Business Acquisition Available
Gourmet Food Distributor / Wholesale Gift Basket Supplies
Location: Southern California – Can be relocated anywhere.
Sales Price: $450,000.00
Profit / Draw 2007: $195,000.00
Highlights:
EXTREMELY STRONG Internet search engine presence including Google and Yahoo!
Perfect as an add-on for an existing food manufacturing or distribution company.
High quality and established packaging and product line of gourmet snack foods.
Sale includes a full line of themed gift boxes with spectacular graphics.
Established distributor and wholesale customer base.
The Gift Basket Supplies Story
Home-style secrets perfected over the years were translated to a modern production facility in Southern California, the home of Gift Basket Supplies. The tradition of using only the finest corn, nuts and ingredients has stayed with the company throughout its growth.
Upon attaining a broad sales level for Fontazzi, the founder began developing the Barravox line of gift boxes for the gift and gourmet industry. Barravox was merged into Metrovox Snacks in 1997 and today is also a key part in the growth of the “Themed Gift Industry”.
In addition to Barravox, the company owns the brand Snack Works. The products under the wing of this division are stock selections for gift packers across the continent. With a niche of proven gift pack components, we continue to develop new packaging, products and design ideas for our clients.
Gift Basket Supplies’ management maintains the family tradition of innovation,
with an old-fashioned commitment to quality and service.
Investment Highlights
§ Established market for quality products, service and truly unique packaging.
§ Well-established base of over 2,000 customers since 2005 and over 10,000 on the mailing list (never used).
§ Clear opportunity for increasing net profits through increased operating efficiencies and purchasing power economies if the company is merged into a larger or similar organization.
§ Significant opportunity for market growth, geographic expansion and the potential for even further line extensions.
§ Distribution and sales operations that provide crossover opportunities for expansion.
§ Has a web site www.giftbasketsupplies.com that is clearly a leader in the supply side gift basket field.
§ International sales potential has been tapped as well as a very strong domestic base.
Company Background
Gift Basket Supplies specializes upscale gourmet foods and gift box packaging to the gourmet and gift basket industry. The warehouse is located in Los Angeles, California.
Markets - Gift Basket Supplies’ products are marketed across the United States to wholesale distributors, gourmet stores, gift and specialty stores, and mail order companies. Gift Basket Supplies is also establishing it's potential of opening international markets with direct sales and exports to Canada.
Facilities - The company leases part of a warehouse facility in Los Angeles, California, which consists of shipping and inventory storage.
Profitability
The business is a sole proprietorship.
2007 Gross Sales $595,000
Estimated Net Profit With Add Backs $195,000
Present management feels strongly that with any
marketing and sales emphasis, the existing sales trend could be bolstered to
much greater levels.
Products
The primary products produced by Gift Basket Supplies today are:
Barravox: High quality and upscale gift boxes. The company currently markets many different designs of gift boxes. In order to capture the visualization of using a gift box instead of a traditional gift basket, the company is endeavoring to market alternatives with a very upscale presentation including drop shadows, detailed graphic designs and vivid colors.
Snack Works: A real market leader in unique snack foods for the gourmet and gift industry. The company markets such snack foods as Bruschetta Crisps, Cantina Chips, Cucina Chips, Baguette Sticks, as well as a number of snack mixes and numerous other snack food products.
Fontazzi: Known as the market leader for upscale popcorn and pretzels. Its trademark Butter Toffee Pretzels is one of the best selling products of this established brand. The company also products such items as Honey Mustard, Tomato Basil, and White Cheddar Cheese Pretzels. In addition, the company produces many different gourmet popcorn flavors with such names as Rocky Road, Caramel Nut Crunch, and many more.
Sales And Distribution
United States
Sales and distribution of Gift Basket Supplies’ products are currently managed in house.
1. Sales Representatives - Gift Basket Supplies presently has only 1 active sales representative. Compensation is strictly based on a percentage of sales.
2. Gift & Gourmet Distributors - The company presently has 5 gift and gourmet distributors spread across the United States.
3. Foodservice Distributors - Presently, the company does not presently sell to the foodservice industry on any major scale.
International
Gift Basket Supplies is presently exporting to two Canadian distributors.
