Business Plan

Business Plan

Table of Contents
Executive Summary..........................................................................................................4

The Market Opportunity...............................................................................................4

Our Solution/Competitive Edge....................................................................................4

Financial Highlights........................................................................................................4

The Market Growth.......................................................................................................4

Business Overview...........................................................................................................4

Introduction................................................................................................................... 4

Brief Description............................................................................................................4

Use Of Proceeds............................................................................................................4

The Team........................................................................................................................ 4

Products And Services......................................................................................................4

Market Analysis Summary...............................................................................................5

Industrial Analysis..........................................................................................................5

Market Needs And Trends.............................................................................................5

Target Market Description............................................................................................6

Competitive Analysis......................................................................................................7

SWOT Analysis.................................................................................................................. 8

Strengths........................................................................................................................ 8

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Weaknesses...................................................................................................................8

Opportunities................................................................................................................. 8

Threats........................................................................................................................... 8

Financial Plan.................................................................................................................... 9

Income Statement.........................................................................................................9

Balance Sheet................................................................................................................9

Break Even Analysis.......................................................................................................9

Cash Flow Statement.....................................................................................................9

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EXECUTIVE SUMMARY

THE MARKET OPPORTUNITY

 The UK’s bakery industry has opened up untapped opportunities for the market
players. Consumers are increasingly opting for baked products that are low in
calories, yet are as tasty as their traditional counterparts.
 In addition, in bakery products, bread is bought by 99.8% of British households,
and the equivalent of nearly 11 million loaves are sold each day. Average bread
purchases are the equivalent of 60.3 loaves per person per year.
 Furthermore, among popular bakery items consumption, cookies rank first at 89
percent, followed by cakes at 79 percent, cupcakes at 73 percent, muffins/scones
at 68 percent, and cinnamon rolls at 65 percent.
Based on the above mentioned, there are immense opportunities for bakery and
bread production and distribution companies to meet the rising demand and
changing consumer preferences.

OUR SOLUTION/COMPETITIVE EDGE

THE MARKET GROWTH

 The United Kingdom foodservice market is projected to register a CAGR of 3.02%

during 2021-2026.
 UK bread and bakery goods production industry is set to reach £8.70 billion by
2022, growing at a growth rate of 3.7%.
 Similarly, the market size of the bakery product retailing industry is £2.9bn and is
expected to increase 37.6% in 2022.

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 The economic impact of the hospitality and foodservice industry in the UK will
eventually increase to £108bn by 2030.
Sources
https://www.mordorintelligence.com/industry-reports/united-kingdom-foodservice-market
https://www.ibisworld.com/united-kingdom/market-size/bread-bakery-goods-production/
https://www.ibisworld.com/united-kingdom/market-size/bakery-product-retailing/
https://pelicancommunications.co.uk/food/paradigm-shift-predicted-for-the-uk-hospitality-and-foodservice-
industry/

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BUSINESS OVERVIEW

INTRODUCTION

BRIEF DESCRIPTION

USE OF PROCEEDS

THE TEAM

PRODUCTS AND SERVICES

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MARKET ANALYSIS SUMMARY

INDUSTRIAL ANALYSIS

Canada Bakery Industry

The Canadian bakery industry involves the on-site manufacturing of baked products.
These products can include but are not limited to bagels, bread, cakes, croissants,
strends for the bakery industry in Canada. For more information on the bakery
industry please see our Bakery Guide.
Employing over 49,000 Canadians and
generating $6.32 billion in GDP annually,
bakeries represent the second largest
food manufacturing sector, only behind
meat product manufacturing.
Furthermore, bakeries are the fastest
growing food sector, with an average
annual GDP growth rate of 5.4% since 2015. Understand the latest market trends and
future growth opportunities for the Baked Goods industry in Canada with research
from Euromonitor International's team of in-country analysts – experts by industry
and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current
research data available. Understand and assess competitive threats and plan
corporate strategy with our qualitative analysis, insight and confident growth
projections.
Data and analysis in this report provides further detailed coverage dedicated to a
comprehensive range of core packaged food categories.

