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XYZ Foods Inc.

Executive Summary
 Premier Foods Inc. is a registered company incorporated in Canada in April 2017.
 The company is in the business of giving of imitation rice and packaged flour
(processed from vegetables) to the customers so that they can have value to their
money as well as to make profits.
 The aim is to create products which are low in carbs and gluten free such as an

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alternative rice product from vegetables and complex carbohydrates such as oat or
lentils or pulses with use of an extrusion food process methodology.
 The primary market for this product will consist of diabetic peoples and special
dietary consumers like Ketogenic diet followers, Atkins and weight watchers
groups.
 The market potential shows that the company will be able to capture 0.01% of
world diabetic population of 422 Million means it has market share size of 42,200
people globally.
 Premier Foods Inc. is requested $500,000 for making production contract with the
food developers companies.
 Once the product is approved and launch, Premier has planned to build its own
drying facility which required additional fund. It will take 3-5years to complete the
process.
Outline
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1 Executive Summary

2 Problems & Solutions

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3 Company Overview

4 Products and Offerings

5 Industry Profile and Overview

6 Competitive Strategy

7 Marketing Strategy

8 Management Team

9 Investment proposal
 Problems v/s Solutions

PROBLEMS
• The food products are not available for the intolerance
specific groups, and people may attempt to make similar
wheat free foods from scratch using vegetables

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• Consistency may be difficult and time consuming
especially with hustle and bustling of the today’s lifestyle

SOLUTIONS
• Premier offers the healthy innovative food
products and the convenience of quick and easy
means of making it.
• Protein enrich vegetables used for making flours.
• The company is providing its product at cheap
price with no compromise on taste.
 Company Overview
 Mission Statement – Premier Food Inc. will produce innovative healthy
products for the intolerance market. The main objective is to become world
class and favourably competing with other top companies in the industry.
 Vision Statement – The Company will strive to stimulate and support long
term economic growth and increased cash flow.

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 Short term Goals - This is the start-up period where the processing and
packaging of flours is done. This includes building of facilities, contracts
with food developers, and the training of staff on operations and
maintenance.
 Long term Goals - The Long term objective is to create a selection of niche
products for the intolerance market and to find our products on most
shelves of retailers/ supermarket / superstore and on all major online e-
commerce platforms.
 The Business model is simply to appeal to a growing intolerance market
using e-commerce business model and create a brand that is unique that
produce good quality and tasty nutritive food at a fraction of the calorific
content of a comparable wheat base product.
Products & Offerings

Imitation Rice
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• Alternative Rice product from
vegetables
Alternative flour for baking
produced from vegetables
• Gluten free bread
• Pan Cake mix
• Cookies
• Pizza crust
• African swallow commonly
referred to as Fufu
Product Specifications

Low Carbohydrate, Low Sugar, &

High Fibre with significant
Protein content

Gluten Free, Nut Free , Vegan

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and Keto Friendly

No Artificial Colouring, Flavouring

or Preservative
It will help people to have a
healthy option for the usual
foods, especially diabetic and
pre-diabetes patients or people
who are on long term low
carbohydrate diets for
bodyweight maintenance.
Overall benefit to the
public will be reduced long
term health cost.
Industry Profile & Overview
 The increasing demand for special dietary products can be found in
innovation trends in the Canadian bakery market.
 There was an increasing number of new products containing flour types
other than wheat (i.e. Almond, Cheese used in flour mix) launched during

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this period.
 Globally, an estimated 422 million adults were living with diabetes in 2014,
compared to 108 million in 1980. It’s expected that diabetes will rise to 642
million people living with diabetes worldwide by 2040. 1
 Main Drivers of Demand :
 Consumers are becoming more health-conscious and curious, not just
about new grains, but also bread with olives, nuts, apricots and other
ingredients, which they are willing to try.
 Recent health trends have encouraged many consumers to moderate
their consumption of bakery foods.
 Over the five years to 2022, shifts in health consciousness and
consumer preferences are likely to continue affecting the industry's
product mix, as operators increasingly focus on expanding their portfolio
of nutritious, specialty and artisanal breads.
Market Analysis-Canada
• According to the information obtained from the http://www.diabetes.ca. Total
number of people with diabetes in Canada is detailed below

Key Statistics 2015 2025

Estimated diabetes 3.4 million/9.3% 5 million/12.1%
prevalence (n/%)

Estimated Pre-diabetes 5.7 million/22.1% 6.4 million/23.2%

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prevalence in Canada (n
%)
(Age 20%)

Estimated diabetes 44% from 2015-2025

prevalence increase (%)

