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Tea Manufacturer looking for Master Distributor
British Columbia
Nondurable Goods | Food and Kindred Products
Initial Fee $150,000 Number of Existing Units 3
Capital Required $10,000 Year Established 2008
> Glossary of Financial Terms

We have spent the last 3 years doing market testing and introducing our line of Rooibos Tea to British Columbia, and we are now expanding quickly!

We currently, have a number of stores already carrying our tea, including Save On and IGA and are in the process of closing Thrifty Foods as well. We also already have a wholesale distributor set up in the lower mainland and on Vancouver Island that currently purchases between $20,000 and $30,000 per month. Wholesale Distributors will be purchasing from the Master Distributor once we have one set up.

The program works as follows:

• Master Distributorship Licence is FREE
• Master Distributor is required to purchase a container of tea
o A container at the Master Distributor price is $167,000
o The initial container is discounted by 12% to $150,000
o The wholesale value of the container is $340,000 (if container was sold wholesale to retailers)
o The value if sold to a wholesale distributor is $250,000 (i.e. if container was sold to Richardson Food Group)
• Master Distributor needs to provide sales support
o In store demos
o Looking for new accounts
o Looking for key accounts
o Looking for new distributors in their territory as needed
• Master Distributor needs to provide warehouse facilities to store product
o Doesn’t necessarily have to be commercial space, but must be accessible by trucks of the current Distributor
o Should be centrally located, or have the ability to ship to Wholesale Distributor’s warehouse

Benefits of this Master Distributor agreement is that the entry fee is 100% stock (which has a shelf life of 5 years), and we will put in place an agreement to buy back unused stock from them if not sold in 2 years. However, with the way things are going, they will go through a container a month.
Facilities and Assets: Purchase price is 100% inventory, licence is FREE
Market and Competition: For example, sales of tea in grocery stores alone in BC for 2009 were $55.1 million. We are going after just 1% of the market, equal to $550,000 per year.

Our product is the only tea that can be made in a coffee maker. Our products are all made from Rooibos Tea, the healthiest tea on the market.
Fees and Payments: The fee is 100% product/inventory. The licence fee is free. Licence entitles Master Distributor to exclusive rights of all products sold in BC
Support/Training: Master Distributor will be trained on the product benefits and sales of the products to wholesale and retail accounts.

Business listed by:
Rob Larsen

AD # 101702
The information in this listing has been provided by the business seller or representative stated above. Kazooga has no stake in the sale of this business, has not independently verified any of the information about the business, and assumes no responsibility for its accuracy or completeness. Read Kazooga's Terms & Conditions before responding to any ad.
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Business listed by:
Rob Larsen

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