Presentation Outline Technical Orientation Welcome / Introduction - - PowerPoint PPT Presentation

BUILD, PREPARE, INVEST:

ASSESSING FOOD HUB BUSINESSES FOR INVESTMENT READINESS

An NGFN W

An NGFN Webina binar

February 20, 2014

Presentation Outline



Technical Orientation 

Welcome / Introduction

Jeff Farbman

Wallace Center at Winrock International



The Food Hub Business Assessment Toolkit



Questions and Answers



Upcoming Opportunities, etc.

WALLACE CENTER AT WINROCK INTERNATIONAL

• Market based solutions to a 21st Century food system
• Work with multiple sectors – business, philanthropy,

government

• Healthy, Green, Affordable, Fair Food
• Scaling up Good Food

NATIONAL GOOD FOOD NETWORK: VISION

NATIONAL GOOD FOOD NETWORK: GOALS

Supply Meets Demand

• There is abundant good food (healthy, green, fair and affordable) to meet

demands at the regional level.

Information Hub

• The National Good Food Network (NGFN) is the go to place for regional

food systems stories, methods and outcomes.

Policy Change

• Policy makers are informed by the results and outcomes of the NGFN and

have enacted laws or regulation which further the Network goals.

http://ngfn.org | contact@ngfn.org

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Community

• f Practice

Networking

Conferences Webinars Peer to Peer

Research New Info New Audiences Technical Assistance Strengthen Food Hubs Study Hubs Regional Networks

Presentation Outline



Technical Orientation



Welcome / Introduction 

The Food Hub Business Assessment Toolkit

Darrow Vanderburgh-Wertz Wholesome Wave Jesse Rye Farm Fresh Rhode Island



Questions and Answers



Upcoming Opportunities, etc.

Introduction to Wholesome Wave’s

Food Hub Business Assessment Toolkit

A framework for evaluating business fundamentals National Good Food Network - Webinar February 2014

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Wholesome Wave works to equip urban and rural communities to make healthier food choices by increasing access to and affordability of fresh regionally-grown fruits and vegetables.

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Double Value Coupon Program (DVCP) Fruit & Veggie Prescription (FVRx) Healthy Food Commerce Investments

Our innovative programs address issues of food insecurity, farm viability, economic vitality and diet-related diseases. Our reach spans the nation with partners in 30 states operating over 300 program sites engaging nearly 2,500 farmers.

WW Investments helps food hub ventures get “investment ready” and brings deal flow to investors

Mission driven capital Grower & producer relations Institutional buyer relations Policy expertise and influence Marketing &

• perations

insight Business development

Mission Investors Regional food infrastructure ventures No access to capital! No deal flow!

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August 2013 (Public, Private)

Intermediaries Investors

June 2013 (Public, Philan.)

Intermediary Investors

Our team has coordinated over $4 million of investment into food enterprises so far!

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• Sept. 2013

(Public, Private)

Intermediary Investors

OCS

(Grant triggered by

HFFI funds)

*Tranche of a large $9 million redevelopment

June 2012 (Public, Private)

Intermediary Investors

Fresh Source Capital

+ 1 Private investor

• Sept. 2013

(Private)

Intermediary Investors

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Farm Fresh Rhode Island’s programs grow a local food system that values the environment, health, and quality of life of farmers and eaters

• Nutrition incentive programs

for low-income families

• Culinary education
• Value-added production
• Farmers markets
• Nutrition education
• Multi-farm CSA program
• Farm-to-school
• Aggregation and distribution
• f local farm products

WW looks at food hubs in terms of types of activities/operations

13 First mile Aggregation Last mile Distribution Retail or diversified markets Processing (Convenience) Processing (Preservation)

Each activity has different requirements for

• Risk Management
• Financing
• Operations
• HR/Talent
• Technology
• Marketing and Sales

FFRI sold close to $2 million in local food in 2013

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Market Mobile: Aggregation and Distribution Veggie Box: Aggregation and Retail (aggregated CSA)

How does Wholesome Wave work with food hubs?

