Offering Structure:
We’re structuring the deal as a combination of equity and debt, designed to give potential investors both flexibility and a significant upside:
- $1.5M in exchange for 15% equity immediately.
- $1M structured as convertible debt, which can be converted into an additional 10% equity at a mutually agreed timeline.
This structure benefits the investor by offering:
- Immediate ownership (15%) in a rapidly growing company, ensuring they have an early-stage stake.
- The flexibility of $1M in debt, which can later convert into equity (10%), providing additional upside as the company grows in value.
- We would accumulate in an escrow account, the interests related to the 1st year (2025) of the money and do a lump sum payment at the end of the year for those interests. At that point we feel it would be appropriate to have the conversion conversation.
- Minimized upfront dilution for the company while still offering significant future equity to the investor.
- Initial cash requirement (2024) is minimum, while we obviously need a commitment for the full amount, it doesn't necessarily need to be disbursed all at once.
Use of Funds Breakdown:
If needed, I can provide a more detailed financial breakdown, but here’s a high-level summary of our Use of Funds:
- Scaling Production Capacity: $266.7K for facility expansion and equipment.
- Sales & Marketing Expansion: $255.8K for team expansion and marketing campaigns.
- Proprietary Technology Development: $45K to create our own CRM systems to deepen customer relationship management and workflows
- Inventory & Supply Chain: $800.5K to strengthen logistics and storage.
- Working Capital: $583.2K for operational and administrative expenses to ensure business continuity.
- Debt Repayment & Consolidation: $612.5K to strengthen our financial position.
Our current in-house valuation, considering Intellectual Property, facility ownership, and projected short-term receivables, places us at roughly $1.5-2M. This valuation offers early investors a clear opportunity to benefit from the projected growth as we scale in the fast-growing Hispanic food market. We are in the process of engaging a third party valuation company which will bring transparency to the conversations.
Investor Benefits:
- Early-stage entry: This is a ground-floor opportunity in a company positioned to capture a significant share of the $87+B U.S. Hispanic food market, which is seeing strong consumer demand for frozen, health-conscious, and culturally authentic products.
- High-growth potential: With 30% year-over-year revenue growth expected, strong gross margins (above 60%), and a 30% net margin by 2025, the business offers the investor substantial upside.
- Valuation Multiples: Food manufacturing companies that own their entire operation and have robust IP protection typically command favorable valuation multiples.
Industry standards for such companies include:- Revenue Multiples: Generally, range from 4x to 6x revenue. This range reflects the premium associated with owning proprietary processes, recipes, or technologies, and having full control over production and distribution.
- EBITDA Multiples: Typically, between 8x and 12x EBITDA. The higher end of this range is often associated with companies that demonstrate strong profitability and stability due to their IP and operational control.
- Net Income Multiples: For those focusing on net income, multiples can range from 12x to 15x, driven by the value of having unique IP and comprehensive control over business operations.
- Growth and Exit Potential: Given Authentic Taste's strategic advantages and strong IP portfolio, the company is well-positioned to leverage these industry norms for favorable valuations. The potential for significant returns is supported by the higher multiples generally achieved by companies with such attributes.
Our Product: Naked Tamales
Naked Tamales are the world's first HUSKLESS tamales produced using a proprietary and patented process. This innovative product leverages both traditional culinary principles and modern production technology to deliver a high-quality, convenient, and health-conscious product that resonates with consumers.
Key Product Features:
- Patented Process: A unique method that removes the husk, creating a tamale with superior taste and texture.
- Nutritional Superiority: Formulated with clean, wholesome ingredients that align with health-conscious consumer demands.
- Convenience: Simple preparation process, ideal for modern households seeking fast, high-quality meal solutions.
Product Market Fit:
Naked Tamales meet the increasing demand for authentic Hispanic foods in the U.S. while also appealing to the broader market looking for easy-to-prepare, healthy frozen meal options. We have validated strong market acceptance through early-stage sales data, indicating significant growth potential.
Authentic Taste is at the convergence of several powerful industry trends - convenience, health-conscious eating, and cultural authenticity. Our flagship product, Naked Tamales, is uniquely designed to address these growing demands, offering both convenience and quality. With continued growth across the Frozen Food, Hispanic Food, Healthy Food and Snack Food segments, the market potential for Authentic Taste is exceptional.
By operating in underserved but rapidly growing categories, Authentic Taste can capture significant market share and generate substantial returns for investors. As more consumers seek products that align with their values of authenticity, nutrition, and convenience, Authentic Taste is positioned for explosive growth in the coming years
Market Potential:
- The U.S. Hispanic food market is set to reach $94.3B by 2027. Authentic Taste is poised to secure a leading position through expanded distribution and strategic partnerships.
- We’ve secured customer partnerships with major players like Vistar, Foodbuy (Compass Group), Affiliated Foods, Vendor Supply, Hilton, Marriott, and Lowe’s Markets, giving us strong distribution and brand credibility.
- We have also secured an amazing partnership with one of the industry leaders from the broker standpoint to be our National Representative, we believe that the partnership with Burdette Beckman In. a.k.a. BBI (https://www.bbiteam.com) will trigger exponential growth in a very short period of time.
