organic dried food

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Page 1: Organic Dried Food

Investor Presentation

Page 2: Organic Dried Food

Wholesome Products at Wholesale Prices with Free Delivery

• Organic Dried Food is a low overhead virtual "Organic Marketplace" (no warehouses, no inventory and no fulfillment), selling 37,000 organic and natural products from 2,200 vendors to customers in the USA at near wholesale prices from 4 warehouses (2 East Coast & 2 West Coast).

• We plan a very high growth ($100 Million run-rate in 36 months).

• We plan to launch an Indiegogo Rewards Crowdfunding in March and an Equity Crowdfunding in June.

• We are offering a convertible debenture that will be converted at discount to the stock price set at for the Equity Crowdfunding.

Organic Dried Food Store Inc.

Page 3: Organic Dried Food

What is the Problem?

Organic Consumers Association says:

• Lack of availability for organic products: “One reasonAmericans don't buy more organic food is the lack ofavailability at supermarkets and grocery stores”.

Organic Dried Food Store Inc.

Page 4: Organic Dried Food

How large is the market?

• Market growing at double-digits. From $3.6 billion in 1997 to over $39 billion in 2014.

• A recent Consumer Reports survey shows that 84% of American consumers purchase organic food.

• Food accounts for 52% of the world's most viral content, we are tapping into the hottest market!

• Thrive Market (competitor) at $100 Million run-rate after 16 months. (We have a superior business model).

Organic Dried Food Store Inc.

Page 5: Organic Dried Food

Who are the customers?

• Today’s organic customers base looks a lot different than yesterday’s. It’s bigger, younger, and significantly more diverse than just a few years ago.

• There no longer is a typical organic consumer.

• The faces of organic-buying families now mirror the demographics of the U.S. population.

Organic Dried Food Store Inc.

Page 6: Organic Dried Food

Our Strategy: (Wholesome Products at Wholesale Prices with Free Delivery)

• “Low overhead” virtual retail storeWe have developed a “low overhead” virtual retail store (no warehouse, no inventory and no shipping). System is completely automated from customer order processing to sending shipping tracking confirmation emails.

• Organic and natural food distributorsWe have partnered with two major distributors, including United Natural Foods Incorporated (UNFI - $8 Billion), the largest publicly traded wholesale distributor to the natural, organic and specialty industry in the United States, offering fulfillment of 37,000 products from 2,200 brands from 4 warehouses (2 East Coast & 2 West Coast) at no extra costs.

• StrategyOur strategy leverages the fulfillment capability of our distributors while our competitors duplicated distributor infrastructure by constructing costly fulfillment services and warehouses at 9% of sales.

• . Organic Dried Food Store Inc.

Page 7: Organic Dried Food

Sales And Marketing

Paid Customer Acquisition:We have partnered with a world-class Digital Marketing Company that sends cost effectively us the right traffic, with optimized conversion rates, that maximizes our growth and bottom-line.

Co-op Customer Acquisition (No-Cost Customer Acquisition):Develop Co-op programs (2,200 Brands) that allow numerous brands to share the costs of a full page magazine ad (Food, Woman and other magazines) while driving orders to our store.

Reorders – From Total Customer Base:Engage total customer base weekly with “Specials” promoting reorders

Organic Dried Food Store Inc.

Page 8: Organic Dried Food

Cash flow & Profitability

• The business is a credit card (quick-to-cash) business. Customers select their products on line, credit cards are processed and orders are electronically placed with distributors. After distributor confirms shipment they receive payment.

• We basically have two types of customers, new paid customers with acquisition costs, and reorders from the accumulated customer base with no acquisition costs. At the start, 100% of all order are coming from new paid customers, 0% from reorders. As we continue to acquire new customers, the accumulated customer base expands and reorders increase.

• As reorder sales from the expanding customer base approach 30% -40% of total sales, the company turns cash-flow positive.

Organic Dried Food Store Inc.

Page 9: Organic Dried Food

Competitive landscape:

Competitors How our solution is better

Vitacost (Purchased by Kroger for

$287 million in 2014)

Their published financials show a warehouse fulfillment costs

equal 9% of sales. Our distributors provide drop-shipping

services at no charge.

Thrive Market launched Nov

2014, is at a $100 million run-

rate in 16 months

• We offer 5X products.

• We are are free to join, they charge an annual fee ($59.95).

