woohoo foods, inc. david m. crisp, jr, ceo. 2 woohoo management 2 david m. crisp, jr., ceo ✦ 17...
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WooHoo Foods, Inc.David M. Crisp, Jr, CEO
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WooHoo Management
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David M. Crisp, Jr., CEO
✦ 17 years of success in the chemical industry (including account management positions in the food industry)
✦ Enjoys proven record of results in sales, marketing and executive management leadership positions
✦ Spent the last four years in high growth startups, including cleantech, personal care and food industries
Richard Molloy and Patrick George, Co-Founders & Directors
✦ Formed one of the most active VC firms in SW Florida, Florida Gulfshore Capital (tech, software, internet, medical products)
✦ Began small incubation effort two years ago using personal capital
✦ Provide oversight and guidance as very active board members
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Market Overview & Trends
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✦ In aggregate the food industry exceeds $1 trillion annually; snack foods account for $60 billion
✦ The snack food market is growing by 1.5% per year; healthy snack foods are growing at 10% per year. Gluten-free is the fastest growing segment of the food allergy/intolerance market and has been experiencing a CAGR of 30% since 2006.
✦ Convenience drives purchase decision, but health is major trend
✦ As a result, major snack food companies are starting to self-regulate but will not admit to wrong-doing or cannibalize existing products
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The Problem
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✦ Over two thirds of American adults are overweight; 34% are obese
✦ Over one third of American children and teens are overweight; 17% of this age group is obese
✦ Obesity leads to health risks: diabetes, asthma and heart disease
✦ CAUSE: the astronomical rise in processed foods, added sugar, no fiber and “empty calorie” snack foods that are aggressively marketed to consumers, especially kids and teenagers
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Description: Raw, gluten-free, sweet and tasty, bite-sized snack treat
Flavors:
Awesome Apple Cider
Perfect Peanut Butter
Ingredients: dates, raisins, walnuts, apples, flax, cinnamon, vanilla and peanuts
Price: suggested retail $6.49/package
Quantity: 6 oz package contains 20 pieces
AKA: Goobernoobs, Noobs, etc.
Today’s Product: Gudernoobs
Nutritional Information:
Calories: 60Serving Size: two pieces
Fat: 1gSugar: 5gFiber: 2g
Protein: 2g
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Competition
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✦ Hundreds of companies sell snacks foods, some Fortune 500 entities, some startups, and everything in between
✦ First, we don’t focus our messaging and packaging on healthy so much as we use the typical junk food gimmicks to market our products (bright colors, funny names and the general look and feel of typical popular snacks)
✦ Most that market “healthy” snack products are not really selling nutrition but only using terms like “no fat” and “healthy” in their advertising and packaging campaigns
WooHoo is different in two ways:
✦ Second, our products don’t just pretend to be healthy, they are healthy and made with only wholesome and nutritious ingredients
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Business Model
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Pricing
•Location: 1. All-natural/healthy section, 2. snacks & candy isle, 3. Energy bars•Demographic: Healthconscious parent; health minded adult •Volume 32 bags per month, per store, at Whole Foods. 17 17 stores in Florida
Sales (original)
Cost/package- initial............$2.38Cost/package- volume........$1.76
Price to distributor..............$2.54Price to retailer....................$3.69Price to consumer...............$6.49
WooHoo Margin- initial..........6%WooHoo Margin- volume....30%
Distributor Margin.................31%Whole Foods Margin............43%
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Marketing Strategy (former)
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✦Using “junk food” packaging/labeling to make Gudernoobs look like a typical junk food or candy product
✦$2/case discount to Whole Foods to assist in launch promotion
✦Two product demos/month/store to support Whole Foods business
✦Facebook advertising to target consumers in Florida
✦Ongoing website sales
✦Facebook fan page
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Marketing Strategy (forward)
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✦Simplify name to “Noobs” or something similar✦RAW! Gluten-free, all-natural snack✦Move from candy section to raw and/or bulk snack section
✦Explore other packaging options (3 pieces in flow wrap) to get product off shelves and into front of store
✦Explore Halloween pails- seasonal with good brand recognition
✦Two product demos/month/store to support Whole Foods business
✦Facebook advertising to target consumers in Florida
✦Facebook fan page
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SWOT Analysis
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Strengths Weaknesses
Opportunities Threats
Have a unique offering and marketing concept at the right time
Enjoy strong relationships with Whole Foods
Have established strong production relationships
Have minimal overhead expenses
Face hundreds of competitors, some much larger and more established
Must fight for shelf space as a relatively unknown brand
Will take time to establish brand credibility with consumers
Leverage the relationship with Whole Foods for national distribution
Capitalize on success with Whole Foods to sell into other retail chains
Increasing focus on health in snack foods- additional products
Cannot support Whole Foods successful without additional funding
Will ultimately face competition from the big players with much larger advertising budgets
May face competition from other startup companies
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Capital Request
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✦Seeking $300K in preferred equity financing for, negotiable, equity ownership of the company
✦Offering standard rights and preferences, including liquidation preference and one board seat
✦Will use majority of capital to support in-store demo’s at Whole Foods locations in order to provide best opportunity for a national roll-out
✦Will use the balance of the capital to fund SG&A and working capital needs as volume increases
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Exit Strategy
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✦Build business for next 5+ years, focus on establishing brand, expanding distribution and developing a strong niche, consumer following
✦After achieving $10+ million in revenue, with strong growth and profitability, look to sell to a strategic buyer
✦Most likely, strategic buyer will be Fortune 500 food company focused on developing healthier product lines (as existing junk food lines continue to face difficult market trends and potential litigation)
Examples:✦LaraBar sold to General Mills in 2010 for $50 million
✦IZZE sold to Pepsi in 2006 for ~$100 million
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Contact Information
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David M. Crisp, Jr.Chief Executive Officer
(239) 297-7347
www.woohoofoods.com