a dollar amount to each operational
cost you find, as you will need these
figures for your income statement and cash flow in Week 8.
1. Create an operations plan for your NAB company using the
214 | Operations Plan Preparation Form). Extract appropriate
Company portfolio, where applicable. Other required items in
2. Provide a rationale for the competitive advantages section
using appropriate functional-level
and business-level strategies to explain the competitive
advantages.
Much of the research pertaining to the hints provided
here can be found in the
NAB company portfolio.
or outsource production to
an existing company.
as a startup non-

alcoholic beverage company
will be transitioning from a small batch prototype of your
beverage to production on a
large scale. Research the equipment you will need (vats,
refrigerators, burners,
ovens, bottling equipment, and so on), whether you will rent or
buy, how you will
maintain and clean it, and so forth. Consider how you will
ensure quality control.
What capacity do you intend to reach?
supplies come from and what
is your turnaround time to produce your beverage once you have
received an order?
notes for the SWOT
analysis assignment in Week 2 of class.
ments in
your industry? What new
products do you have in development now, in addition to your
flagship product?
3. Describe your research and development activities and
explain how they will contribute to the
company.
Technology Plan (1 – 2 pages)
4. Create a technology plan for your NAB company using the
227 | Technology Plan Preparation Form). Extract appropriate

5. Provide a rationale for the personnel needs section by
incorporating appropriate functional-
level strategies.
to conduct the following
activities: manage personnel; take, fulfill, and track orders;
manage inventory;
communicate with customers and provide customer service; and
produce your
beverage.
Management & Organization (1 – 2 pages)
information
permission of
Strayer University.
6. Create a management plan for your NAB company using the
template in the text as a guide
(p. 248 | Management Plan Preparation Form). Extract
appropriate information from the NAB

7. Using the flow charts on p. 242 as a guide, outline your
company’s management hierarchy.
Note: Charts or diagrams must be imported / included in the MS
Word document.
8. Provide a rationale for the management structure and style
section by incorporating
appropriate functional-level strategies.
9. Format your assignment according to these formatting
requirements:
a. Cite the resources you have used to complete this exercise.
b. Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins
on all sides; references must follow APA or school-specific
format. Check with your
professor for any additional instructions.
c. Include a cover page containing the title of the assignment,
the student’s name, the
professor’s name, the course title, and the date. The cover page
and the reference page
are not included in the required page length.
assignment are:

change from current operations.
alternative strategies designed to
achieve stated business goals.
in strategic management.
y and concisely about strategic management using
proper writing mechanics.
Points: 70 Assignment 3 Part 1: Operation, Technology, and
Management Plan
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Create an operations
plan for your NAB
company using the
guide (p. 214 |
Operations Plan
Preparation Form).
Extract appropriate

Company portfolio,
preferences.
Weight: 15%
Did not submit or
incompletely
created an
operations plan for
your NAB company
using the template
in the text as a
guide.
operations plan for
your NAB company
using the template
in the text as a
guide.
Satisfactorily
created an
operations plan for
your NAB company
using the template
in the text as a
guide.
Thoroughly created
an operations plan
for your NAB

company using the
as a guide.
2. Provide a rationale for
the competitive
advantages section using
appropriate functional-
level and business-level
strategies to explain the
Did not submit or
incompletely
provided a rationale
for the competitive
advantages section
using appropriate
Partially provided a
rationale for the
competitive
advantages section
using appropriate
functional-level and
Satisfactorily
for the competitive
advantages section
using appropriate
Thoroughly
for the competitive
advantages section

using appropriate
information
permission of
Strayer University.
competitive advantages.
Weight: 5%
business-level
strategies to explain
the competitive
advantages.
business-level
the competitive
advantages.
business-level
the competitive
advantages.

business-level
the competitive
advantages.
3. Describe your
research and
development activities
and explain how they will
contribute to the
company.
Weight: 10%
Did not submit or
incompletely
described your
research and
development
activities and did
not submit or
incompletely
explained how they
company.
Partially described
your research and
development
activities and
partially explained
how they will
contribute to the
company.
Satisfactorily
described your

research and
development
activities and
satisfactorily
explained how they
company. .
Thoroughly
described your
research and
development
activities and
thoroughly
explained how they
company. .
4. Create a technology
plan for your NAB
company using the
guide (p. 227 |
Technology Plan
Preparation Form).
Extract appropriate
Company portfolio,
preferences.
Weight: 15%
Did not submit or

incompletely
created a
technology plan for
your NAB company
using the template
in the text as a
guide.
Partially created a
technology plan for
your NAB company
using the template
in the text as a
guide.
Satisfactorily
created a
technology plan for
your NAB company
using the template
in the text as a
guide.
Thoroughly created
a technology plan
for your NAB
company using the
as a guide.
the personnel needs
level strategies.
Weight: 5%

Did not submit or
incompletely
for the personnel
needs section by
incorporating
appropriate
functional-level
strategies.
rationale for the
personnel needs
section by
incorporating
appropriate
functional-level
strategies.
Satisfactorily
for the personnel
needs section by
incorporating
appropriate
functional-level
strategies.
Thoroughly
for the personnel
needs section by
incorporating
appropriate
functional-level

strategies.
6. Create a management
plan for your NAB
company using the
guide (p. 248 |
Management Plan
Preparation Form).
Extract appropriate
Company portfolio,
preferences. Form).
Weight: 15%
Did not submit or
incompletely
created a
management plan
for your NAB
company using the
as a guide.
Partially created a
management plan
for your NAB
company using the
as a guide.
Satisfactorily

created a
management plan
for your NAB
company using the
as a guide.
Thoroughly created
a management plan
for your NAB
company using the
as a guide.
7. Using the flow charts
on p. 242 as a guide,
outline your company’s
management hierarchy.
Did not submit or
incompletely
outlined your
company’s
Partially outlined
your company’s
management
Satisfactorily
outlined your
company’s
management
Thoroughly outlined
your company’s

management
information
permission of
Strayer University.
Note: Charts or diagrams
must be imported /
included in the MS Word
document.
Weight: 15%
management
flow charts on p.
242 as a guide.
flow charts on p.
242 as a guide.
flow charts on p.
242 as a guide.
flow charts on p.

