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LUCUMA EXPORT MARKET - USA. PHASES I, II & III REPORT 04 Diciembre 2006. INTRODUCCI ÓN. La siguiente presentación ha sido preparada siguiendo estrictamente los puntos definidos en los Términos de Referencia para la consultoría:

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lucuma export market usa

LUCUMA EXPORT MARKET - USA

PHASES I, II & III REPORT

04 Diciembre 2006

slide2

INTRODUCCIÓN

La siguiente presentación ha sido preparada siguiendo estrictamente los puntos definidos en los Términos de Referencia para la consultoría:

“Estudio para la selección de un mercado objetivo para la exportación de Lúcuma y la elaboración de plan de acción para promover las exportaciones del referido producto al mercado seleccionado”.

El presente documento constituye el informe preliminar de la consultoría, que incluye, como se estipula en el contrato, sólo los puntos 1-4 descritos en los Términos de Referencia.

El informe consta de un total de 37 vistas (diapositivas) elaboradas por la empresa consultora – Tiara International Conuslting, con apoyo de au asociada para temas agrarios, ACM Perú.

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ANÁLISIS DE LOS CULTIVOS DE LÚCUMAEXISTENTES Y SU PRODUCCIÓN

1.1 Evaluar la extensión de tierras cultivadas con Lúcuma .

  • Total hectáreas de lúcuma: Si bien las cifras oficiales señalan alrededor de 850 ha, ese dato no se ajusta a la realidad del cultivo.
  • Los especialistas, conjuntamente con los asociados de Prolúcuma, consideran que existen por encima de 1500 ha plantadas (entre 1700 y 1800).
  • Sólo en Huaral hay más de 100 (Prolucuma Huaral).
  • Total de hectáreas en producción actualmente 500 – 600 ha hasta 800 quizás y total de hectáreas en crecimiento 700 a 800 ha.
  • Los beneficiarios consideran que es importante el tema de calidad y saber cuál es la oferta de calidad y no saber cuántas hectáreas hay en general.

1.2 Evaluar la producción de Lúcuma en términos de rendimiento por hectárea.

  • En Promedio se ha llegado hasta 15 toneladas y pudiera ser más si es que no existiera alternancia y se tuvieran ecotipos seleccionados por lugar de producción, con poca variabilidad genética.
  • Existen 120 biotipos de Lúcuma y hay casos que muestran en una misma chacra hasta 36 variedades; esta gran diversidad genética genera una baja producción.
  • Cada viverista ofrece sus selecciones al mercado, pero hay poco respaldo científico en esas ventas y es poco lo que hace el SENASA para garantizar la pureza y la sanidad vegetal en los plantones.

1.3 Estimar el crecimiento de las áreas cultivadas en los últimos diez años.

  • La data es insuficiente para poder determinar este punto.

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ANÁLISIS DE LOS CULTIVOS DE LÚCUMAEXISTENTES Y SU PRODUCCIÓN (CONT.)

1.4 Estimar el crecimiento de la producción de Lúcuma el mismo periodo.

  • La producción total por hectárea (el rendimiento/ha) se va a incrementar en el Perú en los próximos años, dado que las plantaciones mdernas sembradas en los últimos 5-8 años empezarán a alcanzar sus máximos rendimientos, elevando el ratio promedio de Tm/ha. Sin embargo, es difícil obtener una cifra confiable de esto.

1.5 Estimar el costo de producción de Lúcuma.

  • El riego tecnificado es recomendable en algunas áreas de la costa y es el costo más alto dentro de los componentes de los costos de instalación.
  • US$ 2500/ha (riego tecnificado) vs. US$ 850/ha con baja tecnologia (riego por gravedad).
  • Si bien algunas plantaciones en la costa son conducidas por riego por gravedad, dado que el Peru es una de las zonas más secas de todo el hemisferio, en el mediano plazo, será imprescindible la instalación de riego tecnificado.
  • El costo del manejo en comparación con otros frutales es mucho menor, especialmente porque la lúcuma se considera un cultivo rústico que requiere aplicaciones de controladores fitosanitarios en menor frecuencia.
  • Costo de mantenimiento fluctúa entre US$ 1000 a US$ 1200 el primer año; dependiendo del sistema de riego que se haya considerado. Los costos de mantenimiento del cultivo (s/incluir cosecha) son de unos US$ 850 del segundo año en adelante.

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an lisis de los cultivos de l cuma existentes y su producci n cont
ANÁLISIS DE LOS CULTIVOS DE LÚCUMAEXISTENTES Y SU PRODUCCIÓN (CONT.)

1.6 Enumerar los beneficios medicinales del uso de Lúcuma como complemento dietético.

  • Este punto no se consideró aplicable. En todo caso, de manera popular se conoce que la pepa de la lúcuma es buena para controlar la caída del cabello. Fruta con gran cantidad de proteínas, carbohidratos y azúcares. También contiene vitaminas y minerales. En todo caso no se considera la lúcuma un cultivo cuya aceptación en el mercado este estrechamente vinculada a sus propiedades nutraceúticas, por lo que este tema no se desarolló a profundidad. Más aun, para explotar estas cualidades, las supuestas propiedades deberán estar respaldadas por estudios clínicos a nivel internacional

1.7 Estimar el crecimiento del área de cultivo contra el incremento de rendimiento/ha

  • La data es insuficiente para poder determinar este punto.

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VENTAJAS Y DESVENTAJAS DE LA LÚCUMA

  • Ventajas:
    • De acuerdo a los actuales clientes, el sabor y el aroma son los prinicplaes atractivos. También el color.
    • Las tendencias mundiales hacia lo étnico y el probar productos nuevos son una ventaja para la lúcuma.
    • La parte industrial no aumenta no tiene un alto impacto en el costo de producción de derivados. Es decir, daría igual procesar una lúcuma o un mango; por lo que se considera que los costos de procesamientos no incrementan el precio comparándolo con otras frutas.
    • El árbol es rústico, tiene pocas plagas y enfermedades
    • Frutal semi caducifolio, adaptado desde el nivel del mar hasta los 2800 msnm.
    • El cultivo de la lúcuma se adapta a diferentes clases de suelo, teniendo tolerancia media a la salinidad. El ph óptimo de este es 7 (neutro).
    • Este cultivo por sus características es posible de llevarlo de forma casi orgánica, con un mínimo indispensable de agroquímicos.

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VENTAJAS Y DESVENTAJAS DE LA LÚCUMA (CONT.)

  • Desventajas:
    • Producto caro: tiene baja productividad y altos costos de instalación porque se demora 4 a 5 años en entrar en producción (costo acumulado de instalación y mantenimiento). El costo final de producción por kilo repercute en su potencial precio de venta.
    • Heterogeneidad de producto: Eso también se debe a que los pequeños productores tienen pocas hectáreas con una alta diversidad genética, enfrenteda además a una diversidad de limas y a tecnologías de manejo, que finalmente producen calidades distintas.
    • No está estandarizada la planta ni el producto cosechado. Los parámetros de distinción entre primera, segunda y tercerca, varían.
    • El precio de la pulpa ofrecido en los mercados internacionales, es demasiado caro y el cliente pierde interés.
    • Falta de estrategias de promoción y difusión de la información por parte de Prolúcuma.
    • Falta de cantidad de hectáreas y estacionalidad hace difícil poder programar los volúmenes de exportación.
    • En verano la Lúcuma es muy rica amarilla pero en invierno cambia, puede ofrecer 4 colores: blanquisca, blanca dulce, blanca desabrida y marronesca – los expertos recomiendan que hay que agostar la planta y no dejar que la fruta salga en invierno.

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LA LÚCUMA Y SUS DERIVADOS

2.1 y 2.2 Identificar las características, nombres y ventajas de los derivados de la Lúcuma.

  • Pulpa: producto libre de cutículas, cáscara y pepa. Se ha logrado hasta un 65% de rendimiento; dependiendo de la temporada. Conversion 2 a 1 de fruta a pulpa.
  • Congelado:
    • trozos IQF
    • trozos congelado en bloques
    • pasta - de producción
      • manual
      • mecánica.
  • Harina: Conversion de fruta fresca a harina es 5 a 1. Contiene humedad de 10% máximo. Adecuadamente almacenado (cerrado herméticamente, en ambiente fresco, seco y oscuro) puede durar hasta doce meses.
  • Liofilizado: tiene un sabor más intenso que la harina y conserva el aroma. Conversion de fruta fresca a liofilizado es 5 a 1 igual que para la harina. Es un producto con un mercado más específico; dado que es un poco complicado de utilizar. La mayoría de sistemas agroindustriales para producir derivados lácteos (yogures y/o helados) utilizan pulpas de frutas congeladas. Su humedad final es de 4% máximo.
  • Pulpa congelada: congelada por el sistema de túnel por aire forzado, logrando una temperatura estable de -18 °C. en el centro térmico del producto.

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LA LÚCUMA Y SUS DERIVADOS (CONT.)

2.3 Hacer una evaluación de la producción de cada derivado.

  • En parte ha sido respondido en el punto 2.1 – 2.2. Más aún, los volúmenes producidos y exportados son aún muy pequeños y dispersos, para poder capitalizar sobre este tipo de evaluación. Ver siguiente cuadro

2.4 Hacer una evaluación de las propiedades químicas de cada derivado individual.

  • No se tiene suficiente información para hacer este tipo de comparación, sin embargo en el siguiente punto se describen algunas propiedades generales de cada derivado.

