Exceptional Business Food Manufacturing For Sale

Business description

New to the market is an exceptional food manufacturing business that presents a new owner with strong operational advantages that are reflected in the financial margins achieved by the business. Over the past 15 years the current owners have spent time optimising the returns they have received from trading, they now wish to convert their efforts into a fair market value for the business that reflects the assets employed and transferable earnings available.

Whether as an investment, owner operator or an attractive product line extension this business is worthy of further investigation.


The business offers a variety of business synergies with existing food service, food manufacture and investment companies. The business is positioned to take advantage of further business opportunities as it continues through its growth cycle. New products, an increasing wholesaler distribution network, strong established market share in a growing population – Christchurch and efficient production technologies present favourable economic benefits through acquisition of the business.
The business has a proven track record, a profitable record of operation, an existing customer base, a well known name, location, marketing and sales strategy that can be utilised by either an existing business activity or a stand-alone purchaser/investor looking to purchase a growing business to transfer the earning capabilities.

Property information

Real Estate:

Lease

Lease terms:

Term of 6 years with 2 rights of renewal of 3 years each.

Leasehold rent:

$$67,200 plus GST per annum

Location:

With 15 years of trading Foundation Foods has a solid customer base, excellent supplier relationships, and a well-developed brand. As a going concern business Foundation Foods provides proven growth strategies and substantive intangible benefits that would take a substantial length of time for any new start-up business to establish. Being located close to a ready supply of source ingredients and close the the agricultural heart of the South Island Foundation Foods is well positioned to continue to grow the domestic and interntaional market.

Premises details:

Production premise is currently leased. Purchaser looking to utilise a highly efficient extraction and infusion production process to compliment their current operation. Opportunities exist in Bio fuel supply, increase economies of operation and joint venture development of new products.

Other information

Expansion potential:

Regular revenue growth has been achieved by both encouraging the benefits associated with the use of the Foundation Foods product range to commercial kitchens, as well as, growing market share inside and outside their geographical region. Marketing programmes in place that assist wholesaler promotions, food industry trade shows, and the existing on-road Foundation Foods sales staff continue to promote the Foundation Foods range of products to the end users. Forecasted 2009/10 revenue for the existing product range indicates an expectation of sales revenue in a range of +/-10% of the 2008/09 level.

Under development at the moment is the use of stocks and glazes as a base ingredient for other products. Flavouring agents added to base ingredients are being trailed as a consumer product. Such flavourings as Horopito create a beef sauce (jus) ideal for beef, lamb and venison. Local and international interest is being investigated. Other flavouring agents are also being considered.

Foundation Foods have also developed a low cost bleaching and refining process to process tallow to a standard that enables the fat to be used as a deep frying medium. This has enabled Foundation Foods to recently enter a new market to supply a top quality cooking alternative to existing commercially available refined oils. Initial customer response has been pleasing and present future opportunities for the company. As a by-product of the stocks and glazes process growth is only limited by the volume of stocks and glazes being processed.

The innovation does not just stop there – in 2007 the tallow being produced by the company went to market in a liquid form that enabled it to be used as a bio-fuel. Sales volumes have grown over the past two years and are currently being used to fuel the company’s boiler system as well as being supplied to other processing plants.

Planning consent:

"Foundation Foods must operate within the New Zealand laws and regulations governing commercial activities and practices. Regulations and compliance requirements can be broken down to into legislation and regulations imposed by Central and Local Government. Is the business involved in any activities that are covered by regulatory, employment,OSH and local body licensing or compliance to operate? Foundation Foods leases its production facility and requires an assignment of lease by the landlord. All other transfers of asset ownership, compliance and local body licenses appear to be standard and not restrictive to the transfer of ownership.

Competition / Market:

Foundation Foods produce a range of generic product that is well known in the industry for its quality. They have concentrated on the volume wholesale market and recent withdrawal of a competitor will reinforce Foundation Foods as the main supplier of stocks to the hospitality industry. The wholesale product packaging is simple without strong branding in place. Foundation Foods is targeting the retail stock trade as their next target. Retail packaging has been completed and with the addition of the Heart Foundation Tick and being Gluten Free create further niche opportunities. Foundation Foods has concentrated on increasing margins in bulk production and are now poised for growth in retail and the tallow markets. Flavoured products are currently be tested in association with Karuna Fine Cuisine - such as horipita beef sauce.

Support & training:

Extended Assistance Period - The seller is willing to enter into a discussion with the purchaser for period of further paid assistance, over and above the Vendor (Seller) assistance period, if so required.

Reasons for selling:

Over the past 15 years the current owners have spent time optimising the returns they have received from trading, they now wish to convert their efforts into a fair market value for the business that reflects the assets employed in the business and cash flow achieved.

Trading hours:

7 Day Production Operation - 5 days Administration

Owner financing:

Owner financing is available. Please contact the seller for more information.

Financing available:

Vendor Financing Available upon request

Furniture / Fixtures value:

$699,000 (included in the asking price)

Inventory / Stock value:

$65,000

Related documents:

• 
• Business Profile

• 
• Goodwill Apprasial

• 
• Plant Valuation