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True Made Foods
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== Business model == '''Successful retail model and growing online presence''' We employ a traditional CPG business model, using distributors and selling direct to larger chains like Kroger and Walmart. We are also developing our online channels, and plan to significantly increase online sales in 2021 as we partner with a national micro-fulfillment agency. Lastly, as mentioned before, we are using the Red Sox contract to launch into food service, which, traditionally, is twice the size of the retail market for condiments. Gross Margins (YTD 2020) * average product margin is 42% * average gross margin after shipping/handling is 36% * average net margin after trade spend is 18% * We reduced our packaging cost on our ketchup by 50% from 2019 to 2020 * We currently spend 20% on trade spend annually * We expect to see gross margins (after s/h) grow to +40% in 2021 through lower toll and packaging costs and higher volume shipping (creating lower costs per product). * Freight is currently 5% of total sales, our goal is 2-3% * We also expect to see trade spend decrease as a % of total sales as we grow. More mature companies in our categories spend approximately 10% annually on trade spend.
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