OWNERS: Larry D. Martin, Ph.D., chemistry
Business Name: Shaka Corporation
Telephone: Larry: 712-274-0134
Cell Phone: Larry: 712-204-5807
Email: Larry: [email protected] [email protected]
Dick: [email protected]
I. TABLE OF CONTENTS
I. Table of Contents ……………...……. 1
II. Executive Summary …………………….. 1
III. Business Description ………………........2
IV. Market Analysis ……………………….... 4
V. Marketing Plan …………………………....5
VI. Competitive Analysis …………………..…6
VII. Development Plan …………………………6
II. EXECUTIVE SUMMARY
Our plan is to open a business that will license to existing beverage industries the rights to manufacture and market our new beverage technology. The new technology is a multiple flavored beverage (patent pending) that when shaken appears similar to a Lava Lamp. (The beverage can also be stirred or different flavors can be experienced by lifting a straw to different heights in the stratified multiple flavored beverage.) After shaking, the different flavors are suspended in globules that do not mix with each other. These flavor globules will create varying bursts of flavor in size and intensity which is dependent upon the amount of shaking done. Because all the Strataform flavors and the Shaka beverage base are fluids, a pleasant mouth feel is experienced throughout the drinking of the beverage. This is a very different and exciting new experience for any person and kids go crazy over it!
Because the dairy industry is already well organized and the medical community is recommending more consumption of fat-free milk to curb the obesity and diabetes epidemics, we will start by introducing our new Shaka technology to the dairy industry.
III. BUSINESS DESCRIPTION
This business will be in the beverage industry. Shaka Corporation has created a completely new Beverage Technology using only natural ingredients. This new beverage technology is very different and extremely exciting. For existing beverage manufacturers, the new Shaka beverage technology will create opportunities for huge new markets not in existence today.
The basic premise of the new Shaka Beverage Technology is that the drinks contain multiple flavors that remain separated in the same container. Because the multiple flavors are all fluids, a pleasant mouth feel is maintained. We call them Strataform Flavors. A familiar example would be similar to Neapolitan Ice Cream (chocolate, strawberry and vanilla). All the flavors remain separate in the same container except in liquid form (milk), not frozen. These three flavors will not mix with each other or with the Shaka base beverage and will remain separated.
Without adding anything, a consumer can change the physical characteristics of his drink in several ways. First by placing a straw at different heights in the Shaka Beverage, each different flavor will be tasted as the straw is lowered or raised. A second method of changing how the different flavors are experienced is to stir the Shaka Beverage with the straw to create a swirl pattern of flavors. A third way to change how a Shaka Beverage tastes, is to place a lid on the container and shake it. The resulting pattern of flavors will look like a Lava Lamp! The Strataform Flavors will form flavor pockets or flavor globules! The duration and intensity of shaking will determine how large or how small and how numerous the flavor globules will be. Shaka is the only beverage in the world that allows the consumer to change the characteristics of his drink without adding anything!
Drinking a Shaka Beverage is unlike anything consumers have ever experienced before. If after agitation, the consumer simply drinks the beverage from the container, the different flavor globules will create explosions of flavors that can cause a “Flavor Shock” experience. Bursts of different flavors will explode in your mouth at various intensities and frequencies, depending on how much agitation was done.
Alternatively, the consumer may wish to drink out of a straw. After agitation, the straw can be moved around in the beverage and different flavors will be experience as the straw encounters the various flavor globules.
If no agitation is desired, the Strataform Flavors will stay relatively layered and the straw can be moved to each layer to experience that particular flavor.
Strataform Flavors will be packaged in flavor packets to be added to a Shaka Drink Base so the consumer will be able to select from many different Strataform Flavors. Consumers will be able to create a customized multiple flavored beverage of his or her own choosing!
Shaka Beverage Technology is truly exciting and unique in the Beverage Industry!
Children and young people are the largest consumers of milk in the world (see charts and reports in the attachments section). The Medical Community is very concerned about the growing epidemic of obesity and diabetes in children and young people. One of their major concerns is that children and young people don't drink enough milk. They all recommend that children (after the age of 2) and young people need to drink more fat free milk (see attachments section). But the problem is how do we get children and young people to drink more milk instead of other beverages? Shaka is new, fun, healthy, and exciting! So the new Shaka beverage Technology is the answer! Shaka is the fun incentive that will get children and young people to drink a lot more milk!
The extra calcium and protein in Shaka are some of the most important nutrients that children and young people need to develop in a healthy way. Older adults also need calcium and protein to maintain healthy bodies.
With the new Shaka Beverage Technology, Shaka milk drinks will be versatile and exciting enough to be very competitive with all other beverages.
We will license marketing rights to existing dairies.