242 as a guide.
the management
structure and style
level strategies.
Weight: 5%
Did not submit or
incompletely
for the management
structure and style
section by
incorporating
appropriate
functional-level
strategies.
rationale for the
management
structure and style
section by
incorporating
appropriate
functional-level
strategies.
Satisfactorily
for the management
structure and style
section by

incorporating
appropriate
functional-level
strategies.
Thoroughly
for the management
structure and style
section by
incorporating
appropriate
functional-level
strategies.
9. Clarity, writing
mechanics, and
Weight: 15%
More than 6 errors
present
5-6 errors present 3-4 errors present 0-2 errors present
information

permission of
Strayer University.
Assignment 3 Part 2: Business Plan – Draft
This assignment consists of two (2) sections: a draft of your
business plan and an income statement
containing your business plan financials (i.e., Week 7
Discussion “The Financials”). Note: You must
submit both sections as separate files for the completion of this
assignment.
You must intend to raise money for your startup company. You
can start with money from friends and
family but at some point you will need funds from outside
investors, either angels or venture capitalists,
depending on how much money you project you will need to
raise. Another possible angle is to develop
money through crowdfunding, assuming your product meets the
demand of such audiences.
Before you can raise money, you must develop a business plan
that convinces an investor that your
company will succeed.
Section 1: Business Plan – Draft (MS Word or equivalent)
Read Chapters 18 and 19 of the course text: Successful Business
Plan. Use the Plan Preparation Forms
at the end of each chapter of Successful Business Plan as a
rough guide.
Write an approximately fifteen to twenty (15-20) page draft of
your business plan in which you:

1. Revise the components of the following previously submitted
sections based on the feedback you
have received.
a. Company Description (Assignment 1)
b. Industry Analysis and Trends (Assignment 1)
c. Strategic Position & Risk Assessment (Assignment 1)
d. Target Market (Assignment 2)
e. Competition (Assignment 2)
f. Marketing Plan & Sales Strategy (Assignment 2)
2. Create an Ethics & Social Responsibility Plan.
Note: The Ethics & Social Responsibility plan should account
for approximately three to five (3-5)
pages of the Business Plan Draft.
a. Describe the ways in which your company is committed to
being a good corporate citizen.
o Creating jobs
o Following the laws of every jurisdiction in which your
company operates
o Fair and honest treatment of employees
o Non-discrimination of employees and increasing diversity of
your work force
—in
which you have a primary
purpose of achieving a social or environmental goal—describe
what that goal is and
what aspects of your company are designed to reach that goal.
Provide a rationale
for why you have or why you have not chosen this to be a social
venture.

b. Discuss how your company’s activities will affect the
environment and identify the steps you
will take to mitigate any negative impacts.
choice of packaging,
disposal of bottles / packages by consumers, and your use of
resources, such as
water in areas where water may be scarce.
information
permission of
Strayer University.
c. Determine any health issues / claims related to the product
you are making, whether negative
or positive. Suggest the strategy your company will use to
mitigate any negative issues, and
to ensure any positive claims are true.

d. Many beverage products have negative health impacts on
certain segments of a population
(e.g., children, pregnant mothers, etc.). Suggest your company’s
plan, through advertising,
distribution, and / or other methods, to target and reach only
appropriate market segments.
3. Format your assignment according to these formatting
requirements:
a. Cite the resources you have used to complete the exercise.
b. Be typed, double spaced, using Times New Roman font (size
12), with one-inch margins
on all sides; references must follow APA or school-specific
format. Check with your
professor for any additional instructions.
c. Include a cover page containing the title of the assignment,
the student’s name, the
professor’s name, the course title, and the date. The cover page
and the reference page
are not included in the required page length.
Section 2: Business Plan Financials (MS Excel worksheets
template)
4. For year one, revise and submit the Income Statement, Cash
Flow Projections, and Balance
Sheet sections from the “Business Plan Financials” MS Excel
template (see: Course Required

Files in Week 1).
assignment are:
alternative strategies designed to
achieve stated business goals.
to implement a firm’s strategy and manage the
change from current operations.
to drive the implementation of
strategic initiatives and improve operating excellence.
information resources to research issues
in strategic management.
proper writing mechanics.
Points: 30 Assignment 3 Part 2: Business Plan – Draft
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A

1a. Revise the Company
Description section
based on the feedback
you have received.
Weight: 7%
Did not submit or
incompletely
revised the
Company
Description section
based on the
feedback you have
received.
Partially revised the
Company
Description section
based on the
feedback you have
received.
Satisfactorily
revised the
Company
Description section
based on the
feedback you have
received.
Thoroughly revised
the Company
Description section
based on the
feedback you have

received..
1b. Revise the Industry
Analysis and Trends
section based on the
feedback you have
received.
Weight: 7%
Did not submit or
incompletely
revised the Industry
Analysis and
Trends section
based on the
Industry Analysis
and Trends section
based on the
feedback you have
received.
Satisfactorily
revised the Industry
Analysis and
Trends section
based on the
feedback you have
Thoroughly revised
the Industry
Analysis and
Trends section
based on the
feedback you have

information
permission of
Strayer University.
feedback you have
received.
received. received.
1c. Revise the Strategic
Position & Risk
Assessment section
you have received.
Weight: 7%
Did not submit or
incompletely
revised the
Strategic Position &
Risk Assessment
section based on
the feedback you
have received.

Risk Assessment
section based on
the feedback you
have received.
Satisfactorily
revised the
Risk Assessment
section based on
the feedback you
have received.
Thoroughly revised
the Strategic
Position & Risk
Assessment section
based on the
feedback you have
received.
1d. Revise the Target
Market section based on
the feedback you have
received.
Weight: 7%
Did not submit or
incompletely
revised the Target
Market section
based on the
feedback you have
received.

Target Market
section based on
the feedback you
have received.
Satisfactorily
revised the Target
Market section
based on the
feedback you have
received.
Thoroughly revised
the Target Market
section based on
the feedback you
have received.
1e. Revise the
Competition section
you have received.
Weight: 7%
Did not submit or
incompletely
revised the
Competition section
based on the
feedback you have
received.
Competition section

based on the
feedback you have
received.
Satisfactorily
revised the
Competition section
based on the
feedback you have
received.
Thoroughly revised
the Competition
section based on
the feedback you
have received.
1f. Revise the Marketing
Plan & Sales Strategy
section based on the
feedback you have
received.
Weight: 7%
Did not submit or
incompletely
revised the
Marketing Plan &
Sales Strategy
section based on
the feedback you
have received.
Marketing Plan &
Sales Strategy

section based on
the feedback you
have received.
Satisfactorily
revised the
Marketing Plan &
Sales Strategy
section based on
the feedback you
have received.
Thoroughly revised
the Marketing Plan
& Sales Strategy
section based on
the feedback you
have received.
2a. Describe the ways in
which your company is
committed to being a
good corporate citizen.
Weight: 7%
Did not submit or
incompletely
described the ways
in which your
company is
committed to being
a good corporate
citizen.
Partially described
the ways in which

your company is
committed to being
a good corporate
citizen.
Satisfactorily
described the ways
in which your
company is
committed to being
a good corporate
citizen.
Thoroughly
described the ways
in which your
company is
committed to being
a good corporate
citizen.
2b. Discuss how your
company’s activities will
affect the environment
and identify the steps you
will take to mitigate any
negative impacts.
Weight: 7%
Did not submit or
incompletely
discussed how your
company’s activities
will affect the
environment and
did not submit or

incompletely
identified the steps
you will take to
mitigate any
negative impacts.
Partially discussed
how your
will affect the
environment and
did not submit or
incompletely
you will take to
mitigate any
negative impacts.
Satisfactorily
discussed how your
will affect the
environment and
did not submit or
incompletely
you will take to
mitigate any
negative impacts.
Thoroughly
discussed how your
will affect the
environment and
did not submit or

incompletely
you will take to
mitigate any
negative impacts.
2c. Determine any health
issues / claims related to
the product you are
making, whether
negative or positive.
Suggest the strategy
your company will use to
mitigate any negative
issues, and to ensure
Did not submit or
incompletely
determined any
health issues /
claims related to the
product you are
making, whether
Did not submit or
Partially determined
any health issues /
product you are
making, whether
Partially suggested
the strategy your
company will use to

Satisfactorily
determined any
health issues /
product you are
making, whether
Satisfactorily
suggested the
Thoroughly
determined any
health issues /
product you are
making, whether
Thoroughly
suggested the
information
permission of
Strayer University.
any positive claims are
true.

