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Franklin Pierce UniversityFranklin Pierce UniversitySmall Business Advisory Small Business Advisory
GroupGroupTerra FructiTerra Fructi
Fall 2009Fall 2009Prepared by: Jennifer Blais, Craig Lewis, Gregg Levante, Prepared by: Jennifer Blais, Craig Lewis, Gregg Levante, Philip Spann, David Bailey, Jason Demello, Matt Poissant, Philip Spann, David Bailey, Jason Demello, Matt Poissant, Michael Rantilla, Terrell Ray and Tyler SykesMichael Rantilla, Terrell Ray and Tyler Sykes
Spring 2010Spring 2010Prepared by: Jennifer Blais, Nicki Champion, Philip Prepared by: Jennifer Blais, Nicki Champion, Philip Spann, Gregg Levante, Matt Redmond, Olek Migdalski, Spann, Gregg Levante, Matt Redmond, Olek Migdalski, Adam White, Dan Klemarczyk and Tania BeliardAdam White, Dan Klemarczyk and Tania Beliard
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Description of the Description of the BusinessBusiness
Terra Fructi, located in Walpole, NH, is a Terra Fructi, located in Walpole, NH, is a mushroom farm dedicated to providing mushroom farm dedicated to providing flavorful and nutraceutically active flavorful and nutraceutically active mushroomsmushrooms Owned and run by Elizabeth Richards Owned and run by Elizabeth Richards
and Emily Bragonierand Emily Bragonier Established in 2009Established in 2009
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Mission StatementMission Statement
““Terra Fructi's mission is to provide the Terra Fructi's mission is to provide the Great Falls Region of New Hampshire Great Falls Region of New Hampshire and Vermont with the fresh, naturallyand Vermont with the fresh, naturally--grown gourmet and medicinal grown gourmet and medicinal mushrooms. Additionally, we seek to mushrooms. Additionally, we seek to further the local foods movement by further the local foods movement by supporting and partnering with area supporting and partnering with area farmers, restaurants, and grocers.farmers, restaurants, and grocers.””
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Key Facts and Promises of Key Facts and Promises of Terra FructiTerra Fructi
Grow and sell fresh and dried Grow and sell fresh and dried mushroomsmushrooms High quality mushrooms at or below High quality mushrooms at or below
existing market priceexisting market price Part of the local foods movementPart of the local foods movement
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Mushroom Varieties Mushroom Varieties Initially SoldInitially Sold
Oyster MushroomsOyster Mushrooms-- the the taste has been taste has been described as mild described as mild
Common uses include: Common uses include: soup, stuffed, and in soup, stuffed, and in stirstir--fry fry (1)(1)
LionLion’’s Manes Mane-- has a mild has a mild flavor but absorbs flavor but absorbs whatever flavor they are whatever flavor they are cooked with, reminiscent cooked with, reminiscent of seafoodof seafood
Common uses include: Common uses include: soup, stirsoup, stir--fry, by fry, by themselves themselves (1)(1)
(2)(3)
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Mushroom Varieties Mushroom Varieties Initially Sold Initially Sold (4)(4)
Reishi mushroomsReishi mushrooms-- non non toxic herbal mushrooms toxic herbal mushrooms known to have known to have miraculous health miraculous health benefits benefits
BenefitsBenefits-- if taken regularly, it can if taken regularly, it can
restore the body to its restore the body to its natural state, enabling all natural state, enabling all organs to function organs to function normally. normally.
regulates and fine tunes regulates and fine tunes the immune systemthe immune system
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Mushroom Varieties Sold Mushroom Varieties Sold in the Futurein the Future
ShiitakeShiitake-- mild flavormild flavor Common uses Common uses
include: soup, stirinclude: soup, stir--fry, fry, and dried (many and dried (many Asian cuisines)Asian cuisines) (1)(1)
MaitakeMaitake-- woodsy woodsy flavor flavor
Common uses Common uses include: soup, pizza, include: soup, pizza, stirstir--fry and sautfry and sautééed ed (1)(1)
(5) (6)
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Reasons to Buy from Terra Reasons to Buy from Terra FructiFructi
Provide fresh productsProvide fresh products The mushrooms are locally grownThe mushrooms are locally grown Gourmet mushrooms are a great way to add Gourmet mushrooms are a great way to add
nutrition to mealsnutrition to meals All the products used to grow the mushrooms All the products used to grow the mushrooms
are organicare organic Can be used for medicinal purposesCan be used for medicinal purposes Environmentally friendlyEnvironmentally friendly--trying to reduce the trying to reduce the
carbon footprint.carbon footprint.
