Cross Atlantic Commodities Inc
Cross Atlantic Commodities Inc. - CXAC.OB is a premier marketer of quality food products in North America. We have more than 45 years of combined
experience in introducing and placing quality products with major retailers throughout the United States and Canada. We have established a tremendous
network in the food and ice cream retail community giving us the ability to present products direct to buyers.
We have offices in Miami , Copenhagen and Kampala giving us a global reach and focus.
On behalf of the entire Cross Atlantic Commodities Inc. family we would like to welcome you to our website and invite you to join our world of opportunity.
COMPANY OVERVIEW
CACI Brands CXAC.OB is a publicly traded importer, manufacturer and marketer of specialty products and quality foods based in South Florida. Operating since 1998, the Company
has developed exclusive North American distribution agreements with a limited number of product manufacturers in Europe and Latin America. CACI Brands possesses the capability to
market those products by leveraging long-standing relationships with major retailers in the united States and Canada. under the leadership of jorge Bravo, CACI Brands’ former vice
president of operations and current chief executive officer, the Company has streamlined its business model and operations by concentrating on a set of products that it has either
acquired or to which it maintains exclusive distribution rights. By selecting products with a
high likelihood of success, CACI Brands is efficiently concentrating its resources on creating
sales volume through big-box retailers as well as national and regional grocery outlets. The Company is currently seeking funding to accelerate this transition and allow it to move its
products to market as rapidly as possible.
The Company’s shift in emphasis and revenue approach is a function of the organization’s maturity allowing it to move from an opportunistic approach to more controlled model. For-
merly, CACI Brands would identify brands characterized by:
a. high likelihood of success in the North American market
b. reluctance to absorb the myriad of costs associated with entrée into the market c. lack of in-house expertise or partner to negotiate with retail outlet for placement and distribution
This previous model suppresses manufacturer risk with CACI purchasing inventory outright from its partners and absorbs the cost of negotiating with retail outlets for placement and
positioning. In addition to inventory and/or manufacturing costs (under this scenario) CACI Brands financed all duty, freight, warehousing, and marketing activities.
CACI Brand’s management team has extensive experience in specialty food marketing enjoying relationships with major North American grocery and retail chains. The team has also
developed the expertise to identify products that will resonate with consumers. This expertise is complimented by the Company’s national broker network of over fifty seasoned retail
insiders. Leveraging its domain knowledge, industry longevity and marketing instincts; CACI Brands intends to target retailers that fall into two categories: those that collect slotting fees as well as those that do not have slotting or placement fees, yet require direct sales activity to
access these powerful retail outlets.
The Company’s new focus results in a competitive advantage derived by leveraging its knowledge of sourcing products from the global market that will find a welcome consumer audi-
ence in North America. Furthermore CACI has extensive inside knowledge of the retail space in North America. With over twenty years of experience in this domain, CACI recently identi-
fied a targeted roster of products to concentrate the contacts and resources built over two decades of operation. With an extensive broker network and direct relationships with major
retailers who value CACI’s ability to identify and package retail products, the Company is uniquely positioned to translate investment into high-margin solid operations in a relatively short timeframe.
MANAGEMENT
CACI is led by jorge Bravo who is responsible for the Company’s previous business model and its growth to date. While at CACI, he developed and managed relationships
with manufacturers as well as national retainers and club stores. This activity has been primarily focused on architecting and implementing numerous private-label programs
for grocery and frozen food brands.
Previously he was the Vice President for Sales & Marketing for a produce importer where he grew sales to over $12 million/year from $500,000/year. While there he developed an independent distributor network to establish the company in outlets through-
out the united States.
PRODUCT OVERVIEW
Beyond CACI Brand’s ability to generate markets for certain products; the Company has
been very adept at identifying and packaging products for the North American market.
This is a key element of its strategy moving forward. To this end, it has selected prod ucts in retail niches that have proven very promising and that show signs of growth in
the future. These products include specialty ice cream snacks and desserts, individual fruit snacks and waterless car wash.
Durigon Gelato, GmbH — Ice Cream Snack Product
Durigon, a german-based manufacturer of deserts and
ice cream, has signed a five-year, exclusive distribution
agreement with Cross Atlantic for representation in the
united States.
The Durigon Line has already been accepted by a number of major retailers and distributors, who appreciate the quality and uniqueness of the product, the eye-catching packaging and the extremely attractive pricing. A well-established European brand
with proven marketability in North America and a wide range of products, Durigon is an appealing offering to the frozen dessert market.
Waterless Car Wash — Eco-friendly Car Wash & Wax Product
CACI Brands recently acquired of a waterless car wash and wax
product, effectively placing it at the center of the multi-billion dollar car care industry. This provides the Company with proprietary product in a huge market.
The product, which is packaged in 17.5 ounce cans, safely cleans
lightly soiled vehicles without using water and leaves a protective Carnauba wax finish. It effectively removes and cleans dirt, grime, water spots, bird droppings, tree sap, or road tar without harmful CFCs or consuming water.
While expanding the product market, this line of business also allows the Company to tap into additional outlets such as auto parts and accessory stores and offers another
route into department and warehouse retailers.
Fruit2 Go — Panal
Fruit2 go is a packaged fruit product with a large
market in Europe and manufactured in South Amer-
ica. CACI Brands owns the brand in it’s North Ameri-
can incarnation, which is 100% Natural, no additives
or preservatives.
This product has significant appeal as a healthy
snack for people on the go and packaged in a state-of-the-art pouch container using N.A.S.A.’s container design for food storage on space flight. The container gives the
product a twelve-month shelf-life using no chemicals or preservatives.