Weight: 7%
incompletely
suggested the
strategy your
company will use to
mitigate any
negative issues,
and to ensure any
positive claims are
true.
mitigate any
negative issues,
and to ensure any
positive claims are
true.
strategy your
company will use to
mitigate any
negative issues,
and to ensure any
positive claims are
true.
strategy your
company will use to
mitigate any
negative issues,
and to ensure any
positive claims are
true.
2d. Suggest your
company’s plan, through

advertising, distribution,
and / or other methods,
to target and reach only
appropriate market
segments.
Weight: 7%
Did not submit or
incompletely
suggested your
company’s plan,
through advertising,
distribution, and / or
other methods, to
target and reach
only appropriate
market segments.
Partially suggested
your company’s
plan, through
advertising,
other methods, to
target and reach
only appropriate
market segments..
Satisfactorily
suggested your
company’s plan,
other methods, to
target and reach
only appropriate

market segments.
Thoroughly
suggested your
company’s plan,
other methods, to
target and reach
only appropriate
market segments.
3. Clarity, writing
mechanics, and
Weight: 15%
More than 6 errors
present
5-6 errors present 3-4 errors present 0-2 errors present
4. For year one, revise
and submit the Income
Statement, Cash Flow
Projections, and Balance
Sheet sections from the
“Business Plan
Financials” MS Excel
template (see: Course
Required Files in Week
1).
Weight: 15%
Did not submit or
incompletely, for

year one, revised
and submitted the
Income Statement,
Cash Flow
Projections, and
Balance Sheet
sections from the
“Business Plan
Financials” MS
Excel template
(see: Course
Required Files in
Week 1).
Partially, for year
one, revised and
submitted the
Income Statement,
Cash Flow
Projections, and
Balance Sheet
sections from the
“Business Plan
Financials” MS
Excel template
(see: Course
Required Files in
Week 1).
Satisfactorily, for
year one, revised
and submitted the
Income Statement,
Cash Flow
Projections, and
Balance Sheet

sections from the
“Business Plan
Financials” MS
Excel template
(see: Course
Required Files in
Week 1).
Thoroughly, for year
one, revised and
submitted the
Income Statement,
Cash Flow
Projections, and
Balance Sheet
sections from the
“Business Plan
Financials” MS
Excel template
(see: Course
Required Files in
Week 1).
NON-ALCOHOLIC BEVERAGE COMPANY PORTFOLIO
(The NAB Company Portfolio will have lists of things that the
BUS599 students would be able to sort
through to conduct a SWOT Analysis and to apply to appropriat
e sections of the NAB Business Plan. )

Note #1:
This is the compilation of Data, Notes, and Information that
have been put together to create a
Business Plan for a start-up company in the non-alcoholic
beverage industry.
The goal of my business plan is twofold:
1. To help identify and outline all the issues I will need to
address in starting this company.
2. To present to funders to help raise money to finance this
company.
NAB Background:
Melinda Cates has been selling her NAB at County Fairs for the
past 7 years for $2 a bottle. She
sells an average of 10 Cardboard cartons each weekend a
County Fair is open. From her
calculations, it takes $.56 to make a bottle of NAB when she
calculates all the NAB ingredients
and the cost of the bottle and cap. Her rich uncle, Bill, just died
and left her a small monetary
inheritance. However, since he so enjoyed her home-made NAB,
he also left her equipment to
start a small NAB business.
Melinda and I have been close, trusted friends for years. She
found out that I just earned my
MBA from Strayer University, and she asked me to help her get
her NAB business up and
running.
I have agreed to put together a NAB Business Plan, and I have
agreed to be the CEO/President of
the company for at least the next five years.

NAB Today:
Parameters for New Company
Here are the parameters in which I must work.
-up: We are not yet in operation. We
already have a “recipe” for a
beverage, but we are not yet making sales at any significant
level.
-alcoholic
beverage (NAB). It is up to me
to decide upon what type of non-alcoholic beverage I intend to
make and market. It can
be sold in individual sizes or wholesale.
geographical area within a
100 mile radius from my home address.
excess of one million dollars in
revenue by year two. In other words, this cannot be intended to
be a one- or two-person
micro-business.
have already started with
friends and family money. But at some point I will need funds
from outside investors,
either angels or venture capitalists, depending on how much I
project I need to raise or
receive from a group of individual investors on kickstarter.
p my own
organizational hierarchy.

support for the first six months. In
other words, I do not need to take a salary/draw for myself for
six months of projections.
I am assuming I can live off my personal savings.
Note #2:
included
Some of
Owned Eq
Two (2)
This Bev
machine,
system, i
It is suita
advanced
Two Bot
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Four Veh
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The NAB F
.
the items we
quipment:
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verage Filling
, imported fr
t can be app
able for norm
d Filling mac
tling machin
o AccuSnap

hicles (used
omputers (Ap
Software - $
Equipment:
g machinery –
- $550/month
ry:
ottles, 16 oz.
ps: 24,000 -
rd Cartons (h
gredients: en
N-ALCOHO
Financial Wo
e currently o
rs (mixes up
g machine is
rom Italy. Be
plied to fill h
mal temperat
chine at pres
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pple Macint
$750 (value i
– $450/mon
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: 24,000 - $3
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in current $)
th in current
$
3,000 (value
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ttles): 500 -
ke 24,000 bo
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ill have the v
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with rinsing,
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value of this
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t $)
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current $)
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al:
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uirements:
@ 2 CFM
Value: $9,60
N-ALCOHO
aps, “top hat
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ent styles, B
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variety of gr
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Note #3
Personnel:
Myself: I have collected $20,000 from friends and relatives who
would like to either have their
seed money returned by the end of this calendar year at no
interest or by the end of the second
year of operation with 5% interest.
Stephen Job: Part Time (20 hrs/week) Computer
Expert/Assistant: $10/hr
Melinda Cates: NAB Creator & Master Mixer (owns the patent
on the NAB): has $40,000
inheritance
Other colleagues with specific skills and talents:
Ian Glass: retired PepsiCo plant production line foreman. Ian

recently retired with 35 years of
loyal PepsiCo service in every position from janitor to
production line foreman, and he and his
wife moved into your neighborhood. He is tickled that you have
asked him to help develop a
plan to get the NAB Company’s production line going. He said
he can help organize and sit on
the planning committee as a non-paid member until the NAB
company can hire its own
Production Line Foreman. He hinted that he retired from
PepsiCo with an annual salary of
$55,000, but he says that’s just the starting salary that large
companies pay their foremen who
are in an apprenticeship program. He doesn’t think the NAB
Company will have to pay top
dollar for someone who has the willingness to join the NAB
company as a start up!
Mary Cates, JD: Melinda’s sister who was a senior executive
with the Federal Trade
Commission from 2001-2012. She left the FTC after a
significant 30 year career with the federal
government in which she lead the research and support of
numerous federal court findings
against companies that violated consumer deception and unfair
practices laws. She would enjoy
serving on the initial company planning group to make sure her
sister’s recipe is successfully
shared within the state!
Note #4:
Company

