This specialty bakery product company boasts a well-established brand name that is easily recognizable to its loyal client base. The fully organic company is in the most prominent retail locations possible, including natural foods specialty stores as well as leading big box retailers. The burgeoning enterprise is poised to potentially have their products picked up several international hospitality related companies, which would dramatically increase the business’s sales and production volume, profitability and resultant offering price. The company also does private label products for a world famous institution. It boasts 7 active sku’s.
This business operates out of Los Angeles, however its 2,000 square foot commercial kitchen is located approximately 2 hours away. The kitchen leases for $2,300 per month on a lease with 3.5 years remaining, as well as three 5 year options. The facility includes a 19 foot hood with a double ansul system that covers 2 - 5 rack convection ovens, a 6 burner stove, a 30 quart mixer, a large refrigerator and several food preparation tables.
While competition naturally exists in the competitive baked goods category, this brand has established itself as one of the industry leaders in the high quality, organic, dietary specific bakery segment. As such, competition rarely has the name or brand recognition they boast or the credibility they have gained through their near decade in business.
New operators may take this formidable opportunity in any number of directions. At present, the firm only offers 7 sku’s, however, this could be dramatically increased to include more flavors as well as additional diet specific options such as kosher certified or vegan. In addition, the number of big name retailers they have and still can obtain shelf placement in, may be grown dramatically. New management may wish to engage a formal distributor to represent them on a regional / national basis or otherwise increase their direct to retailer distribution network via their overnight delivery method. Profitability is relatively low as the owner has multiple ventures and a family; however the business is reported to have generated $10,000 in monthly profits in prior years.
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