The CLEAN Food Shift
In the next decade fortunes will be made by investors in the company that can remove the
structural roadblocks which limit distribution and consumption of CLEAN Foods; that is foods
that ARE NOT contaminated with Genetically Modified Organisms (GMO) including glyphosate,
glufocinate and other toxic adjuvants and synthetics. Rod Smith, founder of publicly-traded
Green PolkaDot Box (symbol: GPDB), describes what is coming: a CLEAN food Shift.
“There is growing demand for CLEAN foods as consumers are discovering the
links between a contaminated food diet and chronic Illness and disease. Yet,
CLEAN food is out of reach for about 60 million health-minded, adult consumers
and their families due to the roadblocks of limited supply, high cost and distant
geographic proximity. There is a way to remove those roadblocks and open the
way for a giant shift in consumer spending…away from contaminated foods to
CLEAN foods. A CLEAN food shift is coming.”
Smith knows the marketplace is on the verge of a dramatic expansion from $35 billion,
annually, to more than $350 billion because he has solutions to remove the roadblocks. He
intends GPDB to lead the way, creating great financial opportunity for savvy investors who
capitalize on this explosion of growth in the CLEAN food sector. His plan is logical and
compelling.
“High prices for CLEAN foods—typically 2-3 times higher than conventional,
contaminated foods—put them out of reach for half the U.S. population that
wants to eat healthy. The way to lower prices is to bypass the current
production, processing and distribution system for CLEAN foods.”
Opportunity for Vertical Integration
Because of the big disparity between CLEAN food retail pricing and production costs, If
Smith is right, “the Shift” is going to occur because his company, GPDB, is creating an
alternative pathway for CLEAN food production and distribution through what he
describes as vertical integration. Smith plans to create a new, more efficient system
that eliminates most of the middle costs from farm to table, making CLEAN foods
available to consumers at or below conventional, contaminated foods pricing.
Case in Point: Grass Fed Beef
Grass feed beef is scarce in supply. If you can get it, the price for Grass
fed beef averages out at about $12 per pound between the various
options from ground beef to filet mignon. Landed cost for grass fed, grass
finished beef—the price retailers pay--is, currently at about $7 - $9 per
pound.
Smith’s plan is for GPDB to become vertically integrated in the production, processing and
distribution of grass fed beef: to own the grazing land, the mother cows and the processing
facilities. He claims that by doing this GPDB can produce finished and delivered grass fed beef
at a cost of less than $2 per pound and that the average retail price direct-to-consumer could
be as low as $3.50 per pound; even lower than the current average price for conventional,
contaminated beef.
The vertical integration model is applicable to all whole foods such as seafood and other
proteins (e.g. lamb, goat, poultry, pork) and grains, extensive produce varieties, nuts and seeds.
And there are, yet, many opportunities to develop CLEAN processed foods for “ready-to-eat” or
“cook n’ serve” consumption.
Smith believes—by applying the principle of vertical integration—that GPDB will be able to
lower prices for CLEAN foods by 50% to 70% below current retail pricing, including FREE home
delivery; that health-minded consumers will flock to replace their monthly spending on
conventional groceries with CLEAN food alternatives.
“Imagine when consumers find out they can purchase unadulterated (no
GMO, no antibiotics, hormone free) grass fed, grass finished hamburger
for $2/lbs. including FREE home delivery at half the price of contaminated
beef COSTCO sells at $4/lbs. The CLEAN Food Shift will begin.
Consumers spend approximately 30% of their monthly grocery budget on animal
proteins, predominantly beef, fish, chicken, pork and dairy products. Smith
maintains that once the public is convinced they can get CLEAN proteins at the
same price they pay for conventional proteins they will shift their entire budget
to CLEAN foods offered by GPDB. A buying “collective” of millions of consumers
will begin to form under the GPDB banner. GPDB, having become vertically
integrated in all essential food groups, will then be able to supply the demand
for CLEAN foods at the lowest prices to its own customers.”
Aggressive Acquisition Strategy
Smith knows there is a window of opportunity to acquire and develop its own resources.
Lands and processing operations related to CLEAN food production are relatively cheap
right now if compared with the opportunity they bring; and there is little competitive
buying pressure. GPDB plans to spend $1.5 billion over the next three years to acquire
hundreds of thousands of acres of CLEAN food producing lands and existing
production/processing operations that will lead to the annual production of almost $10
billion in CLEAN foods, serving approximately 2.7 million households averaging $3,600 in
annual spending, each.
