Michigan Farm MarketAmbassadors Specialty Food Entrepreneurs

What is Michigan Farm Market? This is what we do

In a Nutshell: We help Michigan food entrepreneurs reach a wider audience through Marketing, distribution, and eCommerce.We are Mi Farm Market - a family owned business with one simple goal: To spread the breadth and wealth of the Michigan we love to people all over the country. In order to achieve this goal we’ve established partnerships with a hand-picked group of Michigan’s finest food entrepreneurs: Farmers, chocolatiers, bee keepers, ice cream makers, coffee roasters, and wineries. Through our website, our two retail stores, festival appearances, and a mail-order catalog we work with these Michiganders to gather the insanely-talented and the irresistibly-tasty in to one place. Founded in 2012 in Ellsworth, MI (Population 400) – we started out as a simple retail store and have since grown into a fully functional eCommerce and food distribution company with partnerships with Pure Michigan and Kroger.

Click Here to See it Happen on Video

Who is Michigan Farm Market?This is what we stand for

Put Simply: We see ourselves as stewards of our northern Michigan community - working hard, having fun, and sharing our prosperity.As you browse through our catalog you’re likely to recognize a few labels along the way. But along with these familiar faces, we work hard to discover new and exciting companies - Food entrepreneurs who are chasing the American dream and making a great product. We believe in a simple philosophy that has driven Michigan’s buy-local movement thus far: We’re all in this together. And this process of constant collaboration, innovation, and just old fashioned working together is something we pride ourselves in. As we enter our third year in business, we’ve found that the collaborative effort isn’t just limited to our producers. Our community of Ellsworth is a hot bed of proactive community members and enthusiastic customers. These folks play as important a role in our product selection and development as any of us do.

Before

After

Click Here to See Our Proudest Initiative

The last 365 Days Have Been Pretty Big for UsWe established wholesale relationships with over 250 stores and restaurants across the state: By developing our own freight logistics and wholesale shipping program, we secured an agreement to distribute Michigan products to 250 wholesale locations across the state. Our increase in volume allowed us to strengthen our buying power: Purchasing products in pallet quantities direct from our producers bumped our gross margins on both the wholesale and retail parts of or business.We purchased two of our long time producers – The Underground Cheesecake Co. and Charles Layton Chocolates: These acquisition added 5 employees to our company and doubled our annual revenue. By tying these companies in with our existing marketing and distribution channels, we unlocked a whole new level of profitability for these long standing brands, while providing succession plans for their previous owners.2015 YTD Revenue is up 307% over 2014 YTD revenue. Through last year’s acquisitions and by adding support staff to both the Traverse City kitchen and Ellsworth warehouse, we’ve had more time than ever to focus on sales and business development.

Read About our Expansion in this Traverse City Record Eagle Article

Continuing with Community InvestmentAs we’ve continued to grow, we’ve mainained a focus on investing in our local community:We purchased and developed our new warehouse within Ellsworth Village limits: We Reinvested in our community as we purchased and renovated a vacant property just blocks from downtown - passing our former leased building to The Good Samaritan Food Pantry and Resale Shop

We’ve partnered with a local developer to open an Ellsworth retail location: We are working with a local developer to renovate a long vacant Ellsworth building which would hold our new farm market and grocery. This store would provide a much needed resource for The Village of Ellsworth and act as the flagship store for our entire brand. This developer has agreed to pay for the cost of building renovations and give us a 5-year, rent-free lease.

Although we are very proud of accomplishments, there is a still a lot of work to be done. We have a couple role models whom we not only aspire to be like in size - but also hope to mimic in our own

community involvement

These businesses - who believe in place making as much as profit margins – have driven economic development for their rural communities. We have formulated a plan that will allow Michigan Farm

Market to have the same impact for Ellsworth and our surrounding region.

