BUILD, PREPARE, INVEST:

Transcription

1 An NGFN Webinar BUILD, PREPARE, INVEST: A SSESSING FOOD HUB BUSINESSES FOR INVESTMENT READINESS February 20, 2014

2 Presentation Outline Technical Orientation Welcome / Introduction Jeff Farbman Wallace Center at Winrock International The Food Hub Business Assessment Toolkit Questions and Answers Upcoming Opportunities, etc.

3 WALLACE CENTER AT WINROCK INTERNATIONAL Market based solutions to a 21 st Century food system Work with multiple sectors business, philanthropy, government Healthy, Green, Affordable, Fair Food Scaling up Good Food

4 NATIONAL GOOD FOOD NETWORK: VISION

5 NATIONAL GOOD FOOD NETWORK: GOALS Supply Meets Demand There is abundant good food (healthy, green, fair and affordable) to meet demands at the regional level. Information Hub The National Good Food Network (NGFN) is the go to place for regional food systems stories, methods and outcomes. Policy Change Policy makers are informed by the results and outcomes of the NGFN and have enacted laws or regulation which further the Network goals.

6 Networking Conferences Webinars Peer to Peer Study Hubs Regional Networks Community of Practice Research New Info New Audiences Technical Assistance Strengthen Food Hubs 6

7 Presentation Outline Technical Orientation Welcome / Introduction The Food Hub Business Assessment Toolkit Darrow Vanderburgh-Wertz Wholesome Wave Jesse Rye Farm Fresh Rhode Island Questions and Answers Upcoming Opportunities, etc.

8 Introduction to Wholesome Wave s Food Hub Business Assessment Toolkit A framework for evaluating business fundamentals National Good Food Network - Webinar February

9 Wholesome Wave works to equip urban and rural communities to make healthier food choices by increasing access to and affordability of fresh regionally-grown fruits and vegetables. Double Value Coupon Program (DVCP) Fruit & Veggie Prescription (FVRx) Healthy Food Commerce Investments Our innovative programs address issues of food insecurity, farm viability, economic vitality and diet-related diseases. Our reach spans the nation with partners in 30 states operating over 300 program sites engaging nearly 2,500 farmers. 9

10 WW Investments helps food hub ventures get investment ready and brings deal flow to investors Business development Regional food infrastructure ventures No access to capital! Institutional buyer relations Grower & producer relations Mission driven capital Marketing & operations insight Policy expertise and influence Mission Investors No deal flow! 10

11 Our team has coordinated over $4 million of investment into food enterprises so far! August 2013 June 2013 Sept Sept June 2012 (Public, Private) (Public, Philan.) (Public, Private) (Private) (Public, Private) Intermediaries Intermediary Intermediary Intermediary Intermediary Investors Investors Investors Investors Investors OCS (Grant triggered by HFFI funds) Fresh Source Capital *Tranche of a large $9 million redevelopment + 1 Private investor 11

12 Farm Fresh Rhode Island s programs grow a local food system that values the environment, health, and quality of life of farmers and eaters Nutrition incentive programs for low-income families Culinary education Value-added production Farmers markets Nutrition education Multi-farm CSA program Farm-to-school Aggregation and distribution of local farm products 12

13 WW looks at food hubs in terms of types of activities/operations First mile Aggregation Each activity has different requirements for Last mile Distribution Processing (Convenience) Processing (Preservation) Retail or diversified markets Risk Management Financing Operations HR/Talent Technology Marketing and Sales 13

14 FFRI sold close to $2 million in local food in 2013 Market Mobile: Aggregation and Distribution Veggie Box: Aggregation and Retail (aggregated CSA) 14

15 How does Wholesome Wave work with food hubs? Screen Assess Engage Execute Deal Monitor Purpose Get to know the organization Determine if and how we will work with the organization: TA or help another way? Lay groundwork to secure investment Key Question s Is this a social enterprise that fits our basic criteria for investment and mission impact? What is the enterprises potential for growth, impact on the food system, and financial viability? Which investors would be interested in this opportunity? 15

