Chef Leslie Woodward, CEO

Chef Leslie Woodward, CEO

Edenesque, LLC

139 Cornell Street

Kingston, NY12401

917.882.8174

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Table of Contents

I.Summary

II.Background

III.Business Charter

Description of Product and Services

Unique Selling Proposition

Strategy for Social Good

Projected Development Costs

Consumer Feedback

Testimonials

IV.Market Trends Analysis

Market Potential

V.Marketing Plan

Social Media Strategy

Additional Marketing Platforms

VI.Selling & Distribution Strategy

Location & Facility

Pricing & Production

Retail Distribution & Marketing

Wholesale Distribution & Marketing

Distribution Scale Strategy

Business-to-Business Sales

Additional Products

VII.Team

Legal Forms and Management

Preliminary Organizational Structure

Major Roles & Responsibilities

Select Biographies

Strategic Partnerships

VIII.Additional Information

Training for Food Safety Program

IX.Financial Plan

Assumptions for Financial Projections

Financial Projections

X.Overall Schedule and Key Events

XI.Challenges & Mitigation Strategies

Distribution Pre-Distributor

Storage

Competitive Marketing

Price of Milk

Recycling Capabilities

Sustained Capital

Milk Contamination

Low Sales

Team Member Turnover

XII.Appendix

Manufacturing Process

Equipment & Facility Layout

Lease Agreement

Team Resumes

List of Initial Brick and Mortar Locations to Target

Bibliography

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“What we have done for ourselves alone dies with us; what we have done for others and the world remains and is immortal.”–Albert Camus, Author and Philosopher

I.Summary

Edenesque is a socially-conscious manufacturer of artisanal nut milks and nut milk products.

Vision:To inspire, uplift, and educate communities on the power of social good through our health-conscious food products.

Mission:To create delicious, clean and honest artisanal nutmilks and associated productsthat nourish, not only the consumer, butthe community.

Values

• Authenticity & Transparency.To educate consumers on the production processes, procurement strategies and business initiatives used to deliver whole, clean and simple foods.
• Accessibility.To bring clean, whole andnutritiousfoods toconsumersand communities aiming to lead healthier lives.
• FunctionalDeliciousness.To use only those ingredients that support the wellness of the human body, while being delicious.
• Community.To support local farmers and artisanal food producers while positively impacting the communities we serve.
• Equal Opportunity and Inclusion.To provide employment and education opportunities to those of diverse ability and backgrounds using open hiring practices.

II.Background

1. The leading causes of death in the world stem from diet-related diseases, such as heart disease, diabetes, and stroke. As such, consumers are becoming more conscious about purchasing products to lead healthier lifestyles. When we go shopping at our groceries, the majority of food products are filled with ingredients we cannot pronounce, processed sugar and fillers—some of the main culprits to modern nutrition diseases.
2. Why nut milks?The Edenesque team has always been committed to putting healthy clean food products on the market. Through testing a number of other health products, such as cold-pressed juice cleanses, we found that nut milks aligned best with our interest and consumer demand. Nut milks are an excellent source of vitamins and minerals that support bone and muscle strength among other health benefits.As we continued to research the other nut milks on the market, we found that there were little to no nut milks that were truly made with nuts that did not have sugars, additives, or preservatives. Most almond milk brands are made with only 2% almonds or made from an almond paste/powder. Edenesque’s almond milk is made with 40% almonds, no cane sugar, no additives and no preservatives. This presented the perfect business opportunity for Edenesque to fill a gap in the market.
3. For over three years, Edenesque initially sold nut milks directly to the consumer and at outdoor markets and farmers’ markets, throughout the five boroughs of New York City, as well as Westchester and Orange counties. These efforts determined product viability and directed the course of development by direct interaction with consumers. In the first six months of business, Edenesque brought in $50,000 in revenue, which suggested an opportunity to scale the product further.
4. Through additionalmarket research, key factors such as product viability, product appeal,and industry acceptance, were tested and confirmed along with the stamina and commitment of the owner, Chef Leslie Woodward. This research intensified the determination to scale up the development offood products that are high-quality, locally-sourced, nutrient-dense and delicious.
5. Currently, Edenesque is awaiting completion of its manufacturing facility to transition from retail sales to wholesale of its products.