● Specialty food & gifts brand with headquarters in Glen Arbor, MI. Population: 600

● Mail order and ecommerce are primary sales models but still maintains 4 brick and mortar stores, including original Glen Arbor location

● Distributes 800,000 mail order catalogs per year while shipping 80,000+ packages to consumers all over the world

● Owns 4 retail locations across Michigan but maintains headquarters in Glen Arbor, adding new jobs to the local economy with each expansion

● Donated $130,000 last year to “charities and causes that we see making a difference in our communities”

Our Role Models:This is who we aspire to be like. Both in customer size and philosophy

● Craft beer company founded as brew pub in 2004 in Bellaire, MI. Population: 1,000

● Distribution is primary revenue source but still maintains brew pub and store to serve local community and tourists

● Employs 150+ Northern Michigan residents in their bottling plant and brew pup

● Recently expanded Bellaire brew pub and merchandise store by purchasing and renovating two downtown buildings

● Active involevement in community initiatives like Paddle Antrim

Our Role Models:This is who we aspire to be like. Both in customer size and philosophy

● Specialty food brand founded as a retail store in Ellsworth, MI. Population: 400

● $21,000,000 in annual revenue● Employs 80+ Michigan residents across the state● Distributes 2,500,000 mail order catalogs annually while

shipping 195,000 packages ● eCommerce is primary revenue source but maintains 5 Retail

locations across Michigan – including Ellsworth headquarters● co-packing and wholesale distribution services compliment

online sales and increase overall gross margins● Dedicated “Special Projects & Community Outreach” staff

member involved in Northern Michigan community initiatives ● Has provided Michigan food entrepreneurs with $27,000,000

worth of businesss since 2015

Our Goal - 2021This is who we aspire to be like. Both in customer size and philosophy

Round 1 Investment Ask

• $250,000 • Raised through investor crowdfunding in increments of $5,000 to $20,000 – these funds will be used in two

primary purposes:

–Statewide marketing campaign to reach 2,000,000 Michiganders

– Equipment and furnishing for Ellsworth building to house new headquarters, farm market & grocery, and accommodate our need for increased capacity

• Investor Repayment: 2.5% of annual revenue paid to investors over 5 years - Until investor payback reaches 1.25x their investment. This is equivalent to about 8% APR

• Update: As of 11/23/2014 we’ve gained $50,000 worth of investment interest through our investment crowdfunding profile on LocalStake

$35,000Equipment & Fixtures

$30,000Working Capital

$185,000Marketing, Trade Shows, &

Distribution

● Consumer marketing campaign to reach 2,000,000 Michiganders

● 5 Wholesale Food Shows across the midwest

● Add marketing and sales support staff in Ellsworth headquarters

● Increase shipping and production capacity

● Farm market and grocery to serve community

● Live tests of merchandising and sampling techniques

● Develop programs for shipping beer, wine, and ice cream

● Packaging development to decrease shipping costs and order fulfillment times

● Accounting and legal fees to accommodate the expansion

Use of Funds Breakdown

Michigan Farm Market - 5 Year Plan

Phase 1 – 2016 - 2017 Crowdfunding Capital RaiseGrow eCommerce & Distribution Sales to $3,000,000 Annually. The first two years of our business plan are to make a huge splash in Michigan’s specialty food market. We do this by investing nearly $700,000 over 2 years in to marketing our products to a wider audience through social media, catalog distribution, and e-mail campaigns. We will also have metrics in place to measure and optimize our marketing spend, decreasing our cost of customer acquisition for future years. We will also standardize our order fullfilment processes. By the end of 2017, we will be shipping over 30,000 packages of Michigan products annually. In 2016 will establish our Ellsworth retail locaton and headquarters – the flagship for our entire brand - then open one new store each year through 2020.

Phase 2 – 2018 – 2019 Equity/Debt Capital RaiseEstablish Ellsworth Co-Packing Production Facility and Identify Producers to Consolidate into this Facility. Once we’ve built our distribution and sales channels to capacity, our next step will be to increase the gross margins for ourselves and our producers by consolidating production, sales, marketing, and distribution in to one operation. To fund this expansion we will seek to raise an additional $500,000. This will allow us to invest in the people, equipment, and marketing needed to achieve this capacity. Investing in new production equipment, we will produce AND ship 175,000 packages and reach $19,000,000 in sales in 2019. All while sourcing production ingredients from Northern Michigan farmers. Our optimized marketing and order fullfillment system will allow us to allocate our $4,000,000 annual marketing budget in the most effective way possible.

