The company was founded in January 1986, and is headed by dennis Edwards, formerly marketing manager at ready pac Produce, and maurice portnoy, formerly general production manager of the international division of dupont. They sell primarily to jobbers and distributors, who in turn supply restaurants and hotels. Pre-pak pre-pak, sacramento, ca, has been in the packaged vegetable business for 10 years, and have recently expanded operations to include regular fresh produce merchandising and delivery. Their primary markets for packaged pre-cut iceberg lettuce are the H/R/I markets. Their marketing area is California, north of Fresno. Cut-n-ready cut-n-ready, east bay, ca, was, at one time, a producer of specialty pre-cut iceberg-based mixes for mostly-institutional markets, and was owned by delMonte.
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Bowl of romaine, chicory, and a tomato on the top. To date we do not know whether this was a market test or a full-fledged continuing entry; however, consumers in the western markets rejected this product. Orval kent orval annotated Kent Company, wheeling, il, is a 100 million company in the prepared salad (non-lettuce) category. It sells under its "Signature" label, and has 23 varieties sold in bulk into the deli section. Their most recent product entry is an extension of the bulk salads — "Salad Singles" brand — which plans to go national with packaged individual portions of non-lettuce salads. Currently, the brand has 30 market coverage in Philadelphia, los Angeles, new York, chicago, baltimore, and Washington,. A strength for this company is an existing distribution network which reaches 90 of the deli sections in the. Blu ridge farms blue ridge fanns, Brooklyn, ny, is a 55 million company in the bulk, prepared, non-lettuce salad business. It sells 102 varieties of salads into supermarket delicatessans. Continental salad processors continental Salad Processors, los Angeles, ca is one of about seven "cutters" (companies serving the H/R/I market with pre-cut iceberg lettuce salad mixes) in Los Angeles. Pre-cut lettuce represents about 60 of their volume, pre-cut cabbage comprises about 20, and the remainder is in such items as onions, celery, broccoli, carrots and zucchini.
Campbell metamorphosis campbell entered the prepared salad market in 1984, with controlled-portion, pre-packaged salads of the pasta variety, under the brand "Fresh Chef Salads." These salads are sold in the dairy case; the product line includes 9 salads and 6 sauces. In March 1986, campbell acquired Mrs. Giles Kitchens, lynchburg, va, a privately held company with 1985 sales of 18 million, generated from 35 varieties of salads. In the branded produce category, campbell has recently tested two varieties of exotic mushrooms in the eastern. And Chicago, and has also tested Campbell's Fresh brand asparagus in markets throughout the country. Kraft kraft already has involvement in the salad business from the salad dressings category. Interharvest interharvest reportedly entered retail markets in the east, midwest, and West with a salad-bowl package containing an.
Leaf lettuce purchasers are more upscale consumers than salad users as a whole. Usage patterns in Regional Markets Higher salad consumption occurs in suburban and central city areas than in nonmetropolitan (rural) areas; this is a constant throughout our examination of regional markets. Household usage of fresh lettuce is tracked by The food paper Institute, which shows the following differences regionally: Fresh write Lettuce-Annual average household Usage (Quantity per household Per week in pounds) Northeast1.22 North Central1.14 south0.89 West1.42 Total. S.1.13 source: "Facts in food Consumption" The food Institute, 4/85 Percentage of households Using Lettuce - annual average northeast68.5 North Central66.5 south55.1 West75.4 Total. S.65.1 source: Facts in food Consumption The food Institute, 4/85 It can be seen that the west and Northeast consistently rank highest in terms of both usage patterns; pounds consumed and percentage of households using. This regional pattern holds true for the percentage of consumers who have prior purchase experience with leaf lettuce: Percentage of Consumers who have purchased leaf Lettuce northeast51.9 North Central45.0 south46.7 West70.0 Total. S.51.8 source: Vance research/The packer Consumer attitude information by region is not currently available to us on salad or Salad ready Products, but a working assumption is that consumers in the northeast have more "refined palates" and sophisticated tastes than the nation as a whole. Competition dole dole did some early testing in the prepared salad market, using their "Dole" label rather than "Bud." They test-marketed pre-cut vegetables in a plastic packet in the east and Northwest, but terminated the market tests. One product attempted was a salad mixture of primarily iceberg, with some added vegetables for color.
Leaf Lettuce Usage and Trends American consumers are demanding a greater percentage of leaf lettuces in their diets vis-à-vis the traditional iceberg lettuce usage. In a 1984 study done for the california iceberg Lettuce commission, consumer researchers found that almost 5 percent of the American public used leaf lettuce exclusively. Current Lettuce Usage leaf Lettuce Only—4 Iceberg and leaf Lettuce—35 Iceberg only—61 Although iceberg retains its strong hold in the supermarket basket, leaf lettuces already have loyal followers. We believe that this following is growing. Type of Lettuce most Preferred Iceberg Lettuce—78 Romaine—7 Red leaf—3 Green leaf—3 Bibb—2 Boston—2 Butter—1 Spinach—1 Endive—1 Don't Know/no preference—2 Demographics of Consumers and Purchasers Although we believe that the demographics of leaf lettuce consumers are more up-scale than those of iceberg lettuce consumers, both. Ninety-eight percent of all homes serve salads. "heavy users" were identified in a 1984 study by the california iceberg Lettuce commission as differing from the household population in general by being middle aged, better educated, and more affluent. Women represent four out of five daily salad consumers, and three out of four people who consume salad four to six times a week basis. In ethnic terms, whites are the heaviest salad consumers overall; 92 of those eating salads daily are white.