- Authentic Taste is at the convergence of several powerful industry trends - convenience, health-conscious eating, and cultural authenticity. Our flagship product, Naked Tamales, is uniquely designed to address these growing demands, offering both convenience and quality. With continued growth across the Frozen Food, Hispanic Food, Healthy Food and Snack Food segments, the market potential for Authentic Taste is exceptional.
- Authentic Taste’s approach to product development is centered around the integration of consumer research, food science, and culinary innovation. We have successfully developed products that meet the demand for convenience, taste, and nutritional integrity.
Intellectual Property:
- Patent: Our proprietary HUSKLESS tamale production process is protected under a provisional patent, ensuring our competitive advantage in the market.
- Trademarks: We have secured five trademarks that protect our brand identity, including product names, logos, and packaging design.
Key Executive Team
Danny West – Founder & CEO
Danny, a U.S. Military Veteran, brings 20 years of international business and leadership experience. Danny has successfully launched and managed startups in the U.S. and LATAM markets, with a robust background in security, technology, and food manufacturing. His proven ability to oversee complex operations and his strong leadership make him exceptionally qualified to drive Authentic Taste’s strategic vision and growth.
Reese Hanford – Director of Client Acquisition
Reese Hanford brings over 20 years of diverse experience within the food industry, ranging from restaurant and food service to distribution, procurement, category management, and retail sales for major industry players. His deep knowledge of the CPG space, combined with his passion for the food industry, makes him instrumental in driving customer acquisition and expanding Authentic Taste’s market reach.
Erica Dilliard – General Coordinator
Erica brings over 24 years of expertise in accounting, finance, and management, complemented by her current pursuit of a bachelor’s degree in finance from Grand Canyon University and certification as a Notary of Texas. In her role, she oversees bookkeeping, financial management, Sales Administration & Customer Relations. Her extensive experience and dedication make her a valuable asset to our team, driving robust financial oversight and operational excellence.
Trent Coghill – Co-Founder & Board Advisor
Trent Coghill is an operational management specialist with over 25 years of experience across multiple industries, including agriculture, healthcare, sports & entertainment, and manufacturing. Trent holds an undergraduate degree in Economics and a Master of Business Administration. His deep expertise in operational strategy and management provides Authentic Taste with valuable insights and leadership as the company scales its production and market presence.
Imre Szenttornyay – Marketing & Revenue Advisor to the CEO
Imre Szenttornyay is an international business development executive with over three decades of experience in LATAM business across various sectors, including IT, real estate development, build-operate-transfer (BOT), nearshore outsourcing, and food manufacturing. Imre’s track record of identifying and bridging business gaps, often overlooked by others, adds a unique perspective and value to Authentic Taste’s growth strategy.
Dennis Young – Technology Board Advisor
Dennis Young is an experienced senior executive and management consultant with a focus on helping startups accelerate growth. His expertise spans finance, strategy, international sales, and operations. Dennis has served as CEO, CFO, and CIO, and was a Managing Partner and Senior Vice President of a Big Four professional services firm. His extensive experience working across multiple industries and countries makes him a valuable asset in guiding Authentic Taste’s technology and growth initiatives.
Carrie Harris – Legal Counsel
Carrie A. Harris, a Texas Tech alumna, serves as Authentic Taste’s legal counsel. Carrie holds both a Bachelor of Arts and a Doctor of Jurisprudence from Texas Tech University. With a strong background in advising small and large businesses, Carrie assists Authentic Taste with legal oversight and growth strategy, particularly in mergers and acquisitions. Her expertise provides the company with peace of mind as it continues its rapid expansion.
Risk vs. Reward Bottom Line
Growth Opportunities: The $2.5M investment enables Authentic Taste to capitalize on substantial growth opportunities:
- Market Expansion: The U.S. Hispanic food market is set to reach $94.3B by 2027. Authentic Taste is poised to secure a leading position through expanded distribution and strategic partnerships.
- Product Line Expansion: Introducing new products like salsas and toppings will enhance shelf space and generate additional revenue.
- Strategic Partnerships: Leveraging relationships with major distributors and retailers such as BBI, Vistar, Affiliated Foods, Foodbuy, Hilton, Marriott, and Lowe’s Markets will strengthen market presence and support long-term growth.
- Innovation Leadership: While the market for Hispanic frozen foods, snacks, and healthy foods is growing, there is limited true innovation. Authentic Taste is pioneering unique products with strong IP protection, providing a significant window to capture market share before competitors can follow.
Risk Factors: Despite the promising growth potential, key risks include:
- Production Scaling Challenges: Rapid expansion may impact quality and operational efficiency.
- Market Competition: Though current competition is limited, increased entrants in the Hispanic frozen food segment could affect market share in the future.
- Economic Conditions: Economic downturns or changes in consumer spending may impact growth and discretionary purchases.
Authentic Taste’s unique positioning and IP protection offer a compelling opportunity to lead in a growing market with limited immediate competition, while carefully managing production and economic risks.