Collaborative Business for Local Collaborative Business for Local Sustainable MeatsSustainable Meats

Part 3Part 3

Slav Heller St. Paul, AB

November 2012

Two options for ownership Two options for ownership of the of the local meat brandlocal meat brand

1.1.Typical optionTypical option – brand is owned by one of the enterprises in the

chain (meat plant or urban retail)

2.2.New optionNew option – brand is own by a non-profit organization a non-profit organization formed to assist formation and

operations of the chain, and to market the brand

A non-profit A non-profit organization (NPO) organization (NPO) committed to development of a sustainable local food

system

NPONPO

NPO NPO will represent interests represent interests of all parts of the local food of all parts of the local food

chainchain but it will have strong representation of urban consumersurban consumers

New New conceptconcept

This business model has been This business model has been developed as one of four key projects developed as one of four key projects

by:by:

To learn more about ARSANARSAN and its projects visit

www.arsan.ca

TTasty – asty – HHealthy – ealthy – EEthical thical

To learn more about the brand and To learn more about the brand and proposed project visit proposed project visit

www.themeats.cawww.themeats.ca

ARSAN ARSAN developed the brand which developed the brand which also be the name for the chain also be the name for the chain

Local meat storesmeat stores Expanded to locallocal foodsfoods in the

futureLimited foodfood serviceservice

Places of learninglearning, making contactscontacts and building relationships relationships

and forming new communities communities

Beyond meat Beyond meat storesstores

Urban retail centresUrban retail centres may serve various functions

RetailersRetailers primary goal is to make profitprofit

Primary goal of consumersconsumers represented by NPONPO is to keep the rightright foodfood flowing

to them

ConsumersConsumers will be primary primary beneficiariesbeneficiaries

NPONPO will put consumersconsumers rather than retailers on the top of the top of the

supply chainsupply chain

Primary Primary beneficiariesbeneficiaries

NPONPO will be in position to control balance of powercontrol balance of power (and

profits) along the chain

Supply chain Supply chain controlcontrol

There is a chance to organize the chain so all its parts have vested, vested, strong and balanced intereststrong and balanced interest in

success of the whole chain (all eggs in one basket is possible)

NPONPO will have right to franchisefranchise the concept

GrowthGrowth

Growth potentialGrowth potential of the concept and the brand is great as it can be

spread to many other jurisdictions and even countries

If concept is successful, it will growgrow but horizontallyhorizontally not vertically

Business Business integrityintegrity

Vertical growthVertical growth of individual businesses usually changes its nature and sacrifices its initial valuessacrifices its initial values, tearing partnershipspartnerships and relationshipsrelationships apart

SizeSize and volumesvolumes sold by a single chain will be limitedlimited

The new scenario may offer stability of profitsstability of profits and

business longevitybusiness longevity

Business Business satisfactionsatisfaction

None is expected to get richNone is expected to get rich in this business scenario but entrepreneurs may achieve high level of economic high level of economic and social satisfactionand social satisfaction

NPONPO royalties and/or franchise fees in the long term will allow for its financial independencefinancial independence

and sustainabilitysustainability

Potential to be initially fundedinitially funded at least to some degree by public public

fundsfunds

FinancingFinancing

NPONPO and what it represents can be attractive to donordonor and angel angel

investorsinvestors

Slav Heller, MBA, M Sc., P Eng.St. Paul, Alberta

E-mail: slav@heller.ca Phone: 780 - 645-6740

Thank you for your time and Thank you for your time and attentionattention

Please, give me your comments and

questions