Monitor Execute Deal Engage Assess Screen

Purpose Get to know the

• rganization

Determine if and how we will work with the

• rganization: TA or

help another way? Lay groundwork to secure investment Key Question s Is this a social enterprise that fits our basic criteria for investment and mission impact? What is the enterprises’ potential for growth, impact on the food system, and financial viability? Which investors would be interested in this

• pportunity?

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Screening food hub: Farm Fresh Rhode Island

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WW assesses 9 major dimensions of a food hub enterprise

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A full assessment might look like this

How to use this assessment framework

• Investors:

Structured way of looking at food hubs; does not teach you how to be an investor

• Food hubs: Framework to assess your own food hub

and prepare for investment

• Policymakers: Overview of key components of food hub

businesses for areas developing food hubs

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Who should use this assessment? What is covered and what’s not? How to use it?

• Covers assessment in 9 major areas; not legal due

diligence; does not teach how to structure a loan or equity investment

• Tool for discussion and decision making, does not spit out

an answer

• It’s a framework, we expect and encourage adaptation
• Express:

Gather info from existing sources and quick interview with food hub

• In-depth:

Interviews with food hub, suppliers, customers; site visit; validate info provided

• Outsourced:

Hire WW or other consultant

Since we can’t cover the whole framework on a webinar, today we’ll talk about Business Model and Strategy

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For each element of the 9 dimensions, we collect data, analyze it, and compare it to benchmarks/examples

Business Model and Strategy: Business Justification

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Business Model and Strategy: Revenue generation mechanism

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Business Model and Strategy: Value proposition

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Business Model and Strategy: Competitive advantage

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Sneak Peek: Market Overview

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Market Overview: Some example tools/resources

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Segmenting the Market

Product | what you sell

Commodity types Fresh vs. value-added

Customer | to whom

Consumer Chef Distributor Store manager

Channel | how reached

Retail – direct Wholesale – through intermediaries

Geography | where

Primary markets Entire trading area

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Thank you!

Darrow VW Portfolio Manager Investments

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Malini Ram Moraghan Managing Director Investments SIGN UP FOR TOOLKIT: wholesomewave.org/hfci CONTACT US: darrow@wholesomewave.org | 203.226.1112 Michel Nischan CEO and Founder Gus Schumacher EVP of Policy and Founder Raphael Leonard Analyst Investments Daniel Ross COO

Questions and Answers

Jeff Farbman

Wallace Center at Winrock International contact@ngfn.org

Jesse Rye

Farm Fresh Rhode Island jesse@farmfreshri.org

Darrow Vanderburgh-Wertz

Wholesome Wave darrow@wholesomewave.org

Presentation Outline



Technical Orientation



Welcome / Introduction



The Food Hub Business Assessment Toolkit



Questions and Answers 

Upcoming Opportunities, etc.

Webinars are Archived

TOPICS!

http://ngfn.org/webinars

NGFN Webinars

 3rd Thursday of each month

3:30p EST (12:30p PST) http://ngfn.org/webinars

Natonal Food Hub Conference!

 2.5 days  6 tours (mostly sold out already!)  8 3-hour trainings  28 workshops  300+ people for networking  Countless learning opportunities…

More:

http://ngfn.org/hubs2014

Do This Now

http://bit.ly/donatengfn

Webinar pricing survey: http://www.tagoras.com/2010/01/05/webinar-pricing-data/

Two Notable Resources for Food Hub Info

 www.FoodHub.info

 Food Hub “hub”  Research, case studies, list and map of hubs across the

country, much more.

 bit.ly/foodhubtalk

 Google Group / listserv for food hub practitioners and

supporters

 Questions answered!  Moderated group – let us know you want to be a part of this in

the post-webinar survey and we’ll give you instructions.

Get Connected, Stay Connected

http://ngfn.org

contact@ngfn.org