III.Business Charter

Edenesque will develop clean, whole, nutritious and delicious nut milk products and market them profitably in a socially conscious manner to increasingly health-aware consumers.

Edenesque nut milks are packaged in 1950s-style glass bottles, which appeals to consumers who are environmentally-conscious.

Description of Product and Services

Nut milk without preservatives, additives or ingredients with challenging pronunciations is rarely found on the market. Compared with most products, Edenesque nut milk is clean, simple, made with 40% nuts and 60% water by volume.

Edenesque meets the needs of almond milk drinkers and non-dairy product consumers by providing a clean almond milk product free of additives, sugars and preservatives—a main concern of increasingly health-conscious consumers and those with food intolerances.

Edenesque nut milks are bottled in a glass container being environmentally conscious. Edenesque will enter the marketplace with four almond milk flavors: Pure; Flaxseed Vanilla Bean Maple; Carob Date Maple; Honey and Vanilla Bean. Later in the year, Edenesque will introduce cashew milk and macadamia nut milk to the marketplace.

Edenesque’s purchasing practices consist ofsourcing most ingredients locally (throughout the Hudson Valley area) and organically (products grown, raised or processed according to organic, humane and sustainable methods). This includes composting, crop rotation, soil building, humanely raised animals without the use of antibiotics or growth hormones, but with access to pasture or are cage-free, and which are not fed items that include grain sourced from Genetically Modified (“GMO”)seeds and which are Certified Organic or Certified Biodynamic and are Certified Fair-Trade Products.

Additionally, Edenesque will concentrate on obtaining products that:

• are non-irradiated,
• minimally packaged or in recyclable or returnable containers,
• do not use animals for testing; do not contain GMOs,
• whole, or at most minimally processed,
• do not contain artificial colorings or flavorings, high fructose corn syrup, synthetic sweeteners or chemicals, nitrates or nitrites, hydrogenated or partially hydrogenated oils, sulfites or trans-fats,
• are pesticide-free; use purified water, without added chemicals, and
• have not been exposed to chlorine bleach, phosphates and other environmentally unsafe products.

Unique Selling Proposition

Edenesque’s unique selling proposition circles back to its mission and values, and aims to:

• act as an agent for positive impact and offer wellness to everyone who comes in contact with the brand from those who drink the product, our team, even to those in the surrounding communities,
• meet the needs of our customers by providing high-quality, hyper­local food items and non­food items,
• use organically sustainable products from those who have committed themselves to community and social health, and the physical, mental and spiritual well­being of its customers,
• offers food products more nutrient-dense than those currently on the market (i.e. Edenesque’s artisanal nut milk contain 38% more almond than the almond milks available, and
• uses innovations in sustainability to provide products that are long lasting (i.e. extended shelflife of Edenesque almond milks.

Strategy for Social Good

Edenesque prides itself on being a business that not only delivers products that benefit consumers but also offersopportunities to leave a positive impact on the environment and the communities in the surrounding area. Edenesque has a comprehensive approach to delivering social good to all who engage with the brand.

Healthy & Sustainable Products.As described above, Edenesque’s main source of revenue comes from the sale of products that are all-natural and clean. In addition to producing sustainable products, our nut milks offer a wide array of health benefits, including:

• High concentrations of Iron and Vitamin B
• Blood Sugar Regulation (low-glycemic sweeteners)
• High concentrations of antioxidants and Vitamin E (For skin care)
• Weight Loss
• Muscle Recovery
• Bone Strength
• Inflammation Reduction & Prevention
• Muscle Strength
• Digestion

Locally- & Ethically-sourced Ingredients.Edenesque supports the local farmers and business owners to produce our nut milks. Our maple and honey both come from Canandaigua, NY(RockRidge Maple Farms and Hungry Bear Farms, respectively). We ensure that the ingredients that cannot be grown locally aresourced fair-trade & organically, such as ouralmond nuts from California and vanilla bean vendor in Pennsylvania.