A. In 20
Green
bever
http://ma
B. Socia
The carb
volumes
and incre
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Soft drin
reduce th
largest U
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ca-Cola Com
Inc. (GMCR
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of sugary drin
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her portfolio
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to grow at a
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MNST) are al
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ng consumer
non-alcoholic
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manufacturers
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compounde
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and bottled
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anies
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umer tastes.
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c beverage
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020.
g in
es and
The Cons
soft drink
C. Why
By Sharo
Falling d
The non-
falling, p
carbonate
demand h
respectiv
Key indi
The per c

2013, fro
and a slo
One of th
is weak c
US and E
NON
sumer Staple
k companies
growth is sl
on Bailey • N
demand
-alcoholic be
primarily in d
ed soft drink
has declined
vely.
icator—per
capita CSD c
om 701 8-oun
wer rate of U
he reasons fo
consumer sp
Europe.
N-ALCOHO

es Select Sec
s.
luggish in th
Nov 20, 201
everage indu
developed m
k (or CSD) v
d. Previously
capita cons
consumption
nce servings
US populatio
or the contin
ending, caus
OLIC BEVE
ctor SPDR E
he non-alcoh
4 12:09 pm
ustry is facin
markets. Beve
volumes in th
y, US CSD v
sumption

n in the US f
s in 2012. Re
on growth.
nued decline
sed by adver
ERAGE CO
ETF (XLP) p
holic bevera
EST
ng challenges
erage Digest
he US, maki
volumes decl
fell to about
educed cons
in soft drink
rse macroeco
OMPANY PO
provides an a
age industry
s. Carbonate
t indicates a

ng it the nin
lined by 1.2%
675 8-ounce
umption refl
k volumes ov
onomic cond
ORTFOLIO
attractive av
y
ed beverage v
3% fall in 2
nth straight y
% and 1% in
e servings pe
flects the dec
ver the past
ditions, espe
O
venue to inve
volumes are
2013 overall
year in which
n 2012 and 2

er person in
clining volum
few years
ecially in the
est in
e
h
2011,
mes
Note #5
Health concerns
Another major reason is the shift in consumer preferences
toward healthier products. Carbonated
soft drink makers have faced severe criticism from health
officials, governments, and
communities alike for the ill-effects of high sugar content,
artificial sweeteners, and other
harmful ingredients in their products, including those in diet
soda variants. Consumers are
also more conscious of the health risks associated with soft
drinks such as obesity and nutritional

deficiencies, especially in youth. As a result, they’re opting for
other beverages that are non-
carbonated and have fewer calories.
The World Health Organization suggests that sugar should
account for only 5% of total energy
intake per day. That’s around 25 grams of sugar per day for an
adult of normal body mass index.
Health officials feel that this percentage should be even lower
for a better quality of life. A single
soda can contains around 40 grams of sugar.
The soda tax
Mexico, which has the highest rates of obesity in the world, has
imposed a 10% tax on sugary
beverages to discourage the consumption of these drinks. There
is a strong possibility that many
other countries will introduce a soda tax to reduce sugar
consumption through carbonated drinks.
In the next part of this series, we’ll discuss how soft drink
makers including The Coca-Cola
Company (KO), PepsiCo, Inc. (PEP), Dr Pepper Snapple Group,
Inc. (DPS), and Monster
Beverage Corporation (MNST) are sustaining business under
such challenging conditions. Coca-
Cola and PepsiCo are part of the Consumer Staples Select
Sector SPDR ETF (XLP).
D. Key indicators of the non-alcoholic beverage industry
By Sharon Bailey • Nov 20, 2014 12:09 pm EST
Factors influencing sector growth

The non-alcoholic beverage industry falls under the consumer
staples category (XLP), which is
non-cyclical in nature compared to the consumer discretionary
sector. In this part of the series,
we’ll look at the factors that impact the growth of the non-
alcoholic beverage industry.
Consumption expenditure
The Bureau of Economic Analysis (or BEA) releases the
personal income and outlays monthly
reports that indicate changes in individuals’ personal incomes,
savings, and expenditures.
US consumption spending accounts for over two-thirds of the
country’s gross domestic product
(or GDP). The US real personal consumption expenditure for
non-durable goods measures
consume
basis.
Disposab
Consump
less perso
Increase
Conferen
confiden
as reflect
Accordin
in emerg

expected
A favora
alcoholic
ETFs) th
(XLP) ha
PepsiCo,
(MNST).
NON
r spending o
ble income a
ption expend
onal current
in consumer
nce Board an
ce index, wh
ted in consum
ng to market
ing markets
d to continue
ble trend in
c beverage in
at invest in t
as holdings i
, Inc. (PEP),
.
N-ALCOHO

on non-durab
and consum
diture depend
taxes. Peopl
r confidence
nd the Unive
hich indicate
mer spendin
-intelligence
has surpasse
doing so.
consumer sp
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the consume
in the major
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uch as food a
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oup, Inc. (DP
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and beverag

e, which is m
with a rise in t
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provide mon
m about the
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goods is a p
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ke The Coca
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state of the e
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positive indic
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les Select Se
a-Cola Comp
onster Bever

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flation-adjus
personal inc
able income
US, the
on the cons
economy
penditure gro
000, and is
cator for the
ded funds (or
ector SPDR E
pany (KO),
age Corpora
sted
come
.
sumer
owth
non-
r
ETF
ation

