A Plan to Commercialization:

Continuous flow radio frequency

electric fields treatment of food

productsUWO Consulting Group

UW Oshkosh ConsultingGroup

Consultants:◦ Ann Duginske

◦ Adam Pritzl

◦ Areeba Hussain

◦ Emily Van De Loo

◦ Ben Wizner

Specialty◦ Licensing Agreements

◦ Consulting Entrepreneurs

Our Task

The Intellectual Property

Non-Thermal Pasteurization Process for liquids and purees

Developed by USDA Agricultural Research Service (ARS)

Competitive Advantage:◦ Eliminates Harmful Pathogens and Bacteria without use of heat

Cost effective, less energy

Retains higher nutritional value

Preserves natural taste

Target: Baby Food

Market Definition

Target: Niche organic baby food market◦ Goals:

Secure Licensing Agreement of Technology

Build Commercialization for IP◦ Goal: Initial adoption and licensing to Haines Celestial

owned Earth’s Best

Market leader in organic baby food

Secure within 1st year

Growth in licensing agreements after Year 2◦ Organic first, non-organic potential

Market Strategy

Where we are:◦ Process Provides Superior Quality, Cost Effective

◦ Pending Patent/FDA Approval

Where we want to go:◦ Ideal end position:

Process implemented

How do we get there?: ◦ Investment from outside investors

◦ Needed: $1 Million Capital Investment

Build and test multi-scale models

Market research of baby food market

Current research on Earth’s Best

Market Conditions

Traditional Baby FoodPasteurization Methods

Pasteurization Processes Used:◦ Thermal, non-thermal, and flash-freezing treatment

◦ The thermal Flash-Pasteurization is the most commonly used treatment process Heating the liquid to a very high temperature for a short period of time and then quickly cooling it down.

Heat is responsible for the loss of nutrients and flavor

About 98% of all juices sold in the United States are pasteurized using heat.

External Analysis

Generic Competitors (non-organic) Gerber | Worldwide Mkt. Share | Approx 70% Beech Nut Enfamil Heinz Johnson & Johnson Nature’s Goodness

Product Competitors (organic) Earth’s Best | Organic Mkt. Share | Approx 30% Ella’s Kitchen Happy Baby Foods Yummy Spoonfuls Plum Organics Nature’s One Jack’s Harvest

Brand vs. Budget Comparison

Conversation with Scientist

Agenda for Call Overview of Process

Applications of Process◦ Scale of Patent

◦ Size of Machinery

Outcomes from Call Patent Pending

Niche Market Focus

Flow Rate and Cost Effective

Maintenance is important

SWOT

Strengths

◦ Increased nutritional taste and value

◦ High emotional value and leverage

◦ Value added process with minimal waste byproducts

Weaknesses

◦ Investment required to develop, implement and maintain

◦ Venture funds needed

◦ Re-calibration of entire manufacturing process

Opportunities

◦ Niche market leverage

◦ Increased production and flow-rate capabilities

Threats

◦ FDA approval.

◦ USDA Organic approval.

◦ ARS contract agreement and approval.

◦ Proving that the process is 100% effective all

the time.

◦ Existing thermal processes can be more

cost effective

Organic Trends

Company Analysis

◦ Earth’s Best

Promotes transparency in operations

Detailed information on growers & suppliers

Clear USDA Organic Certifications◦ Using all organic ingredients grown without harmful

pesticides

◦ No genetically engineered ingredients

◦ Most items made only from whole grains

◦ No added salt, modified starches or refined sugars

◦ No artificial flavors, colors or preservatives

◦ Kosher

Sustainable growth and demand

Strategic diversification

http://www.earthsbest.com/about-earths-best/our-mission

Consumer Analysis:Earth’s Best Target Market

◦ Who are the organic buyers

Socially conscious

Environmentally aware

Complex belief structures

No correlation with age, income, or education

Our target is within this organic group◦ Young mother’s & children

◦ Organic Newsroom study showed 41% of parents buying more organic that one year ago

◦ Why – pesticides are concentrated, therefore multiplied, especially for baby food

Projected Financials

Potential International Expansion

Export products pasteurized using the Radio Frequency technology and use the international markets as ‘test markets’.

Benefit:◦ Would not have to wait for FDA’s approval before Earth’s Best starts selling

◦ Get a feel for the process and its success before it’s implemented in the U.S.

Operations Plan

Create a licensing agreement between ARS and Earth’s Best◦ Thing to be included in the licensing agreement:

Exclusivity of agreement

Cost for the rights to the technology

Royalty fees

Length of the agreement

Restrictions or expectations

Licensing Agreement

No exclusive rights◦ Additional licensing agreements could occur

Earth’s Best will pay a one time fee of $300,000/machine

ARS will be granted 2% royalty fees

Length of agreement: 10 years

Agreements and Expectations◦ ARS cannot sell patent to Earth’s Best biggest two competitors

◦ Earth’s best must continue to support green initiative

Questions?

Commercialization Plan

Intro: Statement of Intention/Executive Summary Justification, Deliverables, Product Overview Marketing Plan

◦ SWOT◦ Consumer Analysis◦ Internal/External Analysis◦ Target markets, Values, Sizes

Product/Technology and Competition◦ Value of Technology in Each specific Market◦ Specific marketing Steps for each market New market and customers

◦ Potential R&D Milestones

Finance and Revenue Model Risk Analysis Operations Plan Managerial Discussions/Recommendations Conclusion