Open Employment Policy. Edenesque will be housed in The Arc of Ulster-Greene building whose mission is “to offer people with intellectual and other developmental disabilities opportunities to live and experience full lives.” Edenesque will work with The Arc and support its mission by offering employment opportunities to individuals of diverse ability.In addition, Edenesque is committed to offering employment to individuals with other barriers to employment, including those who were previously incarcerated, immigrants, domestic violence survivors, and those of various educational backgrounds. Edenesque will engage in open hiring practices and offer training and support services to all of its team members, listed below.

Employment Opportunities.Edenesque believes that as an employer we have to take into account the ‘whole’ person that we engage in work. Benefits range from standard health insurance benefits to 4-hrs of paid community service each month. Some of these opportunities include:

• Weekly meditation and yoga for team
• Lunch & Learns – discussions for professional development, such as financial literacy and food industry knowledge, food safety, community engagement and healthy living
• Scholarships to support education – up to 5 $1,000-scholarships for team members interested in higher education
• NY State Food Handler Certification (for production managers/associates
• Gym Membership option at a local gym (Planet Fitness)
• Supplemental Insurance (United HealthCare)
• Community Service – 4hrs/month paid to participate in community activities
• Path-making – program will include anger management, financial planning, assistance securing affordable housing, health and wellness
• Collaborative learning – vocational and computer training assistance and practical tools

For more details, please refer to the Human Resources Manual.

Community Engagement.As a truly local brand, Edenesque is committed to fully integrating into the community and supporting the issues that are important to the local Kingston area. During the first year of business, Edenesque will have consultant support in conducting a community needs assessment to get a better understanding of community values and identify pressing gaps in resources and services in the community.

Consultant support will be responsible for assessing the current landscape of health needs via focus groups with community members, interviews with local nonprofits and NGOs, and engagement in community activities including local fairs, community board meetings, and faith-based events. Based on the information collected, Edenesque will work with select community members to either create new initiatives or support ongoing initiatives to aid in promoting positive social impact for Kingston. Edenesque anticipates that its contribution to the community could range from donated proceeds to local charities to hosting on-site workshops on cooking and healthy living for vulnerable populations. Our overarching goal is to be deliberate and thoughtful about the way in which we provide impact that is sustainable and appropriately address the needs in the community.

Projected Development Costs

The following figures provide an overview of the resources and budget to support Edenesque along with key sources of funding to scale the business.

Initial Budget & Funding Sources as of Jan 2018
Item / Total Amt ($$) / Source of Funding / Funded
Amt ($$)
Equipment, Market Booth Fees, Supplies, Materials, Workspace / $39,233 / Leslie Woodward, Owners Equity / $22,000
Marketing, License, Insurance, Accountant, Legal Administrative Fees / $9,287 / Kathy Lett,
Friend / $10,000
Utilities, Bank Charges, Credit Card Fees, Office Expenses / $14,180 / Luchia Armani / $7,500
Initial Budget Total / $62,700* / Funded Budget Total / $39,500
*Additional costs were covered by monthly sales
Projected Budget & Funding Sources
Item / Total Amt ($$) / Source of Funding / Funded
Amt ($$)
Equipment: work tables, sink / $3,400 / Leslie Woodward, Owner’s Equity / $6,000
Liability Insurance, Utilities, Licenses / $1,600 / Loan / $25,00
Marketing & Promotions / $600 / -- / --
Supplies—Bottles, Ingredients / $6,700 / -- / --
Team, Working Capital (3 months) / $18,700 / -- / --
Projected Budget Total / $31,000 / Funded Budget Total / $31,000