E. Under
By Sharo
Industry
Soft drin
producer
Bottling
Compani
finished p
Another,
make the
and other
beverage
Also, bot
fountain
beverage
Distribu
The exten
produce o
distribute
Corporat
Unilever
Pricing p
Coca-Co
Carbonat
soft drink
NON

rstanding th
on Bailey • N
y Partners
ks constitute
rs and bottler
and distrib
ies in the sof
products, ma
is by selling
e final produ
r ingredients
es to distribu
th bottling p
retailers. Fo
es for immed
tion: Third
nsive reach o
or distribute
e certain bran
tion (MNST)
and Starbuc
power
la and Pepsi
ted soft drink
k companies
N-ALCOHO

he value cha
Nov 20, 201
e a major par
rs play a vita
bution netwo
ft drink indu
ade at compa
g beverage c
uct by combin
s. The bottler
utors or direc
artners and c
ountain retail
diate consum
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of The Coca
third-party
nds of Dr Pe
). PepsiCo se
cks, respectiv
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ks have simi
s extend low
OLIC BEVE
ain of the so
4 12:08 pm

rt of the US
al role in the
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any-owned b
concentrates
ning the con
rs then pack
ctly to retaile
companies m
lers include r
mption.
ducts
a-Cola Comp
brands. For
epper Snapp
ells Lipton a
vely.
distribution n
ilar prices du
er prices und
ERAGE CO
oft drink ind
EST
food and be

e value chain
he end marke
bottling facil
and syrups t
ncentrates wi
kage the prod
ers.
manufacture
restaurants a
pany (KO) an
instance, Co
le Group, In
and Starbuck
network give
ue to the inte
der promotio
OMPANY PO
dustry
everage indu
n of the soft d
et in two wa
lities, to dist
to authorized
ith still or ca

duct in conta
fountain syr
and convenie
and PepsiCo,
oca-Cola is l
nc. (DPS) an
ks brands un
es them sign
ense compet
onal offers. I
ORTFOLIO
ustry. Syrup o
drink industr
ays. One way
tributors and
d bottling pa
arbonated wa
ainers and se
rups and sell
ence stores,
, Inc. (PEP)
licensed to p
d Monster B
nder partners
nificant pricin

tition in the i
In recent tim
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or concentra
ry.
y is by sellin
d retailers.
artners, who
ater, sweeten
ell these
l them to
which produ
allows them
produce and
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hips with
ng power.
industry. Oft
mes, such
ate
ng
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uce
m to
ften,
promotio
because t
substitute
The non-
sector thr
holdings
F. A guid
By Sharo
Industry
The non-
contain c
coffee an
bottled w
sometime
beverage
Dominan
The glob
of $337.8
size of $1
NON

onal offers ha
they’re unde
es such as te
-alcoholic be
rough the Co
in Coca-Co
de to the non
on Bailey • N
y overview
-alcoholic be
carbonated o
nd tea. The s
water, ready-
es referred to
e retail sales.
nt carbonat
bal soft drink
8 billion in 2
189.1 billion
N-ALCOHO
ave been use
er pressure d
ea, energy dr
everage indu
onsumer Sta

la and Pepsi
n-alcoholic b
Nov 20, 201
everage indu
r non-carbon
oft drink cat
to-drink tea
o as liquid re
In this serie
tes category
k market is le
2013. In the
n, and juice,
OLIC BEVE
ed to boost v
due to rising
rinks, and wa
ustry is part o
aples Select S
iCo.
beverage ind
4 12:08 pm
ustry broadly
nated water,
tegory domin
and coffee,
efreshment b

es, we’ll focu
y
ed by carbon
same year, C
with a mark
ERAGE CO
volumes of th
health conce
ater.
of the consum
Sector SPDR
dustry
EST
y includes so
a sweetener
nates the ind
and sports a
beverages (o
us on the sof
nated soft dri
CSDs were f
ket size of $1
OMPANY PO
he carbonate
erns and com

mer staples
R ETF (XLP
oft drinks and
r, and a flavo
dustry and in
and energy d
or LRBs). In
ft drink or L
inks (or CSD
followed by
146.2 billion
ORTFOLIO
ed soft drink
mpetition fro
sector. You
P), which has
d hot drinks
or, and hot d
ncludes carb
drinks. Soft d
the US, LR
LRB market.
Ds), which h
bottled wate
n. In a later p

O
ks. That’s
om healthy
can invest in
s notable
. Soft drinks
drinks includ
onates, juice
drinks are
RBs lead food
had a market
er, with a ma
part of this se
n this
s
de
e,
d and
t size
arket
eries,
we’ll discuss why CSDs have been losing popularity, and why

sales of other
beverages, including juices and ready-to-drink tea, are
increasing.
Major companies
The non-alcoholic beverage market is a highly competitive
industry that includes two behemoths
—The Coca-Cola Company (KO) and PepsiCo, Inc. (PEP).
Collectively, these companies hold
about 70% of the US CSD market. Dr Pepper Snapple Group,
Inc. (DPS), Monster Beverage
Corporation (MNST), and Cott Corporation (COT) are some
other key players in the CSD
market.
Many international markets are also dominated by Coca-Cola
and PepsiCo, but include other
companies such as Groupe Danone, Nestle SA, and Suntory
Holdings Limited.
Non-alcoholic beverage manufacturers, like Coca-Cola and
PepsiCo, are part of the consumer
staple sector. You can invest in these companies through the
Consumer Staples Select Sector
SPDR ETF (XLP).
G. Statistics and facts on non-alcoholic beverages and soft
drinks
The non-alcoholic beverages industry encompasses liquid
refreshment beverages (LRB) such as
bottled water, carbonated soft drinks, energy drinks, fruit
beverages, ready-to-drink coffee and
tea, sports beverages and value-added water.

This is a great site to find statistics:
http://www.statista.com/topics/1662/non-alcoholic-beverages-
and-soft-drinks-in-the-us/
H. NY Times Article, February 2015
BEVERAGES - NON-ALCOHOLIC TODAY 5 DAY 1 MONTH
1 YEAR MKT CAP
+0.16% –0.37% +0.67% +20.48% 136.1B
The Beverages - Non-Alcoholic industry group consists of
companies engaged in manufacturing
non-alcoholic beverages, such as water, fruit drinks, soft drinks,
iced coffee and tea, as well as
other flavored beverages. The Beverages - Non-Alcoholic
industry excludes tea bags and instant
coffee manufacturing, fruit juices and concentrates, classified in
Food Processing.
Beverages - Non-Alcoholic
Defined by Thomson Reuters
Market
cap.
1-day
%
change

1-month
%
change
YTD
%
change
Low High 52-
week
Page: 1 | 2 | Next »
Market
cap.
1-day
%
change
1-month

%
change
YTD
%
change
Low High 52-
week
Coca-Cola Enterpri... CCE: NYSE 10.5B +0.54 +3.14 +1.11
Coca-Cola FEMSA, S... KOF: NYSE 6.0B +2.42 +1.91 +0.90
Dr Pepper Snapple ... DPS: NYSE 15.2B +0.77 +0.39 +9.96
Embotelladora Andi... AKO.B: NYSE 2.5B –0.97 +3.04 +1.82
Fomento Economico ... FMX: NYSE 31.0B +2.01 +2.06 +1.70
Monster Beverage C... MNST:
NASDAQ
20.3B +0.11 +1.63 +11.92
PepsiCo, Inc. PEP: NYSE 146.8B +0.34 +0.54 +4.76
Sodastream Interna... SODA:
NASDAQ
393.3M –0.37 –2.75 –6.91

