High Quality N.F.C. Bottling Industry Supported Main Goals Freshland is Establishing Manufacturing Production Unit Dedicated to Bottling Juices from Fruits FRESHLAND S.A. will produce and fill aseptically PET bottles High Premium N.F.C. juice in aseptic P.E.T. bottle Main Goals FRESHLAND is ready to produce cold filled pasteurized juice which will contain all the vitamins of the fruit, vegetable fiber and the fruits' water. As the consumer habits have been changed, Freshland is ready to fulfill customers’ needs with its new product, Bottled Not From Concentrated Juices “NFC”. Location The company will be located In the Municipality of Faridos, Vrisika, Lefkohomatos area, In the position of Samarakou or Kambos, In the wide area of Laconia In a building site of 16.716,30 m2 equipped with a biological waste treatment, well water and electricity power. BIOFRESH S.A. will participate: 1st 4.041,8 m2 , 2nd 8.896 m2 , 3rd 3.778,5 m2 Biofresh SA BIOFRESH S.A. is a company with main activity the production of NFC juice (N.F.C. = Not From Concentrate), it is one of the leading fruit processors and exporters in Greece and also a leading exporter of citrus concentrates in more than 41 countries. The company is about to establish and operate a composting unit, which will treat part of the plant’s solid waste and will produce bio fertilizer. Furthermore, the operation of an anaerobic fermentation unit for the production of biogas is being planned. Laconic Gardens Laconic Gardens LTD was created by the need of a total service Concept for BIOFRESH SA and of the farmers need for modern farming solution. The Laconic Gardens were established in 2010 and become operational the same year. Within this respect the Laconic Gardens are involved on the following operations Will acquire land space for the creation of its own Orange Plantations Create a nursery for supplying Orange Farms with new, better and more productive varieties Create farming cooperatives in order to maximize output, lower cost and control fruit quality Restructure farming by introducing new varieties which are coping better with frost, with higher yield per fruit etc Supplying farmers with fertilizers of zero cost from the fruit byproducts from BIOFRESH plan and thus lower farming cost. We organize the farmers to e-banking operations in order be more Biofresh, Laconic Garden and Freshland Laconic Gardens High quality Fresh fruit Retail market Biofresh SA 1.Extraction juice facilities 2. Blending facilities Aseptic bottling of premium NFC Strategically Advantages Location Raw Material Transportation Cost Advantages in the Access of fresh fruit and juice The biggest plantations in Greece of Valencia Orange trees are in Laconia area Biofresh is the biggest extractor of citrus juice products in Greece and also NFC. Advantages in the Access of fresh fruit and juice 1. N.F.C. Products Standard contracted raw materials from Biofresh Greece = 15,000MT Orange NFC Biofresh Egypt TOTAL = 10,000MT Orange NFC = 25,000MT Orange NFC Moreover, with a small investment in the machinery, Biofresh can supply the market with NFC apricot, peach & Cloudy apple. Standard contracted raw materials from Biofresh 2.CONCENTRATE Products 3.000MT FCOJ for the production of Juices 10.000MT BASES for the production of Nectars and Soft Drinks with 5%, 10% and 15% juice content Advantages in the Access of fresh fruit and juice 20.000 tn Oranges 17.000 tn Lemons 1.500 tn Tangerines 10.000 tn Oranges 10.000 tn Lemons 2.000 tn Tangerines 7.000 tn Oranges 2.000 tn Lemons 2.000 tn Tangerines 410.000 tn Oranges 3.000 tn Lemons 31.000 tn Tangerines 230.000 tn Oranges 5.000 tn Lemons 10.000 tn Tangerines Freshland & Biofresh Comparative Advantage in the access of seaports and airports The nearest port is just 20 minutes from the facilities, the port of Gytheio Athens airport, and also the port in Piraeus, is just 3 hours away. Advantages in the transfer costs Biofresh and Freshland will be located side by side Minimum transfer costs from the extraction & blending facilities to the bottling facilities Comparative Advantage in the access of seaports and airports Port of Patrai Airport of Athens Distance 2 hour Port of Piraeus Distance 2 hour Freshland & Biofresh Port of Gytheio Distance 20 Min Port of Kalamata Distance 1 hour Markets with advantage for Freshland Markets with advantage for Freshland E.U. Population: 504.4 million Total fruit juice and nectars Volume, million litres Total Private label Branded 2008 2009 2010 2011 2012 % change 11,346 11,199 11,041 10,737 10,387 4,638 4,865 4,782 4,64 4,517 6,709 6,335 6,259 6,097 5,869 -3.3% -2.6°% -3.7% Fruit juice (100% juice content) Total fruit juice Private label Branded Chilled Ambient From concentrate Not from concentrate 7,237 3,217 4,02 1,283 5,954 5,739 1,498 7,218 3,349 3,869 1,288 5,931 5,66 1,558 7,18 3,328 3,852 1,321 5,859 5,581 1,599 7,007 3,226 3,781 1,356 5,651 5,295 1,712 6,768 3,088 3,68 1,394 5,374 5,001 1,767 -3.4% -4.3% -2.7% 