Consumer Feedback

For over three years, Chef Leslie sold directly to consumers and conducted taste tests of the nut milks in many farmers markets and markets throughout NYC, Brooklyn, Orange and Westchester counties. After conducting market research with over a thousand taste tests, Chef Leslie found that consumers enjoyed the following unique features that Edenesque nut milks offered:

• Abundance of nuts in nut milks (38% more almond than other brands)
• The exclusion ofadditives and sugars comparedto most store-bought nut milks
• Delicious taste (described as ‘beautifully light, yet creamy and delicious’)

• Eye-catching packaging in recyclable glass bottles

Testimonials

“We just found hands-down THE BEST hand-crafted almond milk we’ve ever tasted!”–HoneyandSoulPaleo

“Awesome almond milk flavor: coconut, maple, vanilla. Divine!”–Julia

“Thank you for making such a delicious product. It’s become a staple at breakfast for our son!” – Verónica

“The most amazing almond milk! I love that there are no additives of any kind.
Even my toddler loves it.” – Jennifer

IV.Market TrendsAnalysis

According to Nielsen Research, in 2016, almond milk sales continued to rise and is now 5% of the total milk market and 64% of the milk substitute market.[1] According to research done by Copeland and Dharmasena (2015), almond milk has an estimated 65.5% of the dairy alternative product demand with overall dairy market penetration to be 12% with average consumption by a household to be 424 ounces.

Recent research indicates[2]:

The Soy and Almond Milk Production Industry is in the growth phase of its life cycle, indicated by its positive contribution to the US economy. Industry value-added (IVA), or the industry's overall contribution to the economy, is forecast to increase at an annualized rate of 2.6% over the 10 years to 2022. This rate is faster than gross domestic product (GDP), which is expected to increase at an annualized rate of 2.1% over the same period.Additionally, this industry continually introduces new products indicating that it is in its growth phase.

From 2010-2015, almond milk sales grew 250%, averaging some 50% annually. It accounts for twice the revenue of all dairy alternatives combined and reflects the intense force of current health and wellness trends. Dairy alternative beverages hence positive cross-price elasticities. Own-price elasticities of demand for dairy alternative beverages indicate that consumers of these products are insensitive to own-price changes, or that those who purchase these beverages are very loyal to purchasing these beverages. Research indicates that antibiotic-free products achieved double-digit growth annually in each of the past four years. According to the U.S. Department of Agriculture, lactose-free products grew to 8.6% within that same period, sales totaling $8.7 billion[3].

1. Market Characteristics. Over the last 5 years the nut milk industry has grown substantially and is projected to grow at a rate of 6% for the next5 years until 2020. Barrier to entry is low, with few competitors in the market place. Competitors are industry giants, such as Silk and Almond Breeze products. New entrants struggle to scale, largely due torefusal to transition to a third-party distribution model, inadequate cash flow/financial backing, limited marketing capacity, and inability to findaffordable space to scale production(per the U.S. Bureau of Labor Statistics).
2. Customer Characteristics

1. Healthy Eating Index:Consumers are beginning to recognize the benefits of healthy eating—measured by the “healthy eating index.” This has been slowly rising since early 2015, due to the increased awareness of issues related to weight and nutrition and, in particular, those associated with many dairy products. In effect, many consumers are going out of their way to avoid such products.
2. Consumer Confidence Index:Personal income, employment prospects and other economic expectations affect consumer confidence, and in turn, the retail sector and the manufacturers that supply their products. As confidence rises, purchases of dairy alternative products tend to increase. Consumer confidence is expected to increase during 2017 and will continue at similar rates in future years, according to the experts.