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Fresh fruits and vegetables are already the resume fastest growing category. This fact is propelled by the strong consumer trend to eat more fresh produce. Per capita fresh vegetable consumption in the United States (excluding potatoes) increased to a record 100.9 pounds in 1982, up from.1 pounds in 1972. According to the usd a, which tracks trends in the sale of specific vegetables, fresh lettuce consumption increased 1982. Most of this lettuce consumption takes place in the form of salads, although some is used as garnish on sandwiches.
A study done for Progressive grocer Magazine in 1984, by leo. Shapiro Associates, polled American consumers at random about their salad usage. The results, which are projectible to the population at large, were: 21 are serving more salads 72 are serving the same number of salads 7 are serving fewer salads overall Market size for Lettuces we estimate that the overall lettuce market, including both iceberg,. Of this, green leafy lettuces comprise roughly 20 of the retail market on a weight and value basis. (These figures do not include the imports of exotic and specialty lettuces such as radicchio and mache, which have been increasing.) Consumer and Demographic Trends The major consumer and demographic trends which play a key role in selection of food products are as follows: More.
However ingenious, the process remains relatively simple at first glance: raw material is trimmed and cored by hand; selected raw material is then mechanically and automatically cut, washed, rinsed, spin-dried, weighed and packaged. In fact, this proprietary process know-how is necessary to assure the distinctive high quality of the product and avoid production problems that lead to a deterioration of quality. Has secured the source of know-how via a license option granted by the leading French company manufacturing Salad ready-type products. Experience in Europe shows that Salad ready know-how can be mastered only after a one-year learning curve. This will give the management of lyons coyne, inc.
The time to close at least one one-to-two-year contract with a major chain store company before the competition comes. Product Potential It is anticipated that as soon as operations begin, an r d program will be instituted, conducting continuous consumer research to determine changes in public preference and market trends as they occur. Again, salad ready-type product experience in Europe shows that continuous product development is a necessity to stay ahead of competition and grow. The relative simplicity of the technology and its production capacity flexibility permit quick and inexpensive adaptation of the process to new products. The product characteristics that could be modified in the course of business are: Contents Mixture of lettuces Addition of other vegetables (radishes, mushrooms, olives, etc.) Addition of other loose ingredients (nuts, corn, etc.) Addition of other packaged products (salad dressing samples) Packaging Dimensions Packaging material. Market trends and potential consumer Market overview All indications are that the. Market is poised for growth in the green, leafy lettuces category, and that salads are increasingly important as a component of everyday american diets.
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For the institutional market. Proprietary position, there is currently no similar product on the market in the. Existing products that come closest to this product are quite different in content, write containing compacted shredded vegetables or iceberg lettuce instead of loose-leaf vegetables. They also differ in appearance, sold in a cloudy writing package instead of transparent film. Salad ready-type products have been successfully marketed for five years in Switzerland, and were introduced only a year ago in France, where they have already taken one-third of the linear shelf space in the chain stores and supermarkets. (After only nine months of operation, the leading French company is currently under buyout negotiations for as much as four times its initial capitalization.). The processing technology for Salad ready, which was developed in Europe, falls in the realm of "trade secrets." Although there is no patent protection, the technology is proprietary and unique, based upon a combination of machines, including vegetable processing units as well as other food.
Salad ready is manufactured through an industrial process. The plato bag containing the lettuces is made of transparent polypropylene. Pressurized air is added to the pouch before sealing to allow vapor exchange and to protect leaves from being crushed or bruised. The recommended shelf life varies between 5 and 20 days, depending on the quantity of lettuce involved, the combination of leaf lettuce types, and the quality of the customer's storage facilities. The salad ready product line will include: Contents, the "combination" product (mixture of leaf lettuce types). The "single variety" product (single kind of leaf lettuce). Bag (11 9 inch bag) and 1/4 lb (8" 6" bag) for the retail market.
appetizing and eye-appealing green leafy lettuces. These lettuces include romaine, radicchio, mache, etc. The packaged version of this concept places it in the rapidly growing group of high-quality, premium-priced, convenience-based products which fit with the emerging American family and lifestyle. Variety of salad greens eliminates need to buy heads of several kinds of lettuces, mix portions of those heads, and store the unused portions. Sustained freshness for at least five days if bag is maintained at proper temperature. Ready-to-use - eliminates trimming, washing, drying and cutting the salad. Pre-selection of highest quality green, maintenance of nutritional content through the retail cold-chain. Hygienic protection of produce from dust, uncontrolled spraying spill-overs, or easy touching and tampering.
Manufacturing process, sales and management, financial plan, other tasks and overall coordinating. Critical risks: company response, company objectives, the aim of lyons coyne, inc. Is to manufacture and market an innovative food product: a fresh and ready-to-eat leaf lettuce salad package. The product Salad ready will have wide appeal to a large variety of market segments nationwide, from consumers to the hotel, restaurant, and institutional markets. The strategy of lyons coyne, however, is to build a consumer brand in successively larger segments of the market, region by region, and to build sales to H/R/I markets at the same time. Profitability will be demonstrated in the first year of operation: cash flow will be generated in amounts that will permit extension of existing operations, and new regional market entries, in the first five projected years. The firm's financial objective is to reach a point where stock can be offered publicly. The factors that make this possible are thesis the size of the market, lead time of the company over competitors, and its dedication to stay ahead through an aggressive marketing strategy and a solid r d program.
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Business plan, lyons coyne, inc. 11695 San Pedro. San Francisco, ca 87239, june 19, 1993. Salad paper ready is a pre-packaged, ready-to-eat salad created by a company seeking to fill the market desire for foods that are both convenient and healthy. This plan is an example of a company attempting to make an innovative food product available to larger markets. Company objectives, product, market trends and potential, competition. Marketing strategy, price, market selection and roll-out, operations and management.