MARKET OVERVIEW
These products access two major markets: the highly lucrative North American con sumer grocery market and the consumer car care industry. Both markets sustain a con-
siderable variety of specialty products and possess a considerable appetite for more.
According to the International Carwash Association (ICA) people spend more than $22 Billion for professional cleaning this year, whereas the Supermarket and grocery Industry (excluding Convenience Stores) hit $444 billion in 2005 growing to $720 billion by 2008 in the united States according to research by IBISWorld, a business analysis and reporting company. Of this figure, food merchandise accounts for over 70% of the
industry’s product segment.
• In its new report, growth Retail Markets Worldwide 2007, Planet Retail predicts expansion of retail sales will increase by 8% to uSD12,329 trillion with grocery retail sales growing by an even faster 9% to uSD5,031 trillion this year.
Of this growth, North America was the largest with Economic growth in North America alone was almost as high as the overall economic output of Africa in
2006
• According to a report prepared by the Canadian Department of Agriculture,Warehouse clubs and mass merchandisers are two of the fastest growing channels in the American retail grocery market, with projected increases in
consumable retail sales of 20% and 21% respectively, by 2008. growth areas include private label products, home meal replacements, and prepared, organic, natural, and ethnic foods.
• The Automotive Aftermarket Association estimates that fifty-four percent of consumers consider themselves do-it-yourselfers with light maintenance and twelve percent feel they are capable of doing medium maintenance and repair jobs.
• The International Ice Cream Association notes that in 2005, total u.S. sales of ice cream and frozen desserts reached $21.6 billion. Of that total, $8.2 billion was spent on products for “at home” consumption. 90% of households in the
united States consume ice cream and related frozen desserts.
SALES & MARKETING APPROACH
CACI Brands’ marketing and sales strategy is driven by the merchandising requirements of its product line and the retail industry. Since the Eighties, it has become common practice to charge fees for retail also known as shelf space among retailers. A significant portion of the Company’s effort will be devoted to securing premium placement within brands that charge for this kind of placement. The use of placement fees is
not universal, however, and many larger retailers do not sell shelf space to the highestbidder. Rather they prefer to select products based on merit, propensity to sell, or suit-
ability to the retailer’s brand.
The Company will approach both types of retailers with equal vigor using two complementary sales strategies. In the first case, CACI will use a well-established network of
over fifty brokers who cover all of North America and maintain relationships with the retail brands listed below that collectively account for over 4,500 locations. While the
broker network has been developed over the last ten years of the CACI’s existence,these individuals make their own assessments of a product’s viability since they are
compensated based on sales volume. The Company will continue to work with these industry insiders and seek to expand this group to encompass brokers who have relationships that provide access to different retail outlets.
Retail Brand Number of Stores
Kroger 1,000
Albertsons 250
Safeway 250
Harris Teeter 145
Stop-Nshop 565
Food Lion 1,250
Wake Fern 200
Ingles 203
Bi-Lo 314
jewl 204
Whole Foods 200
In the second scenario described above, a direct sales model, CACI will sell into retail organizations that conduct product selection with a flatter, more accessible model. In these instances, the Company will rely on its industry track record and the product quality as well as the retail sector’s relentless demand for additional merchandise to satisfy consumer tastes.
Retail Brand Number of Stores
Wal-Mart 200
Sam’s Club 300
Publix 860
Trader joe’s 280
Aldis 828
Costco 120
Wegmans 75
BUSINESS OBjECTIVES
The Company seeks $1 million dollars to meet its 2008 revenue goals of $10 million
with margins in excess of 20%. Funds will be used for costs associated with market development of its three key products.
• Complete Product Development — The products discussed above require packaging and basic marketing materials including sell sheets, point of sale materials as well as information for in store promotions.
• Attain Revenue goals — CACI Brand’s three-year revenue goal is $9.3 million.
Management expects to achieve his goal through placement of its products in major retail venues throughout North America. To date the Company has successfully covered its operating expenses and, with its new strategy, it is con-
fident that it will become more profitable by reaping more profit from each transaction since it has an increased stake in the production and distribution.
• Expand Sales Network — Working from a base of over fifty brokers with extensive track records with retail brands, the Company will grow this cadre as
the business requires to access new distribution outlets. As brokers tend to operate based in long-standing personal relationships, it will be of significant value to add to this group over time to see sales growth at the retail level.
• Expand Distribution — In line with the above effort to expand its sales channel, CACI plans to move aggressively on its direct sales to add more outlets as their products gain momentum and opportunities for growth present them-
selves.
• Seek Operational Efficiencies — The value chain for production and delivery of products consists of manufacturing, logistics, and marketing; the Company plans to leverage funding to secure more favorable terms for these services.
FINANCIAL OVERVIEW
In it’s past eight years of operations, CACI Brands has grown consistently. The Company’s strategy calls for growth to $9.3 million in the third year of operation after funding.
The Company will concentrate resources on attracting broker representation, direct sales, manufacturing, logistics and marketing activities such as packaging and in-store
promotions.
The first year post-funding the Company expects to achieve revenues of $6.5 million.
2008 2009 2010
Revenues:
Fruit to go $3,500 $4,200 $5,040
Durigion Ice Cream $2,250 $2,700 $3,240
Waterless Car Wash $750 $900 $1,080
Total Revenues $6,500 $7,800 $9,360
Net Profit $1,132 $1,918 $2,380
Company Website:
http://www.crossac.comVideo Presentation
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http://www.blackwhiteproducts.com/Down 33% ask 0.0016 with only one MM on it, this thing is going back up to 0.003 or more, chart