• They are investing in fulfillment centers, our distributors

provide drop-shipping services at no charge.

Organic Dried Food Store Inc.

Our strategy leverages the drop-ship capabilities of our distributors while our competitors duplicate distributor infrastructure by building costly fulfillment services and warehouses (9% of sales).

Page 10: Organic Dried Food

Our Partners

Organic Dried Food Store Inc.

Shopify hosted

e-Commerce

Store

Inventory

Source

e-Commerce

automation

Bangalla

Dropship

Distributor

(23,639 products)

Honest Green

Dropship Distributor

(15,124 products)

Provides website

and IT for Organic

Dried Food online

store.

Provides e-

Commerce dropship

automation tools:

(loads inventory,

controls price

markup, maps

categories, and loads

new products).

Wholesale food

and dropship

distributor of

organic products,

specialty items

and natural

products.

Honest Green is a

division of United

Natural Foods, Inc.

Largest publically

traded distributor of

natural and organic

health, and

wellness products.

Finch is our Digital

Marketing Partner

Shopping and Searching

Flexible Bidding

Conversion Optimization

Retargeting

AdWords Remarketing

Display & Paid Social Ads

Display Network

Yahoo Content Network

Page 11: Organic Dried Food

Paid Customer Acquisition Strategy:

Organic Dried Food Store Inc.

Our “Paid Customer Acquisition” customer acquisition strategy includes:

• Google Shopping and Searching Services• Automated flexible bidding on each “SPAG” (Single Product Ad Group)

for each of 37,000 products based on “CPA” (cost-per-acquisition) not to exceed profit margins

• Bing/Yahoo Shopping • Conversion Page Optimization • AdRoll FBX Retargeting • AdWords Remarketing • Display & Paid Social Ads • Display Network • Yahoo Content Network

Page 12: Organic Dried Food

Sales & Marketing Channels:

Google Product Listing Ads Consumer Email Marketing Facebook Twitter Pinterest Instagram Amazon Gmail ads Other channels

Organic Dried Food Store Inc.

Page 13: Organic Dried Food

Forecast:

• Year 1 – 2016 - 9 month total customers 50,483 - Revenue of $2 million(75% sales from new customers, 25% from repeat customers)

• Year 2 – 2017- Total customers 241,000 - Revenue of $10.1 million• (57 % sales from new customers, 43% from repeat customers)

• As customer base grows so does the repeat business (lifetime-customer-value)

Organic Dried Food Store Inc.

Page 14: Organic Dried Food

Milestones:

Date MilestoneJanuary 2016 Video CompletedJanuary 2016 Completed websiteMarch 2016 Rewards CrowdfundingJune 2016 Equity Crowdfunding

Organic Dried Food Store Inc.

Page 15: Organic Dried Food

“Exit Potential” Prospects

1. AB Acquisition LLC, the parent company of Albertson’s2. BROOKSHIRE GROCERY COMPANY3. DELHAIZE AMERICA4. DEMOULAS SUPER MARKETS5. DILLON COMPANIES6. Food Lion7. Fred Meyer8. GIANT EAGLE9. GIANT FOOD STORES10. H. E. BUTT GROCERY COMPANY11. HANNAFORD BROS. CO.12. RALEY'S13. THE GREAT ATLANTIC & PACIFIC TEA COMPANY14. Whole Foods Market15. WINN-DIXIE STORES16. (Plus 20 more……)

Organic Dried Food Store Inc.

(Kroger Competitors – Kroger purchased Vitacost for $280 million in 2014)

Page 16: Organic Dried Food

Team and key roles:

Bob DuceyFounder - VP Sales &

MarketingFounder of e-commerce HardwareStreet.com and SoftwareStreet.com. Sales over $22 million in 5 years and sold company. "Let's

do it again"

Dan DuceyE-commerce Mgr.

Experienced e-commerce platform

manager and customer advocate.

"I love what we are building"

Organic Dried Food Store Inc.

Ryan WilliamsPresident & CEO

Executive MBA, Business Development, Consultative

Strategic & Direct Sales, Software, Internet, Cloud

Computing, Affiliate Marketing and more.

Page 17: Organic Dried Food

Our Store: OrganicDriedFood.com

Organic Dried Food Store Inc.

Page 18: Organic Dried Food

Thank you and please visit our website

[email protected]

435.503.8532

Organic Dried Food Store Inc.