Commercial Food Packaging and Processing Group

Commercial Food Packaging and
Processing Group
SourceAmerica National Conference
May 7, 2014
Discussion Topics
 Food Packaging and Processing Market
Overview
 Commercial Food Packaging and
Processing Venture Concept
 Activities to establish the FPP Group
 CRPs interested in participating
Food Packaging and Processing
Market Overview
FPP Market Overview
U.S. Food Channel Profile
 Sales: $1.1 Trillion
 Market characteristics:
─
─
─
─
Very competitive
Price sensitive
Many established vendors
Dynamic, fast pace
 Products and Services segments:
─ Packaging
─ Food Production
FPP Market Overview
SourceAmerica™ CRP FPP Profile
 From Capability and Capacity Survey:
─ 33 respondents packaging food items
─ 17 respondents producing food items
─ 60 respondents expressed interest in entering
the FPP market
 50 to 80 SourceAmerica CRPs estimated to
have commercial food packaging and
processing operations
FPP Market Overview
SourceAmerica FPP LOB Strengths
 Strong interest from SourceAmerica CPR
community in the FPP market
 Potential opportunities may exist to expand
current food production and packaging
projects
 CRPs have relationships with Club Stores,
Supermarkets, and Convenience stores
FPP Market Overview
SourceAmerica FPP LOB Challenges
 Most SourceAmerica CRPs FPP operations
are limited to local markets
 CRPs don’t share information
 Most CRPs have limited expertise to develop
branded products
 Currently, no coordination of CRP FPP
activities/network
FPP Market Overview
Conclusions:
 FPP Products and Services Market:
─ U.S = $1.1 Trillion
─ Very competitive, fast pace, and price sensitive
 50 to 80 SourceAmerica-affiliated CRPs
currently have commercial FPP projects and
other CRPs interested in commercial FPP
projects
 Currently, SourceAmerica FPP capability is
in packaging (kitting and assembly)
FPP Venture Concept
FPP Venture Concept
FPP Advisory Panel








Suzanne Bakiewicz – Herkimer
Bill Blonski – CW Resources
Nick Galante – Transylvania Vocational Services
Tom Lowe – Liberty Enterprises
Travis Pearson – DePaul Industries
Kelly Rupp – DePaul Industries
Bill Sikora – Liberty Enterprises
Sharon Spratt – Cottonwood Industries
FPP Venture Concept
FPP Group: An association of SourceAmerica CRPs
involved in commercial food production and/or food
packaging business that:
 Operates collaboratively for the benefit of the group
 Provides support services for member organizations:
─ Match capabilities within network with market
opportunities
─ Marketing and BD assistance
─ Technical support
─ Project management
─ Training
─ C&C database support
FPP Venture Concept
SourceAmerica
An entity under
the
SourceAmerica
umbrella
FPP
Business
Unit
Network of
CRPs
A formal, legally
established
relationship with
CRPs
FPP Venture Concept
FPP
Business Unit
Advisory Board
GM
CRP executives and GM
participate in advisory
board
GM
BD
Ops
Initial functions to include
BD (marketing/sales) and
Ops (implementation)
FPP Venture Concept
Business Development Strategies:
 Expand/replicate current FPP projects
 Focus national BD efforts on FPP segments
that match the strengths of the SourceAmerica
CRP FPP network
 Acquire expertise and contacts in the FPP
market
 Establish a Marketing Advisory Board
FPP Venture Concept
Potential Revenue Streams:
 FPP Group developed FPP ventures (e.g.,
Old Style Hawaiian Rice Project)
 Percent of sales on projects supported via
the FPP Group network
 Annual membership fee
FPP Venture Concept
Roles of Venture Participants:
 SourceAmerica:
─ Develop FPP Group infrastructure
─ Provide initial operational and technical
resources
─ Provide start-up seed $$$
 FPP Group Management:
─ Market/arrange for marketing of FPP Group
capabilities
─ Establish relationships in the FPP market
─ Manage the implementation of opportunities
FPP Venture Concept
Roles of Venture Participants:
 CRPs’ Role:
─ Work collaboratively with other FPP Group
members
─ Adhere to the terms of the FPP Group operating
agreement
FPP Venture Concept
SourceAmerica/CRP Relationship:
 FPP Advisory Panel strongly supports:
─ A commercial/for-profit approach
─ Act like a separate corporation (FPP Group)
 Success of venture will require significant
changes to the traditional SourceAmerica/
CRP AbilityOne® relationship
Establish FPP Business Unit
Next Steps
Establish FPP Business Unit
 Assess interests and recruit 15 to 20
SourceAmerica CRPs to form the FPP Group
 Define SourceAmerica/CRP relationships
 Identify the FPP Group’s “Sweet Spot” and
market focus
 Establish FPP Group’s presence in the food
processing and packaging market
 Develop and launch the business
Establish FPP Business Unit
 Goal – By 1st Quarter 2015:
─ Recruit 15 to 20 SourceAmerica CRPs to form the
Food Packaging and Processing Group
─ Completed activities needed to launch and operate
the entity
CRPs Interested in Participating
 Must be committed to work collaboratively
with members of the FPP Group
 Have current food packaging and
processing capabilities
 Sign a NDA
 Be willing to participate in a review/audit
of existing capacities and capacity
Questions and Comments
Thank You
24

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