Business Plan – TFBG

Therefore, a beverage company would need to develop the technology to dissolve Vitamin DO into a water product using food grade ingredients while at the same time making a product that is pleasing in both taste and appearance. The Research and Development Team of The Functional Beverage Group as developed the technology to accomplish these goals. We are now seeking raise capital in order to finalize our formulation development and bring these product formulations to market. Investment Opportunity A $500,000 initial investment (available in units of $10,000 each) provides an equity position in The Functional Beverage Group, Inc.

This funding will allow the VBG to complete initial development of its product line, develop informational web-site, and cover the legal fees and other expenses related to the completion of the second round of funding for the development of the operating company - Functional Foods & Beverages, Inc. Exit Strategy Our research has shown that most beverage companies are in the acquisition and/or partnering mode. Recently, many small beverage makers have been purchased by larger entities such as Coke, Pepsi, and Dry.

Pepper/Snapped. Some of the more recent purchases include Coca-Cola's purchases of Clause's Veterinary and Smarter brands ($4. 1 billion), Fuzz Beverage ($327 million), Gaga Brisk ($92 million), and Jug's del Vale ($456 million). Of more interest to The Functional Beverage Group is the recent investment of approximately $5 million the Dry. Pepper/Snapped Group made eaters containing DO will be a good fit for any of those organizations and therefore we can offer an attractive exit plan for our investors.

Order custom essay Business Plan – TFBG with free plagiarism report

450+ experts on 30 subjects Starting from 3 hours delivery

Get Essay Help

In an otherwise sluggish merger-and-acquisitions market, successful beverage firms are still the darlings of Wall Street deal makers. According to the December 9, 2009 edition of the Wall Street Journal, November was the biggest month in over a year for deals involving consumer products and food and drinks firms with $12. 54 billion in acquisitions. One of those companies for sale is Clarifies Corp., a New York based fruit-juice and sports-drink maker. Clarifies has hired Morgan Stanley to conduct an auction and has entered a second round of bidding, said several people familiar with the matter.

Closely held Clarifies has annual earnings around $75 million and is seeking seven to eight times earnings, which would put it a sales price at $500 million to $600 million, according to the article. Budget Statement Our revenue and expense projections are based on exhaustive industry research based on the cost to manufacture and market a new beverage product. In estimating revenues, we look at three products currently on the market:

1. Wall-Mart's Acacia-based Energy Drink,
2. Why-Drive Energy Drink, and 3) DRANK Relaxation drink.

These products are thought to be some of the most innovative products at the time of their introduction. Our revenue projections are conservative. If we can achieve early adoption into the major retailers like Wall-Mart or Target, we can far exceed those revenue projections. Our initial investors will become members of The Functional Beverage Group, Inc - an intellectual property development organization. Because The Functional Beverage Group, Inc will have few expenses and we expect to become profitable by Year 2. Most of these profits will be distributed as dividends to our shareholders.

The Functional Beverage Group, Inc will maintain an approximate 40% stake in Functional Foods & Beverages, Inc (FBI). FBI will have the primary responsibility of manufacturing and market products licensed from The Functional Beverage Group, Figure 2. Functional Foods & Beverages, Inc - 5 Yr Sales Projections The Functional Beverage Group, Inc (The VBG), an Illinois Corporation was established in 2009 with a one core purpose - to become the preeminent supplier of functional r enhanced water products.

The VBG is developing a line of functional water products based on the diverse needs of the functional water consumer. The consumer will be able to choose from a diverse yet highly specific product offering for their supplemental dietary or hydration needs. Each product is optimized for vitamin content, electrolyte content, caloric content, and energy boost. Our marketing will focus on grass roots efforts as well as forming alliances, partnerships, and promotional agreements with A-List celebrities to produce other unique marketing angles. Our business model will be split into three separate entities:

The Functional Beverage Group, Inc - an intellectual property organization responsible for the development and licensing of proprietary enhanced water products and other beverages to be produced and marketed by its subsidiary operating company, Functional Foods & Beverages, Inc.