2.5 Valor agregado en cada derivado.

  • El valor agregado es un procesamiento simple dado que ya sea harina, liofilizado o pulpa se utilizan como insumos para producir helados, yogurts; etc.
  • Por un lado el mercado prefiere harina dado que en el caso de los helados es más fácil adicionar colorante y sabor estandarizado. Además no necesita de una logística tan complicada.
  • El liofilizado tiene un sabor más intenso; al compararlo con la harina ésta pierde color, sabor y olor y tiene que se mezclado para poder obtener el producto deseado; sin embargo con liofilizado son pocas las propiedades fisicas que se pierden.
  • El producto de mayor potencial parece ser el de pulpa congelada porque las empresas de derivados lácteos está más acostumbrada a incorporar ese tipo de materia prima en su proceso.

2.6 Equipamiento e infraestructura necesarios para la produccion de los distintos derivados.

  • Se definió la maquinaria y equipo necesario para cada uno de los derivados exportados. La consultora está introduciendo esta información para generar los flujos de caja respectivos.

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la l cuma y sus derivados cont
LA LÚCUMA Y SUS DERIVADOS (CONT.)

2.7 Capital de inversion y costos requeridos para la produccion de cada derivado

  • Precio de Lúcuma puesta en planta es mínimo de S/. 1.50/kg. Hay empresas que pagan en cualquier época S/. 2.00/kg. sólo por fruta de 4 a 6.5 cm. En algunas oportunidades a los productores se les paga sólo S/. 1.45/kg. dependiendo del tamaño de la fruta. Otras empresas llegan a pagar hasta S/. 2.7 -2.8; sin embargo en temporada baja han llegado ha pagar hasta S/. 3.3.
  • Para procesar pulpa se descarta el 50% y sólo el otro 50% es producto terminado; es decir el rendimiento es de 2 a 1 en pulpa.
  • Para pulpa, la inversion es mínima, la mano de obra no es cara para 200 cajas en un dia (5 kgs, 1 ton. de prod. terminado) se necesitan 30 personas, todo es manual.
  • Mano de obra, pulpear, congelar US$ 1.70 (Costo valor agregado S/. 4)
  • En resumen, los costos de producción es aproximadamente S/.6/kg.

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slide16

Fuente: SUNAT

Elaboración: Prolúcuma

16

slide17

Fuente: SUNAT

Elaboración: Prolúcuma

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LISTADO DE DERIVADOS DE LÚCUMAY SUS PRECIOS DE EXPORTACIÓN UNITARIOS

DERIVADOS 2001 2005

US$/KG US$/KG

Pulpa 1.39 2.26

Harina 4.11 6.09

Embarque Mixto 0 4.49

Pasta 3.22 2.97

Congelada 2.29 0

Dulce 4.06 2.47

Al Natural 1.62 1.65

Otras Presentaciones 6.25 5.78

Presentación No Especificada 2.40 0

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IDENTIFICACIÓN Y ANÁLISIS DE MERCADOS POTENCIALES

3.1 Se realizará un taller (taller I) participativo con los principales agentes vinculados al sector, que son parte de la cadena de valor de los productos derivados de la Lúcuma con el propósito de tomar en cuenta la problemática y la agenda actual para la selección de mercados.

  • El taller se realizó por la mañana del día Martes 8 de Agosto de 2006. Particparon agroindustriales, exportadpres, productores, asociados de Prolúcuma y técnicos especialistas en el tema de lúcuma.

3.2 Se hará un análisis de la información, documentación y bibliografía (publicaciones) disponible para determinar:

  • La información científica y técnica de producción de lúcuma y sus derivados es sumamente restringida, por no decir nula. Por ende, la mayoría de interpretaciones se hicieron considerando las experiencias de los asistentes a los talleres.

3.2.1 Las formas y presentaciones más convenientes para la exportación de Lúcuma procesada.

    • Pulpa de Lúcuma Congelada
    • Harina de Lúcuma
    • Liofilizado de Lúcuma

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identificaci n y an lisis de mercados potenciales cont
IDENTIFICACIÓN Y ANÁLISIS DE MERCADOS POTENCIALES (CONT.)

3.3 Se levantará información estadística confiable y desagregada. Esto incluirá precio FOB y CIF, volumen y destinos.

  • Precio de venta al público es de US$ 2.20 ó US$ 2.30/libra de pulpa. Es decir el precio por un kilogramo es de unos US$ 5.
  • Hay productores que compran lúcuma de Noviembre a Febrero y lo vende en Setiembre u Octubre; entonces se tiene un costo de almacenamiento en frío adicional, de US$ 30 mensuales. El producto congelado dura hasta 1.5 años en almacen.
  • Los costos involucrados son: costo de bajar el contenedor; almacenaje; comisiones de venta y de crédito; costo de bolsas y cajas; costo de transporte; exportación, costo de FDA (riesgo no tarifario de hasta US$ 800); costo de “intensive search” en USA (más de US$ 1,000 para ver si el contenedor contiene droga). En caso que el contenedor queda en “hold” hay que pagarle los gastos a la naviera porque el producto no se puede bajar del barco. A veces la autorizacion del FDA se puede demorar más de un mes. En cargas secas se tiene más problemas que en cargas congeladas. En congelado se puede quedar la carga inmobilizada de 15 a 20 días.
  • No hay seguro contra las inspecciones - el importador asume todos los costos.
  • En un contenedor se pueden transportar de 4 a 5 TM de pulpa. Por lo general los importadores compran producto un mes antes que se le acabe el contenedor anterior, por lo que generalmente se tiene una rotación de 3 a 4 meses.
  • Aproximadamente US$ 50,000 es el costo de un contenedor lleno de producto. El flete no tiene un impacto fuerte; en cambio el precio final si tiene gran impacto en poder acceder al mercado o no.
  • Todos estos datos se incluirán en los flujos a desarrollar en el modelo financiero final.

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ÍNDICE DE CRECIMIENTO DE LAS EXPORTACIONES DE LOS DERIVADOS DE LA LÚCUMA

Tasa de Crecimiento Compuesto Anual

(TCCA) 2001-042001-05

TCCA de Ingresos por Exportaciones 53.19% 9.86%

TCCA de Exportaciones en Ton 46.08% (6.14%)

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IDENTIFICACIÓN Y ANÁLISIS DE MERCADOS POTENCIALES (CONT.)

3.3.1 Selección de una terna de los potenciales países/mercados donde el producto pueda ingresar exitosamente.

    • El principal destino es EEUU; sin embargo han habido unas exportaciones a Chile y Japón, el resto de la produccion se vende en el mercado local.
    • Se investigarán los usos más importantes del producto en USA y también las exportaciones chilenas (mercados y usos).
    • A partir de las experiencias de exportaciones actuales, la consultora preparó expresamente una matriz para evaluar los mercados potenciales de manera participativa.

3.4 Se realizará una presentación y se elaborarán documentos informativos sobre los mercados seleccionados y los criterios utilizados para la selección de la terna de mercados.

  • Se hizo una presentación en eltaller Iy se discutieron los temas referidos en el programa que se adjunta.

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PROGRAMA DEL TALLER I

I.- Coordinación y Presentación de los Puntos a Discutir: 9:10 am

II.- Discusión sobre el punto 1: 9:45 am

1.ANÁLISIS DE LOS CULTIVOS DE LÚCUMA EXISTENTES Y SU PRODUCCIÓN:

1.1Evaluar la extensión de tierras cultivadas y rendimientos de Lúcuma.

1.2Estimar el crecimiento de las áreas cultivadas y producción de Lúcuma en los últimos

diez años

1.3Estimar el costo de producción de Lúcuma.

1.4Estimar el crecimiento del área de cultivo contra el incremento de rendimiento por hectárea.

III.- Coffee Break: 11:15 am

IV.- Discusión sobre el punto 2: 11:45 am

2.LÚCUMA Y SUS DERIVADOS

2.1Identificar las características y ventajas de los derivados de la Lúcuma.

2.2Hacer una evaluación de la producción y propiedades químicas de cada derivado individual.

2.3Valor agregado en cada derivado.

2.4Equipamiento e infraestructura necesarios para la producción de los distintos derivados.

2.5Capital de inversión y costos requeridos para la producción de cada derivado.

V.- Conclusiones: 1:00 pm

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SELECCIÓN DE UN MERCADO OBJETIVO

4.1 Resultados del taller previo.

  • Como resultados iniciales se expuso la información obtenida en una reunión de trabajo que se estableció el 13 de Julio, en las instalaciones del AGAP y Prolúcuma con los directivos de dicha institución, así como con la presencia de representantes de Prompex y de la empresa Liofilizadora del Pacífico.
  • En dicha reunión se le encargó a la consultora que estudiara las posibilidades de mercado con los fabricantes de helados, yogurt, cereales y milk-shake en los países seleccionados.
  • En el taller II se hizo una presentación y se discutieron los temas referidos en el programa que se adjunta.
  • En el taller II se contó con la presencia de productores, asociados a Prolúcuma, exportadores, industriales y técnicos especialistas en el tema de producción de lúcuma.

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SELECCIÓN DE UN MERCADO OBJETIVO (CONT.)

4.2 Elaboración de material de trabajo e informativo para los participantes de este taller decisivo.

  • Ver Programa del Taller II

4.3 Coordinaciones logísticas para la realización del taller

  • Taller II realizado de 2-6 pm en el Hotel Basquiat Inn ubicado en Av. Dos de Mayo 1421 (alt. Cdra. 14 Javier Prado Oeste)

4.4 Identificación y convocatoria a los principales agentes del sector.

  • Ver lista de Participantes y Asistentes

4.5 Presentación de una terna de los potenciales países/mercados a exportar y el análisis que condujo a su selección.

  • Ver Matriz Resultado del Taller II

4.6 Selección del mercado objetivo al cual se orientará el plan de acción.

  • Ver Matriz Resultado del Taller II

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PROGRAMA DEL TALLER II

I.- Coordinación y Presentación de los Puntos a Discutir: 2:05 pm

II.- Discusión sobre el punto 3: 2:15 pm

3.IDENTIFICACIÓN Y ANÁLISIS DE MERCADOS POTENCIALES

3.1Se hará un análisis de la información, documentación y bibliografía (publicaciones)

relevante disponible para determinar las formas y presentaciones más convenientes

(pulpa, harina, etc.) para la exportación de Lúcuma procesada.

