A Passion for Nurturing Body and Soul Through Healthful Foods & the Important Role of a Business Plan
Written by Russ Webster, F2F Volunteer, Guatemala
Latin America is a premium region to capitalize on this market trend, both as supplier and consumer of healthier foods. According to the Inter-American Commission for Organic Agriculture, of the 2.2 million producers of organic foods worldwide, 400,000 are in Latin America, with the numbers of producers growing at a rapid pace. [2] Although the consumption of health food products in the Latin American region is not as big as in the US or Europe, it too is growing: in Mexico alone, the health food market is estimated at USD $12 million per annum and growing (Euromonitor International). Brazil is another promising market, in particular as the economy recovers from its recent 4-year recession. And, both countries are good export targets for Yogi.
The purpose of my technical assistance assignment was to help Marco set out his business plan to achieve this growth objective. Over the course of two weeks consisting of several scheduled meetings and ad hoc interactions, I was able to craft a document for Marco that he’s now using in his discussions with potential investors. The business plan—Yogi-Superfoods: A Plan for Expansion—outlines a plan for expanding operations, strengthening the management team, intensifying marketing/communications/and use of social media, opening up new sales and distribution channels—including through business-to-customer e-commerce distribution, as well as financial projections for the upcoming 5 years.
With this business plan in hand, Marco is now able to meet with prospective investors, and discuss his capital requirements. As an addendum to the plan, I prepared a financial modeling tool that can be used to evaluate various debt or equity investment scenarios. This capital injection is necessary for Yogi to grow, and doubt that Marco will have a difficult time attracting potential investors—the financial return should be good, as well as the feeling of doing something good—through food—for the consumer’s physical and emotional well-being.
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| New logo featuring Marco Barbi, created by F2F volunteer Melissa Delzio |
Yogi-Superfoods has a great set of products, and a great story, both driven by the passion of its founder and owner Marco Barbi. Yogi began in Marco’s kitchen in 2014. Italian by birth, Marco immigrated to Guatemala in 2008 to pursue a more meaningful life through good health and spiritual growth. He sought to help others too on their personal journey through his inspirational books, yoga instruction, and meditation classes. During this time, Marco also began preparing organic health foods such as kombucha, kefir, tahini, and ghee in his kitchen, with each recipe aimed at delivering nutritious, natural sustenance to the body. Marco knew too, through his own experience, that healthy foods help not only the physical body but promote a positive state of mind and emotional health as well—"health body and happy soul,” as Marco liked to say. He shared his food preparations with friends, who enjoyed them tremendously, and they encouraged him to go into business and reach others with his good food and positive attitude.
Yogi is not just about food. When a consumer buys a Yogi-Superfoods product, they get more than just an organic, nutritious food item. Through its unique packaging, Yogi also offers the buyer inspirational messages, and invites them to continue eating healthy and thinking positively. This is what Marco calls the “Healthy Body-Happy Soul!” project: helping his customers improve themselves physically through healthy eating, as well as emotionally through positive thinking and taking action. Yogi’s packaging and labeling are meant to inspire well-being for anyone. Marco has since grown his business to about US $200,000 in annual sales, employing eight staff, producing and packaging over 50 food items, selling through 50 plus retailers ranging from large supermarkets to local produce stands, and buying much of his supplies from small-scale Guatemalan producers. For example, four of his 12 local suppliers are women-owned cooperatives engaged in such activities as fruit production and drying. Yogi has a strong commitment to corporate social responsibility and has received commendations and awards for being a socially-minded enterprise in national and global competitions.
Yogi is not just about food. When a consumer buys a Yogi-Superfoods product, they get more than just an organic, nutritious food item. Through its unique packaging, Yogi also offers the buyer inspirational messages, and invites them to continue eating healthy and thinking positively. This is what Marco calls the “Healthy Body-Happy Soul!” project: helping his customers improve themselves physically through healthy eating, as well as emotionally through positive thinking and taking action. Yogi’s packaging and labeling are meant to inspire well-being for anyone. Marco has since grown his business to about US $200,000 in annual sales, employing eight staff, producing and packaging over 50 food items, selling through 50 plus retailers ranging from large supermarkets to local produce stands, and buying much of his supplies from small-scale Guatemalan producers. For example, four of his 12 local suppliers are women-owned cooperatives engaged in such activities as fruit production and drying. Yogi has a strong commitment to corporate social responsibility and has received commendations and awards for being a socially-minded enterprise in national and global competitions.
Marco hopes to reach as many people as possible with Yogi’s nutritious foods, and its positive messaging. Building on a strong business foundation and reputation from his base in Antigua, Guatemala, Marco wants to expand to more outlets around the country and the region, increasing sales by 50 percent per annum over the upcoming 5 years. In the food sector that Yogi operates in, this is a plausible objective: according to one research firm, the global organic food market, valued at USD 77.4 billion in 2015, is expected to reach USD 320.5 billion by 2025. [1] Although US consumers have led this upward trend to date—making up USD 40 of the total 77.5 billion in 2015—consumers in Europe, Asia, and Latin America are increasingly demanding better-quality food and a healthier lifestyle, and this will be a major factor driving market growth for highly nutritious organic foods over the next decade.
Latin America is a premium region to capitalize on this market trend, both as supplier and consumer of healthier foods. According to the Inter-American Commission for Organic Agriculture, of the 2.2 million producers of organic foods worldwide, 400,000 are in Latin America, with the numbers of producers growing at a rapid pace. [2] Although the consumption of health food products in the Latin American region is not as big as in the US or Europe, it too is growing: in Mexico alone, the health food market is estimated at USD $12 million per annum and growing (Euromonitor International). Brazil is another promising market, in particular as the economy recovers from its recent 4-year recession. And, both countries are good export targets for Yogi.
The purpose of my technical assistance assignment was to help Marco set out his business plan to achieve this growth objective. Over the course of two weeks consisting of several scheduled meetings and ad hoc interactions, I was able to craft a document for Marco that he’s now using in his discussions with potential investors. The business plan—Yogi-Superfoods: A Plan for Expansion—outlines a plan for expanding operations, strengthening the management team, intensifying marketing/communications/and use of social media, opening up new sales and distribution channels—including through business-to-customer e-commerce distribution, as well as financial projections for the upcoming 5 years.
With this business plan in hand, Marco is now able to meet with prospective investors, and discuss his capital requirements. As an addendum to the plan, I prepared a financial modeling tool that can be used to evaluate various debt or equity investment scenarios. This capital injection is necessary for Yogi to grow, and doubt that Marco will have a difficult time attracting potential investors—the financial return should be good, as well as the feeling of doing something good—through food—for the consumer’s physical and emotional well-being.
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[1]
Grand View Research, April 2017 (https://www.grandviewresearch.com/press-release/global-organic-food-beverages-market)
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