IV. MARKET ANALYSIS
Our product is perfect for the dairy industry because the U.S. dairy industry is currently experiencing a decline in sales and is looking for new products to increase sales. Our Strataform flavored milk drinks (Shaka) will supply this new product perfectly. Children are the largest consumers of milk in the United States and, for children ages 2 – 11, 28% of the milk consumed is flavored. Older children and adults also drink flavored milk in percentages ranging from 17 – 10 percent (see charts in the Attachments section) (Fluid Milk Consumption in the United States, www.ars.usda.gov/SP2UserFiles/.../3_milk_consumption_0506.pdf, Accessed January 30, 2015). Children are inquisitive and like to play with their food. Shaka is designed to be played with! Shaka involves children in shaking and stirring the drink to their own personal liking! Kids love it! U.S. medical associations are promoting the consumption of milk by children and adults as important for better health. “The 2005 Dietary Guidelines for Americans (DGA) recommends 2 cups of low-fat or fat-free milk or equivalents (i.e., cheese, yogurt) daily for children aged 2 to 8 years, and 3 cups or equivalents daily for people aged 9 years and older because of milk’s important nutrient contributions to the diet (1). Flavored milk is a nutrient-rich beverage providing the same nine essential nutrients as unflavored milk…” (Flavored Milk in Perspective, http://www.udidaho.org/Schools/FlavoredMilk.aspx, referencing U.S. Department of Health and Human Services and U.S. Department of Agriculture. Dietary Guidelines for Americans, 2005. Washington, DC: US Government Printing Office, 2005, Accessed March 20, 2014). Shaka is the answer to the problem, which is, “how do we get kids to drink more milk?”
A report shows the size of the dairy market:
In 2011, total U.S. beverage milk sales were 53 billion pounds - about 6 billion gallons - the lowest level since 1984, according to U.S. Department of Agriculture figures released in August. Whole milk beverage sales in 2011 were less than half their level from the early 1980s, according to the Agriculture Department. (Milwaukee Wisconsin Journal Sentinel, September 3, 2012, U.S. Milk sales reach lowest level in decades, http://www.jsonline.com/business/us-milk-sales-reach-lowest-level-in-decades-4m6mnqa-168400516.html Accessed March 20, 2014)
Because children in the United States are the major consumers of milk and 28% of the milk they consume is flavored, there is an excellent potential for Shaka to increase the volume of milk consumed by children. This can be the way to stop the dramatic decline in milk consumption noted above.
A very important note is that because our patent is for stratified multiple flavored, drinks and not for the exact manner in which this is accomplished, there will be no competition in any of the beverage markets around the World! We have invented a completely new beverage technology!
V. MARKETING PLAN
We will be licensing the Shaka beverage technology to the dairy industry, and their expertise in marketing and manufacturing will be important to the success of the new Shaka milk drinks. We have talked with DMI (Dairy Management, Inc., the management organization for the American Dairy Association, Innovation Center for U.S. Dairy, National Dairy Council, and the U.S. Dairy Export Council) and we will work with DMI to gain access to nearly all of the dairies in the United States, and to the U.S. marketplace. Con Agra has also expressed interest in Shaka products.
Shaka Strataform Flavors© will be in flavor packets that can be added to beverages by the consumer. These packets will be displayed on retailer’s shelves, giving consumers a wide choice of flavors to be purchased as individual units. Giving consumers individual control over their own personal drink creations will drastically increase sales! (Coca Cola's new fountain machine allowing consumers to choose what additive to put in their coke instantly doubled coke's fountain sales and now Pepsi is doing the same.)
VI. COMPETITIVE ANALYSIS
The existing Dairy Markets have just a few flavored milks. Plain white milk, strawberry milk and chocolate milk are most common. So we feel that the competition will be almost non-existent. There is no Dairy Market or any other beverage market that has Multiple Stratified Flavored Drinks!
Another marketing advantage is that Shaka milk is fat-free milk that is protein and calcium fortified. Medical organizations have stated that children need to drink more fat-free milk. The protein and calcium fortification of Shaka Milk drinks makes them even better for both children and adults.
There is no competition for stratified, multiple flavored beverages (Shaka) because we own a completely new patent pending beverage technology. This is the case in all beverage markets!
VII. DEVELOPMENT PLAN
Product samples have been successfully developed in our labs (both dairy and non-dairy) and we will continue to develop additional flavors in all types of beverages with the help of existing experts in their particular beverage field. Marketing will begin with dairy beverages because of the established dairy organization and the special health needs that make Shaka dairy products super attractive. In this way we will utilize the expertise of the established dairy industry in marketing and development of further Shaka dairy products. Also, the existing dairy market has a very limited variety of milk flavors and no multi-flavored milk drinks. So with "Shaka" technology, in the dairy industry, there exists a rare opportunity for vast expansion of existing markets!
Our organizational structure will be Shaka Corporation as the licensor of the manufacturing and marketing rights that will be licensed to the individual industries, as necessary. Shaka will retain ownership of all patents. Licensing of the Shaka brand will outlive the life of the patents; therefore, Shaka Corporation will continue to receive income even after the patents expire.
Our ongoing monthly costs will be mostly administrative because the existing beverage industries will do most of the marketing and utilize their existing infra-structure. There will be initial costs associated with the development of the exact flavor formulations. In this way Shaka Corporation will be able to maintain quality standards for the Shaka brand products.