Phase 3 – 2020 and Beyond Acquisitions, Future Growth, and Potential ExitIdentify and Purchase Food Entrepreneur Companies to Move to Ellsworth, The Consider Next Move. For each new company we acquire, we bump up our gross margins, expand our catalog, add jobs to our local community, and provide succession plans to retiring entrepreneurs. After achieving $21,000,000 in annual revenue we will look to new role models and explore options for further growth. These could include Series A funding to develop in to a large scale specialty food brand (specialty food brand Omaha Steaks has annual revenues of $450 Million), developing a franchising model (fresh fruit gift brand Edible Arrangements has over 1,000 franchise locations with $480 Million in annual revenue), or corporate buy-out (gift giant Harry & David sold for $142.5 million in 2014).

CompetitionCherry Republic – Glen Arbor, MIYes one of our most beloved role models is also one of our main sources of competition. According to an article in Crain’s Detroit Business News, founder Bob Sutherland and his team shipped 80,000 mail order packages in 2012. Combined with a marketing mixthat includes 800,000 catalogs, 50,000 email subscribers, and a dozen National Gift Shows – Bob has slowly perfected his sales strategy over the last 25 years. Our Advantage – They promote themselves, not the small food entrepreneur No matter how many products they add to their catalog, it will always hold their label and will always be cherries. Whereas our catalog consists of an endless supply of food entrepreneurs and product lines. With each new product they must allocate moneyand time in development. We need only find what our customers are looking for and tie it in with our existing entrepreneurs. Given the technology and talent resources we have at our disposal, we believe we can accomplish in 10 years what took Cherry Republic 25 years to achieve.

Zingermann’s – Ann Arbor, MIFounded in 1982, Zingerman’s was originally an Ann Arbor sandwich deli. It has since created and developed a full community of indepdendent food businesses with 500 employees and annual revenue near $40 million. The Zingerman family of businesses includes: Zingerman’s Bakery, Catering Services, Mail Order, Creamery, Coffee Roasters, Candy , and Food Tours.Our Advantage – They grow by starting new businesses, we grow by connecting with existing businessesWe are big fans of the Zingerman’s business model. But we believe there is a better way. Zingerman’s achieved its success bydeveloping its family of businesses over 30 years. We can scale much quicker because we purchase or collaberate invite already existing food entrepreneurs in to our model. We will have the flexibility to work with these food entrepreneurs to provide marketing, production, and administration support to help them scale quickly to meet our needs. And when those entrepreneurswant to exit – we provide them with succession plans through acquisition. We’ve already done this twice in the last year, growing our own portfolio of business to three unique specialty food brands.

TeamScotty Bruce• Ellsworth High School Class of 2004• Former digital marketing and brand

manager at London, England based marketing firm.

• Managed his first international campaign at age 22 when he coordinated brand ambassador camapigns across Ireland, The UK, and Australia

• Economics and Finance degree from Albion College with a concentration in Public Policy Development

Ray Bruce• Northern Michigan Native with

30 Years of Grocery & Food Logistics Experience

• Founding Member of Los Angeles based Ready Pac Produce Gift Basket Division

• Shipped 500,000 gift basket units during his final year with the company

• Retired to Ellsworth, MI but came out of retirement to help his son start Michigan Farm Market

The Bruce FamilyScotty and Ray are supported by a large family with various skill sets ranging from accounting to construction. These family members have filled in as needed, allowing us to grow aggressively while containing costs.

The Underground Cheesecake TeamStephanie and Jennifer use their 10 years of company experience to manage operations for the 6 person team at The Underground Cheesecake Co., working with Scotty to identify new opportunities to grow the business.

Get Involved

Scotty BruceOffice: 866-544-1088Mobile: 517-897-2532scotty@mifarmmarket.com

Ray BruceOffice: 866-544-1088Mobile: 231-459-8572ray@mifarmmarket.com

Potential InvestorsIf you’d like more information, please email Scotty or Ray. We’d be happy to send across a more detailed version of this document with financial statements and investor payback information. If you know of any potential investors, we’d be happy to contact them directly.

Community MembersOutside of capital investment, our project will still need the support of community members. Everything from helping us spread the word, to hanging up store fixtures, to providing professional services - If you’d like to get involved, chances are we can use your help! Please email or call Scotty or Ray and we’d be happy to talk!

Thank You for ReadingMichigan Farm Market’s 2012 Grand Opening Ceremony