3.2Se levantará información estadística confiable y desagregada. Esto incluirá precioFOB

y CIF, volumen y destinos.

3.3Selección de una terna de los potenciales países/mercados donde el producto pueda

ingresar exitosamente – definición de criterios críticos.

III.- Coffee Break: 2:45 pm

IV.- Discusión sobre el punto 4: 3:00 pm

4.SELECCIÓN DE UN MERCADO OBJETIVO

Seleccionar entre la terna de candidatos definida cual será el (los) mercado(s) objetivo para

la elaboración del plan de acción de exportación de Lúcuma, utilizando una cartilla-matriz

elaborada por TIARA y ACM.

V.- Conclusiones y Clausura: 5:30 pm

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ELEMENTOS DE IDENTIFICACIÓN YCRITERIO DE ANÁLISIS PARA EL MERCADO POTENCIAL

  • Desarrollo de una matriz con un sistema de puntaje que tome en consideración los siguientes parámetros:
      • Opinión y percepción del cliente sobre el producto.
      • Segmentación del mercado basado en:
        • Nivel de Ingresos
        • Diversidad Étnica
        • Ubicación Geográfica
      • Actual demanda del mercado para los derivados de lúcuma o productos similares como frutas tropicales y pulpas.
      • Sistema existente para la tasación de productos similares a la lúcuma.
      • Elasticidad de la demanda para lúcuma, sus derivados y productos similares.
  • Definición de la distinta ponderación de cada una de las variables/factores presentados para la selección del mercado ideal para desarrollar el plan de acción.

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MATRIZ DE RESULTADOS – TALLER II

Variables a Ponderar - cuáles son las más importantes, las que determinarán si debo escoger a un país específico para para definir mi estrategia de penetración de mercado...

Países Seleccionados

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CONCLUSIONES

  • El Proyecto deberá incluir los siguientes temas de análisis:
  • Se deberá promover la homogenizacion en los conceptos de calidad de producto, a partir de normativas de estandarizacion de producto – que significa “calidad” – y de la información de documentos técnicos del cultivo.
  • Necesidad de un interlocutor (Prolúcuma) que pueda implementar las estrategias que el proyecto finalmente defina. Prolúcuma no muestra aún las capacidades para poder cumplir con ese papel – hay necesidad de fortalecer sus capacidades institucionales.
  • La lúcuma es un producto “caro” comparado con los precios de otros frutales, dado que tiene baja produccion por hectarea – el proyecto deberá plantear a qué precio se puede ofrecer el producto si se incrementa sus rendimientos. El precio en el mercado internacional de pulpas congeladas sí se considera un “deal braker”.
  • Se definieron seis factores claves para la toma de decision del mercado los cuales señalan a USA y Japón como principales paises para comercializar los derivados de lúcuma y éstos serán tomados en cuenta para el plan de acceso.
  • Para que el proyecto sea efectivo, se deberá plantear políticas públicas vinculadas a la promocion de la inversion privada.
  • Se acordó que los participantes completaran los datos económicos para elaborar los flujos de caja respectivos a producción de campo, planta y agroexportación industrial.

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lucuma export market usa39

LUCUMA EXPORT MARKET - USA

PHASES II & III REPORT

tariff issues
TARIFF ISSUES

U.S.-Peru Trade Promotion Agreement (USPTA),

Andean Trade Promotion and Drug Eradication Act (ATPDEA),

The Free Trade Agreement (FTA)/Trato del Libre Comercio (TLC):

  • Presently there are no tariffs on products such as Lucuma from Peru. Although Peru and the United States have negotiated a holistic free trade agreement (FTA/TLC), as of December 2006 it has not been fully ratified by both countries for unrelated internal political reasons which occurred in both countries since its negotiation.
  • Nonetheless, exports from Peru are currently tariff free due to the ongoing Andean Trade Promotion and Drug Eradication Act (ATPDEA) which is due to expire at the end of 2006.
  • Due to the election results in the USA of November 2006, which changed the majority in the US Senate and House of Representatives to the Democrat Party, the future of the ratification process of the Free Trade Agreement (FTA/TLC) is unclear.
  • However, it is likely (and assumed for this report) that either the ATPDEA will be extended (likely) or the Free Trade Agreement will be ratified prior to the swearing-in of the new Democrat Majority (possible) or the new U.S. Congress will ratify it immediately (unlikely).
  • Should there be no preferential trade agreement in force, many of the assumptions, particularly those dependent to pricing must be reconsidered.
  • As an “exotic” product, the absence of a trade agreement would affect Lucuma much less than other Peruvian Exports (such as cotton garments).

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fda regulations
FDA REGULATIONS
  • Food & Drug Administration (FDA) regulations:
    • The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 requires domestic and foreign facilities that manufacture, process, pack, or hold food for human or animal consumption in the U.S. to register with the FDA.
    • Under the same Bioterrorism Act, foreign companies are required to submit Prior Notice to the FDA before food is imported or offered for import into the U.S.

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use of different forms of lucuma in different segments
USE OF DIFFERENT FORMS OF LUCUMA IN DIFFERENT SEGMENTS
  • Processed lucuma are used as raw materials for the food industry, as well as the foodservice industry:
    • frozen lucuma pulp & fruit chunks: pulped and frozen - used as an ingredient for ice-cream, yogurt, juices, cocktails, various desserts, jams, sweet fillings, and confectionery
    • lucuma “coulis” sauce: used as ice-cream sauce/topping and decoration of dishes - would mainly be used by the foodservice industry
    • aseptic or sterilized lucuma pulp (bag-in-box pack): does not require refrigeration - used as a raw material in dessert, yogurt and ice-cream
    • thick lucuma “filling”: sweetened product - used directly as a filling for doughnuts, cookies, waffles, truffles, etc.
    • lucuma purée: for direct consumption, marketed through supermarkets, especially as a baby and children’s food
    • dried lucuma (chunks or flour): used as a raw material for ice-cream, cereal mixes (muesli), and desserts in general

42

potential market segments
POTENTIAL MARKET SEGMENTS
  • Ice cream
  • Yogurt
  • Flavored milk & milkshakes
  • Sweet spreads
  • Confectionery
  • Bread & bakery products
  • Breakfast cereal
  • Foodservice & restaurants

43

industry commercial events in usa
INDUSTRY COMMERCIAL EVENTS IN USA
  • Americas Food & Beverage Show & Conference in Miami, FL – November 8~10, 2006
  • National Ice Cream Retailers Convention in Savannah, GA – November 8~11, 2006
  • Expo Comida Latina in New York, NY – November 14~15, 2006
  • Dairy Forum in Orlando, FL – January 14~17, 2007
  • Winter Int’l Fancy Food & Confection Show in San Francisco, CA – January 21~23, 2007
  • World Ag Expo in Tulare, CA – February 14~16, 2007
  • North America Pizza & Ice Cream Show in Columbus, OH – February 25~26, 2007
  • Western Candy Conference in San Diego, CA – March 21~25, 2007
  • SupplySide East Show in Secaucus, NJ – April 30~May 2, 2007
  • Spring International Fancy Food & Confection Show in Chicago, IL – May 6~8, 2007
  • Dairy-Deli-Bake Seminar & Expo in Anaheim, CA – June 3~5, 2007
  • Summer Int’l Fancy Food & Confection Show in New York, NY – July 8~10, 2007
  • American Bakery Expo in Las Vegas, NV – September 8~10, 2007
  • National Confectioners Assoc. All Candy Expo in Chicago, IL – September 17~19, 2007
  • World Dairy Expo in Madison, WI – October 2~6, 2007
  • International Baking Industry Expo in Orlando, FL – October 7~10, 2007
  • Worldwide Food Expo in Chicago, IL – October 24~27, USA

44

demand for similar products
DEMAND FOR SIMILAR PRODUCTS
  • Mangoes
  • Peaches
  • Strawberries
  • Others

45

ranking of ice cream flavorings in usa
RANKING OF ICE CREAM FLAVORINGS IN USA
  • A survey ranked ice cream eating preferences among Americans, and the percentage of respondents favoring each flavor.

Rank Flavor Percent

1. Vanilla 29.0%

2. Chocolate 8.9%

3. Strawberry 5.3%

4. Butter Pecan 5.3%

5. Neapolitan 4.2%

6. Chocolate chip 3.9%

7. French vanilla 3.8%

8. Cookies 'n' cream 3.6%

9. Fudge ripple 2.6%

10. Praline 1.7%

Source: International Ice Cream Association

46

ice cream statistics for the united states i
ICE CREAM STATISTICS FOR THE UNITED STATES - I
  • Total U.S. production of ice cream and related frozen desserts in 2004 amounted to about 1.6 billion gallons, translating to about 21.5 quarts per person.
  • Total US Production of Frozen Desserts (Hard & Soft) in Million Gallons

Regular Low & Nonfat Frozen Water Other Frozen Total Frozen

Ice Cream Ice Cream Yogurt Sherbet Ices Dairy Products Products

1999 972.2 421.1 90.9 54.5 70.3 13.9 1622.8

2000 979.6 404.1 94.5 51.9 65.8 11.6 1607.6

2001 970.1 402.6 52.6 64.4 71.2 10.5 1571.4

2002 1005.0 359.6 70.8 57.0 67.6 8.7 1568.6

2003 1015.1 373.9 68.0 56.2 67.5 7.9 1588.6

% 2002-3 1.0% 3.8% -4.0% -1.4% -0.0% -9.3% 1.3%

  • In 2004, total U.S. sales of ice cream and frozen desserts reached $21.4 billion. Of that total, $8.1 billion was spent on products for "at home" consumption, while $13.3 billion was spent on "away from home" frozen dessert purchases (scoop shops, foodservice and other retail sales outlets.)

