Transcript Company Information - Rutgers Food Science

Elijah’s Promise: More than a
Soup Kitchen
Melanie Lan
Kevin Batell
Company information
• Soup Kitchen
– Serves average 300 meals daily
– Over 400 regular volunteers cook and serve
– “Bag Meal” program provides food for those
“on the go”
– “Fresh is Best” program provides food for those
living with AIDS/HIV
Company Information
• Promise Jobs Culinary
School
– 17-week training program
provides skills for the food
service industry
– Over 200 participants
– 95% job placement rate
– Approved vocational
training program under the
NJ Department of
Education
Company information
• Product development team
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Linda Gavin from CAFT
Lisanne Finston from Elijah’s Promise
Promise Jobs Culinary School staff and trainees
Melanie Lan and Kevin Batell
Company Information
• Goals and Objectives of Elijah’s Promise :
social benefit to the community
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Alleviate hunger
Social Services and health screenings
Job Training
Job placement
Company Information
• Successful Business Ventures
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Soup Kitchen – nourishment
Clinic on Wheels (RWJ) – healthcare
Housing Coalition – shelter
Promise Jobs Culinary School – training
Promise Catering – employment
Reach-Up Micro-enterprise – education
Company Information
•Elijha’s Promise Management Structure
Volunteer Board of Directors
Executive Director
Program Directors
Line Staff
Project Aim
• Assist in the development of a line of high quality
and inexpensive dry soup mix products for
production at the Elijahs Promise facility to be
produced by its clientele with the aim of aiding the
clientele in developing skills to be used in the
work place. Target customers include low-income
population, not-for-profit institutions and other
community outreach organizations located in New
Jersey
Current Situation
Operations Funding
18% Federal Grants
40% General Contributions
20-25% Privet Foundations
10% United Way
10% Catering Business Income
Current Situation
Resources
•People
16 salaried employees
12 Culinary students
Clientele
Volunteers
•Equipment
~500 sq. ft Kitchen with refrigeration, heating and work
space used in the preparation of clientele and catering meals
Current Situation
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Production Facility
Location
1. 18 Neilson St., New Brunswick - 6000 sq. ft
2. 211 Livingston Ave - Training and Catering Kitchen - 7000sq
ft (new)
3. Rutgers University - FMT
Utilities
Electric (110V); Cooking gas; Ventilation
Materials Storage
Limited @ 18 Neilson St.
Current Situation
•Transportation
Elijhas Promise Van
•Retail Distribution
None in place
•Marketing and Advertising
None in place - Rutgers Marketing and Public Relations Dept.
Current Situation
•Existing Customer / Clientele base
Poverty estimates - 11,454 in New Brunswick
- 703,000 in New Jersey
Elijah’s Promise - 95K meals served in 2004
- 45.5% clientele working
•Retail Sales
None
•Profits
10 % operating funds from catering operation
Potential Expansion
• Aim: To further provide social benefit to
larger amounts of people and to merge the
resources provided by Elijah’s Promise and
CAFT to create an assembly business
benefiting the poor.