The Coca-Cola Co KO: NYSE 183.8B –0.33 –3.09 –0.59
Coca-Cola Bottling... COKE:
NASDAQ
947.9M +0.44 –1.70 +16.14
National Beverage ... FIZZ: NASDAQ 1.0B –1.53 –2.77 –0.53
Youngevity Interna... YGYI: OTHER
OTC
94.5M +3.15 +1.00 +1.00
Alkaline Water Com... WTER:
OTHER OTC
14.4M +23.33 +78.31 +50.00
Cott Corporation (... COT: NYSE 748.2M +1.14 +0.88 +16.13
DNA Brands, Inc. DNAX: OTHER
OTC
24.0K 0.00 –50.00 0.00
Hangover Joe's Hol... HJOE: OTCBB 778.0K –21.67 +11.90 –
12.96
Market

cap.
1-day
%
change
1-month
%
change
YTD
%
change
Low High 52-
week
Jones Soda Co. ( U... JSDA: OTHER
OTC
17.0M –0.36 +18.89 +18.86
Konared Corp KRED: OTHER OTC 8.0M +16.28 –6.54 –29.08
NOHO Inc DRNK: OTCBB 275.0K +13.60 –38.26 –71.60
Pulse Beverage Cor... PLSB: OTHER

OTC
8.4M –7.99 –13.46 –46.63
Beverages - Non-Alcoholic
Defined by Thomson Reuters Market cap.
1-day
% change
1-month
% change
YTD
% change Low High 52-week
Puresafe Water Sys... PSWS: OTHER OTC 383.3K 0.00 0.00
0.00
Reed's, Inc. REED: AMEX 71.1M 0.00 +0.37 –7.95
Uplift Nutrition I... UPNT: OTCBB 555.7K 0.00 –50.00 +28.62
Crystal Rock Holdi... CRVP: AMEX 15.8M 0.00 +1.37 –2.95
Global Future City... FTCY: OTHER OTC 19.1M 0.00 +131.82
+100.00
MOJO Organics Inc MOJO: OTHER OTC 3.4M 0.00 –4.81 0.00
New Leaf Brands In... NLEF: OTHER OTC 505.6K 0.00 –16.67
+36.36

Note #5:
I. Histor
The non-
has a dire
support h
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the indus
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ABA rep
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J.
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advancem
1.) C
Omega-3
By Jamie
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hundreds of t
e companies
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nd regulator

e industry, th
, legal and c
research and
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according to
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ginseng and
water soluble
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land, and Nu
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from menhad
he company.
OLIC BEVE
cans suffer f
Alzheimer’s
icago. Furth
her dementia

ut on brain h
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gredients that
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health and pr
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ed people] c
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lso are consi
ceans Omeg
because of its
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200,000 peop
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says Matt Ph
function, bu
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fill, cold fill,
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focus is not
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of
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Oceans Omega closely follows studies related to adolescents
and brain health. For example, to

determine the effects of algal DHA supplementation on reading
and behavior in healthy school-
aged children, researchers conducted the Docosahexaenoic Acid
Oxford Learning and Behavior
(DOLAB) Trial and reported that supplementation with 600 mg
each day with algal DHA for 16
weeks improved reading and behavior in healthy school-aged
children, aged 7 to 9 years old,
with low reading scores.
“We work on educating the end producer,” says Karen Todd,
director of global brand marketing
at New York City-based Kyowa Hakko U.S.A. Inc. The
company’s Cognizin product features
citicoline, which increases cellular synthesis and energy, she
says. Ingredients such as Cognizin
are associated with boosting brain energy, supporting
mitochondrial health, and boosting levels
of ATP, according to the company’s research. This ingredient
also is associated with increased
focus and concentration as well as memory storage and recall.
“We do clinical studies on raw materials [with healthy
subjects], and results of that help us
identify what levels are appropriate to make claims,” Todd says.
“The producer and finished
product company do their pre-market test, but they’re looking at
the science behind it to support
their claims from the start.”
Kyowa Hakko is replicating clinical trials done with
millennials, pre-menopausal women and
baby boomers with more targeted groups including adolescents
and athletes.
Futureceuticals, Momence, Ill., also sees the value of clinical

trials and is in the midst of several
that involve its ingredients including CoffeeBerry coffee fruit, a
line of powders and concentrates
of the fruit of the coffee plant, including the bean.
“We consider demographics when we’re choosing outcomes to
focus on for our claims,” says
Brad Evers, vice president of business development. “In the
case of CoffeeBerry coffee fruit
extract, we discovered that it has a unique capacity to increase
serum levels of brain-derived
neurotropic factor (BDNF), which is a key neuro-protein
involved in cognition, mood and other
key neuro-processes. We chose to focus on cognition and mood,
given the enormous public
interest in cognitive and mental health at all age levels. Baby
boomers frequently cite cognitive
health as their No. 1 concern, and younger people are motivated
to take action now to help
ensure a higher quality of life as they age.”
Major research facilities around the globe are focusing on
BDNF, and Futureceuticals has two
studies that indicate that coffee fruit stimulates the body to
produce BDNF, which is something
brewed coffee does not do, according to the company.
“Our research on our coffee fruit products is at the forefront of
new discoveries for cognitive
health,” Evers says. “CoffeeBerry meets the demand for
functional beverage ingredients that are
natural and offer a value proposition.”

Focus on claims
Regulations as well as the flavor of the ingredients in their
natural state can have an impact on
beverages designed to improve memory and focus or reduce the
impact of aging on the brain.
“The biggest trend with cognitive ingredients is really attention
given to caffeine and energy
drinks by the Food and Drug Administration (FDA) and [the
decision to] crack down on
amounts,” Kyowa Hakko’s Todd says. “Cognizin is a non-
stimulant without negative side
effects. Energy drinks use Cognizin [as a replacement for
caffeine], and many companies are
looking to reformulate and include it at the efficacious dose.”
But special treatment is required for cognitive ingredients to be
beverage compatible, shelf
stable, soluble and taste free. “Antioxidant beverages, focus
beverages, and general brain-health
and protein beverage ingredients are bitter, and [beverage-
makers] have to figure out a way to
mask [them],” Nutegrity’s Phillips says. “Another big challenge
is solubility, and we’re finding
ways through agglomeration or other techniques to make them
suspend in a liquid.”
Oceans Omega is able to counteract the instability and protect
them from oxidizing with new
technologies, but aftertaste still is a challenge.
“Polyunsaturated fatty acids have the propensity to oxidize
quickly and develop very repugnant
odor and taste offnotes,” Berl says. “Many [omega-3] products

still have a fishy or marine
aftertaste, and their manufacturing requires an increased
complexity in processing and handling
these sensitive ingredients in the production processes.”
Certain nutrients also just don’t mix well, according to Russ
Hazen, North American premix
innovation manager for Fortitech Inc., Schenectady, N.Y.
“Certain iron compounds can have unfavorable effects on
product quality and consumer
acceptance by increasing the oxidation of polyunsaturated fatty
acids,” Hazen says. “On the
other hand, inclusion of suitable amounts of antioxidants, like
vitamin E, is important to protect
polyunsaturated fatty acids from oxidation. In liquid beverages,
adverse interactions between
calcium and phosphorus can be tricky and can result in
unsightly mineral precipitation products
under certain conditions”
When bitterness is a factor, masking agents can address this
issue as well, according to Kyowa
Hakko’s Todd. Futureceuticals, however, will provide its bitter
CoffeeBerry products and
extracts as-is because the more natural state is preferred by its
customers, Evers says.
2.) 2
Survey-ta

