Our Market
Our target market consists of major food distributors and supermarkets throughout the United States. We are presently in the process of finalizing contracts to supply frozen bread, and we are also seeking opportunities in the lucrative Brioche market.
The Brioche market, with a value exceeding $180 million, presents a significant growth opportunity for our business.
In addition to the wholesale market, there is a retail market with higher pricing and profit margins. This market encompasses the entirety of the United States. While international expansion is a possibility, our current focus is solely on establishing a presence within the United States market.
Our Vision
Julio Lovett, with 42 years of experience in the baking industry, has witnessed various shifts and advancements in the field. Unfortunately, the past three years have been challenging for the industry, with a stagnant market and the closure of many small to mid-level bakeries. Additionally, the industry is grappling with rising prices and a shortage of skilled employees.
As prices continue to rise, the quality of products has either remained the same or declined. Existing bakeries are merely striving to survive in this challenging environment. In the Brioche market, the dominant players are based in Europe, resulting in high prices due to increased transportation costs. These products have not undergone any significant improvements and lack durability, as they are produced using chemical additives.
Leveraging our extensive experience, we are planning to establish multiple facilities, beginning on the East Coast, to produce frozen bread and Brioche products. With the aim of exceeding $150 million in annual revenue within 3 to 4 years, we are confident that our operations will flourish.
Solution
Julio has developed a line of Brioche products that are not only unique, but also surpass any other Brioche currently available in the market. With a carefully planned production and distribution strategy, we are able to offer these exceptional products at prices well below the current market rates.
Our solution is divided into several phases:
Phase I: We have successfully secured a facility in Bayport that includes a 75,000 square foot space with a 3,000 pallet freezer for cold storage. The freezer has been refurbished and is fully operational. Currently, we are providing cold and dry storage for Modern Italian Bakery.
Phase II: The next step involves revitalizing Modern Italian Bakery. By implementing proper management techniques and optimizing the use of equipment, we believe the bakery can regain profitability. Additionally, we have secured a partnership with Giant Eagle, which is projected to increase Modern's revenue by an additional 7 to 8 million. This phase is currently in progress.
Phase III: We have an exclusive agreement in place and are actively exploring various options to acquire a Modern Italian Bakery.
Phase IV: In the Bayport facility, we plan to install a frozen dough line with a blast freezer. We already have clients lined up for these products, which are expected to generate an additional 4 to 5 million in revenue. This phase is underway and is estimated to be operational by August 2024.
Phase V: As part of our growth plan, we aim to expand the Bayport plant by incorporating a sponge system and a high-speed Frisch line. These additions will enable us to produce our own Brioche, contributing an estimated 5 million in revenue per quarter over the next two years.
Phase VI: The final stage involves relocating Modern Italian Bakery to a new 110,000 square foot plant, complete with its own freezer. This new facility is projected to generate revenue of 70 to 80 million from day one. When combined with the Bayport operations, our total revenue is expected to exceed 110 million.
Why Us?
The reason for our confidence in our potential for success lies in our highly experienced team, comprised of individuals who have been active in the industry for many years. We possess a wealth of firsthand entrepreneurial experience, having previously owned our own businesses and also having worked for prominent corporations. One common thread among us is our desire to do things differently if given the opportunity. Now, as we embark on building our own business, we are fully dedicated to implementing our unique approach.
One of our key advantages is our production facilities, which enable us to manufacture our products at prices significantly lower than those of our competitors. Additionally, we have a team of skilled professionals who ensure efficient production processes and continuously drive improvements in the quality of our offerings. Moreover, our extensive network of connections allows us to effectively market and distribute our products.
Our team's combined experience of over 30 years for each individual, along with our extensive industry connections, sets us apart from the competition and positions us for unparalleled success.
Management team
Julio Llovet – President and CEO
Julio has over 30 years of operations experience in the food industry, having been the Director of Operations for multiple wholesale bakeries in addition to working as an independent consultant. He has years of experience managing hundreds of employees and companies with multiple production sites. He has increased revenue and reduced expenses through new equipment implementation, product development and waste reduction software solutions.
Bill Grimaldi – Chief Financial Officer
Bill has over 30 years of experience in software development and operations, having founded his own Technology Consulting company in addition to managing Focus Works. He has developed a comprehensive production/inventory management system and a food safety/document control software, both used in many wholesale bakeries in North and South America. In addition to overseeing day to day operations Bill leads Focus Works’ financial planning, managing accounting, payroll and procurement.
Thomas Dagger – Director of Administration
Tom has over 10 years of experience in Administration, Human Resources and Sales. Having started his career for New York State Parks as an Administrative Specialist, he was in charge of new employee onboarding/training, tracking payroll for 400+ employees and general HR duties. He then spent 3 years working as an account manager at DRP Solutions where he was a two-time recipient of the Presidents Club award for excellence in selling. Tom joined Focus Works where he sold software solutions to the food industry while preforming office manager duties and assisting the general manager with accounting and invoicing.
Anthony Mangano – President of Sales
Anthony is an accomplished sales executive with over 30 years of experience in the baking industry. He has been the National Director of Sales for multiple companies where he has more than doubled customer accounts and sales. Anthony has a long track record of driving sales and revenue growth through the acquisitions of national accounts in retail and food service.
Patrick Nagel - Director of Engineering Services
Patrick has over 20 years of experience with industrial bakery machinery and is one of the top engineers for low stress bakery equipment. He spent 12 years as the Technical Project Coordinator for Fritsch USA overseeing machinery and electrical requirements for all projects. Patrick then spent 2 years as a key account sales manager at WP Bakery Group USA utilizing his extensive knowledge of bakery equipment to drive sales. He then built a successful consulting company assisting businesses with technical services and sales of bakery and processing equipment.
Financing Needed
During Phase III, we anticipate that the acquisition cost for Modern Italian Bakery will amount to $16 million. This figure encompasses not only the bakery facility itself but also includes the building structure and 11.5 acres of accompanying land.
As we progress into Phase IV, the introduction of the frozen dough line necessitates a financial investment of $500,000. This allocation will enable us to effectively implement and integrate this specialized production line into our bakery operations.
Looking ahead to Phase V, the expansion project in Bayport is projected to require an expenditure of $4 million. This investment will facilitate the expansion of our business, allowing us to tap into the promising opportunities available in the Brioche Market.
At present, our focus is on actively seeking a long-term investor who can provide the necessary capital for our growth initiatives. Depending on the level of their investment, the investor will have the opportunity to acquire up to a 30% ownership stake in our company.
Full business plan available with financial projections