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Business established

1

THE ECUADOR HONEY CO.

Honey, it’s all good. Protects the environment, helps small producers, uses local inputs, is labor intensive, and is delicious

Ecuador has more honey diversity than any other country in the world.
Different flowers=different flavors

The beekeepers know honey and could produce more.
The market loves honey and should learn more.
The Ecuador Honey Company puts the two together: Gourmet Varietal Honeys at “higher-than-Fair-Trade” prices for the producers.
Introducing a new product, educating the consumer, creating jobs, encouraging reforestation.
Honey, it’s all good.

Facts

Legal status business
Formally registered
Year of establishment

2005

Sales (US$)
Two years ago: 28,260
Last year: 46,000
This year (forecast): 100,000
Year 2 (forecast): 200,000
Year 3 (forecast): 500,000
Net profit after tax (US$)
Two years ago: 0
Last year: 7,100
This year (forecast): 15,000
Year 2 (forecast): 30,000
Year 3 (forecast): 70,000
Total number of Employees
Two years ago: 4
Last year: 4
This year (forecast): 5
Year 2 (forecast): 7
Year 3 (forecast): 10

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 35,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 20,000
Total finance needed (US$) 55,000

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 35,000
Loans (debt) 0
Share capital that you seek from investors (equity) 0
Other sources 20,000
Total finance needed (US$) 55,000

The Business

What is your product/service?

EHC offers 100% natural varietal honeys from small-scale producers from all over Ecuador. Honeys differ in color and flavor depending on what flower blossoms the honeybees visit in search of nectar. EHC has dark, light and creamy honeys that come from the Amazon, Highlands and Costal Regions of Ecuador. EHC packs 12 different varieties of honey and honey mixtures in individual jars or in sets with the option to personalize labels.

What customer need/problem do your products/services satisfy?

A gourmet product that is healthy, all natural, ecologically and socially responsible. To open a new world of honey flavors and combinations, i.e. with macadamia nuts. Perfect for personal use or as a gift.

How will you make the product/service?

With each purchase of honey we supervise the honey harvest, which is important in guaranteeing the quality and duration of the honey. We take the honey to our facility in Quito where impurities are removed and the honey is classified based on the type and date of harvest. The honey combinations use the same process for the honey and are then mixed with other ingredients like macadamia nuts. The product is then bottled and labeled.

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

Marketing:
Honey tastings as a chance to taste and compare the different varieties’ flavors with special guests (chefs, media, potential wholesale clients, etc.)
Direct sales
Website – direct to end consumers and wholesale clients
Attending important food fairs and trade shows
Distribution:
Direct delivery to end consumers and wholesale clients
For the future a distributor located in the market (in the U.S.)

To whom are you selling, what is your market?

Gourmet food market
Gift market (gift shops, corporate gifts, tourists in Ecuador, galleries, museums)
Events (weddings, baptisms, holidays)
Jewish community (Rosh Hashanah, Bar Mitzvah, Bat Mitzvah)
Coffee/Tea shops
Culinary Industry (restaurants, bakeries, manufacturers)
Health food market
Active lifestyle market (people who want a healthy source of energy)
Travel industry (hotels, cruise ships, duty free, airports)
Possibilities unlimited.

Describe your competitors?

Our competitors are the few companies offering varietal honeys. They do not educate the consumers nor offer information regarding the different uses of varietal honey. Very few of these companies combine honey into variety gift packs. Most of our competitors sell through the normal channel of distribution, for example to super market chains such as Whole Foods.

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

Different distribution channel
Combination with macadamia nuts
Unique varietal honeys from Ecuador
Limited editions
Presentation gives added value
Education of consumers through tastings
Social responsibility

What makes your business, your product or service innovative?

Unique marketing method through honey tastings and providing information to educate consumers about varietal honeys and their various uses
Creation and development of a honey industry here in Ecuador, including organic and fair trade certifications
Close relationship with the beekeepers, providing them with technical and organizational support
Helping the environment through pollinization
Personalization of products and labels

How will you ensure the growth of your business?

Love our market: Educate and work with retailers and final consumers through honey tastings, emails, and website information.
Increased investment in advertising, marketing, attendance at trade shows.
Love our beekeepers: Pay higher than fair trade prices to rural beekeepers to provide them with the income to grow their beekeeping business. With technical assistance they can become more efficient and grow easily, increasing production

The Entrepreneur & Management

Describe the entrepreneur & management

The owner of EHC is the Director of the international flower-marketing program “Flowers For Kids”, has an agricultural background, is a partner in several flower farms, and is involved with EHC vision and direction.
The manager is a graphic designer who in three years has combined her profession and natural business acumen to create a unique product and project.
Ecuador is known for bananas, flowers, and cacao. Its secret is its honey.

What specifically makes you and (if relevant) your management team most qualified to build this business?

The owner and the manager form the perfect partnership to build the business because of the owner’s experience in exports and marketing and the manager’s experience in design and her ability to understand the needs of the consumer and transform an “average” product like honey into a specialty gourmet gift.
The company also receives assessment and support in various areas from external consultants.

How much time do/will you expect to spend per week in the business?

The development of the company already requires the full time work of the manager. She holds regular meetings with her beekeepers, outside advisors, and the owner.

Development

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

Communities benefit from small-scale beekeepers because it provides an extra source of income while they continue their other activities (farming, etc). We pay higher than fair trade prices allowing them to grow their businesses. Beekeeping promotes pollinization of local plants and when carried out in protected areas provides an incentive for the people to not deforest the land. Additionally, reforestation programs benefit from beekeeping.

1 comment

PROJECT FUNDING

Greetings,

We the Abu Dhabi United Group invite you to partner with us and benefit in our new Loan and Project funding program. We offer flexible loans and funding for various projects bypassing the usual rigorous procedures. This Funding program allows a client to enjoy low interest payback for as low as 3 - 4% per annum for a period of 5-7 years. We can approve a loan/funding for up to USD 500,000,000.00 or more depending on the nature of business. We are currently funding for:

  • Starting up a Franchise
  • Business Acquisition
  • Business Expansion
  • Commercial Real Estate purchase
  • Contract Execution

We are open to having a good business relationship with you. If you think you have a solid background and idea of making good profit in any venture, please do not hesitate to contact us for possible business co-operation.

Best Regards,
Ahmed Ali Tahir
Abu Dhabi United Group,
Abu Dhabi,
United Arab Emirates.
Email:admin@abudhabifinancialgroup.com
www.abudhabigroup.com/

2 Jan 12, 10:42 Ahmed Ali, 2 Jan 12, 10:42