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Market DemandMarket Demand
Some 260 U.S. growers produced more Some 260 U.S. growers produced more than 844 million pounds of mushrooms in than 844 million pounds of mushrooms in 20022002--03, with a farm gate value of $889 03, with a farm gate value of $889 million. (Certified organic mushrooms million. (Certified organic mushrooms accounted for only 1 percent of all sales, accounted for only 1 percent of all sales, although 12 percent of growers were although 12 percent of growers were certified organic.) certified organic.) (7)(7)
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Target MarketTarget Market The The NortheastNortheast area has the highest rate of mushroom area has the highest rate of mushroom
consumption consumption (7)(7)
A majority of mushroom consumers are nonA majority of mushroom consumers are non--Hispanic Hispanic White, next are Asian AmericansWhite, next are Asian Americans
Families with higher incomes are most likely to buy Families with higher incomes are most likely to buy mushrooms. A majority of families that purchase mushrooms. A majority of families that purchase mushrooms average $50,000 or more.mushrooms average $50,000 or more.
A 50 year old is 3.6% more likely to buy mushrooms A 50 year old is 3.6% more likely to buy mushrooms than a household headed by a 20 year oldthan a household headed by a 20 year old
Households headed by a woman are more likely to Households headed by a woman are more likely to purchase mushrooms than a household headed by a purchase mushrooms than a household headed by a man.man.
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Target Market Target Market (8)(8)
PopulationPersons under18 years old
Persons 18-64 year old
Persons 65 yrs old and over Female Persons Male Persons
Median household income
VermontVermont
Windham CountyWindham County 43,17643,176 20.00%20.00% 65.20%65.20% 14.80%14.80% 51%51% 49.00%49.00% $43,759 $43,759
Essex CountyEssex County 6,5006,500 19.30%19.30% 62.90%62.90% 17.80%17.80% 50.50%50.50% 49.50%49.50% $35,986 $35,986
Windor CountyWindor County 56,56656,566 19.40%19.40% 63.80%63.80% 16.80%16.80% 51.20%51.20% 48.80%48.80% 50,60950,609
Orange CountyOrange County 28,91728,917 20.40%20.40% 65.40%65.40% 14.20%14.20% 50.10%50.10% 49.90%49.90% $47,437 $47,437
Caledonia County Caledonia County 30,47030,470 21.00%21.00% 63.80%63.80% 15.20%15.20% 50.40%50.40% 49.60%49.60% $41,034 $41,034
New HampshireNew Hampshire
Coos CountyCoos County 31,97131,971 19.10%19.10% 61.40%61.40% 19.50%19.50% 51.10%51.10% 48.90%48.90% $40,857 $40,857
Grafton CountyGrafton County 85,92185,921 18.70%18.70% 65.80%65.80% 15.50%15.50% 50.90%50.90% 49.10%49.10% $51,857 $51,857
Sullivan CountySullivan County 42,59142,591 21.50%21.50% 62.70%62.70% 15.80%15.80% 50.00%50.00% 50%50% 49,83649,836
Cheshire CountyCheshire County 77,17077,170 19.90%19.90% 65.6%65.6% 14.50%14.50% 49.00%49.00% 51.00%51.00% $53,870 $53,870
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Primary MarketsPrimary Markets(Wholesalers)(Wholesalers)
C & S Wholesale Grocers Inc.C & S Wholesale Grocers Inc. Freezer & GrocerFreezer & Grocer
Brattleboro, VT 05302Brattleboro, VT 05302Corporate OfficeCorporate OfficeKeene, NH 03431Keene, NH 03431
Northeast CooperativesNortheast Cooperatives Brattleboro, VT 05301Brattleboro, VT 05301
Brattleboro Food CoBrattleboro Food Co--opop Brattleboro, VT 05301Brattleboro, VT 05301
Upper Valley Food CoUpper Valley Food Co--opop White River Junction, VT 05001White River Junction, VT 05001
Black River ProduceBlack River Produce North Springfield, VT 05150North Springfield, VT 05150
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Primary MarketsPrimary Markets(Retailers)(Retailers)