By Jessic
January 1
If the gro
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ca Jacobsen
12, 2015

oundhog’s ab
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mental as the
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what to expec
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Fair
The right flavor mix
With all of the flavors that are out there, beverage-makers are
not at a loss for options from
which to choose. According to Beverage Industry’s survey, each
respondent reported using on

average 11.5 flavors in 2014.
When selecting which flavors they wanted to utilize, survey-
takers opted for more traditional
options in 2014, with orange, vanilla, lemon, strawberry and
peach rounding out the Top 5. This
is slightly different from last year’s survey in which the top
flavors were vanilla, lemon,
strawberry, mango and peach. Orange’s usage jumped up eight
percentage points this year to 49
percent, compared with last year’s 41 percent. Tied with orange
at 49 percent, vanilla’s usage
remains fairly consistent with last year’s survey, seeing an
increase of one percentage point.
Other flavors that also saw modest growth were lemon (up one
percentage point), strawberry (up
two percentage points), peach (up one percentage point) and
chocolate (up four percentage
points). Flavors from last year’s Top 10 that saw contractions in
2014 were mango (down three
percentage points), raspberry (down eight percentage points),
apple (down four percentage
points) and fruit punch (down 17 percentage points).
Making up for some of these drop offs were lime (up seven
percentage points), berry (up eight
percentage points) and coffee (up six percentage points).
Although orange was the most-used flavor in 2014, it did not
come in as the top-selling flavor for
the year. Taking the top spot was chocolate at 29 percent.
Although chocolate moved up only
one spot from No. 2 to No. 1 compared with last year’s survey,
its percentage point increase was
15. Taking a hit, however, was strawberry. Last year’s No. 1

top-selling flavor dropped out of
the Top 10 as the percentage of respondents listing it as a top-
selling flavor dropped from 25
percent to 7 percent.
However, not all flavors saw such a strong drop off in 2014.
Vanilla moved up one spot to the
No. 2 top-selling flavor after seeing its percent usage increase
from 14 percent to 24 percent.
Mango also had a positive year, jumping from No. 10 to No. 3.
The tropical flavor saw its
reported sales status increase from 10 percent to 22 percent.
This year’s survey also saw a handful of new flavors make the
Top 10 list. Raspberry, coffee,
black tea, orange and peach all made the top-selling flavors in
2014 list, knocking out apple,
berry, fruit punch, lime and, as previously mentioned,
strawberry.
As beverage-makers prepare for 2015, the top sellers for 2014
are expected to carry over into the
next calendar year. Chocolate is listed as the No. 1 anticipated
top-selling flavor for 2015, with
29 percent of respondents naming the indulgent variety. This is
a strong increase from last year’s
survey results in which only 17 percent of respondents listed it
as a top-selling flavor. Also
making significant gains is coffee, which entered the Top 10 in
the No. 2 spot after being left off
last year’s list. Making a more modest increase, vanilla’s
anticipated selling performance
increased one percentage point from 19 to 20 percent to round
out the Top 3.

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For instance, the mean and median of the number of employees
for this year’s survey are 201
and 63 employees, respectively. However, last year’s survey-
takers reported a mean 1,278

employees and a median of 180 employees.
This team size also affected the number of employees who are
working on developing new
products. Last year, the survey found a mean of 60 employees
and a median of eight employees
working on new product development. This year, the teams are
much smaller, with the mean and
median at 10 and four employees, respectively.
Although the company sizes and new product development
teams of respondents are from a
smaller base than last year, their outsourcing portions did not
differ too much. Twenty-nine
percent stated they outsource a portion of their new product
development versus the 35 percent
that said the same last year. However, the main difference was
the areas of new product
development that they outsourced.
Sixty-two percent of respondents reported outsourcing prototype
development, followed by 46
percent for concept and product testing, and 38 percent for
market research. Last year, market
research and prototype development tied for first with
46 percent naming those as areas
of outsourcing. Concept and product testing rounded out last
year’s Top 3, with 42 percent
naming this as an area of new product development.
Holding steady with last year’s numbers, though, was the
amount of respondents stating that a
team approach is utilized in new product development. Ninety-
three percent (the same number as
last year) indicated using a team environment. Among those
who use a team approach, 81

percent said sales and marketing are involved, while 79 percent
listed R&D. This is slight flip
from last year’s survey in which 80 percent of respondents
named R&D, and 77 percent reported
sales and marketing.
Upper management also remains a constant for survey-takers,
with 62 percent listing their
involvement compared with last year’s 61 percent.
Slightly higher than last year’s survey results, nearly nine out
of 10 respondents whose upper
management is regularly included on new product development
projects have involvement from
their chief executive officers. This is up from last year’s more
than three-quarters of respondents.
This variation could be reflective of the significant difference
in the company size mean and
medians between the two years.
Fifty-eight percent of survey-takers also indicated supplier
involvement in new product
development, compared with last year’s 61 percent.
The length of time to develop a new product also saw an uptick
in this year’s survey, with mean
time from inception to launch equating to 11 months. This is up
from last year’s nine months;
however, one-third of this year’s respondents noted that this is
faster for them than in previous
years.

Perhaps reflective of the company size decrease from last year’s
survey-takers, the mean number
of products developed in 2014 was 24, compared with 40 in
2013. Following suit, the mean
number of those released decreased from 17 in 2013 to nine in
2014. The number of successful
new product launches also experienced contraction, with the
mean equating to five in 2014
versus 11 in 2013.
What the future holds
Looking ahead to 2015, respondents remained optimistic about
their new product releases, with
more than half indicating that they plan to launch more new
products in the market in 2015
versus 2014.
Planning and assessments also will be staples with survey-
takers, as 60 percent said they have a
defin-itive new product development plan. Post-launch
assessment was even higher, with 76
percent having that in place. This is an increase from last year’s
results in which 62 percent
indicated they had a definitive new product development plan,
and 65 percent reported having a
post-launch assessment.
Total cost to new product development also experienced some
fluctuations between the two
surveys. This year’s had a mean and median of $209,080 and
$37,500, respectively. Last year’s
respondents had a mean of $348,717 and a median of $20,000.
However, when it came to R&D budget comparisons, the
numbers were fairly similar, with 44