Acquisition Spending Plan
2016
$63 Million
2017
$550 Million
2018
$1 Billion
Projected Households & Annual Revenues ($3,600 each) Run Rate
200,000
700,000
2.7 Million
$720 Million
$2.5 Billion
$10 Billion
Projected GPDB Valuation & Price/Share*
End of 2016
End of 2017
End of 2018
$2.5 Billion
$8.5 Billion
$35 Billion
$63/Share
$176/Share
$583/Share
*Assumes 35 x earnings
Primary Targets for Strategic Acquisition and Development
GPDB has already identified numerous properties and businesses that are ideal for
acquisition and/or development:
Ranchlands and Processing Operations for Grass Fed Beef and other Proteins.
Grass Fed Dairy Production Operations (e.g. Milk, Cheeses)
Ocean Caught Fisheries and Processing Operations
CLEAN Ancient Grain Farmlands, Mills and Bakeries, including Gluten Free
CLEAN Nut and Seed Growing Farms
Farmlands for CLEAN Root Crops (onions, carrots, beets, potato in all varieties)
CLEAN Orchards for Citrus varieties, Avocado, Stone Fruit
Living Produce® Growing Centers† for Leafy Greens, Herbs, Tomatoes, Peppers…
CLEAN Food Processing and Distribution Facilities
Finished CLEAN food goods manufacturers/vendors
† See Exhibit A for more details on Living Produce®
Smith believes that the execution of GPDB’s plan to become vertically integrated will
position the Company to control CLEAN food supply and maintain a significant value
advantage for its customers.
What is Green PolkaDot Box?
GPDB is an online national distributor of CLEAN foods (see
www.greenpolkadotbox.com). It currently offers thousands of shelf-stable CLEAN food
products from America’s top selling brands, including frozen/refrigerated goods. For
approximately four years, and until just recently, GPDB was a direct to consumer CLEAN
food marketing and sales company. Beginning in December 2015, the company’s
business model has improved to offer its products to consumers through an expanding
network of “Health Merchants.”
How Does GPDB get Customers?
Green PolkaDot Box has developed a national network of 265 “Health Merchants,” each
with its own group of health-minded consumers. Examples of Health Merchants include
organizations like March Against Monsanto (800,000 followers), Moms Across America
(150,000 followers), Innovision Health Media (500,000 subscribers), Creations magazine
(160,000 subscribers) and many other health care practitioners and entrepreneurs.
Collectively these Health Merchants have direct influence over the purchasing decisions
of approximately 15,000,000 consumers.
Each Health Merchant has an online CLEAN food storefront built on the GPDB
ecommerce platform. Operational support, including website design and maintenance,
inventory acquisition and storage, order processing and fulfillment, customer care and
marketing services are provided by GPDB. Health Merchants monetize the trust
relationship that exists with their customers to offer CLEAN foods, directly, at the lowest
prices—guaranteed—through their own store fonts, including FREE home delivery.
GPDB believes it can achieve by the end of 2016 at least a 1.3% conversion—that is 1.3%
of the collective customers of its current Health Merchant group--to order a minimum
of $200 monthly; that is a total of approximately 200,000 customers spending $720
million annually.
GPDB plans to add more Health Merchants in 2016; to increase its national network to
at least 2,000 Health Merchants by the summer of 2016, with a reach to potentially 30
million health-minded customers. And then, to achieve a customer conversion of at
least 9% by the end of 2018, selling a $10 billion or more in CLEAN foods, annually
Summary
GPDB has established a CLEAN food selling system—a network of Health Merchants—with a
reach to more than 15 million potential customers. Though the Company currently offers
thousands of CLEAN food products, by becoming vertically integrated in essential foods groups,
GPDB plans to lower prices for CLEAN foods from 50% to 70%. The marketplace is ripe for
many strategic acquisitions that will help GPDB establish an alternative distribution system for
CLEAN foods and lower prices to attract millions of customers.
Forward looking investors can take advantage of early stage investing in GPDB and position
themselves for dramatic financial gains while playing a key role in the reduction of CLEAN food
pricing, making healthy foods affordable and available to all consumers living in every zip code.
For more information, please contact GPDB CEO Rod Smith at (801) 478-2500, ext. 1000.