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Rising Demand for Bakery Item Distributors

Cakes represent the largest portion of total bakery sales at 24 percent, followed by
cookies 12 percent, breads/rolls 11 percent, cupcakes 8 percent, sandwiches/wraps 6
percent, and yeast-raised donuts and beverages tied at 5 percent.

 Canadians prefer bakery products that are not only more natural, but also
contain less preservatives. As a result, more Canadians are moving away from
highly-processed products (Agriculture and Agri-Food Canada, Sector Trend
Analysis, 2018).
 Canadians desire accurate information to make informed purchasing decisions
(especially for gluten-free products) (Allergen Control Group, 2017).
 More Canadians are watching their sugar and salt intake due to concerns over
diabetes and high blood pressure (Agriculture and Agri-Food Canada, Sector
Trend Analysis, 2018).
 Increasing popularity of Ketogenic and Paleo diets means that more Canadians
are cutting back on their carbohydrate intake (Bell, 2019).
 Canadian bakery industry is responding to health concerns and consumer
trends by increasing the range of baked goods produced as well as
highlighting the health benefits of those goods (Bell, 2019).

Market Segmentation

 The Canada frozen bakery market is segmented on the basis of end-user

industries as convenience stores, hypermarkets & supermarkets, artisans
bakers, HORECA (hotels, restaurants, and catering), and bakery chains.
 The Bread Production industry in Canada manufactures bread and bakery
products, such as cakes, muffins, croissants, pies and other similar baked
goods. Operators sell these products to downstream supermarkets,

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convenience stores and food service providers. Many bakeries also sell their
products directly to the public.
 Retail sales of baked goods are expected to grow by a compound annualized
growth rate of 3.4%, reaching $6.6 billion (USD) in 2022 (Agriculture and Agri-
Food Canada, Sector Trend Analysis, 2018).
 Per capital expenditure on baked goods is expected to increase by a
compound annualized growth rate of 2.5%, reaching $218.88in 2022
(Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
 Bread sales will continue to dominate the bakery market. In 2022, bread sales
are expected to account for $5.31billion (USD) or almost 64% of baked goods
sales that years (Agriculture and Agri-Food Canada, Sector Trend Analysis,
2018).

Canada frozen bakery market

Report Coverage Details

Base Year: 2017

Market Size in 2017: 2.8 Billion (USD)

Forecast Period: 2018 to 2024

Forecast Period 2018 to 2024 CAGR: 5.5%

Most poplar Bakery Products

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36%

50%

3%
11%

Cakes Dessert Mixes Ferozen Bakes goods pastries

Canada Bakery Products Production Market

Bread is one of the oldest man-made foods, and remains to this day a staple in diets
around the world. Canada is no exception to this, with retail sales of bread remaining
high and growing year on year. To
keep up with this growing demand,
there are over 2,100 bakery product
manufacturing establishments and
more than 1,200 retail bakeries in
Canada, most of which are located in
Ontario.

 Overall Cookies (Sweet Biscuits) (Bakery and Cereals) market value and
volume analytics with growth analysis from 2015 to 2025.
 Cookies (Sweet Biscuits) market in Canada registered a positive compound
annual growth rate (CAGR) of 3.22% during the period 2015 to 2020 with a
sales value of CAD 1,045.34 Million in 2020, an increase of 4.40% over 2019.

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 The market achieved its strongest performance in 2020, when it grew by

4.40% over its previous year and its weakest performance in 2017, when it
increased by 2.56% over 2016.

Popularity of Bread
Types of bread products purchased by Canadian consumers 2020.According to a
survey carried out by Prodege MR in
February 2020, bagels were the
favorite type of bread product of
around 27 percent, of Canadian
respondents. Packaged sliced bread
followed closely in second place, with
26.35 percent of the vote.

 , The Bread Production industry in Canada manufactures staple baked goods,

including varieties of fresh and packaged bread, as well as prepackaged
baked desserts, buns, rolls and bagels.”
 As a staple food product, bread is in relatively constant demand, with volume
sales having remained relatively stable over the five years to 2021.
 The Bread Production industry in Canada manufactures bread and bakery
products, such as cakes, muffins, croissants, pies and other similar baked
goods.
 Bread is one of the oldest man-made foods, and remains to this day a staple in
diets around the world.
 Canada is no exception to this, with retail sales of bread remaining high and
growing year on year.