Farmers MarketsFarmers Markets Amherst Farmers Market, Amherst, NHAmherst Farmers Market, Amherst, NH Milford Farmers Market, Milford, NHMilford Farmers Market, Milford, NH New Boston Farmers Market, New Boston, NHNew Boston Farmers Market, New Boston, NH Peterborough Farmers Market, Peterborough, NHPeterborough Farmers Market, Peterborough, NH Fitzwilliam Farmers Market, Fitzwilliam, NHFitzwilliam Farmers Market, Fitzwilliam, NH Jaffrey Farmers Market, Jaffrey, NHJaffrey Farmers Market, Jaffrey, NH Keene Farmers Market, Keene, NH Keene Farmers Market, Keene, NH Blueberry Fields Market, Keene, NHBlueberry Fields Market, Keene, NH Hancock Farmers Market, Hancock, NHHancock Farmers Market, Hancock, NH LondonderryLondonderry--West River Farmers Market, Londonderry, VTWest River Farmers Market, Londonderry, VT ManchesterManchester--West River Farmers Market, Manchester Center, VTWest River Farmers Market, Manchester Center, VT Dorset Farmers Market, Dorset, VTDorset Farmers Market, Dorset, VT Chester Farmers Market, Chester, VTChester Farmers Market, Chester, VT Brattleboro Farmers Market, West Brattleboro, VTBrattleboro Farmers Market, West Brattleboro, VT BenningtonBennington--Walloomsac Farmers Market, Bennington, VTWalloomsac Farmers Market, Bennington, VT
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Secondary MarketsSecondary Markets
Rutland Natural Food Market: The CoRutland Natural Food Market: The Co--opopRutland, VT 05701Rutland, VT 05701
City Market Onion River CoCity Market Onion River Co--opopBurlington, VT 05401Burlington, VT 05401
Hanover CoHanover Co--op Food Storeop Food StoreHanover, NH 03755Hanover, NH 03755
12 Pine Restaurant/ Market12 Pine Restaurant/ MarketPeterborough, NHPeterborough, NH
Boston OrganicsBoston OrganicsBoston, MABoston, MA
Boston Market Terminal CompanyBoston Market Terminal CompanyEverett, MA 02149Everett, MA 02149
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Local CompetitorsLocal Competitors
There are 260 mushroom growers in the There are 260 mushroom growers in the United StatesUnited States
Tweed Valley Farm Tweed Valley Farm –– Pittsfield, VTPittsfield, VT Green Mountain Mycosystems Green Mountain Mycosystems –– Underhill, VTUnderhill, VT Moonshine Mushrooms Moonshine Mushrooms –– Chester, VTChester, VT Oyster Creek Mushroom Co. Oyster Creek Mushroom Co. –– Damariscotta, Damariscotta,
MEME Vermush Vermush –– South Hero, VT South Hero, VT
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Competitive AnalysisCompetitive AnalysisTypes of Types of
MushroomsMushrooms Terra FructiTerra Fructi Tweed Tweed Valley FarmValley Farm
Green Mountain Green Mountain MycosystemsMycosystems
Moonshine Moonshine MushroomsMushrooms
Oyster Creek Oyster Creek Mushroom Co.Mushroom Co. VermushVermush
ShiitakeShiitake xx xx xx xx xx xxHiratakeHiratake xx xx xxYambushitakeYambushitake xx xx xxReishiReishi xx xxMaitakeMaitake xx xx xx xxKing OysterKing Oyster xx xx xx xxPortobelloPortobello xxNeo LentinusNeo Lentinus xxPorciniPorcini xxYellow OysterYellow Oyster xx xx xxLobsterLobster xxWoodearWoodear xxBlack TrumpetBlack Trumpet xxChantrelleChantrelle xxMorelMorel xx
Delivered ByDelivered ByGrowerGrower xx xxDistributorsDistributors xx xxNo OneNo One xx xx
Purchased ByPurchased ByWholesalersWholesalers xx xxIndividualsIndividuals xx xx xx xx xx xxRestaurantsRestaurants xx xx
PurposePurposeGourmetGourmet xx xx xx xx xx xxMedicinalMedicinal xx xx
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Marketing ChannelsMarketing Channels
Market the fresh or dried product directly Market the fresh or dried product directly to customers (farmers' markets, gourmet to customers (farmers' markets, gourmet chefs, Internet, mailchefs, Internet, mail--order offerings) order offerings) Add value to the mushroom by creating Add value to the mushroom by creating
processed products (mushroom sauces, processed products (mushroom sauces, dried entrdried entréée mixes, teas, extracts) e mixes, teas, extracts) Wholesale as fresh produce (on contract Wholesale as fresh produce (on contract
