Soy-n-Joy: Executive Summary |
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The reason why you must read the following? Because the opportunity cost is too high to say 'pass'.......
When we talk about mega-opportunities, we refer to opportunities for spectacular growth, substantial profitability, and eventual global dominance in billion-dollar categories. Such opportunities are rare indeed, particularly in the sluggish food industry. Companies yearn for growth. But margins grow thinner and sales slow as retailers consolidate to wield power and private-labels erode shares. Innovative, differentiated, and high-value-added products can command price premiums and expand profitable markets. But innovation is hard. It takes insights on trends and needs, the unique ability to create differentiated, relevant concepts and products to fill those needs, and disciplined implementation to build the business on solid grounds. The overnight evaporation of the virtual dotcom prosperity is not a lesson people will soon forget.
We are fortunate indeed to possess the insights and expertise to have identified the Soy-n-Joy concept, and designed products in delightful formats and tastes with broad-based, multi-market appeal. The opportunity is healthy-indulgent comfort foods, led by high-taste, low-guilt frozen desserts, where product forms are familiar and taste expectation is paramount. Soy-n-Joy dairy-free UNicecream™ frozen desserts, made from organic tofu and being low-fat, calorie-reduced, low-glycemic and diabetic-friendly, set a new taste standard for whole-soy foods reminiscent of the cola-diet transition. Our patent-pending know-how leadership, product uniqueness and customer intimacy create a position that can withstand attack from competitors, and resistant to erosion from vendor, customer, or substitution threats. Given that regular ice creams fail to satisfy at least 50% of people (health-seeking, weight-conscious, diabetes, vegetarians, and dairy-sensitive), Soy-n-Joy is a low-risk, high-return way to claim global leadership. Our concept expandability will ensure many innovative value propositions to come. Our purpose is to add to human health and happiness, deliver evolving customer satisfaction and delights, nurture trusting relationships with stakeholders, and enjoy the process and success of our pursuits.
We are in a high-value-added business. We convert mostly commodity ingredients into unique, tasty foods with superior differentiated value that benefit multiple segments. In our retail parlor model, our cost of goods, about 20%, permits a projected year-5 gross margin of around 80%, EBT about 33% and net margin over 20%. Conservatively, we expect to match Baskin-Robbins'* store revenue after 2 years, and eventually to surpass Haagen-Dazs'**. We have projected IRR at 60% for the conservative 1-city, 10-store model. This compares favorably with the typical 25% for a good restaurant concept. The capital investment per 10-store city market is around US$1.65 million. And if we can leverage friendly resources of mass manufacturing and distribution, a copacking model focused on Soy-n-Joy requires only US$2.4 million to build a US$25 million regional business in 5 years, or US$9.6 million to build a US$100 million business in 10 years with IRR at 41%. A centralized base-mix facility will permit global franchising, like Coca-Cola. Small companies innovate best. We are exactly one unique, innovative small company that, with the help of the right resources, can grow into a billion-dollar global business like Haagen-Dazs**. If our investor-partner not only brings capital but can also bond with a corporate partner with manufacturing and/or distribution capabilities, we may pursue either business model or even exploit their synergy. But in order to make the strategic partnership work, there must be shared vision and values to make the venture truly successful, and shared commitment to resolve differences and difficulties together in a truly win-win partnership manner.
We won 2 major awards in 'Business Proposal Contest 2001', co-hosted by Sunbrite Business Association, SUCCESS, BC Ministry of Small Businesses, Tourism & Culture, Western Economic Diversification Canada, and Industry Canada: 'The Most Innovative Business Proposal Award - Tourism, Hospitality & Food Category' and 'Best Overall Business Proposal Award'. The judges were overwhelmingly impressed with our innovation that outshone all BC Exports, Hi-Tech and E-Commerce entries. We were also honored in the "Best of Toronto 2005" of Now Toronto magazine. We can dovetail with existing business models, and have the flexibility to set up operation in any affluent metro where there is an abundance of health-, weight-, and quality-conscious consumers. We shall, of course, not overlook the market potential of China (900 million lactose-intolerant) and India (220 million vegetarians), where the burgeoning middle-class is prone to obesity, diabetes, and heart disease. Now, from Toronto, we are inviting candidacies for strategic partnership. Given the exciting category created, wouldn't you like to capitalize on this window of mega-opportunity? Just call KK or Suree at 416-218-0255, or e-mail contactus@soynjoy.net to arrange a next step.
Forward Looking Statements:
This Soy-n-Joy executive summary includes certain forward-looking statements regarding, among other things, statements relating to goals, plans and projections regarding the Company's financial position and business strategy. These statements may be identified by the fact that they use such words as "anticipate," "estimate," "expect," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Such forward-looking statements are based on current expectations and involve inherent risks and uncertainties, including factors that could delay, divert or change any of them, and could cause actual outcomes and results to differ materially from current expectations. These factors include, among other things, market factors, competitive product development and promotional activity, the level of consumer interest in Soy-n-Joy's products, product costing, the weather, the performance of management, including management's ability to implement its plans as contemplated, the Company's relationship with its customers, franchisees, licensees and licensors, governmental regulations and legislation and litigation. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
*Baskin-Robbins is a trademark owned by Dunkin' Brands, Inc. of Canton, Massachusetts, U.S.A.
**Haagen-Dazs is a trademark owned by General Mills Inc. of Minneapolis, Minnesota, U.S.A.
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