Estimated diabetes cost 25% from 2015-2025

increase (%)
Market Size
 Premier Food is able to reach a pessimistic market share of 0.01% of total
world diabetic population of 422 Million; it would have a market share size
of 42,200 people globally.
 The no. of people suffering from diabetes is 35.9 Million in Canada, USA

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and UK (3.4, 29 and 3.5 respectively). The market potential shows that
they will be able to capture 0.01% market share of total diabetic population
i.e. 35,900 consumers.
 The Company is positive that the numbers presented here are extremely
pessimistic and that we believe we would be able to reach at least 1% -
10% of the World Diabetic population.
 Search data from Google Trends shows an impressive worldwide increase
in the interest in veganism from 2004 to 2018. Top regions include Israel,
Australia, Canada, Austria, and New Zealand.
 Veganism was a top search trend in Canada in 2017. And the preliminary
draft of Canada’s new Food Guide, released in 2017 by the Canadian
government, favours plant-based foods.
Competitive Strategy

Cost Leadership
•Premier Foods Inc. aims to become the market leader primarily through the cost
leadership market strategy
•The specifications covered are practical for everyday use, the low cost will provide

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the advantage to the customer.

Differentiation
•The product is differentiated from current other alternative options for the
intolerance market in aspect of raw material used.
•This differentiates the product from many equivalent products through a
complete reduction of carbs and gluten free.

Focus
•The aim is to create products which are low in carbs and gluten free such as an
alternative rice product from vegetables and complex carbohydrates such as oat
or lentils or pulses with use of an extrusion food process methodology.
SWOT Analysis
Strengths
•Gluten Free Products
•Targeted Niche market
•Use of vegetable Powder means less
carbs and sugar
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•Subject Matter experts are sub-
contracted to design critical aspects of
product.
•Experienced Marketer on staff
•Priced competitively
Opportunities
•Awareness of celiac disease is growing
•5 major publications now devoted to
Gluten Free living
•Diabetic Population is growing.
•Consumers without celiac and diabetic
are choosing Gluten Free diets as a part
of their life
•Movement toward healthier lifestyle
•Baking with other flour tastes (almost)
as good at wheat flour.
Weaknesses
•Use of new extrusion technology.
•Lack of experience in operating and
funds in marketing the business
•Unsure of standards expectation that
are going to be received and set by the
customers.
•Reputation – Since it is newly formed
business it might take a while for sales
to occur and may rely on social
networking to get those sales.
Threats
•Recession
•Established Players in the Market
•New technology acceptance
•Seasonal Fluctuations
•People tend to trust what they know
and not try new things.
•If demand becomes too great, the
business might not be able to meet
requirements leads to disappointed
and disloyal customers.
Marketing Strategy

 Promotion Strategy:
 As it is e-commerce business model the expenses would be more on
web based ads. The 5% of the total budget is spent on promotion &
Publicity.

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 Online Marketing mediums are Facebook, Twitter, Instagram etc.
 It has planned to put articles and blogs in specialized journals of the
target market consumers like Canadian Journal of Diabetes.
 The free samples will be given to chefs on social media platforms to
incorporate in their menus and seek reviews and promotion of
product through their platform.
 Active participation in various food groups advocating low
carbohydrate and sugar consumption.
 Approaching bakers to use innovative flour to make their breads,
cookies and pan cakes.
Online Marketing Channels

Website

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Analytics
Blog

Online
Marketing
Strategy

Social
SEO
Media

Email
Marketing
Marketing Mix

• Product • Place

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Flours &
Imitation Rice Website

Magazines
Restaurants
Competitive
Social Media
Pricing Twitter
Instagram
• Price Facebook • Promotion
Management Team

 The Director of the company is Annie who manages and directs the
operations.
 She wants to use food processing aspects of her chemical
engineering degree to drive final product specification

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deliverable to surpass existing market.

 The company also has planned to hire subject matter experts in

the field of medicine, agriculture and food scientist to design the
product more efficiently.

 This will allow for a more comprehensive understanding of the

nutrients and technological aspects of both the production process
and the product design.
Investment Proposal

 For the start of operations, a total request of $500,000 is requested to

execute the planned program.
 The primary allocation of this go towards the contracts with food
developers, hiring of marketing staff and advertising.

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 The Company would look to build its own plant after 12 months. For
setting own facility additional fund $700,000 is required. It would take 3-
5 years for completion after the successful launch of new products.
 It has also plan to develop new innovative products i.e. Cake Mix for the
Target Market.
 Investment capital to be utilized according to Company’s business Plan
duly approved by the Board of Directors of the company and the incoming
Limited Partners.
 The terms below are subject to further negotiation and final
shareholders, board of directors and if any, regulatory approvals and a
legally binding agreement.