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Q: What is Geneva Foods? |
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| Geneva Foods is
a food manufacturer and marketer selling products under the
"Lysander's" trademark. Founded in 1980 and
incorporated in 1992 by Gary and Laura Clark, the company grew from a line of
meat seasonings sold in Florida, to a multi-line food products manufacturer
doing over $2 million in sales in 49 U.S. States and Canada. In May of 2001, the assets of the company were purchased by Tom Bandemer and Peter Corteville. The company currently produces and sells 46 different products, primarily to the retail grocery industry. The company's leading product lines are its dried bean soups, and spice rubs for meat, poultry, and fish. |
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Q: How does Geneva Foods sell its products? |
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| Geneva Foods'
products are sold through a small direct marketing operation based in Sanford,
Florida, and via a national network of food brokers and distributors. The
business is currently split approximately 50/50 between these two sales
channels. A B2B internet portal is currently under development.
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Q: What are Geneva's competitive advantages? |
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| Geneva Foods
offers all-natural premium-quality products to an upperclass echelon of the
food industry, selling primarily in upscale grocery and specialty food stores.
While the categories Geneva Foods sells in are extremely competitive, the
company has carved out a high-end niche, with pricing often 2-3 times that of
lower-priced competitors. The basis for Geneva Foods premium positioning is the use of all-natural ingredients, true home-style recipes, and aesthetically pleasing "retro" packaging. In general terms, the company/brand is viewed as a small, family-owned and operated business, with the corresponding values and business practices our customers respect and appreciate in an industry increasingly dominated by huge corporate conglomerates. Geneva Foods has also developed a reputation within the trade as an innovator, launching one or two successful new product lines each year. This "flow" of new products is essential to success in the specialty food trade. |
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Q: What are the new owners' plans for Geneva Foods? |
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| Tom and Pete
are seeking to acquire several other small (annual sales of $250M to $3MM) food
manufacturing companies, or acquire the rights to market products produced by
others, under the Geneva Foods umbrella. By doing so, Geneva Foods will be able
to spread overhead, sales and marketing expenses over a larger revenue base,
thus increasing per-unit profitability. In addition, Tom and Pete have initiated plans to grow existing products of Geneva Foods through increased attention to distributor accounts, reconfiguring product packaging to better meet customer needs, and a renewed emphasis on brand advertising, promotion, and trade shows. |
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Q: How does High Appalachian fit into Geneva Foods? |
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| 1. | High Appalachian offers a top quality, all-natural line of products. |
2. |
High Appalachian has what would appear to some underdeveloped value-added products that could offer an opportunity for profitable growth under appropriate sales and marketing management. |
3. |
There are a number of already identified opportunities for value-added new products that could be evaluated and subsequently launched by Geneva Foods, not the least of which could be trout seasoned with Lysander's fish seasoning, fish rubs, or marinades. |
4. |
Geneva Foods management will examine High Appalachian operations and undertake the necessary cost cutting steps and investments in equipment to improve monthly operating margins and cash flow. |
5. |
High Appalachian will benefit by sharing such overhead services as order entry, invoicing, collections, insurance, etc. with other Geneva Foods product lines. |
6. |
High Appalachian will also share sales and marketing expenses (especially management time, travel expenses, and trade shows). For example, on a call at Wegman's last week we were able to discuss High Appalachian and Geneva Foods opportunities. |
7. |
Geneva Foods will be able to leverage existing upscale specialty products contacts among brokers, distributors, and customers, on behalf of High Appalachian. |
8. |
High Appalachian will be able to take advantage of volume purchasing opportunities by sourcing certain materials and supplies in conjunction with those of Geneva Foods. |
9. |
High Appalachian has a knowledgeable and experienced management team already in place, allowing Geneva Food management to learn the trout business over a reasonable timeframe. |
A: Summary: |
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| With the
noteworthy exception of not being currently profitable, High Appalachian fits
the profile Geneva Foods seeks in acquisition candidates: high-quality
products; an experienced management team in place, value-added new product
growth potential, and an ability to capitalize on Geneva Foods' core strengths
and values. |
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| TOP | Copyright © 2002 Geneva Foods |