47

customer analysis ice cream manufacturers i
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - I
  • Dreyers Grand Ice Cream (subsidiary of Nestle)
    • Company website: http://www.dreyers.com/
    • 5929 College Ave., Oakland, CA 94618Tel: 510-652-8187
    • 2005 sales: $188.7 million
    • Dreyers Grand is one of the three largest ice cream producer in the U.S.
    • The company’s ice cream brands include: Dreyers, Edy’s, Healthy Choice, and Haagen-Dazs
    • Dreyers Grand has about 15% market share

49

customer analysis ice cream manufacturers ii
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - II
  • Good Humor-Breyers Ice Cream / Unilever Ice Cream
    • Company website: http://www.icecreamusa.com
    • PO Box 19007, Green Bay, WI 54307Tel: 920-499-5151
    • Unilever is one of the three largest manufacturer of branded packaged ice cream and frozen novelty products in the U.S.
    • The company’s ice cream brands include: Breyers, Good Humor, Klondike, Popsicle, and Ben & Jerry’s
    • Unilever has about 15% market share
  • Ben & Jerry’s Homemade (subsidiary of Unilever)
    • Company website: http://www.benjerry.com
    • 30 Community Drive, South Burlington, VT 05403Tel: 802-846-1500
    • 2005 sales: $272 million
    • Ben & Jerry’s is a maker of super premium ice cream
    • The company also operates/franchises more than 430 scoop shops in North America

50

customer analysis ice cream manufacturers iii
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - III
  • Blue Bunny (Wells’ Dairy Inc.)
    • Company website: http://www.bluebunny.com
    • 1 Blue Bunny Dr., Le Mars, IA 51031Tel: 712-546-4000
    • 2005 sales: $850 million
    • Blue Bunny is one of the three largest manufacturer of ice cream and frozen desserts in the U.S.
    • The company’s ice cream brands include: Blue Bunny, Bomb Pop, Carb Freedom, Sweet Freedom, Health Smart, and Incrediples
    • Blue Bunny has about 15% market share

51

customer analysis ice cream manufacturers iv
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - IV
  • Kemps (business segment of HP Hood)
    • Company website: http://www.kemps.com
    • 1270 Energy Lane, St. Paul, MN 55108Tel: 651-379-6500
    • Estimated 2005 sales (Hoovers): $750 million
    • Kemps manufactures and markets milk, ice cream, and related dairy products
    • The company’s ice cream brands include: Kemps, Caribou Coffee, Pillsbury, and Twins
    • Kemps has about 6%~8% market share

52

customer analysis ice cream manufacturers v
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - V
  • CoolBrands International
    • Company website: http://www.eskimopie.com
    • 4175 Veteran's Memorial Highway, 3rd Fl., Ronkonkoma, NY 11779 Tel: 631-737-9700
    • 2005 sales: $385.1 million
    • CoolBrands manufactures and distributes ice cream and other frozen treats
    • The company’s ice cream brands include: Eskimo Pie, Godiva, Disney, Crayola, Yoplait, Better for Kids, Snapple on Ice, No Pudge, Tropicana, Care Bears, Trix, WholeFruit, Fruit-a-Freeze, and the Sopranos
    • CoolBrands has about 4%~5% market share

53

customer analysis ice cream manufacturers vi
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - VI
  • Blue Bell Creameries
    • Company website: http://www.bluebell.com
    • 1101 S. Horton, Brenham, TX 77833Tel: 979-836-7977
    • Estimated 2005 sales (Hoovers): $280 million
    • Blue Bell is a regional ice cream manufacturer in the southern U.S.
    • The company makes ice cream, yogurt, frozen treats, sherbet, low-fat ice creams, and sugar-free ice creams
    • Blue Bell manufactures 18 year-round ice cream flavors and 29 rotational flavors
    • Blue Bell has about 4% market share

54

customer analysis ice cream manufacturers vii
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - VII
  • Roberts Dairy
    • Company website: http://www.robertsdairy.com
    • 2901 Cuming St., Omaha, NE 68131Tel: 402-344-4321
    • Estimated 2005 sales (Hoovers): $276.9 million
    • Roberts Dairy produces fluid milk, cultured and frozen dairy products
    • The company brands include: Roberts and Hiland-Roberts as well as private labels
    • Roberts Dairy has about 1%~2% market share

55

customer analysis ice cream manufacturers viii
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - VIII
  • Stonyfield Farm
    • Company website: http://www.stonyfield.com
    • 10 Burton Dr., Londonderry, NH 03053Tel: 603-473-4040
    • Estimated 2005 sales (Hoovers): $140 million
    • Stonyfield is a producer of natural and organic yogurt and ice cream
    • The company is a leader among health-food store brands
    • Group Danone owns approximately 85% of Stoneyfield Farm
    • Stonyfield has less than 1% market share

56

customer analysis ice cream manufacturers ix
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - IX
  • Ciao Bella Gelato
    • Company website: http://www.ciaobellagelato.com
    • 231 40th St., Irvington, NJ 07111Tel: 973-373-1200
    • Ciao Bella is a manufacturer of gelato and sorbet
    • The company offers unique flavors such as blueberry, chocolate jalapeno, fromage blanc, ginger, mango, lychee, passion fruit, cassis, and zabaione
    • The company’s brands include: Ciao Bella, Sarabeth’s, and Gotham
    • Ciao Bella manufactures 46 gelato flavors, 33 sorbet flavors, 7 frozen yogurt flavors, and 8 seasonal flavors
    • Ciao Bella has less than 1% market share

57

customer analysis ice cream manufacturers x
CUSTOMER ANALYSIS – ICE CREAM MANUFACTURERS - X
  • Zambeedo Ice Cream
    • Company website: http://www.zambeedo.com
    • 38245 Murrieta Hot Springs Rd., #F-105, Murrieta, CA 92563Tel: 951-461-9932
    • Zambeedo is a manufacturer of specialty ice cream
    • The company’s products are sold through health and natural food stores
    • Zambeedo’s unique flavors include Crème de Rose, Crème de Menthe, and Crème de Chai
    • Zambeedo has less than 1% market share

58

customer analysis ice cream retail chain i
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - I
  • Baskin Robbins (Dunkin’ Brands)
    • Company website: http://www.baskinrobbins.com
    • 130 Royall Street, Canton, MA 02021Tel: 781-737-3000
    • Estimated 2005 sales (QSR): $555 million
    • Baskin Robbins operates the world’s largest chain of ice cream specialty shops
    • The company owns more than 5,600 retail shops in 40 countries
    • Baskin Robbins serves 22 permanent ice cream flavors, 12 seasonal flavors, 15 regional flavors, 3 sherbet/sorbet flavors, and 3 frozen yogurt flavors

59

customer analysis ice cream retail chain ii
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - II
  • Carvel Corporation (FOCUS Brands)
    • Company website: http://www.carvel.com
    • 200 Glenridge Point Pkwy, Suite 200, Atlanta, GA 30342Tel: 404-255-3250
    • Estimated 2005 sales: $86.5 million
    • Carvel sells soft serve ice cream and other frozen treats, including character-shaped frozen ice cream cakes
    • The company has a chain of more than 540 franchised ice cream shops in more than 25 states, primarily in the Northeast
    • Carvel also sells ice cream cakes through approximately 8,500 supermarkets nationwide

60

customer analysis ice cream retail chain iii
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - III
  • Coldstone Creamery
    • Company website: http://www.coldstonecreamery.com
    • 9311 E. Via de Ventura, Scottsdale, AZ 85258Tel: 480-362-4800
    • Coldstone sells custom ice cream creations through it chain of “upscale” retail locations
    • The company operates more than 1,350 stores
    • At Coldstone retail locations, customers combine their favorite ice cream flavor with any number of “mix-ins” (i.e. candies, chocolate, fruits, nuts, sauces, etc.) to create their personalized ice cream
    • Coldstone makes 33 different ice cream flavors
    • The company offers 11.5 million possible ice cream creations

61

customer analysis ice cream retail chain iv
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - IV
  • International Dairy Queen (Berkshire Hathaway)
    • Company website: http://www.dairyqueen.com
    • 7505 Metro Blvd., Edina, MN 55439Tel: 952-830-0200
    • 2005 sales: $108.1 million
    • Dairy Queen is a leading franchiser of frozen treat stores, which also serves a full line of typical “fast food”
    • The company has more than 5,600 locations
    • Dairy Queen is popular for their ice cream treats, such as “sundaes” and “soft ice cream” cones

62

customer analysis ice cream retail chain v
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - V
  • MaggieMoo’s
    • Company website: http://www.maggiemoos.com
    • 10025 Governor Warfield Pkwy, Suite 301, Columbia, MD 21044Tel: 410-740-2100
    • Estimated 2005 sales: $60 million
    • MaggieMoo’s retail shops serves super premium ice cream
    • The ice cream is made fresh daily at the retail location
    • MaggieMoo’s allows customers to mix in fruits, nuts, or candies to create custom ice cream flavors