1. Functional Foods & Beverages, Inc - the operating company responsible for the manufacturing of products developed by The Functional Beverage Group, Inc. Functional Foods & Beverages, Inc will have the exclusive right to manufacture and market products developed by The Functional Beverage Group, Inc.
2. Functional Foods Beverages will be managed by individuals with food and beverage industry experience. Although this organization will be managed by beverage industry professionals, selected members of the Functional Beverage Group, Inc will act as consultants to the organization.
3. Functional Beverage Real Estate Holdings, LLC - a real estate holding company responsible for acquiring any land and buildings associated with the manufacturing and distribution of products sold by Functional Foods & Beverages, Inc.

The Functional Real Estate Holdings, LLC will seek to locate facilities in areas where they an take advantage of incentives such as TIFF financing, property tax concessions, and vacant or unused property incentives.

Our core management team consists of: Parchment has worked in new product development in the pharmaceutical and nutrition arenas for both Baxter Healthcare Corporation and the Amoco Corporation (Now BP). Mr.. Parchment has years of experience working in the manufacture and formulation of analogs of Vitamin DO.

In addition, he has a 1 5-year track record of success in working with start-up and entrepreneurial organizations. Mr.. Parchment's aground in product development and nutrition has been instrumental in developing the unique features and formulations of our product mix. Edward A. Williams, Corporate Treasurer - JDK, Default University School of Law, CPA (Licensed in IL & IN). Mr.. Williams specializes in legal matters in the following practice areas: Tax Law, Tax Planning, Tax Litigation, Civil Practice, and Federal Taxation. Mr. Williams has represented several notable clients including the late Bernie Mac. Marvin Rug, Business Organization and Management Consultant - JDK North Carolina Central University School of Law, MBA University of Chicago Booth School of Business, Mr.. Rug practiced law for more than 20 years, specializing in the following practice areas: Real Estate Law and Taxation, Business Law & Development, and Estate Planning. Mr. Rug, no longer actively practicing law, provides consulting services to business development and real estate investment clients.

Christopher McGuire, UP of Marketing - BAA Business Administration, Barrington University. Mr. McGuire has extensive Marketing, Public Relations and Executive Assistance experience via Delano PR Worldwide, Merck & Company Pharmaceuticals and Morgan Stanley. His clients' list includes several Fortune 100 Companies such as: Micro-soft, Sears, Wriggles, KEF, Milliner, Kebob Champaign, Mike's Hard Lemonade, Cub-cadet, and Axe Body Spray. He was instrumental in the capabilities development and promotions, and execution of product initiatives and national campaigns.

Charles Moss, Marketing and Promotions - BAA Communications, Southern Illinois University, Mr.. Moss has years of experience in the entertainment and recording industries. Through his organization, Chuck Moss Presents, he has worked with various recording artists in all aspects of management, marketing and promotions. Because his reach stretched from Los Angles to New York, he has been able to evolve a valuable network of celebrities in both the music and sports industry. Deterrence Shapes, Marketing Consultant - MS Marketing/Advertising, Northwestern University Medial School of Journalism.

Mr. Shapes is an individual who can conceptualize a project and follow through to completion. His experience at M Mars along with his Northwestern University Graduate School tenure set the foundation that gave him the tools to succeed in marketing, advertising, diversity training and sales. His understanding of how to take new products through different channels including distributors, retailers, wholesalers, and finally, the end-consumer aground. Michael Vicki, Marketing Consultant - Pro Football Player, Virginia Tech (College), Atlanta Falcons, Philadelphia Eagles.

In addition to being an outstanding football player, Mr. Vicki has a keen sense of marketing and salesmanship. In addition to being a partner, Mr. Vicki has expressed interest in being our first signed celebrity endorser. In addition, Mr. Vicki has a list of contacts who have expressed an interest in investing in our endeavor. Mr.. Vicki still has numerous fans and followers. His jersey is still a best seller in the NFG - a good testament to his marketing potential. Pamela Williams, Manufacturing Consultant - MS Chemical Engineering, Washington University.