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 Up with this growing demand, there are over 2,100 bakery product
manufacturing establishments and more than 1,200 retail bakeries in Canada,
most of which are located in Ontario.

Impact of COVID-19
IBISWorld's analysts constantly monitor the industry impacts of current events in
real-time – here is an update of how this industry is likely to be impacted as a result of
the global COVID-19 pandemic. COVID-19 has made a significant impact on the bakery
products market as due to the insufficient sale of bakery products during the peak
time of the coronavirus pandemic, as many of the bakers have shut operations, which
also includes the shortage of labours. Along with this, disruption in logistics facilities
due to the lockdown has created more issues in the market as consumers were not
getting products as per their requirement which ultimately affected the market.

 Revenue for the Canadian Bread Production industry is expected to grow over
the five years to 2021 due to increasing demand from grocery stores and
exports as a result of the COVID-19 (coronavirus) pandemic.
 Industry demand is expected to increase due to operators being classified as
an essential business and meeting high weekly production capacity.
 The average industry profit margin is expected to contract due to the adverse
economic effects from the pandemic.
 The global bakery products market is projected to grow at a CAGR of 2.6%
during the forecast period, 2021-2026.

Source
https://sba.ubc.ca/blog/industry-overview-bakeries-canada
https://www.euromonitor.com/baked-goods-in-canada/report

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https://www.google.com/search?
q=bakery+industry+canada&sxsrf=AOaemvKuQhLET26HHs5hFraSknNf0lkv5A:1643088574239&source=l
nms&tbm=isch&sa=X&ved=2a
https://sba.ubc.ca/blog/industry-overview-bakeries-canada
https://www.ibisworld.com/canada/market-research-reports/bread-production-industry/
https://www.google.com/search?
q=market+share+of+bakery+industry+in+canada+&sxsrf=AOaemvICy9dl9hSYabvtqHbFjJleZig2GQ
%3A1643091398205&ei=xpXvYcqGDJ
https://www.marketresearch.com/GlobalData-v3648/Cookies-Sweet-Biscuits-Bakery-Cereals-30522439/
https://www.ibisworld.com/canada/market-research-reports/bread-production-industry/
https://www.statista.com/topics/5084/bread-and-bakery-products-in-canada/#dossierKeyfigures
https://www.researchandmarkets.com/reports/4774919/bakery-products-market-growth-trends-covid-
19

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Source

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MARKET NEEDS AND TRENDS

 Consumers are increasingly looking for food (bread) that bolsters their health and
immunity.
 In contrast to other countries surveyed, British consumers prefer packed bakery
products with 4 to 7 days shelf life.
 Price is among the top 3 priorities of Brits when it comes to purchasing bakery
items.
 The importance of healthiness is growing, especially for bread, with consumers
increasingly looking for food that bolsters their health and immunity.
 Consumers want bread that delivers on taste, health, and convenience without
breaking the bank.
 When purchasing bakery items, taste and freshness remain the most important
selection criteria for British consumers, confirming the latest Taste Tomorrow
research result.
 Using local and authentic ingredients has become a booming market trend in the
UK.
 Consumers prefer bakery providers that offer a large variety of bakery items.
 In response to changing trends, manufacturers have focused on reformulating
their current selections with healthier ingredients, experimenting with new flavor
combinations, and launching single-serving varieties with a broader appeal.
 Increased digitalization of food service is among the primary factors driving the
market, as consumers find it comfortable to book prior and make payments
online.
 More plant-based products are making their way to the shelves.
 Many bakery retailers tend to offer a variety of bread, including bran, multigrain,
plain, vegan, gluten-free, etc., to cater to many customers.

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 Customers prefer frozen bakery products that include natural ingredients and
sweeteners that would not threaten human health.

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TARGET MARKET DESCRIPTION

Sources

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COMPETITIVE ANALYSIS

Introduction

Offerings
Strengths

Social Media Focus

Google Rating

Website

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SWOT ANALYSIS

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

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FINANCIAL PLAN

INCOME STATEMENT

BALANCE SHEET

BREAK EVEN ANALYSIS

CASH FLOW STATEMENT

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