2.8% -4.9% -5.6% 3.2% 3618 1,429 2,189 -3.0% 1.1% -5.5% Nectars (25-99% juice content) Total nectars Private label Branded 4110 1,421 2,689 3981 1,516 2,465 3860 1,453 2,407 3730 1,414 2,316 Source: AIJN 2013, Liquid Fruit, Market Report Markets with advantage for Freshland Turkey Population: 74.9 million Total fruit juice and nectars Volume, million litres 2008 2009 2010 2011 2012 Total 585 586 624 678 632 Fruit juice (100% juice content) Total fruit juice 55 47 50 53 52 Branded 52 44 46 48 47 Private Label 2 4 4 5 6 Ambient 51 45 47 50 47 Chilled 3 2 3 4 5 From concentrate 52 40 41 44 42 Not from concentrate 3 7 10 10 10 Source: AIJN 2013, Liquid Fruit, Market Report Markets with advantage for Freshland Population: 8.0 million Switzerland Total fruit juice and nectars Volume, million litres 2008 2009 2010 2011 2012 Total 585 586 624 678 632 Total fruit juice 158 158 155 153 151 Branded 84 84 85 83 79 Private Label Total fruit juice (Ambient vs Chilled) Ambient Chilled Total fruit juice (Concentrate vs NFC) From concentrate Not from concentrate Total nectars Branded Private label 74 158 145 13 158 145 13 49 14 35 74 158 144 14 158 144 14 50 17 32 70 155 142 13 155 141 14 49 16 33 70 153 138 15 153 137 16 48 16 32 73 151 134 17 151 133 19 47 15 32 Source: AIJN 2013, Liquid Fruit, Market Report Markets with advantage for Freshland Balkan Area Population: 67,3 million COUNTRY ROMANIA BULGARIA CZECH GREECE Population 21.8 mil 7.0 mil 10.2 mil 10.8 mil 10.0 mil 2.0 mil 5.5 mil YEAR 2012 2012 2012 2012 2012 2012 2012 Total Fruit Juice in Litres (100% Juice content) HUNGARY SLOVENIA SLOVAKIA 21.000.000 16.000.000 49.000.000 93.000.000 37.000.000 36.000.000 13.000.000 Total Nectars in Litres (25%-99% Juice 34.000.000 51.000.000 34.000.000 57.000.000 58.000.000 23.000.000 16.000.000 content) Total Fruit Juice & Nectars 55.000.000 67.000.000 83.000.000 150.000.000 95.000.000 59.000.000 29.000.000 Source: AIJN 2013, Liquid Fruit, Market Report Markets with advantage for Freshland E.U. Fruit Juice and Nectars by Packaging E.U. Fruit Juice and Nectars by Flavours Others 21.00% Other 1.20% Orange 38.50% Pineapple 3.60% Plastic 24.60% Peach 3.70% Carton 64.90% Glass 9.40% Carton Apple 13.30% Glass Plastic Other Orange Flavour mixes 19.90% Flavour mixes Apple Peach Pineapple Others Source: AIJN 2013, Liquid Fruit, Market Report Markets with Advantage for Freshland After an in depth market research, Freshland is investing in an innovative production of high quality bottled NFC juice . Its target is to fulfill the needs of its local market as well as the Balkans and eastern Europe. Moreover, researches in the industry has shown that: The production of NFC is highly auspicious especially in Eastern Europe and in Balkans Instead, the industry in western Europe is characterized of its stiff competition. Subside & Budget File Submission & Approval of the Greek Ministry of Economy Fund Raising Freshland’s Budget Subside & Budget File Submission & Approval of the Greek Ministry of Economy Freshland S.A. has submitted the file for entering in the investing incentive law 3299/2004 of the Greek Ministry of Economy and has received the certification of select ability #39361 on 18/11/2008. Freshland S.A. has received the approval of the plan on 2/10/2009. The estimated cost is 11.856.700 Euros. Subside & Budget FUND RAISING Subsidized from the investing law of the Greek Ministry of Economy 7,114,020€ 60% Bank Loan 1,778,505€ 15% Owner Funds 2,964,175€ 25% TOTAL FUND 11,856,700€ 100% Subside & Budget FRESHLAND’S BUDGET SUROUNDINGS TOTAL SUROUNDINGS 450,000 € TOTAL BUILDINGS 1,097,239 € SPECIAL INSTALATIONS & INSTALATION OF MACHINERY 1,082,897 € BUILDINGS SPECIAL INSTALATIONS MACHINERY 1,Aseptic Pasteuriser 2,Blending Tanks 3,Totebin dumper 4,CIP Unit 5,Aseptic Filling Line TOTAL MACHINERY 8.871,400 € SUPPLEMENTARY 75,000 € CLARKS & TRUCKS 280,164€ OTHER ACCOUTREMENTS TRANSPORTATION MEANS TOTAL FRESHLAND'S BUDGET 11,856,700 € S.W.O.T. Analysis Weakness Strengths 1.Access to citrus juice in more economic final prices . 2.Biofresh & Laconic Garden clients in premium & conventional markets (NFC, Concentrate in E.E., Russia, Far East, Middle East etc.). 3.Low transfer cost from extraction & blending facilities . 4.Advantage in terms of ports and highways Please we need your insight as we do not find weakness of a joint venture approach Threats Opportunity 1. 2. 3. 4. Low prices of fresh fruits creates a competitive benefit for our new company. Access in potential markets through existing sales network. The ability to manufacture new quality products. High Premium N.F.C. juice in aseptic P.E.T. bottle . 1. 2. World economic crisis. The political situation Greece. in Egypt and Major Goal In Pricing Competitive prices In Quality High quality NFC Bottling In Distribution Supplying with minimum transfer cost European markets and also Middle East markets The Major Goal Established a High Quality N.F.C. Aseptic Bottling Industry Drafts