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Business established

1

Essence of flavor

We are a small family company of sauces and spices processing. We wish to expand our production. Installing a production facility, that allows us to increase our production volumes and to improve our conditions of work.

We produce sauces to enjoy the food experience. Our principal product is a red hot chili pepper sauce named Tabasking, we make original dehydrated garlic flakes, organic oregano and other spices. We provide the local market. Implementing a food processing factory will allow us to increase volumes of production and increase the requirement of raw material from the local farmers.

Facts

Year of establishment

2005

Sales (US$)
Two years ago:
Last year:
This year (forecast): 80,000
Year 2 (forecast): 100,000
Year 3 (forecast): 125,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 15,000
Year 2 (forecast): 20,000
Year 3 (forecast): 25,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 8
Year 2 (forecast): 20
Year 3 (forecast): 30

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 34,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 3,000
Total finance needed (US$) 37,000

How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.

Own Contribution in cash 3,000
Loans (debt) 5,000
Share capital that you seek from investors (equity)
Other sources
Total finance needed (US$) 8,000

The Business

What is your product/service?

We process vegetables & spices to make sauces to add a good flavor to people food, to have a better food experience. Our principal product is a red hot chili pepper sauce named Tabasking. We make original dehydrated garlic flakes, garlic powder, garlic salt, etc. Also barbecue sauces, balsamic vinegar, organic oregano and other spices as laurel and parsley.
We use industrial blenders, drying ovens, product storage tanks, kitchens, industrial kettles and packing machines.
Four labors and one production supervisor are needed in the production line, now. After the factory is installed, we’ll need to duplicate number of workers and later on we estimate around 20 workers in the company.

Now we only are selling locally, but we began to receive orders from all over the country, such demand at the time we can not longer supply, therefore our need to expand the soonest possible.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Bolivians like spicy food; we are offering practical solutions home and restaurant kitchens.

There are national food distribution companies interested in commercialization of LAMOR products in the cities of La Paz, Santa Cruz y Cochabamba; those three cities had the 70% of the urban population of Bolivia. We’ll continue providing to our local costumers in Tarija.

The new presentation and packages will be more attractive and practical to use, influencing the decision of purchase. The products have competitive prices. Nevertheless, we’ll need to invest in publicity.

What makes your business different/better than your competitors (competitive advantage)?

Tabasking sauce is made with an endemic variety of Capsicum annuum, only cultivated in Tarija valley, which gives its particular flavor.
Garlic dehydrated flakes, is something never seen before, our barbecue sauce is different to the other ones in the market and the balsamic vinegar is produced with low budget technologies that make it competitive with the imported one.

The Entrepreneur & Management

Describe the entrepreneur & management

I started working with rural development projects, facilitating loans and technical support to small agricultural producers; in doing this I’ve learned the real value of the work effort of the farmers.

Something important my carrier was to develop the Departmental Strategy of Industrial Development of Tarija –my city-. My team and I worked methodologically prioritizing the most important productive chains in Tarija, which are wine processing, carpentry and food processing. As a result of this strategy, these sectors are receiving economical support from the government and international cooperation.

At the moment, I’m leading projects of qualification and technical support for the productive chain of Grapes, Wines and Singanis (Singani is a Bolivian version of brandy).

Development

How does your business improve the local living standards (social and environmental)?

We use 100% local raw material produced by farmers asociations, when the producer sell his production to our company he’s generating an additional income for his family develop.

Our add value production, generate work, distribution of wealth and support to improve the food security of the region, reducing foreigner product dependency.

The use of sauces and spices in local restaurants dishes improve the gastronomical services, very related with tourism industry.

1 comment

Very Hot Project

You have a very hot project. Mention of chili sauce makes me salivate. I'll probably reach for my Tabasco after this. I always have it at home although it's expensive.

I want to taste your Tabasking. I can probably sell your product here in the Philippines.

26 June 07, 20:06 Gilbert Pangyarihan, 26 June 07, 20:06