or by the batch)or by the batch)
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Public RelationsPublic Relations
Instead of using Instead of using ““Terra Fructi: artfully Terra Fructi: artfully grown gourmet and medicinal grown gourmet and medicinal mushroomsmushrooms””. The group advises using . The group advises using the website sloganthe website slogan ““Terra Fructi: Fruit of the EarthTerra Fructi: Fruit of the Earth””
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Press ReleasePress ReleaseFOR IMMEDIATE RELEASE:Contact:
Liz Richards and Emily BragonieTerra Fructi (603) 756 [email protected]://www.terrafructi.com/TF/Home.html
Terra Fructi Offers Artfully Grown Gourmet and Medicinal Mushrooms from New Hampshire’s Connecticut River Valley
Walpole, NH – April 12th, 2010 – Before anyone considers purchasing mushrooms in the New England region, they should be aware of Terra Fructi. Terra Fructi is small company targeting a customer base mainly in New Hampshire and Vermont with delectable gourmet mushrooms.
The mission of Terra Fructi is to provide the Southern New Hampshire and Vermont with fresh, naturally-grown gourmet and medicinal mushrooms. Additionally, the company seeks to further the local foods movement by supporting and partnering with area farmers, restaurants, and grocers.
Terra Fructi mushrooms are grown in all-natural substrate and are never treated with pesticides, chemical fertilizers, or other harmful substances. The company is passionate about sustainable agriculture and supporting local farmers and food systems.
Terra Fructi currently offers oyster mushrooms with additional types in the pipeline. Currently our three varieties are Oyster Mushrooms, Lion’s Mane Mushrooms, and Reishi mushrooms. These three types of mushrooms all offer additional health benefits as well as a taste that typical store - bought mushrooms can’t offer.
For more information on our products or how to order please contact us directly at (603) 756 2575 or online at www.terrafructi.com
####
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AdvertisingAdvertising--BrochureBrochure
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AdvertisingAdvertising--BrochureBrochure
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AdvertisingAdvertising--Newspaper AdNewspaper Ad
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AdvertisingAdvertising--Direct Mailer Direct Mailer
Direct Mailer (front)Direct Mailer (front)-- 55””x7x7””
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AdvertisingAdvertising--Direct MailerDirect Mailer
Direct Mailer (back)Direct Mailer (back)-- 55””x7x7””
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Yankee Magazine Yankee Magazine (9)(9)
Dublin, NHDublin, NH Yankeemagazine.com online media kitYankeemagazine.com online media kit--
creates microcreates micro--sites for advertisingsites for advertising Frequency: biweekly (Ad Unit: medium Frequency: biweekly (Ad Unit: medium
rectangle 300x250, Ad rate: $2,000 net)rectangle 300x250, Ad rate: $2,000 net) Yankee Magazine: (Black/White Ads) 2Yankee Magazine: (Black/White Ads) 2””
s.c. $1,060 or 1s.c. $1,060 or 1”” s.c. $580s.c. $580 Price dropsPrice drops-- 2x(2x(--7%), 3x(7%), 3x(--14%), 4x(14%), 4x(--21%), 21%),
5x(5x(--28%), 6x(28%), 6x(--35%)35%)
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Green Edible Mountains Green Edible Mountains (10)(10)
Interior Pages (colored)Interior Pages (colored)Size 1 issue 4 issuesSize 1 issue 4 issues
Full pgFull pg-- 7.57.5”” x 9.5x 9.5”” $2,250 $1,950 $2,250 $1,950 Half pg Half pg (horizontal)(horizontal)-- 7.57.5”” x 4.625x 4.625”” $1,250 $1,100 $1,250 $1,100 Half pg Half pg (vertical)(vertical)-- 3.6253.625”” x 9.5x 9.5”” $1,250 $1,100$1,250 $1,100 Quarter pgQuarter pg-- 3.6253.625”” x 4.625x 4.625”” $ 800 $ 680$ 800 $ 680 Eighth pgEighth pg-- 3.6253.625”” x 2.1875x 2.1875”” $ 450 $ 360$ 450 $ 360