1. Competitive Evaluation

1. External Competition: Although dairy milk and juice products are universally available, consumers increasingly are choosing healthier options, particularly as they are able to afford them.
2. Almond Milk Competitors
3. Despite substantial revenue growth, the number of industry companies has remained static at 15 in the past five years.
4. The industry is highly concentrated, with the top four players representing over 80% of industry revenue. WhiteWave Foods alone earns an estimated 57% of the industry's revenue. The industry has experienced consolidation as large companies acquire smaller firms. WhiteWave, owner of the Silk brand, acquired competitor So Delicious in October 2014.[4]

Market Potential

1. Food allergy impact. Growth in sales of dairy alternative drinks is largely attributable to the prevalence of individuals who are allergic to or intolerant of milk. A food allergy occurs when an individual's immune system mistakes a food protein for a foreign substance, causing immune cells to overreact. During the allergic reaction, the body releases chemicals that trigger symptoms that can affect the eyes, nose and throat, as well as the skin and the lungs. While individuals of any age can develop allergies to cow's milk, it is most common among infants. Experts estimate that 2.0% to 3.0% of infants have a milk allergy, though they typically outgrow it by the time they reach three to five years old. In addition to avoiding milk because of allergies or intolerances, other people may select dairy alternative products to avoid the high cholesterol and saturated fat contents in milk. These components have been linked to atherosclerosis and heart disease when consumed in excess.
2. Price differentials. Dairy milk alternatives cost more than dairy products, and the components from which they are created may be scarce compared with dairy milk. Even though there is increased competition in the almond milk market, consumers’ main concern is the addition of synthetic vitamins, carrageenan, cane sugar and other emulsifiers that compromise the purity of non-dairy products.
3. Increasing health awareness generating consumer demand. Consumers' desire to be healthy will help drive industry growth. Consumption of soy and almond milkwill increase as the trend of health-conscious spending intensifies. As more information about the volume and types of growth hormones and antibiotics added in the production of traditional cow's milk surfaces,consumers are becoming more aware. Since the long-term effects on human health are unclear, the significant public scrutiny will further intensify the trend toward non-dairy alternatives like almond milk.
4. Almond milk is the most popular milk alternative.Sales of the plant-based beverage have been increasing rapidly over the past five years. Almond milk is one of the most nutritionally valuable milk substitutes available today and is created by milling raw almonds with water. It is high in a number of vitamins and minerals, including vitamin E, manganese, magnesium, phosphorous, potassium, selenium, iron, fiber, zinc and calcium. Almond milk is also free of saturated fat and cholesterol.
5. Price affects demand.As prices increase, demand decreases.Demand for non­dairy milk is less price sensitive than demand for dairy milk, because of the relatively wealthier demographic that tends to purchase non­dairy milk–and because the price of dairy alternatives is already high compared with cow's milk.
6. Dairy milk is becoming increasingly less “natural.”Larger scale production dairy farms are pressured to produce large animals in the shortest amount of time at the lowest possible cost. This has led to the widespread adoption of growthpromotion techniques,including even the use of man­made steroid hormones.
7. Almond milk consumer demographics.
8. Women aged 18 to 34 are the largest market segment for dairy-alternative beverages, although the split between the female and male has decreased as more men have become aware of the benefits. Lower-income householdsare more likely to consume milk alternatives, as are younger people, as the rising awareness of milk allergies (lactose intolerance) has increased during the past five years.
9. The aging population has significantly increased the quantity of those aged 45 and older. Older people are more likely to be health conscious, and because of body changes have higher level of digestive intolerances, although less likely to try new products. These consumers increasingly and consistently look for methods to manage their health concerns. In response to this demand, manufacturers have been promoting the benefits of dairy alternative beverages, targeting those with dairy allergies, vegans and people concerned with the antibiotics, growth hormones and other additives now found in cow's milk.
10. Certification and shelf-life.Edenesque has listed all of its formulas and sent them to the nationally recognized Cornell University Food Processing Laboratoryfor testing, together with a processing schedule which significantlyextends the shelf life of nut milks. Cornell University approved these Edenesque submissions.

The process to extend shelf-life is of great significance because currently nut milks are sold raw and have a shelf life of only three to five days. Pasteurization will extend shelf life of Edenesque artisanal nut milk by at least two weeks.