Ms. Williams is a dynamic leader with extensive experience in project management, process and mechanical equipment design, and manufacturing start-up. Her broad technical expertise and demonstrated ability to learn technology quickly will enable us to complete project milestones at a fast pace. Additionally, Ms. Williams has over 12 years of experience working in global manufacturing at Proctor and Gamble. Larry Wildfowl, Project Management - MBA, PM, Keller Graduate School of Business. Mr. Wildfowl has extensive experience in project management.

He is skilled at working with business units to create sound business strategies, as well as supporting technology strategies. Mr. Wildfowl worked in the IT departments of the McDonald's Corporation, CAN Financial Services, and the Motorola Corporation before starting his own IT Consulting Business - Premier Project Management, Inc.

Introduction functional waters

The bottled water industry has experienced phenomenal growth over the last ten years. Although low-cost tap water is readily available, there is still 71 million bottles of water consumed per day. In 2007, bottled water sales reached $15 billion.

What's fueling the demand for bottled water? Bottled water demand is powered by the health and fitness craze. Consumers are being told that drinking bottled water is healthy and they have responded to the call by increasing their consumption of bottled water on a year over year basis. As the consumer becomes even more health conscious, there is an increased demand for enhanced and functional waters. These enhanced and functional waters contain added ingredients such as vitamins and minerals that allow the manufacturer to claim health benefits related to these waters.

Therefore, functional waters have a greater product distinction. Demographically, these enhanced waters Industry Trends According to beverage industry experts, the beverage industry has been trending towards lighter, lower calorie beverages with an emphasis on taste, refreshment, and function. Functional or enhanced beverages have seen phenomenal growth for the years 2006-2009 where the industry saw sales of enhanced waters and sports drinks up by 36% and 16% respectively for the period. Sales growth has been modest (approximately 3% from Jan 2009 to May 2010) during the current recession.

However, according to Coca-Cola and Pepsi, sales of the enhanced waters have kept overall beverage sales in the black. Figure 4. Beverage Industry Growth Source - Beverage Spectrum, June 23, 2010 Factors for Success of the Product According to Michael Belles of the trade publication Beverage World (www. Overeagerly. Com), there are some key factors in making a new beverage product successful. These factors are:

1. Make product exciting for the younger consumer,
2. Let the label tell a good story - convince the consumer,
3. Create great and exciting flavors,
4. Create added value and credibility.

We took these factors into account as we designed our initial product offerings.

Product plan

Our initial product line is designed to address three relevant issues concerning vitamin supplements, obesity, and water quality. The three main product qualities are:

1. Fortified with Vitamin DO,
2. Natural, no-calorie natural sweeteners,
3. Fortified With Vitamin DO Over the last two years, there has been a rash of research emerging concerning the lack of Vitamin D in our diets.

Many physicians agree that the levels of Vitamin D suggested by current U. S. Guidelines are insufficient. The lack of Vitamin D in the diet s beginning to gain notoriety by pediatricians and bone doctors across the country giving rise too new "epidemic" - Vitamin D deficiency. The Functional Beverage group has designed a line of "Health Waters" that include levels of Vitamin DB. We will design our marketing campaign around the concerns for the lack of Vitamin D in the diet along with the health benefits of supplementing Vitamin D in the diet. Because there is not a "one-size-fits-all" recommendation for the amount of Vitamin D that should be supplemented in the diet, we have designed different formulations for targeted groups.

This keeps in line with our strategy of micro-targeted waters. Therefore, in addition to optimizing our formulations for taste, other vitamins, sugar content, etc, we will also optimize for the levels of Vitamin D suggested for our targeted groups. 2. Siesta - The Natural, No-calorie Sweetener The Functional Beverage Group has chosen an extract of the Siesta plant as the primary sweetener in our enhanced water products. A recent article in the Wall Street Journal highlighted Pepsin's and Coke's development of products using the Siesta plant.