* rates are based per issue* rates are based per issue
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The Keene Sentinel The Keene Sentinel (11)(11)
Direct Mail InsertDirect Mail Insert Reaches 7,000 potential customers located in Reaches 7,000 potential customers located in
Peterborough, Hancock, Greenfield, Temple Peterborough, Hancock, Greenfield, Temple and New Ipswich and New Ipswich
One colorOne color $250 prepaid for one date $250 prepaid for one date $225 each for multiple dates$225 each for multiple dates
Two colorsTwo colors $275 prepaid for one date $275 prepaid for one date $250 each for multiple dates $250 each for multiple dates
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The Keene Sentinel The Keene Sentinel (11)(11)
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VermontVermont’’s Local Banquet s Local Banquet (12)(12)
Interior pages (2 color process)Interior pages (2 color process)Size PriceSize Price
Full pgFull pg-- 7.25" x 9.757.25" x 9.75““ $800$800 ½½ pg pg (horizontal)(horizontal)-- 7.25" x 4.757.25" x 4.75““ $500$500 ½½ pg pg (vertical)(vertical)-- 3.5" x 9.753.5" x 9.75““ $500$500 ¼¼ pgpg-- 3.5" x 4.53.5" x 4.5““ $250$250 1/6 pg 1/6 pg (vertical)(vertical)-- 4.5" x 2.54.5" x 2.5““ $160$160 1/8 pg 1/8 pg (horizontal)(horizontal)-- 3.5" x 23.5" x 2““ $125$125 1/8 pg 1/8 pg (vertical)(vertical)-- 2" x 3.52" x 3.5““ $125$125 11”” horizontalhorizontal-- 3.5" x 13.5" x 1““ $75$75
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New Hampshire MagazineNew Hampshire Magazine
Manchester, NHManchester, NH Advertising rates: Black/White, Advertising rates: Black/White,
Frequency (1Frequency (1--2x)2x) 1/6pg ($730)1/6pg ($730)-- Vertical (w2.25 x h4.95), Vertical (w2.25 x h4.95),
Horizontal (w4.625 x h2.45)Horizontal (w4.625 x h2.45) 1/3pg ($1,365)1/3pg ($1,365)-- Vertical (w2.25 x h10), Vertical (w2.25 x h10),
Horizontal (w4.625 x h4.95)Horizontal (w4.625 x h4.95)
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SooNipi QuarterlySooNipi Quarterly
West/Central NHWest/Central NH Ad CategoryAd Category-- Dining, Lodging and FoodDining, Lodging and Food Ad rates (full color)Ad rates (full color)
Ad size 1x 4x(save 25%)Ad size 1x 4x(save 25%) Full pgFull pg-- $1,300 $975$1,300 $975 ½½ pgpg-- $720 $540$720 $540 ¼¼ pgpg-- $400 $300$400 $300 3/16 pg3/16 pg-- $320 $240$320 $240 1/8 pg1/8 pg-- $240 $180$240 $180
*rates per issue (published 4x per year)*rates per issue (published 4x per year)
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Vermont JournalVermont Journal(Ludlow)(Ludlow)
*Rates per column inch*Rates per column inch
Open rateOpen rate-- with year bulk contract:with year bulk contract:
100 column inches 100 column inches $11.00$11.00250 column inches 250 column inches $10.50$10.50500 column inches 500 column inches $10.00$10.001,000 column inches 1,000 column inches $9.00$9.001,500 column inches 1,500 column inches $8.50$8.503,000 column inches 3,000 column inches $8.00$8.00
Frequency ratesFrequency rates
1T x 52 1T x 52 $9.00$9.002T x 52 2T x 52 $8.00$8.001T x 26 1T x 26 $10.00$10.002T x 26 2T x 26 $8.50$8.501T x 13 1T x 13 $10.50$10.502T x 13 2T x 13 $9.00$9.00
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Vermont JournalVermont JournalLudlow DistributionLudlow Distribution
TownTown PO Boxes/Piece CountsPO Boxes/Piece CountsLudlow, VT Ludlow, VT 1,7411,741Plymouth, VT Plymouth, VT 230230Mount Holly, VT Mount Holly, VT 350350East Wallingford, VT East Wallingford, VT 273273ProctorsvilleProctorsville, VT 462, VT 462Belmont, VT Belmont, VT 285285Weston, VT Weston, VT 399399Cavendish, VT Cavendish, VT 320320Andover, VT Andover, VT 397397Tyson, VT Tyson, VT Ludlow Post OfficeLudlow Post OfficeBaltimore, VT Baltimore, VT 199199Chester, VT Chester, VT 1,7391,739BondvilleBondville, VT 675, VT 675Plymouth Union, VT Plymouth Union, VT Plymouth Post OfficePlymouth Post OfficeCuttingsvilleCuttingsville, VT 534, VT 534Shrewsbury, VT Shrewsbury, VT CuttingsvilleCuttingsville Post OfficePost OfficeSouth Londonderry South Londonderry 533533