16 Screening food hub: Farm Fresh Rhode Island 16

17 WW assesses 9 major dimensions of a food hub enterprise 17

18 A full assessment might look like this 18

19 How to use this assessment framework Who should use this assessment? What is covered and what s not? Investors: Food hubs: Structured way of looking at food hubs; does not teach you how to be an investor Framework to assess your own food hub and prepare for investment Policymakers: Overview of key components of food hub businesses for areas developing food hubs Covers assessment in 9 major areas; not legal due diligence; does not teach how to structure a loan or equity investment Tool for discussion and decision making, does not spit out an answer It s a framework, we expect and encourage adaptation How to use it? Express: In-depth: Outsourced: Gather info from existing sources and quick interview with food hub Interviews with food hub, suppliers, customers; site visit; validate info provided Hire WW or other consultant 19

20 Since we can t cover the whole framework on a webinar, today we ll talk about Business Model and Strategy 20

21 For each element of the 9 dimensions, we collect data, analyze it, and compare it to benchmarks/examples 21

22 Business Model and Strategy: Business Justification 22

23 Business Model and Strategy: Revenue generation mechanism 23

24 Business Model and Strategy: Value proposition 24

25 Business Model and Strategy: Competitive advantage 25

26 Sneak Peek: Market Overview 26

27 Market Overview: Some example tools/resources Segmenting the Market Product what you sell Commodity types Fresh vs. value-added 8 Channel how reached Retail direct Wholesale through intermediaries Customer to whom Consumer Chef Distributor Store manager Local Wholesaler A! Structure! Geography where Size (Lbs Primary markets delivered daily)! Entire trading area Local Wholesaler B! 10 Local Wholesaler C (Organic)! Regional Local Local Regional National Food Hub! Wholesaler H Wholesaler D! Wholesaler F! Wholesaler G! Wholesaler I! (Organic)! Service Area! NYC! NYC! NYC! NY! NY! National! National! National! National! Corporate Pricing! strategy! # of suppliers (farms)!! 501C3! Private! 501C3! 501C3! Private! Private! Public! Private! Public! 5,000! 20,000! 15,000! 50,000! 75,000! 250,000! 750,000! 1,000,000! 3,500,000! Fixed Price! Price/lb! Fixed Price! Fixed Price! Price/lb! % of sales! % of sales! Price/lb! Price/lb! 2! 6! 4! 10! 9! 47! 168! 217! 347! Institutional!! Direct to consumer! Processing services! Co-Branding! 27

28 Thank you! Malini Ram Moraghan Managing Director Investments Darrow VW Portfolio Manager Investments Raphael Leonard Analyst Investments SIGN UP FOR TOOLKIT: wholesomewave.org/hfci CONTACT US: Michel Nischan CEO and Founder Gus Schumacher EVP of Policy and Founder Daniel Ross COO 28

29 Questions and Answers Darrow Vanderburgh-Wertz Wholesome Wave Jesse Rye Farm Fresh Rhode Island Jeff Farbman Wallace Center at Winrock International

30 Presentation Outline Technical Orientation Welcome / Introduction The Food Hub Business Assessment Toolkit Questions and Answers Upcoming Opportunities, etc.

31 Webinars are Archived TOPICS!

32 NGFN Webinars 3 rd Thursday of each month 3:30p EST (12:30p PST)

33 Natonal Food Hub Conference! 2.5 days 6 tours (mostly sold out already!) 8 3-hour trainings 28 workshops 300+ people for networking Countless learning opportunities More:

34 Do This Now Webinar pricing survey:

35 Two Notable Resources for Food Hub Info Food Hub hub Research, case studies, list and map of hubs across the country, much more. bit.ly/foodhubtalk Google Group / listserv for food hub practitioners and supporters Questions answered! Moderated group let us know you want to be a part of this in the post-webinar survey and we ll give you instructions.

36 Get Connected, Stay Connected

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