• Create a dehydrated soup that can be made
and used at Elijah’s Promise
• New building
Potential Expansion
• Objectives:
– Teach culinary trainees to assemble the
dehydrated soup
– Use the dehydrated soup in the soup kitchens
– Sell the dehydrated soups to other vendors
Potential Expansion
• Additional Resources
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More volunteers for training and working
Mixing and Boiling equipment
Donated ingredients/ more funding
New building – 7000 square feet
Distribute to kitchen as well as vendors such as
Wegeman’s or farmer’s markets
– PR through Rutgers and New Brunswick businesses,
website, word of mouth
Constraints to Expansion
Market Constraints
•Customers demographics
•Limited retail distribution
•Advertising and promotion budget
Financial Constraints
•Funding for special projects - Federal and State Grants
- Privet Foundations
•Alternate expansion possibilities - donated & used equipment
Constraints to Expansion
Product Constraints
•Dry ingredients - high quality and low cost
•Packaging
Process Constraints
•Dry blending and packaging only
•Raw material and final product holding
•Worker training, turnover, and scheduling
•Process facility and equipment capacity
•Safety
Product Description
• Commercial Item
Description
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Type
Style
Flavor
Flavor profile
Fortification
Options
Product Description
• Type I quick-cooking : can be prepared by
cooking in boiling water for five minutes
• Type II instant : can be reconstituted in
boiling water in approximately one minute
• Type III slow cooking : fully reconstituted
in boiling water for not more than forty
minutes
Product Description
• Style
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A : With added MSG
B : No added MSG
C : Reduced sodium
D : Reduced sodium with no added MSG
Product Description
• Flavor profiles : vegetarian vegetable, plain,
chicken flavored vegetable, beef flavored
vegetable, pork flavored vegetable, spicy
vegetable blend, fish flavored vegetable,
chicken vegetable, cream of vegetable,
lentil, black bean, potato leek, navy bean,
chicken noodle, green pea, corn chowder,
cream of broccoli, cream of spinach,
tomato, onion, minestrone, other
Product Description
• Fortification a : nutritionally fortified
• Fortification b : Not nutritionally fortified
• Options
– I. With additional ingredients, such as, but not
limited to : starches, food colorings, wheat
gluten, soy products, acidulent, sweeteners,
barley/grains or vegetable oils
– II. No additional ingredients other than those
listed in Sec 5.5.1.
Product Description
• Ingredients in Dehydrated Product
according to Sec 5.5.1: meat or poultry,
noodles, macaroni, rice, lentils, beans,
carrots, onions, celery, green beans,
potatoes, corn, parsley, red and/or green bell
peppers, cabbage, salt, seasonings, in
addition to other ingredients that are
specific to the flavor
Product Description
• Dehydrated product
– Flavor and odor : no foreign such as burnt,
scorched, stale, rancid, musty, or moldy
– Color : should be representative of the specific
flavor of the soup
– Flavoring ingredients : no animal-based
flavorings in vegetable soups
Product Description
• Rehydrated Product
– Consistency : mix shall fully and completely rehydrate
when prepared according to packaging directions.
– Texture : rehydrated noodles shall be soft but not
mushy. Meat or poultry should be soft and tender, and
there should be no excessively hard or chewy pieces
– Foreign material : all finished products shall be clean
and wholesome and free from rodent or insect
infestation
Product Description
• Nutritional information for dry chicken noodle
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Calories 58
Total fat 1.3 g (Saturated Fat 0.3 g)
Cholestrol 10 mg
Sodium 578 mg
Total carbohydrates 9.1 g
Protein 2.0 g
Calcium 5.0 mg
Potassium 32.8 mg
Product Description
• Shelf Life
– Low water activity of dried product allows it to
be safe for a long amount of time
• No mold or bacterial growth
• No enzyme action
• No caking
*Once rehydrated, must be used quickly*
Product Description
• Raw Materials and Availability
– Water always available
– Ingredients based on budget
– Processing : Mixing and boiling
Product Description
• Packaging
– Aluminum foil with
plastic : moisture and
vapor barrier
• Single serving for
retail (vendors)
• Bulk for Institutional
Customers (Elijah’s
Soup Kitchen)
• Depends on scale
Product Description
• Differentiating Qualities : Support of
Community Outreach Program
• Charity vs. Quality
– Newman’s Own
– Ralph Lauren
– Livestrong bracelets
Current Market Situation
Competition between soup types
Soup Sales by Type as % of Total Sales
50
45
%
40
35
30
2002
25
20
15
10
2000
5
0
RTS
Condensed
Dry
Current Market Situation
US statistics
•Dry soup sales ~ 21% soup users.