It is not extensively marketing its product or consulting services to any other
foreign countries. Management believes that there is a market share to be gained
through expansion in this lucrative niche.
Marketing Strategy
The Gift Basket Supplies’ marketing plan has evolved more than from a formally programmed strategy. There is no formal in house sales force. Advertising for the gift industry has been specifically targeted to the internet.
Client Mailing List - Currently the company has an active available mailing list of 10,000 businesses at last count that are in the gift and gift basket industry.
Product Quality & Service - The company has acquired an excellent reputation within its marketplace for quality products and design. Quality control is the highest priority.
Pricing - Current management believes that their products are fairly priced even though they are priced at the higher end of the market. Gift Basket Supplies’ products want to be known for their superior packaging quality and graphics, therefore commanding a premium price. It is anticipated that Gift Basket Supplies’ products will continue to be priced at the higher end of the spectrum in light of the reputation for quality it has acquired.
Competition - Gift & Gourmet: - Current management believes that the competition is insignificant in terms of marked share, etc. Gift Basket Supplies has positioned itself to be a market leader by developing a quality logo, well-known name, and upscale packaging.
Institutional - As with all institutional products, competition is ever present. The company has a solid relationship with its distributors and has been successful in meeting the needs and demands of the growing division.
Organization
Employees - The company has only one employee that is responsible for sales, customer service, and order entry.
Employee Benefits/Bonuses - The company does not have any medical or health
benefits and with the exception of a discretionary Christmas bonus. All employees
earn a fixed wage.
Growth Strategy
The growth plan for Gift Basket Supplies has been simply one of attrition through the website www.giftbasketsupplies.com and a $500.00 per month budget on an internet search engine.
The company has not participated in any trade shows in over 4 years nor has the company actively pursued any additional distributors or sales brokers.
New Products & Line Extensions
In addition to expanding into the areas mentioned, it is anticipated that new products could easily be developed, as well as the addition of line extensions. A key objective for Gift Basket Supplies should be the introduction of new product lines. There are a multitude of competitive advantages to be obtained from this:
1) Full penetration of the entire niche of specialty packaging.
2) A broadening of the line to incorporate more clients.
3) Providing variety and choice for existing consumers.
4) Provide the depth and variety of the product line to be able to garner a
separate Gift Basket Supplies section on retail distribution.
5) Introduction of distribution efficiencies made possible through the variety
of products in the line.
In conjunction with the new product efforts, the incentive division should be extended to add more depth and breadth to the line.
These changes could include:
1) The addition of new graphic designs.
2) The broadening of package sizes.
3) The addition of destination specific designs.
4) The addition of alternative quality packaging.
5) The addition of area or theme specific gift boxes.
Internet and Website
The website and internet portal for Gift Basket Supplies is a key factor in the success of the company.
1) Domain Name – www.giftbasketsupplies.com
As of July 25, 2007 the website had the following rankings based on 19 Keywords:
156 First Place Internet Search Engine Rankings
243 Top 5 Rankings
276 Top 10 Rankings
340 Top 20 Rankings
402 Top 30 Rankings
All of the above were on search terms directly related to the gift basket industry.
Extremely high internet presence including Google, Yahoo, and MSN.
A complete verified copy of the report is available.
The website averages over 2,500 sessions / visitors per day.
Purchase Information
The purchase price and terms are as follows: Price: $590,000.00 (One times 2007 revenue.)
Inventory guarantee of $125,000.00 at time of closing. Any difference to the inventory amount will be adjusted to the cash down payment at closing. There is no production equipment since the company contracts all of the products for manufacturing by third party vendors.
Reason for the sale: I have been doing this for 20 plus years and I am pursuing other interests. I make a very good living as you can see, but I can notice that if more time is not put into the company, sales will suffer. I currently spend around 10-15 hours per week working. I work from home and my main functions have been as follows:
5-7 hours per week picking up product and 3-5 hours per week working on the website and / or advertising.
That is it. Virtually no time spent on the important things that should be done: Planning, new products, new packaging, bringing back good selling products we are out of stock on, etc. I have been milking the company and have been putting no resources into new products and marketing.
Contact information:
Brian Gunshor
Business Team Sales & Acquisitions
Phone: (310) 539-8300
Fax: (310) 856-0240
E-mail: bgunshor@business-team.com