63

customer analysis ice cream retail chain vi
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - VI
  • Marble Slab Creamery
    • Company website: http://www.marbleslabcreamery.com
    • 3100 S. Gessner, Suite 305, Houston, TX 77063Tel: 713-780-3601
    • Estimated 2005 sales (QSR): $90 million
    • Marble Slab operates a chain of more than 540 franchised frozen treat outlets in 35 states
    • The company serves about 40 flavors of homemade ice cream upon which “mix-ins” are combined to create personalized ice cream flavors

64

customer analysis ice cream retail chain vii
CUSTOMER ANALYSIS – ICE CREAM RETAIL CHAIN - VII
  • TCBY – The Country’s Best Yogurt (Mrs. Fields Famous Brands)
    • Company website: http://www.tcby.com
    • 2855 E. Cottonwood Pkwy, Suite 400, Salt Lake City, UT 84121Tel: 801-736-5600
    • TCBY franchises serve frozen yogurt treats at its retail locations
    • The company has more than 1,300 locations nationwide
    • TCBY serves 17 different hand-scooped frozen yogurt flavors and 41 soft-served flavors

65

market segment yogurt manufacturers i
MARKET SEGMENT – YOGURT – MANUFACTURERS - I
  • Yoplait (General Mills)
    • Company website: http://www.yoplait.com
    • 1 General Mills Blvd., Minneapolis, MN 55426Tel: 763-764-7600
    • 2006 sales: $1,096 million
    • Yoplait manufactures and markets yogurt products
    • The company sells 95 different flavors of yogurt and 14 flavors of drinkable yogurt
    • Yoplait has about 34% market share

67

market segment yogurt manufacturers ii
MARKET SEGMENT – YOGURT – MANUFACTURERS - II
  • Dannon (Danone)
    • Company website: http://www.dannon.com
    • 100 Hillside Ave., 3rd Fl., White Plains, NY 10603Tel: 914-872-8400
    • Estimated 2005 sales: $572.2 million
    • Dannon manufactures and markets yogurt products
    • The company offers 42 different yogurt flavors and 16 drinkable yogurt flavors
    • Dannon has approximately 31% market share

68

market segment yogurt manufacturers iii
MARKET SEGMENT – YOGURT – MANUFACTURERS - III
  • Horizon Organic (Dean Foods)
    • Company website: http://www.horizonorganic.com
    • PO Box 17577, Boulder, CO 80308Tel: 888-494-3020
    • Horizon Organic is the number one certified organic dairy brand in the U.S.
    • The company produces 22 different flavors of organic yogurt as well as 3 drinkable yogurt flavors

69

market segment yogurt manufacturers iv
MARKET SEGMENT – YOGURT – MANUFACTURERS - IV
  • Light n’ Lively (Kraft)
    • Company website: http://www.kraftfoods.com
    • 3 Lakes Dr., Northfield, IL 60093Tel: 847-646-2000
    • Kraft sells cottage cheese and yogurt under its Light n’ Lively brand
  • Mountain High Yoghurt
    • Company website: http://www.mountainhighyoghurt.com
    • 1325 West oxford Ave., Englewood, CO 80110
    • Mountain High produces and sells all natural European style yogurt
    • The company offers 19 different flavors of yogurt

70

market segment yogurt manufacturers v
MARKET SEGMENT – YOGURT – MANUFACTURERS - V
  • Silk (WhiteWave Foods / Dean Foods)
    • Company website: http://www.silksoymilk.com
    • 12002 Airport Way, Broomfield, CO 80021Tel: 202-635-4000
    • Silk is the best-selling soy-based dairy-alternative product brand in the U.S.
    • The company manufactures 9 different flavors of soy yogurt
  • Stonyfield Farm
    • Company website: http://www.stonyfield.com
    • 10 Burton Dr., Londonderry, NH 03053Tel: 603-437-4040
    • Stonyfield produces natural yogurts, organic yogurts, soy-based yogurs, and drinkable yogurts
    • The company offers 18 flavors of natural yogurt, 20 flavors of organic yogurt, 6 flavors of soy yogurt, and 8 flavors of drinkable yogurt

71

market segment milk milkshake manufacturers i
MARKET SEGMENT – MILK & MILKSHAKE – MANUFACTURERS - I
  • Nestle USA
    • Company website: http://www.nesquik.com
    • 800 N. Brand Blvd., Glendale, CA 91203Tel: 818-549-6000
    • 2005 sales (Nesquik): $18.5 million
    • Nestle manufactures ready-to-drink milkshake products under its NESQUIK brand
    • NESQUIK milkshakes are available in 9 different flavors
    • Nestle’s NESQUIK milkshake has about 28.5% market share

72

market segment milk milkshake manufacturers ii
MARKET SEGMENT – MILK & MILKSHAKE – MANUFACTURERS - II
  • The Hershey Company
    • Company website: http://www.hersheysmilk.com
    • 100 Crystal A. Dr., Hershey, PA 17033Tel: 717-534-4200
    • 2005 sales (milk & milkshake): $17.25 million
    • Hershey’s manufactures ready-to-drink milkshakes and flavored milk drinks
    • The company produces 5 different flavors of milkshakes and 3 flavors of flavored milk
    • Hershey’s Milkshake has about 17.3% market shake and Hershey’s Milk has another 9.3% market share

73

market segment milk milkshake manufacturers iii
MARKET SEGMENT – MILK & MILKSHAKE – MANUFACTURERS - III
  • The Hain Celestial Group
    • Company website: http://www.tastethedream.com
    • 58 S. Service Rd., Melville, NY 11747Tel: 631-730-2200
    • 2005 sales (Rice Dream): $8.1 million
    • The Hain Celestial Group manufactures a refrigerated non-dairy beverage under its Rice Dream brand.
    • The firm was created by the fusion of Hain (“health foods”) and the previously privately held “Celestial Seasonings” tea company of Boulder Colorado. The combined fir´m´s penetration in free standing “health food” stores (driven by the former Hain company), as well as in “health/gourmet” sections (driven by the former Celestial Seasonings company) of chain and non-chain supermarkets is a core asset.
    • The beverage is available in 2 flavors
    • Rice Dream has about 12.5% market share

74

market segment milk milkshake manufacturers iv
MARKET SEGMENT – MILK & MILKSHAKE – MANUFACTURERS - IV
  • Odwalla (subsidiary of Coca-Cola)
    • Company website: http://www.odwalla.com
    • 120 Stone Pine Rd., Half Moon Bay, CA 94019Tel: 650-726-1888
    • 2005 sales (Super Protein): $4.3 million
    • Odwalla manufactures juice beverages, smoothies, milkshakes, spring water, nutritional bars, and soy-based drinks
    • The company makes 36 different flavors of juices, smoothies and milkshakes
    • Odwalla’s Super Protein milkshake has about 6.7% market share

75

market segment milk milkshake manufacturers v
MARKET SEGMENT – MILK & MILKSHAKE – MANUFACTURERS - V
  • Kern’s Beverages
    • Company website: http://www.kerns.com
    • 5994 West Las Positas Blvd., Suite 209, Pleasanton, CA 94588Tel: 888-655-3767
    • 2005 sales (Horchata): $2.8 million
    • Kern’s manufactures fruit nectars and horchata (a light-tasting milk and rice drink popular in Mexico and other Latin American countries)
    • Kern’s Horchata has about 4.3% market share

76

market segment milk milkshake manufacturers vi
MARKET SEGMENT – MILK & MILKSHAKE – MANUFACTURERS - VI
  • Shamrock Farms
    • Company website: http://www.shamrockfarms.net
    • 2228 N. Black Canyon Hwy., Phoenix, AZ 85009Tel: 602-272-6721
    • 2005 sales (milkshakes): $1.45 million
    • Shamrock Farms is the largest family-owned and operated dairy in the Southwest
    • The company produces and distributes a full line of dairy products, including fresh milk, sour cream, cottage cheese, whipping cream, ice cream, and more
    • Shamrock MMMMILK and MMMMILKSHAKES are available in 12 different flavors
    • Shamrock Farms milkshake has about 2.2% market share

77

market demand for fruits juices sweet spreads segments
MARKET DEMAND FOR FRUITS, JUICES & SWEET SPREADS SEGMENTS
  • Statistics for 2004:

Processed Fruit Consumption - 24.52 mm tons

Fresh Fruit Consumption - 38.17 mm tons

Fruit Juice Consumption - 12.5 mm tons

Sweet Spread Market Demand - $1,800 mm

78

market segment sweet spreads manufacturers i
MARKET SEGMENT – SWEET SPREADS – MANUFACTURERS – I
  • The J. M. Smucker Company
    • Company website: http://www.smucker.com
    • 1 Strawberry Lane, Orrville, OH 44667Tel: 330-682-3000
    • 2005 sales: $2,154.7 million
    • Smucker’s is the number one U.S. producer of jams, jellies, and preserves
    • The company also manufactures dessert toppings, juices, and specialty fruit spreads
    • Smucker’s supplies industrial fruit fillings for yogurts and pastries as well

79

market segment sweet spreads manufacturers ii
MARKET SEGMENT – SWEET SPREADS – MANUFACTURERS – II
  • Welch Foods (subsidiary of National Grape Cooperative Assoc)
    • Company website: http://www.welchs.com
    • 3 Concord Farms, 575 Virginia Rd., Concord, MA 01742Tel: 978-371-1000
    • 2005 sales: $577.8 million
    • Welch Foods produces Welch’s brand fruit-based products
    • The company’s products include bottled & canned juices, fruit snacks, sparkling juices, frozen juices, juice concentrates, jams, jellies, preserves, and juice bars
    • Welch Foods is the operating subsidiary of the National Grape Cooperative Association