•Average annual US soup consumption/person = 10 cups (220g)
New Brunswick statistics
•11,454 low income individuals(.21) = 2405 potential customers
New Jersey statistics
•703,000 low income individuals(.21) = 147,630 potential customers
Current Market Situation
Product Use Potential
•New Brunswick
2405 potential customers(.49 lbs/year)= 1180 lbs/year
= 23 lbs/week
= 120 4 serve packs/week
1 cup ~ 22g (3tbsp) ; 4 serve pack ~ 88g
Current Market Situation
Product Use Potential
•New Jersey
147,630 potential customers(.49 lbs/year)= 72,000 lbs/year
= 1,391 lbs/week
= 7200 4 serve packs/week
Current Market Situation
Pricing for chicken noodle soup at retail ~ 3 to 4oz
Producer
Knorr
Savory Soups
Bear Creek
Country Kitchens
Wyler’s
Mrs. Grass
Lipton
Soup Secrets
ShopRite Brand
Retail price
0.95
2.74
1.49
1.50
0.69
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Comments
Known brand
Pouch package
High end
Fancy package
Mid level price
Paper box
Wide distribution
Known brand
Low end
Current Market Situation
Advertising and Promotion
•Supermarket Flier Insert
•Retail Displays
Consumer Characteristics
• Income Demographic in New Jersey
Less than $10,000
88,844
$10,000 to $14,999
58,500
$15,000 to $24,999
156,939
$25,000 to $34,999
189,840
$35,000 to $49,999
293,442
$50,000 to $74,999
463,743
$75,000 to $99,999
342,115
$100,000 to $149,999 340,376
$150,000 to $199,999 115,666
$200,000 or more
118,112
Median family income (dollars)
4.1%
2.7%
7.2%
8.8%
13.5%
21.4%
15.8%
15.7%
5.3%
5.4%
65,370
Consumer Characteristics
• Income Demographic in New Brunswick
Less than $10,000
1,643
$10,000 to $14,999
864
$15,000 to $24,999
1,787
$25,000 to $34,999
2,074
$35,000 to $49,999
2,105
$50,000 to $74,999
2,114
$75,000 to $99,999
1,338
$100,000 to $149,999
765
$150,000 to $199,999
202
$200,000 or more
171
Median household income (dollars)
12.6%
6.6%
13.7%
15.9%
16.1%
16.2%
10.2%
5.9%
1.5%
1.3%
36,048
Consumer Characteristics
• Low income individuals in New Jersey:
699,688
• Low income individuals in New Brunswick:
11,460
• Target New Jersey especially New
Brunswick
Consumer Characteristics
• Current Purchasing Channels
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Supermarkets
Farmer’s Markets
Institutions
Schools
Hunger and Poverty in US
• 10% have to skip meals to make ends meet
• 34.8 million live in poverty
• More than 43 million people do not have
health insurance even though 20 million of
them work full-time
• Minimum wage is about 4,300 below the
poverty line for a family of three
Hunger and Poverty in the World
• More than 1.2 billion people live below the poverty line in the
developing world, earning less than $1 a day
• 815 million people in the world are malnourished because they cannot
provide the proper food supply to themselves
• Approximately 5 billion people live in the developing world. This
world is made up of about 125 low and middle-income countries in
which people generally have a lower standard of living with access to
fewer goods and services than people in high-income countries.
• A lack of food can stunt growth, slow thinking, sap energy, hinder fetal
development and contribute to mental retardation
Feasibility for Expansion
Product Line Extension
•Most popular flavors
•Gourmet blends
•Ethnic flavors
Feasibility for Expansion
Increase Customer Base
•Retail chains and Supermarkets
Rutgers University
•5 student dining facilities serving 2,8000,000 meals / year
•11 cash facilities serving over 370,000 meals / year
•Catering for over 400 University events yearly
Reference
•Anonymous. 1998. Maybe it's the weather. Marketing News, 10/12/98, Vol. 32
Issue 21, p2, 1p
•Anonymous. 2004 Rutgers Division of Dining Services. Http://food.rutgers.edu.
New Brunswick, New Jersey.
•Finston, L. 2005. Personal Communication. Elijah’s Promise.18 Neilson Street.
New Brunswick, New Jersey.
•Mathisen,L. Troch,J. Tuazon,M. Vaezi,S. 2004 Elijah’s Promise
NewbrunsQuickSoups Final Report Food Product Development Rutgers
University New Brunswick New Jersey.
•Roberts, W.A Jr. 2003 Market Trends: Soup Lines. Prepared Foods magazine.
www.preparedfoods.com
•U.S. Department of Agriculture. Commercial Item Description. A-A-20329A
Soup Mixes, Dehydrated.HTM
•U.S. Census Bureau. Profile of Selected Social Characteristic. www.census.gov
•Fischer, Jeff. Why Aren’t you Eating Soup? www.fool.com
•Anonymous. World Hunger and Poverty: How do they fit together?
www.bread.org