Misaims 'More, chief executive of PepsiCo beverage business in the Americas states that - "This is probably the biggest change in the formulation of beverages since the initial days of artificial sweeteners. "

Certified pharmaceutical free

As evidence mounts of contaminants in some public water systems, unease about the water supply is growing. As detection technology improves, utilities are finding more contaminants in water systems. In early 2008, media reports of trace amounts of pharmaceuticals in water across the country drew attention from U. S.

Senators and environmental groups, who are now pushing for regulations of these substances in eater systems. Health concerns extend to bottled waters according to the National Defense Research Council. A lot of bottled water is actually tap water. Consequently, there is no assurance that what is coming from the bottle is any safer than what is coming from the tap, according to their studies. The Functional Beverage Group will certify each lot of water to be free of all pharmaceutical compounds. These results water of the highest purity, we will start with purified spring water.

If necessary, we will process/polish our feed water to a level of high purity utilizing industry standard methods. 6. Initial Product Design "... Beverage marketers may be best served - and this is the key point - by classifying products according to the new evolving need states that define our consumer. " - Michael Belles "Barrington [School District 202 dairy dilemma is an example of a discussion playing out across the country, as educators try to reconcile two concerns: childhood obesity and insufficient calcium intake. Even some experts have trouble coming up with a satisfying answer. - Chicago Tribune, Novo. 19, 2009 Formulations We will formulate and bottle our products using purified Wisconsin spring water. Our initially proposed products are:

1. Infant Water, Certified Pharmaceutical Free (COP) - This product is the same as any nursery water sold on the store shelves today. However, each bottle will contain a COP label stating that we have tested the water and certified it to be free of any detectable levels of pharmaceuticals. What concerned mother wouldn't choose our product over one that has not been certified?
2. X-Y-Teen (Young G) Formula - The target market for this formula will be children in grades K-12. This formula, containing Calcium, Vitamin DB, protein, and natural whiteners will be marketed directly to school nutritionists/dieticians as a suitable alternative to milk. According to an article in the November 12, 2009 edition of the Chicago Tribune, there is a discussion playing out across the country as educators try to reconcile two concerns: childhood obesity and insufficient calcium and Vitamin D intake.
3. According to the article, even some experts have trouble coming up with a satisfying answer. This product is the satisfying answer.
4. Women's Formula - Designed to supplement nutritional requirements of women DB, and other vitamins and minerals important to women's health. In addition, emerging research suggests the daily consumption of 1,000 II of Vitamin DO is associated with the support of breast health. A claim we can make in the marketing of our product.
5. General (Active Adult) Formula - A formula for the masses that contain low levels of Vitamin DB, Calcium, and other electrolytes. This formula is designed for the consumer to drink multiple bottles per day, hence the lower levels of vitamins and minerals. This formula will compete with the more mainstream "vitamin enhanced" water products and is targeted to replace the ever decreasing carbonated soft drink racket.
6. Extreme Sports Formula - This product is designed for professional athletes and amateurs who participate in endurance sports or multiple bouts of intense exercise.
7. The product contains Calcium and Vitamin DO for stronger bones as well as increased amounts of electrolytes for more complete hydration. This formula is designed for the rigors of professional sports and can have variations for other professional sports endorsers. The target market consists of professional athletes and amateurs who participate in endurance sports or multiple bouts of intense exercise. We are signing an NV-7 formulation of the Extreme Sports formula for Michael Vicki comeback to the NFG.

This formulation is to be sold in markets where Michael Vicki has a strong marketing and brand recognition presence. Additionally, we are in discussions with Pierre Thomas of the New Orleans Saints to come aboard as an endorser. Our future product offerings may include:

1. Winter Formula - This formulation will include higher levels of vitamin D for the winter months to address the lack of sunlight available in winter months.
2. Acacia Berry Formula - Acacia berries, found in the Amazon, are believed to have mom very healthy qualities.

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

Check my essay Hire Writer