Profitable and growing commercial bakery that specializes in wholesale specialty/healthy snack food. The Company sells its own brand through distributors, but also manufactures private label brands for major grocery store chains and specialty brands. The facility is a NC Department of Agriculture and Consumer Services inspected facility. Significant opportunity for growth by expanding the grocery store business across the other chains, other specialty brands, and co-packing opportunities. This turnkey operation comes with a full complement of equipment, customer relationships, and existing and knowledgeable staff.
The financials above include a $36,000 annual rent charge. If the real estate is also purchased, the discretionary earnings (SDE) available to the buyer will be $292,705.
Under the CARES Act as revised by the Stimulus Act, if you use an SBA 7(a) guaranteed loan, this company qualifies for 3-months of principal and interest paid by the SBA to the lender on your behalf (up to $9,000 per month). The loan payments paid by the SBA are not taxable. The SBA is also waiving its loan guarantee fee (usually 3-3.75% of the guaranteed amount). The SBA guaranteed loan must be approved by the SBA before 9/30/2021, or earlier if funds run out.
Property is available for sale for $380,000 or for Lease at $36,000/year (payable monthly, 2% annual escalator) NNN. 5 year initial term with option to extend for 5 years. The Company is located in an established industrial park, and is comprised of approximately 8,870 sq ft of commercial manufacturing/production/office/breakroom/warehouse space. Five roll up dock doors, walk-in cooler, and a large finished goods room that is currently used as ambient storage, however, is ready for potential freezer space if necessary.
Significant opportunity for growth by expanding the grocery store business across the other chains, other specialty brands, and co-packing opportunities. This could be achieved with a greater focus on website rankings, participation in the Private Label Manufacturer's Association, and co-packer partnerships.
The Snack Food industry is a $42.6 billion market. The Company is well positioned as the trends point to consumers continuing to demand healthy versions of existing snacks. The emergence of artisanal goods, which are made with a higher degree of craftsmanship and command higher prices, has boosted revenue. Overall, industry revenue has increased an annualized 1.7% to $46.9 billion over the five years to 2019. Furthermore, shifting food consumption trends have affected the strategies of snack food producers during the current period. Specifically, health concerns about eating foods high in sodium, fat and sugar have made consumers wary of buying traditional snacks. While this has limited industry revenue and profit expansion over the past five years, it has also developed a niche market in the industry. Producers have introduced new varieties of existing products, such as reduced-fat and reduced-sodium brand extensions and new gluten-free and organic products, leading industry revenue to rise 2.3% in 2019 alone. Demand for nuts and seeds has also grown over the past five years.
Focus on other family business.
Will train for 4 weeks @ no cost The Company manufactures healthy snack food for the wholesale, private label, specialty brand, and co-packing market. The buyer should be well versed in general management, financial management, and general commercial kitchen supervision.