80

market segment confectionery manufacturers i
MARKET SEGMENT – CONFECTIONERY – MANUFACTURERS – I
  • The Hershey Company
    • Company website: http://www.hershey.com
    • 100 Crystal A Dr., Hershey, PA 17033Tel: 717-534-4200
    • 2005 sales (chocolate): $2,780.9 million
    • Hershey is the largest chocolate candy manufacturer in the U.S.
    • The company’s confectionery brands include: Hershey’s Kisses, Reese’s, Twizzlers, Mounds, and York Peppermint Patty
    • Hershey has about 44.7% market share

83

market segment confectionery manufacturers ii
MARKET SEGMENT – CONFECTIONERY – MANUFACTURERS – II
  • Mars Inc. (Masterfoods)
    • Company website: http://www.mars.com
    • 6885 Elm St., McLean, VA 22101Tel: 703-821-4900
    • 2005 sales (chocolate): $1,706.7 million
    • Mars is the number two chocolate candy manufacturer in the U.S.
    • The company’s confectionery brands include: 3 Musketeers, Dove, Milky Way, Skittles, Twix, and Starburst
    • Mars has about 27.4% market share

84

market segment confectionery manufacturers iii
MARKET SEGMENT – CONFECTIONERY – MANUFACTURERS – III
  • Nestle USA
    • Company website: http://www.nestleusa.com
    • 800 N. Brand Blvd., Glendale, CA 91203Tel: 818-549-6000
    • 2005 sales (chocolate): $548.8 million
    • Nestle is the number 3 chocolate candy manufacturer in the U.S.
    • The company’s confectionery brands include: Crunch, Smarties, and KitKat
    • Nestle has about 8.8% market share

85

market segment confectionery manufacturers iv
MARKET SEGMENT – CONFECTIONERY – MANUFACTURERS – IV
  • Godiva Chocolatier, Inc. (subsidiary of Campbell Soup)
    • Company website: http://www.godiva.com
    • 355 Lexington Ave., Fl. 16, New York, NY 10017Tel: 212-984-5900
    • 2005 sales (total): $825 million
    • Godiva makes and sells premium chocolate concoctions, including bonbons, flavored coffee, cookies, ice cream, and liqueur
    • The company also operates 275 boutique retail stores in the U.S.
  • Ghirardelli Chocolate Company
    • Company website: http://www.ghirardelli.com
    • 510-483-6970Tel: 1111 139th Ave., San Leandro, CA 94578
    • 2005 sales (total): $150 million
    • Ghirardelli makes premium chocolate products such as its signature chocolate squares, baking chocolate, and chocolate beverage mixes
    • The company also operates 12 retail shops

86

market segment confectionery manufacturers v
MARKET SEGMENT – CONFECTIONERY – MANUFACTURERS – V
  • Lindt & Sprungli USA
    • Company website: http://www.lindt.com
    • One Fine Chocolate Place, Stratham, NH 03885Tel: 603-778-8100
    • 2005 sales (global): $1,707.4 million
    • Lindt is Switzerland’s oldest chocolate company and sells premium chocolates worldwide
    • The company’s brands include: Caffarel, Lindor, Lindt, and Swiss Tradition
  • See’s Candies
    • Company website: http://www.sees.com
    • 210 El Camino Real, South San Francisco, CA 94080Tel: 650-583-7307
    • 2005 sales: $325 million
    • See’s makes more than 100 varieties of premium chocolate truffles, caramels, toffee, and other candies
    • The company has more than 200 franchised retail shops

87

bread bakery segment statistics usa
BREAD & BAKERY SEGMENT STATISTICS – USA
  • 2004 Revenue totaling $33.52 billion, a 2% increase from the previous year. This is 6.9% of total US food manufacturing revenue.
  • 2005 Domestic demand totaling $34.60 billion, a 2.2% increase from the previous year.
  • Bread and Bakery Product Manufacturing in the US - Product/Service Segmentation (June 2005)
    • Fresh and frozen bread and rolls 77.4 %
    • Frozen cakes, pies and other pastries* 13.5 %
    • Other bakery products 9.1 %

* Frozen cakes, pies and other pastries - includes frozen bakery products (except bread), such as soft cakes (including fruit), pies (including fruit, cream and custard) doughnuts, danishes, cream puffs, eclairs, fruit muffins and other pastries for immediate human consumption

88

market segment bread bakery manufacturers i
MARKET SEGMENT – BREAD & BAKERY – MANUFACTURERS – I
  • Sara Lee Food & Beverage
    • Company website: http://www.saralee.com
    • 3 First National Plaza, Chicago, IL 60602Tel: 312-726-2600
    • 2005 sales (total): $4,254 million
    • Sara Lee is the market leader of bread and bakery products in the U.S.
    • The company produces fresh sliced bread, buns, rolls, bagels, and frozen bakery desserts such as pies, cakes, and cheesecakes
    • The Food & Beverage subsidiary also manufactures packaged deli meats and cheeses and baked goods
    • Sara Lee’s bakery brands include: Sara Lee, Healthy Choice, Holsum, and Roman Meal
    • The company has approximately 6.1% market share

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market segment bread bakery manufacturers ii
MARKET SEGMENT – BREAD & BAKERY – MANUFACTURERS – II
  • Bimbo Bakeries USA (subsidiary of Grupo Bimbo)
    • Company website: http://www.bimbobakeriesusa.com
    • 14401 Statler Blvd., Fort Worth, TX 76155Tel: 817-864-2500
    • 2005 sales: $1,257.1 million
    • Bimbo Bakeries is the U.S. subsidiary of Mexico’s Grupo Bimbo S.A.
    • The company manufactures tortillas, bagels, snack cakes, muffins, and pizza crusts
    • Bimbo Bakeries brands include: Bimbo, Mrs. Baird’s, Oroweat, Francisco, Tia Rosa, and Marinela
    • The company has approximately 3.6% market share

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market segment bread bakery manufacturers iii
MARKET SEGMENT – BREAD & BAKERY – MANUFACTURERS – III
  • Interstate Bakeries Corporation
    • Company website: http://www.interstatebakeriescorp.com
    • 12 E. Armour Blvd., Kansas City, MO 64111Tel: 816-502-4000
    • 2005 sales: $3,403.5 million
    • Interstate Bakeries is one of the largest wholesale bakers in the U.S., operating 52 bakeries nationwide
    • The company’s bread brands include: Wonder, Merita, and Home Pride
    • Interstate Bakeries also produces snack cakes, doughnuts, and sweet-goods under the brands Hostess, Dolly Madison, and Drake’s
    • The company filed for Chapter 11 bankruptcy in 2004 and is still in the process of reorganization

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market segment bread bakery manufacturers iv
MARKET SEGMENT – BREAD & BAKERY – MANUFACTURERS – IV
  • Dunkin’ Donuts (Dunkin’ Brands)
    • Company website: http://www.dunkindonuts.com
    • 130 Royall St., Canton, MA 02021Tel: 781-737-3000
    • 2005 sales (U.S. total): $3,400 million
    • Dunkin’ Donuts is the world’s largest coffee and baked goods chain
    • The company sells 52 varieties of donuts in addition to an array of bagels, breakfast sandwiches, and other baked goods
    • The company has over 4,000 Dunkin’ Donuts locations

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market segment bread bakery manufacturers v
MARKET SEGMENT – BREAD & BAKERY – MANUFACTURERS – V
  • Krispy Kreme Doughnuts, Inc.
    • Company website: http://www.krispykreme.com
    • 370 Knollwood St., Suite 500, Winston-Salem, NC 27103Tel: 336-725-2981
    • 2005 sales: $707.8 million
    • Krispy Kreme operates a chain of more than 310 shops and more than 80 smaller format satellite locations throughout the U.S.
    • In addition to its original glazed doughnut, the company serves cakes, filled doughnuts, crullers and fritters

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breakfast cereals segment market demand 1995 2005
BREAKFAST CEREALS SEGMENT – MARKET DEMAND – 1995-2005
  • 2005 – US Cereal Industry (i.e. ready-to-eat, hot cereal, cereal bars) revenue totaling $9.39 billion, a 3.5% increase from the previous year. This accounts for 2.5% of total food manufacturing revenue in the United States
  • Domestic demand totaling $9.08 billion, a 3% increase from the previous year

Industry Industry Gross

Year Revenue ($ mil) % Change Product ($ mil) % Change

1995 13210.8 -2.2 10267.8 0.3

1996 10283.6 -22.2 7307.6 -28.8

1997 10108.1 -1.7 7283.5 -0.3

1998 10596.6 4.8 7806.7 7.2

1999 11668.9 10.1 8891.0 13.9

2000 11702.5 0.3 8926.8 0.4

2001 11813.9 1.0 9006.2 0.9

2002 9098.5 -23.0 6792.4 -24.6

2003 9077.8 -0.2 6563.6 -3.4

Average Annual Growth -2.5 -2.8

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market segment breakfast cereals manufacturers i
MARKET SEGMENT – BREAKFAST CEREALS – MANUFACTURERS – I
  • Kellogg Company
    • Company website: http://www.kelloggcompany.com
    • 1 Kellogg Sq., Battle Creek, MI 49016Tel: 269-961-2000
    • 2005 sales: $10,177.2 million
    • Kellogg is the number one U.S. breakfast cereal maker
    • The company’s brands include: All Bran, Apple Jacks, Cocoa Krispies, Corn Flakes, Corn Pops, Crispix, Crunch, Froot Loops, Frosted Mini-Wheats, Fruit Harvest, Honey Smacks, Kellogg’s Organics, Mini-Swirlz, Raisin Bran, Rice Krispies, and Scooby Doo Berry Bones
    • Kellogg has about 23.7% market share

