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Business start-up

1

Organic and hypoallergenic baby foods made with Andean cereals

Organic and hypoallergenic baby foods made with Andean cereals (quinua and amaranth). Fortified with zinc, iron and omega 3.

Our aim is to start a microenterprise producing food products for babies: savoury purees, sweet compotes, and juices, all made with a quinua or amaranth base and fortified with zinc, iron and omega 3. These products will be certified as organic and non-allergenic, and prepared to European norms, without substitutive additives. We will first enter the national market and that of Peru, then Germany.

Facts

Legal status business
Formally registered
Year of establishment

2008

Sales (US$)
Two years ago:
Last year:
This year (forecast): 164,000
Year 2 (forecast): 230,000
Year 3 (forecast): 280,000
Net profit after tax (US$)
Two years ago:
Last year:
This year (forecast): 675
Year 2 (forecast): 12,000
Year 3 (forecast): 19,000
Total number of Employees
Two years ago:
Last year:
This year (forecast): 8
Year 2 (forecast): 12
Year 3 (forecast): 16

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 81,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 29,000
Total finance needed (US$) 110,000

How do you expect this to be financed?

Own Contribution in cash 75,000
Loans (debt)
Shares in your company that you offer to investors (equity) 35,000
Other sources
Total finance needed (US$) 110,000

The Business

What is your product/service?

Foods with an excellent nutritional balance for babies:
Savoury purees: lunch and dinner.
Sweet compotes: desserts and snacks.
Juices made with fruits and amaranth or quinua milk.
A high-quality product, delicious, hypoallergenic, and organic. The Andean cereals used improve the defences of the immune system and strengthen the physical and intellectual development of the baby naturally. Priced in the factory at $US 0.75.

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

Existing foods for babies in the national and Peruvian market are low-quality and non-organic, and in addition do not use Andean cereals. Many of their ingredients are unsuitable for babies.

How will you make the product/service?

Ingredients will be bought from Bolivian and Peruvian producers. Importation will include fortificants from Argentina and containers from Peru.
In production the ingredients pass through a rigorous selection process , then are cleaned, peeled and de-pulped, cooked, liquefied, fortified, weighed, bottled, sterilised, checked for quality, labelled and packed.
A transport company will be hired for both national and international transport.

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

The aim at points of sale is to have our own stand with a full range of products and catalogues, and a facilitator. Visits will be made to paediatricians, maternity clinics and related institutions to publicise the products and create a database of mothers and babies. Publicity material will be sent by e-mail. A distribution company will take the product to supermarkets and pharmacies, and thus to the client.

To whom are you selling, what is your market?

Middle-class families with babies under two, with an interest in organic foods with excellent nutritional properties, including quinua and amaranth; babies with allergies or poor nutrition; babies with vegetarian parents; coeliac babies; those whose health would benefit from eating a balanced, highly nutritious, hypo-allergenic and fortified product without ingredients of an animal origin.

Describe your competitors?

Four multinational companies selling the same product (instant foods) and similar (powdered foods) but without organic certification. Many of their ingredients are not recommended for food for children under one year and nutritional content is poor. Our product price is the same but it will compete through higher quality and different ingredients, giving it a nutritional content without equal.

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

Highly nutritious and complete foods containing quinua or amaranth mixed with vegetables or fruits. With zinc, iron and omega 3 to improve the immune system and physical and neuronal development.

What makes your business, your product or service innovative?

This use of quinua and amaranth in baby food is an innovation, despite their excellent nutritional value. The fortificants used in combination with other ingredients make this produce an excellent source of nutrition. The product does not contain allergens or ingredients of an animal origin, and represents unbeatable nutritional balance.

How will you ensure the growth of your business?

The Bolivian market is small and so it is necessary to export. Peru has been chosen due to knowledge of the market and existing contacts. The present Peruvian market has a preference for ecological products and consumption of quinua and amaranth grows daily.
Implementation of the factory, production, and products will all meet European standards to enable exportation to Germany in the future.

The Entrepreneur & Management

Describe the entrepreneur & management

The team consists of:
1. General Manager: project initiator, majority shareholder. Civil Engineer with Master’s Degree in project programming and evaluation. Mother of two babys with severe eating problems.
2. Administrator: Business administrator with experience of the commercial area.
3. Food Engineer: Expert in nutrition, responsible for the production department.
4. On contract: Accountant and economic assessor.

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

A careful study has been made to develop the ideal team to take this project forward. Subsequent selection of personnel has been carried out based on the required profile, necessary academic specialisations, and adequate work experience. Consultants will also be hired according to need. The fact that one or more of the personnel will have shares in the company reinforces levels of commitment.

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

The manager of this project is also the project initiator, and so will be working fulltime on this.

Development

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

At least 12 direct jobs will be generated, these increasing as sales rise in subsequent years. There will be indirect employment in sectors producing agricultural supplies, with possible subscription to a “Fair Trade” agreement. Another positive impact will be on the health of babies consuming the product; in addition, the organic crops, free of pesticides, produce a positive environmental aspect, as do the recyclable glass containers.

1 comment

Organic and Hipoalergenic Baby Food made based on Andean Cereals www.mankeri.com vivianasoruco@mankeri.com

Quinua and Amaranth

1 Dec 08, 19:51 Viviana Eldy Soruco Ibarra, 1 Dec 08, 19:51