Kathy Nyquist Principal New Venture Advisors LLC

(773) 245-3570

Chicago, IL

Ohio Cooperative Development Center Local Food Hub Workshop OSU South Centers, Piketon April 10, 2013

Today

About You

About Us

Types of Hubs

Planning a Food Hub

Designing a Food Hub

Operating a Food Hub

PROJECTS, INTERESTS

About You

Today

About You

About Us

Types of Hubs

Planning a Food Hub

Designing a Food Hub

Operating a Food Hub

“A regional food hub is a business

or organization that actively

manages the aggregation,

distribution, and marketing

of source-identified food products

primarily from local and regional

producers to strengthen their

ability to satisfy wholesale,

retail, and institutional demand.”

– USDA

MERCHANT WHOLESALERS

•Specialty Produce

•Broad Line

Post-

Harvest

Importers

DIRECT

• Farmers Markets

• Farm Stands • CSAs

Distribution Retail Sales

Outlets

Processors

Aggregators

Self-Distributing Retailers

GROCERY

• Stores • Home Delivery

FOODSERVICE

• Contract Catering

• Restaurants

Production

Grower -Shippers

Growers and

Producers • Specialty Produce

Brokers, Agents, Auctions, Exchanges Exchanges

4 FOOD HUBS

Case Histories

Today

About You

About Us

Types of Hubs

Planning a Food Hub

Designing a Food Hub

Operating a Food Hub

STAGE GATE PROCESS

About Us

Opportunity Identification

Environmental Assessment 1

Environmental Assessment

Feasibility Assessment

Shape Concept | Test Viability 2

Environmental Assessment

Business Planning

Strategic Plans | Pro Forma

Shape Concept Test Viability

3

Environmental Assessment

Fundraising

Financing Plan | Investor Pitch

Shape Concept Test Viability

Strategic Plans Pro Forma

4

Environmental Assessment

Launch

PP&E | Technology | Sales Strategy

Shape Concept Test Viability

Strategic Plans Pro Forma

Financing Plan Investor Pitch

5

Environmental Assessment

Stabilize and Grow

Growth Strategy | Finance | Marketing | Operations

Shape Concept Test Viability

Strategic Plans Pro Forma

Financing Plan Investor Pitch

PP&E Technology Sales Strategy

6

Entrepreneur/Operator

Municipal/Community Organization

Environmental Assessment

Shape Concept Test Viability

Strategic Plans Pro Forma

Financing Plan Investor Pitch

PP&E Technology Sales Strategy

Finance Marketing Operations

Environmental Assessment

Shape Concept Test Viability

Strategic Plans Pro Forma

Financing Plan Investor Pitch

PP&E Technology Sales Strategy

Finance Marketing Operations

Market

Assessment

Infrastructure

Assessment

Production

Assessment

Community Health Assessment

Enterprise

Structure A

Analytical

Model

Enterprise

Structure B

Recommendations

Go

No-Go or

Not-Yet

Today

About You

About Us

Types of Hubs

Planning a Food Hub

Designing a Food Hub

Operating a Food Hub

Business Design

Ownership

Structure

• For profit

• Nonprofit

• Hybrid

• Social

enterprise

• Cooperative

Business

Model

• Products &

services

• How

delivered

• To which

customers

• Revenue

model

Facilities &

Location

• Urban/Rural

• Own/Rent

• Build/Buy

• Capacity

Business Model

Products &

Services

• Fruit & veg

• Protein

• Value-added

• Dry goods

How Delivered

• Go-to-market

strategy

• Brick & mortar

• Virtual/online

• Distribution

• JV/Partnerships

To Which

Customers

• Wholesale/retail

• Target market

selection

• Differential

pricing

How are you differentiated?

Business Model

Products &

Services

•Fruit & veg

•Protein

•Value-added

•Dry goods

How delivered

•Go-to-market

strategy

•Brick & mortar

•Virtual/online

•Distribution

•JV/Partnerships

To which

customers

•Wholesale/retail

•Target market

selection

•Pricing

Revenue model

•Buy/sell

•Commission

•Brokerage fee

•Subscription

How are you differentiated?

Facilities & Location

Location

• Urban/Rural

• Near major

transportation

route

• South of urban

centers

• Rent/Own/Build

Capacity

• Acres →

throughput

• Cooling is

constraint

• Seasonality is a

major factor

Capacity Model

Cooler/freezer area × % floorstack × # tiers = pallet storage area

Pallet storage area ÷ ft2/pallet = pallet capacity in cooler

Pallet capacity × weekly turnover = pallets/week

Pallets/week × weeks/year × utilization rate = annual pallets

Annual pallets × cases/pallet = cases/year

Cases/year × pounds/case = annual pounds

Annual pounds ÷ avg. lbs/acre = acres needed

Loca

l Vo

lum

e

Calendar Year

Idle Capacity

Utilization Rate

Today

About You

About Us

Types of Hubs

Planning a Food Hub

Designing a Food Hub

Operating a Food Hub

• Right Management Team

• Make It Work for Producers

• Sales & Marketing Is the Engine

• Form Distribution Partnerships

• Smart Scaling

RESOURCES

newventureadvisors.net

THANK YOU!

Questions?

Kathy Nyquist New Venture Advisors LLC

(773) 245-3570

knyquist@newventureadvisors.net

@NewVentureAdvsr #foodhubs

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