percent listing an increase in their budget versus 41 percent last
year.
Beverage Industry’s New Product Development Outlook survey
was conducted by BNP Media’s
Market Research Division. The online survey was conducted
between Sept. 29 and Oct. 13,
2014, and included a systematic random sample of the domestic
circulation of Beverage Industry
and its sister publications Dairy Foods and Prepared Foods.
Of the respondents, 44 percent process juice and juice drinks,
40 percent process coffee and tea,
33 percent process dairy-based drinks, 29 percent process sports
drinks, 24 percent process
water, 22 percent process energy drinks, 18 percent process
spirits, 13 percent process
carbonated soft drinks, 13 percent process wine, and 9 percent
process beer.
Thirty-one percent of respondents were from companies with
less than $10 million in annual
revenue. Another 31 percent of respondents were from
companies with revenue between $10
million and $50 million. A total of 9 percent were from
companies in the mid-size range of $50
million to less than $100 million. Thirteen percent were from
companies with revenue between
$100 million to less than $500 million. In the $500 million to
less than $1 billion range were 9
percent of respondents. Representing the large-size range of
more than $1 billion in company
revenue were 9 percent of respondents.

Males accounted for 67 percent of the respondents, and the
average age equated to 43. For
industry experience, 20 percent indicated one to three years; 18
percent reported four to 10 years;
33 percent said 11-20 years; 20 percent listed 21-30 years; and
9 percent had 31-40 years of
experience.
Regionally, 33 percent said they currently live in the South, 27
percent indicated the Northeast,
24 percent listed the Midwest, and 16 percent reported living in
the Western portion of the
United States.
K. Nielsen identifies consumer health concerns
ABA, brand owners proactive in offering solutions
By Jessica Jacobsen
February 16, 2015
Aside from the Valentine’s Day candy and treats on the store
shelves, the first quarter of a new
year tends to be filled with diet- and exercise-related products
to appeal to those consumers who
resolved to lose weight or eat healthier in the new year.
For myself, my resolution to lose weight will likely come
around mid- to late summer when I get
the OK from the doctor to lose my baby weight. However, many
other consumers have
expressed the need to address their health and weight issues,
which could become an opportunity

for food and beverage manufacturers.
According to Nielsen’s Global Health & Wellness Survey,
nearly half (49 percent) of the global
respondents consider themselves overweight. Citing the 2013
Global Burden of Disease Study,
the New York-based market research firm says that an estimated
2.1 billion people, or nearly 30
percent of the global population, are overweight or obese.
However, Nielsen’s study shows that
consumers are willing to take charge of their health and are
willing to pay a premium to do so.
Because of the vast number of consumers who are concerned
about obesity and other health-
related issues, Nielsen suggests that brand owners should better
align their offerings with these
consumer need states in order to see growth benefits.
“There is a tremendous opportunity for food manufacturers and
retailers to lead a healthy
movement by providing the products and services that
consumers want and need,” said Susan
Dunn, executive vice president of global professional services
with Nielsen, in a statement.
“While diet fads come and go over time, innovative, back-to-
basics foods that taste good, are
easy to prepare, and provide healthful benefits will have staying
power. The first step is knowing
where to put your product development efforts.”
In the beverage space, we already are seeing brands and
associations addressing this trend. This
month’s Special Report article on health and wellness (page 18)
details how leading advocacy
groups including the American Beverage Association and brand

owners such as The Coca-Cola
Co., PepsiCo Inc. and Dr Pepper Snapple Group (DPS) have
pledged to reduce the number of
calories that each American consumes on a national level by
20 percent by 2025.
Beyond this pledge from non-alcohol industry leaders, the
beverage marketplace is seeing more
low-calorie brands find a home with consumers as their
products expand distribution. In this
month’s cover story on Bai Brands LLC (page 24), Chief
Executive Officer Ben Weiss details
how the company’s national distribution agreement with DPS
has allowed the enhanced-water
brand to share its Bai5 and newest innovation, Bai Bubbles,
with a broader audience that was
looking for a healthy beverage solution.
As some consumers search for solutions to their health and
wellness needs, it’s great to see so
many in the beverage space being proactive in delivering
products that address them.
http://www.bevindustry.com/articles/88194-nielsen-identifies-
consumer-health-concerns
L. Other ways to bottle our beverage. (NVE perhaps?)
http://www.bevindustry.com/videos?bctid=946203236001

M. Zico to send fan to Sochi 2014 Winter Olympic Games
Winner will meet gold medal skier Julia Mancuso
November 5, 2013
El Segundo, Calif.-based Zico Beverages LLC’s same-named
coconut water brand announced a
sweepstakes through which fans can enter to win a trip for them
and a friend to attend the Sochi
2014 Winter Olympic Games and meet 2006 Olympic champion
Julia Mancuso.
The winner will receive round-trip tickets to Russia, a four-
night stay in a hotel overlooking the
Black Sea, and tickets to some of the most popular Olympic
events including snowboarding,
speedskating and alpine skiing. The sweepstakes runs through
Nov. 21, and fans can enter at
zico.com/sochi2014.
Mancuso, who will compete in alpine skiing at the Winter
Olympics, will represent Zico as a
brand ambassador.
“Zico has already been an amazing partner hydrating me on and
off the slopes," Mancuso said in
a statement. "Now, they're giving two winners a chance to come
to Sochi. How cool is that?"
Chief Executive Officer and Founder of Zico Beverages LLC
Mark Rampolla added in a
statement: “Zico has always supported athletes at every level by
providing them with the
naturally replenishing powers of coconut water. We're honored
to be part of the world's most
prestigious sporting event and to be hydrating the top athletes in

the world.”
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when it launched its Bai and Bai5
beverage lines. Since then, the company has seen its enhanced-
water brand post strong year-

over-year sales numbers, expanded its product lineups, and
taken its distribution to a national
level.
Delivering solutions
Emphasizing the widespread concerns related to obesity,
diabetes and artificial ingredients,
Weiss notes that the ideation behind Bai was to offer a healthy
solution to these problems.
“For us, health and wellness is about delivering a truly flavorful
experience but doing it in a very
responsible way with ingredients that are pure and not artificial,
delivering antioxidants as a
functionality, and doing without the use of calories and sugar,”
he says. “I think we’re doing our
part to address an epidemic. The industry overall is looking for
that solution.”
With 5 calories in each serving, Bai5 features a sweetener blend
of what Weiss calls “smart
sweeteners,” namely organic stevia and erythritol, but also
offers fresh fruit flavor that is infused
with antioxidant-rich coffee fruit.
Coffee fruit, the fruit that grows on the coffee plant and
contains the coffee bean, is an attribute
that helps Bai5 deliver on its health and wellness promises. The
all-natural ingredient had not
been widely used in beverages until recently, and the coffee
fruit that Bai uses is rich in
antioxidants, Weiss notes.
Until recently, this fruit commonly was discarded during the
coffee-farming process, he adds.

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