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market segment breakfast cereals manufacturers ii
MARKET SEGMENT – BREAKFAST CEREALS – MANUFACTURERS – II
  • General Mills, Inc.
    • Company website: http://www.generalmills.com
    • 1 General Mills Blvd., Minneapolis, MN 55426Tel: 763-764-7600
    • 2005 sales: $11,640 million
    • General Mills is the number two cereal maker in the U.S.
    • The company’s brands include: Cheerios, Chex, Total, Kix, Wheaties, and Lucky Charms
    • General Mills has about 18% market share

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market segment breakfast cereals manufacturers iii
MARKET SEGMENT – BREAKFAST CEREALS – MANUFACTURERS – III
  • Kraft Foods, Inc.
    • Company website: http://www.kraft.com
    • 3 Lakes Dr., Northfield, IL 60093Tel: 847-646-2000
    • 2005 sales (corporate total): $34,113 million
    • Kraft Foods is the number one food company and number three cereal company in the U.S.
    • The company manufactures cereals under its Post brand
    • Post cereal brands include: Honey Bunches of Oats, Grape Nuts, Raisin Bran, 100% Bran, Shredded Wheat, Toasties, Bran Flakes, Fruit & Bran, Fruity & Cocoa Pebbles, Honeycomb, Strawberry Blasted Honeycomb, Golden Crisp, Waffle Crisp, Oreo O’s, and Alpha-Bits
    • Kraft has about 14% market share

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market segment breakfast cereals manufacturers iv
MARKET SEGMENT – BREAKFAST CEREALS – MANUFACTURERS – IV
  • Quaker Oats (subsidiary of PepsiCo)
    • Company website: http://www.quakeroats.com
    • P.O. Box 049003, Chicago, IL 60604Tel: 312-821-1000
    • 2005 sales (PepsiCo): $32,562 million
    • PepsiCo is the fourth largest cereal maker in the U.S., selling breakfast cereal through its Quaker subsidiary
    • Quaker Oats cereal brands include: Cap’n Crunch, Life, Quisp, Mother’s Natural, Quaker, and Kretschmer
    • PepsiCo has about 11.4% market share

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lucuma us customer buying pattern i
LUCUMA – US CUSTOMER BUYING PATTERN - I
  • The main challenges that U.S. buyers face:
    • U.S Consumers in general have not been introduced to Lucuma flavoring
    • A few restaurants and a couple of ice cream parlors owned by Peruvians offer Lucuma ice cream & chocolate truffles
    • Lucuma is very expensive if purchased through a distributor/importer in the U.S. – more than six to eight times the price of that in Peru
    • Fresh lucuma is not available in the U.S. so users must purchase lucuma derivatives – some would prefer to use fresh lucuma
    • Inconsistent quality is sometimes a problem for the customers – they sometimes receive frozen lucuma pulp with blemishes and freezer burns

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lucuma us customer buying pattern ii
LUCUMA – US CUSTOMER BUYING PATTERN - II
  • Goya, a well known manufacturer and marketer of frozen food, Caribbean and Latin American Cuisine appears to have a good experience of Lucuma Sales to Ice Cream Segment
  • Goya started marketing frozen lucuma as recently as the 2006 spring in the US
  • They are selling frozen lucuma pulp at $3.99 per 14 OZ
  • They claim to have sold as much as 2,500 cases so far (with each case containing 24 - 14 oz cans
  • They have sold so far 21,360 Kgms of Lucuma
  • They feel that the ice cream industry seems to like lucuma flavoring
  • This augurs well for potential lucuma sales

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criteria for market selection designing a scoring system
CRITERIA FOR MARKET SELECTION & DESIGNING A SCORING SYSTEM
  • This has been already carried out in the earlier meeting with the “Lucuma Group” on August 9, 2006

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distribution channel analysis i
DISTRIBUTION CHANNEL ANALYSIS - I
  • American Fruits & Flavors
    • Company website: http://www.americanfruits-flavors.com/
    • 10725 Sutter Ave., Pacoima, CA 91331Tel: 818-899-9574
    • AFF is an ingredients supplier to the beverage, bakery, dairy, confectionery, frozen novelties, snack foods, and jams industries
    • The company specializes in fruit flavorings, vegetable flavorings, fruit bases, fruit concentrates, natural sweeteners, and tropical blends

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distribution channel analysis ii
DISTRIBUTION CHANNEL ANALYSIS - II
  • Bioactive Resources
    • Company website: http://www.bioactiveresources.com/
    • 138 Sylvania Place, South Plainfield, NJ 07080Tel: 908-561-3114E-mail: divyad@bioactiveresources.com
    • Bioactive Resources is an ingredients supplier for the nutritional supplement, food, beverage, snacks, and cosmetics industries
    • The company carries fruit and vegetable derivatives
  • Carlos Steffens Inc.
    • Company website: http://www.steffenscorp.com
    • 3061 Independence Dr., Suite F, Livermore, CA 94550Tel: 925-243-6539
    • Carlos Steffens is an ingredients broker specializing in concentrated fruit juices, fruit purees, and pastes

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distribution channel analysis iii
DISTRIBUTION CHANNEL ANALYSIS - III
  • Carmi Flavor & Fragrance
    • Company website: http://www.carmiflavors.com/
    • 6030 Scott Way, Commerce, CA 90040Tel: 323-888-9240E-mail: jennifermontgomery@carmiflavors.com
    • Carmi is a flavor developer and ingredients supplier serving the bakery, beverage, confectionery, dairy, and ice cream industries
    • The company carries various fruit flavorings
  • Country Pure Foods
    • Company website: http://www.juice4u.com/
    • 681 W. Waterloo Rd., Akron, OH 44314Tel: 330-753-2293
    • Country Pure Foods is an independent juice processor, manufacturing an assortment of juices

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distribution channel analysis iv
DISTRIBUTION CHANNEL ANALYSIS - IV
  • Diana Naturals
    • Company website: http://www.diana-naturals.com
    • 707 Executive Blvd., Valley Cottage, NY 10989Tel: 845-268-5200
    • Diana Naturals is an ingredient supplier to the health food industry
    • The company specializes in the production and marketing of natural fruit and vegetable ingredients
  • Dynamic Health Laboratories
    • Company website: http://www.dynamic-health.com/
    • 110 Bridge St., Brooklyn, NY 11201Tel: 718-472-4009
    • Dynamic Health Laboratories is a contract manufacturers of juices, juice blends, purees, and concentrates
    • The company carries a variety of exotic juices and purees including: goji, mangosteen, acai, noni, camu camu, aloe vera, papaya, and mango

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distribution channel analysis v
DISTRIBUTION CHANNEL ANALYSIS - V
  • Encore Fruit Marketing
    • Company website: http://www.encorefruit.com/
    • 120 West Bonita Ave., Suite 204, San Dimas, CA 91773Tel: 909-394-5640
    • Encore Fruit Marketing is an ingredient broker specializing in fruit purees, fruit juices, frozen fruits, dried fruits, and fruit concentrates
  • Food Partners
    • Company website: http://www.foodpartners.net/
    • 340 W. Central Ave., Suite 200, Winter Haven, FL 33880Tel: 863-298-8771
    • Food Partners is an ingredient distributor focusing on tropical fruit juices and related by-products
    • The company’s products include: acerola, black current, guabana, guava, kiwi, mango, papaya, passion fruit, and prickly pear

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distribution channel analysis vi
DISTRIBUTION CHANNEL ANALYSIS - VI
  • FruitSmart Inc.
    • Company website: http://www.fruitsmart.com/
    • 14502 N. Rothrock Road, Prosser, WA 99350Tel: 509-786-3500
    • FruitSmart is an ingredients supplier and processor specializing fruit ingredients
  • International Flavors & Fragrances
    • Company website: https://www.iffxpress.com/
    • 150 Docks Corner Road, Dayton, NJ 08810Tel: 732-329-5466
    • International Flavors & Fragrances is a flavor developer and ingredients suppler for the confectionery, beverage, dairy, bakery, and other food industry segments

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distribution channel analysis vii
DISTRIBUTION CHANNEL ANALYSIS - VII
  • iTi Tropicals
    • Company website: http://www.ititropicals.com/
    • Lawrenceville, NJTel: 800-223-5484
    • iTi Tropicals is an importer of tropical fruit purees, concentrates, and fruit pieces
    • The company’s products include: acelora, aloe vera, coconut, guava, mango, papaya, passion fruit, and tamarind
  • RFI Ingredients
    • Company website: http://www.rfiingredients.com
    • 300 Corporate Drive, Suite 14, Blauvelt, NY 10913Tel: 845-358-8600
    • RFI Ingredient is an ingredient developer and broker for the food and beverage industries
    • The company carries powders, purees, and concentrates of acai, acerola, camu camu, graviola, guava, mango, papaya, passion fruit, and star fruit

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distribution channel analysis nodal points
DISTRIBUTION CHANNEL ANALYSIS - NODAL POINTS
  • Initially it is essential to develop a proper taste and flavoring appealing to the US Palate
  • It is useful to spend some time and money with companies carrying out special research in these areas in the US
  • Once this is done, the next step would be to offer the products to various manufacturers to try the products
  • Only after this, the Distribution Channel should be offered the product to store and sell after creating suitable demand in the market
  • Being a relatively new product, it is totally dependent on the response of manufacturers of ice cream, yogurt, bakery products, sweet spreads, flavored milk and breakfast cereals
  • A good market research after developing proper taste and flavorings is therefore essential

