BUSINESS PLAN and MARKET ANALYSIS for Nutri-Kake and Frozen Juice

1. BUSINESS PLAN andMARKET ANALYSISfor Nutri-Kake and Frozen Juice In cooperation with Fresh Farm Ltd. and Quick Snaks Chikako Omaru Nobue Kitanaka In Food Product Development, Spring 2005

2. Company Description Farm Fresh Ltd. Farmers Market PO Box 1807 Belize, Central America Produce agricultural products.

3. Company Description Relationship with Rutgers Product Development Team: • Development of frozen snack for small school children: Nutri-pak – combination of vegetable and fruit juice with stronger fruit note.

4. Company Description Quick Snaks • Processing company owned by Mrs. Fox • Produce consumer items for the resorts and restaurants. • Prepare lunches for the staff of a local hospital and several deli. • Breaded shrimps, finger foods, buffets. • Recently purchased a juicing machinery.

5. Current Situation • Mr. Fox daughter attends private school in Belize. • She brings healthy lunch made at her mother’s processing facility. • Mothers of her classmates requested for supply of healthy lunch.

6. Current Situation Parents complain that children refuse to eat vegetables/fruits regularly. Development of nutritious cupcakes made with fruits and vegetables with acceptable sensory attributes (visual and flavor).

7. Current Situation • Mr. Fox wants to supply school lunch at charitable effort (low price) - $2.50/lunch. • He wants to sell his “nutritious” cupcakes in the supermarket to fund for school lunch program. PROBLEM: High content of vegetables and fruits result in microbial spoilage in just few hours, which is not acceptable for sales in the market.

8. AIM To make existing products shelf stable for sales in supermarkets to create positive cash flow to provide healthy lunch for local school children at low price.

9. Objectives • Determine nutritional requirements for children between the age of 7 and 14. • Maintain nutritional integrity of the products. • Find effective preservative(s) for desired shelf-life.

10. Constraints Product • May need to be fortified to attain recommended nutritional requirement. • Product needs to be sugar-free (a touch of artificial sweetener is permissible). • Need to be shelf stable

11. Constraints Processing • Number of product that can be produced per day. • Number of employee. Marketing • May not have enough fund for product advertisement in supermarkets.

12. Constraints Financial • Limited fund Company • Lack of Food Scientist/Nutritionist within the company. Environmental • Lack of help from organizations and other companies.

13. Product Description Nutri-Kake Ingredients (3 flavors): • Carrot, Papaya, Raisin, Cinnamon • Sweet Potato, Banana, Peanut, Allspice • Squash, Mango, Dried Fruits, Cloves Common ingredients: Whole wheat flour, vegetable oil, eggs, nutri-sweet, vanilla extract, salt, baking soda

14. Nutri-Kake • The cakes are baked at 325F for 25-39 minutes. • Weight of each cupcake: ~110-120grams • No artificial color, flavoring and concentrate. • Possibility of nutritional fortification.

15. Frozen Juice • Vegetable juice whose flavor is masked by strong fruit flavor. **no other information is available regarding this product at this point.

16. World Trend http://www.ifpri.org/pubs/fpr/fpr30.pdf

17. Food Trend in US • Only 1/3 of dinners prepared from scratch. • Food preparers want to reduce their cooking time from 30 to 15 minutes. • Frozen entrees and meals reached retail sales of $9.3 billion, up 5.8% in supermarkets. • Two out of ten suppers used more than one cooking appliance – the lowest level in NPD’s 20-year database. • One dish meal – half of dinners Food Technology, April 2003

18. Food Trend in US Food Technology, April 2003

19. World and US Population • Current World: 6,418,638,812US: 295,462,659 • Projected (2050) World: 9,190,252,532 http://www.census.gov/

20. US and NJ Demographics http://www.locationnj.com/Demog_NJ_General.asp

21. Belize • Population • Economy • Other General Information

22. Population in Belize Year Total Population 1950 69,000 2002 236,000 2025 324,000 • Ethnic Groups: mestizo 44%, Creole 30%, Maya 11%, Garifuna 7%, other 8%

23. School Population • Primary Education Enrolment (2002-2003) • 59,367 • Secondary Education Enrolment (2002-2003) • 14,525 • education is compulsory for 6 to 14 year-old children. • about 36% children do not complete primary school.

24. Belizean Economy • GDP per Capita: 3,250 USD (36,000USD in U.S.) • GDP of Agriculture: 18% • Bananas, coca, citrus, sugarcane; lumber • GDP of Industry: 24% • Garment production, food processing, tourism • GDP of Services: 58%

25. Health Issues • According to the information from Mr. Fox, over 65% low income children are anemic. • 51.7% of pregnant women who attending health clinics were anemia (WHO). • For pregnant women, 20% of all maternal death is caused by anemia

26. Nutrition Source: Advanced nutrition and Human Metabolism, 3rd Edition

27. Nutritional Needs Source: Food and Nutrition Board, National Academy of Sciences – National Research Council 1989 Recommended Dietary Allowances

28. Anemia • 9 out of 10 anemia patients live in developing countries • 20% of American children and 80% of children in developing countries become anemic • Iron deficiency is the main cause in children

29. Solutions to Anemia • Increase iron intake • iron supplements, iron-rich diets, increasing iron absorption and fortification • Improve nutritional status. • Control of major nutrient deficiencies, diet diversification and infection prevention

30. Additional Information on Belize • 40% of family income is dedicated to food purchases. • Total imports of food in 2003 totaled $46.6 million. • Has a very small food processing industry, accounting for less than $15 million. • The only food sectors that have processing are juices, deli meats and some dairy products. • 0% migration rate. USDA Foreign Agricultural Service

31. Market Evaluation • Marketing Objective • Educate parents and promote healthy lunch program • Seek help from organizations such as UNICEF – School Health and Physical Education Services (SHAPES) • Financial Objective • Distribute products at local store and make profit to be able to provide lunch at lower price to the school

32. Target Consumers • School children – who actually consume the products • Parents – who decide to buy the products for their children

33. Projected Sales • Price of lunch: $2.50 ($2.00 revenue + $0.50 to school) • Assumed average sales per school: $400 • Assumed sales from two schools: $800

34. Keys for expansion If company has: • Ability to produce more products • Positive cash flow from supermarket sales • Demand from other schools for supply of its healthy lunch

35. USDA Foreign Agricultural Service

36. Any Question?