TotalTotal 8,1378,137
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Social Network Social Network SuggestionsSuggestions
Have link to Facebook/ Twitter next to emailHave link to Facebook/ Twitter next to email Facebook needs more info about the Facebook needs more info about the
mushroomsmushrooms Copy Copy ““mushroom 101mushroom 101”” to info page on Facebookto info page on Facebook
Increase fans and, friend potential customersIncrease fans and, friend potential customers Reviews and testimonials would enhance Reviews and testimonials would enhance
Facebook and websiteFacebook and website Video could be addedVideo could be added
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Website SuggestionsWebsite Suggestions
PPC advertising networks for the website PPC advertising networks for the website Google AdSense is the most popular Google AdSense is the most popular option under this category, but there are option under this category, but there are also others. You will benefit from this also others. You will benefit from this because every time someone clicks you because every time someone clicks you will receive a certain percentage of the will receive a certain percentage of the profit.profit.
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Website SuggestionsWebsite Suggestions
Email lists and newsletters represent one Email lists and newsletters represent one of the most powerful marketing and of the most powerful marketing and money making tools on the Internet. They money making tools on the Internet. They offer incredible conversion rates, and the offer incredible conversion rates, and the possibility to call people to action in a possibility to call people to action in a very efficient way.very efficient way.
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Channel MarkChannel Mark--UpsUps
Wholesale Price: $6 Per LBWholesale Price: $6 Per LB Retail Price: $16 Per LBRetail Price: $16 Per LB Dried Left Overs Retail: $60 Per LBDried Left Overs Retail: $60 Per LB
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Sales ForecastSales Forecast
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Balance SheetBalance Sheet
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Income StatementIncome Statement
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ReferencesReferences1)1) http://wikipedia.orghttp://wikipedia.org2)2) http://www.gmushrooms.com/pots/Oyster.htmhttp://www.gmushrooms.com/pots/Oyster.htm3)3) http://gourmetfood.about.com/od/wheretobuygourmetfoods/ig/Ediblehttp://gourmetfood.about.com/od/wheretobuygourmetfoods/ig/Edible--
MushroomMushroom--Varieties/LionVarieties/Lion--ss--ManeMane--Mushrooms.htmMushrooms.htm4)4) http://www.reishi.com/whathttp://www.reishi.com/what--isis--reishi.htmreishi.htm5)5) http://www.tbyil.com/mushrooms.htmhttp://www.tbyil.com/mushrooms.htm6)6) http://justanotherdave.wordpress.com/2009/07/26/wisehttp://justanotherdave.wordpress.com/2009/07/26/wise--wordswords--fromfrom--
asia/asia/7)7) http://usda.mannlib.cornell.edu/reports/nassr/other/zmuhttp://usda.mannlib.cornell.edu/reports/nassr/other/zmu--bbbb
8)8) http://quickfacts.census.gov http://quickfacts.census.gov 9)9) www.Yankeemagazine.comwww.Yankeemagazine.com10)10) http://www.ediblecommunities.com/greenmountains/pages/info/egmMehttp://www.ediblecommunities.com/greenmountains/pages/info/egmMe
diaKit.pdfdiaKit.pdf11)11) http://www.keenesentinel.com/marketplace/media_kit/http://www.keenesentinel.com/marketplace/media_kit/
12)12) http://localbanquet.com/advertising.htmlhttp://http://localbanquet.com/advertising.htmlhttp://