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competitive analysis i
COMPETITIVE ANALYSIS - I
  • Lucuma has to develop a Market Entry Strategy against stiff competition from all other flavorings
  • In Fruit Pulp Category alone, it meets with competition from the following:
    • Mangoes – this is currently placed in “special gourmet” category
    • Pineapple – this is gradually making its way felt in selected gourmet ice cream manufacturers
    • Selected tropical fruits – it is left to the imagination of some of the gourmet ice cream providers to come up with these fruit pulps
  • In addition, it is facing competition from the regular flavorings such as Vanilla (29.6%), Chocolate (8.9%), Strawberry (5.3%), Butter Pecan (5.3%), Neapolitan (4.2%), Chocolate Chip (3.9%), French Vanilla ((3.8%), Cookies ‘n Cream (3.6%), Fudge Ripple (2.6%) & Praline (1.7%)
  • The above add up to 68.3% and the balance is shared hundreds of products accounting for 31.7%
  • Lucuma will have to start as one of the products in the 31.7% category
  • It is well known that Baskin Robbins have over 50 flavorings in their regular retail chain

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competitive analysis ii
COMPETITIVE ANALYSIS - II
  • It is estimated that the Market Demand for various flavorings in different segments are as below:

In Millions of US$

Ice Cream Segment - 985

Yogurt - 372

Flavored Milk - 617

Sweet Spreads - 364

Confectionery Products - 729

Bakery Products - 1,598

Breakfast cereals - 1,961

TOTAL – ALL SEGMENTS - 6,626

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assessment of capital investment i
ASSESSMENT OF CAPITAL INVESTMENT - I
  • Incremental Capital Investment needed has been calculated at 12.97% of incremental sales revenue in Year – 5
  • For a Sales Revenue of $11.293 million in Year 5, the Incremental Investment would be $1.465 million
  • The model automatically triggers the investment for the incremental sales revenue well in advance
  • Depreciation has been assumed to be 12.5% of Capital Investment

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assessment of capital investment ii
ASSESSMENT OF CAPITAL INVESTMENT - II
  • Incremental Manpower required to handle additional exports has been arrived at on the basis of 1 person for every $50K exports carried out
  • The total personnel costs would be $7.5K p.a. per individual
  • The number of incremental jobs created and the incremental wage bill for the first 5 years would be as below:

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strategic options growth rates of various segments
STRATEGIC OPTIONS – GROWTH RATES OF VARIOUS SEGMENTS
  • Ice Cream Segment 1.09%
  • Yogurt Segment 1.00%
  • Flavored Milk Segment 2.89%
  • Sweet Spreads Segment 1.10%
  • Confectionery Segment 1.20%
  • Bakery Products Segment 2.20%
  • Breakfast Cereals Segment 1.83%

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strategic options product strategies
STRATEGIC OPTIONS – PRODUCT STRATEGIES
  • Develop Product Flavorings appealing to the US Palate
  • Approach Two Companies such as Carmi Flavor & Fragrance and International Flavors & Fragrances, well experienced in this field to provide quotes
  • A consumer panel is to be formed and product testing should take place
  • Different forms of the product to be tried to see whose applicability has the most favorable response from the consumer panel
  • Spending as much as $350K towards developing the optimal blend of taste, aroma and feel for the product
  • Based on Consumer Panel’s reactions, a suitable product or a set of products would be selected

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strategic options production strategies
STRATEGIC OPTIONS – PRODUCTION STRATEGIES
  • In the collaborative meetings, one suggestion was that some groups of growers (within or external to PROLUCUMA) combine forces and make a binding commitment to produce standardized products which would resolve a key issue in the current marketplace.
  • As suggested by ACM Consulting, this structure could be a “fielcomiso” (land traust) whereby particpants place their land under contract and for a specified time (say 5 years) decline rights to cease production of Lucuma.
    • As a consequence, the producers in this category would be givern priority rights for sales opportunities identified by PROLUCUMA or Government Entities.
    • Production would be combined to create a significant exportable offer, with participants receiving a corrresponding shareholding in the aggregated entity.
    • Should the industry decide to explore this path, Tiara/ACM is willing to undertake the financial analysis and develop the marketing strategy for such an entity.

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strategic options promotion strategies
STRATEGIC OPTIONS – PROMOTION STRATEGIES
  • Participation in 10 Trade Shows at a total cost of $200K
  • Making presentations similar to what Brazil did for their special “berry product”, “CIAO” last year in US Trade Shows
  • Participation in “Food Network” Show, i.e., Channel 46 to display the variety of food recipes using “Lucuma”. The cost should not exceed, say $40K
  • Free Sampling & Demonstration in 50 selected restaurants, 4 times a year at a unit cost of $325 per restaurant would involve an overall cost of $65K
  • Advertising in 6 different magazines to a tune of $450
  • Overall cost of promotional strategies would be in the region of $755K

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strategic options pricing strategies
STRATEGIC OPTIONS – PRICING STRATEGIES
  • It is recommended to have a “Conservative Approach” here
  • There is significant evidence that the Distributors in the US are charging substantially higher price for “Lucuma Pulp” that they have imported from Peru
  • It is also known that some of users of Lucuma for their ice-creams and chocolate truffles are importing directly from their own sources in Peru at $2.50 per Kgm.
  • We have therefore assumed an import price (fob Peru) at $2.50 per Kgm
  • The model treats “escalating price” as an option in this regard and shows the relevant results

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strategic options distribution
STRATEGIC OPTIONS - DISTRIBUTION
  • There are quite a few distributors, ready to take on the “Distribution” as seen in the earlier slides
  • However, the Strategy recommended here is to initially develop an “Optimal Product” and then offer it to ice cream and yogurt manufacturers and retail chains
  • Similarly, develop the products suitable for Confectionery, Bakery and Breakfast Cereals Segments and then offer it to the respective manufacturers and marketers
  • Thereafter, offer the product both directly through the distribution channel and also to the manufacturers depending on their order of preference

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strategic options additional model data
STRATEGIC OPTIONS – ADDITIONAL MODEL DATA
  • No of Years to Achieve Market Share - 3 Years
  • Cost of Goods Sold (COGS) per Kgm - $1.70
  • Ratio of Selling Price to COGS - 68.0%

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STRATEGIC OPTIONS – PROJECTED REVENUE STREAMS, COGS, OPERATING COSTS, CONTRIBUTION MARGIN & EARNING STREAMS BEFORE TAX

125

strategic options projected exports of lucuma in tons capital investment streams working capital
STRATEGIC OPTIONS – PROJECTED EXPORTS OF LUCUMA IN TONS, CAPITAL INVESTMENT STREAMS & WORKING CAPITAL

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strategic graphs
Strategic Graphs
  • The following grapghs show the results of the Tiara Modeling
  • The grapghs show results with and without the suggested 2% annual price increase as market penetration, demand and channel efficiency increase
    • The 2% Price Increase converts the DRA (Decision and Risk Analysis) for “Peru Lucuma S.A.” (the entire industry as if it were a firm) from an approcimately 32% risk (considering 2187 iterations of the 7 key variables) to an approximately 8.5% risk (using the same 2817 iterations)

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strategic graphs133
Strategic Graphs

The following Tornado Diagram and “S-Curve”

(Decision and Risk Analysis)

show the effect of a 2% annual price increase

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conclusion key findings from study and collaborative meetings
Conclusion: Key Findings from Study and Collaborative Meetings
  • The Lucuma industry has “niche” opportunities in the USA, and can achieve significant profitability at “relatively” or “very” low risk by reaching minute market shares in key products such as Ice Cream, Flavored Milk and as a “Bakery Ingredient”
    • A key variable in diminishing the risk profile is a 2% price increase annually.
    • Initially, larger food firms should not be targeted, direct contacts in the gourmet sector are essential to introduce the product while strengthening the supply chain
  • Without “standardization,” of quality variables such as color, flavor, sugar content (as well as dependable supply to the USA) Lucuma will remain a “marginal” export product
  • PRO-LUCUMA, must be strengthened (or a new stronger entity created) so well over 50% of acreage is represented.
    • This will allow increased marketing and political strength
    • This will allow much better data collection to ensure industry benchmarking and profitability
    • This will allow communication of market demands, and allow growers to meet it with appropriate quality and standardized offer.
  • A public Private partnership is essential to achieve quality, supply and promotion goals. Likely participants will include PROMPEX and the Private Sector (whether under the aegis of the gremio PRO-LUCUMA, or large scale individual firms)

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next steps
Next Steps
  • Despite the completion of the project, Tiara is willing to re-run the DRA based on improved data which may come available based on tighter industry coordination, and furthermore modify any strategic conclusions and recommendations
  • Furthermore, Tiara is willing to re-present this presentation, with any modifications described above, in January 2007 at no additional cost.
  • PROMPEX and PROLUCUMA, and key industry players must convene and decide what political and financial resources are available for solidifying the industry, and what strategy recommendations they wish to adopt.
    • Upon this decision, further study should be undertaken based on the “new realities” concluded by the relevant parties
    • Now that the “ideal” plan has been developed, Tiara International Consulting is willing, as an additional study, to adopt a plan based on decisions taken by the relevant participants.
    • The “Land-Trust” concept mentioned earlier should be considered. If accepted it must be developed with sound economic study and marketing plan (based on the acreage of willing participants)
  • If within a “reasonable time” (e.g. 1 quarter) inertia or other factors delay the adoption of a holistic plan, individual firms can and should seek opportunities in the meantime to tap the markets and contacts identified. This is a sub-optimal solution.

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Gracias por su atención...

TIC LLC

Tiara International Consulting LLC

www.ticllcglobal.com

This document is an exclusive joint property of TIC LLC and ACM Perú SAC. Neither the whole document, nor any of its written parts, charts or photos can be used for any purpose, different from the one defined by both companies, or by previous notice and written authorization by them.

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