Global African Foods is the first company to bring African Products to the shelves of supermarkets in the US, and we have done it so successfully that we need additional funding to expand at the pace of our customers demand.
We provide African, Caribbean, Middle Eastern Food, and other products to supermarkets in Minnesota and other locations in the US. We aspire to supply products nationwide and make African Food the next big thing.
Hispanic and Asian Food are starting their decline, just like French and Cajun food declined a couple decades ago. Africa and the Middle East are the fastest growing populations in the US. This is good news for GAF, not only because these immigrants are our biggest consumers, but because they spread the love for their culture to the existing residents of the US.
GAF is in a win-win situation. African immigrants, our main target market, is one of the fastest growing minorities in the United States, meaning, not only more direct sales, but more people sharing their culture, customs and even their cuisine.. Tourism to Africa, The Middle East, and The Caribbean also continues to grow. This makes returning tourists want to try to cook the food that they tried while abroad. In addition, it makes them more willing to dine out at a Liberian, Jamaican, or an Egyptian restaurant, all of them supplied by GAF.
In order to expand our operations we are raising $1M dollars through the sale of our equity. We are issuing 1M in stocks at a price of 1$ per stock. Giving up 16.66% of our ownership in the company.
Most of the stocks are held by the GAF CEO, James Sanigular and his wife. The third owner is a foundation that will be sustained in the future by the dividends that GAF will issue.
With the additional funding of this offering, we will be able to scale this model. We currently have plenty of space in our warehouse to increase the size of our inventories up to 1,000% and we could increase this number with a small investment. In addition, the only investment that we would need to double our production is a new delivery truck and funds to hire one more person.
However, within the next two years, we want to add one more step in our model:
With this new step, we will become vertically integrated, which will reduce Costs of Goods Sold, and therefore increase our profitability. Moreover, we will be able to buy directly from farmers, a key component of our business. We want to be able to help farmers market their products. Currently, thousands of farmers in Africa are unable to properly preserve their crops. , James describes it like this:
“I grew up in Liberia where my father worked as a farmer. This is where I kindled my passion for African foods and the farmers that grow them. I witnessed my father’s hard work go to waste since we had no means to preserve the crops being grown. With the appropriate funding, we are going to help those farmers struggling to preserve their food by building a warehouse that will store the products they work so diligently to grow.”
This is where GAF’s passion comes from - from the experiences of our executive team - people who have experienced the frustration and monetary loss that results from being unable to preserve the food that they have worked tirelessly to produce.
INVENTORY: Our biggest constraint to expand our operations is the size of our inventories. The journey that our products take to reach the warehouse, from Africa to Minneapolis, is a long one. This means that our warehouses must maintain consistent inventories. Thus, limiting our ability for large expansions without large capital investments in inventories. For this reason, between 60 to 80% of the capital that we raise will go towards inventory.
NEW PRODUCTION FACILITY: Part of GAF’s plan to increase inventories is building a facility in Liberia that will purchase and package food directly from the farmers. A local investments bank will provide an additional $200,000 and the government will provide incentives. It will have a positive impact on the communities in Africa that dependent on agriculture.
RETIRE OLD DEBT: In order to reduce our interest expenses we will retire some early debt and be able to reinvest profits.
NEW EMPLOYEES: We will hire one more person to take care of deliveries.
COST OF RAISING FUNDS: GAF has hired TCB to promote the campaign and provide advice in fields like marketing.
NEW DELIVERY TRUCK: In order to keep up with our deliveries and have the ability to expand to fresh food, GAF will purchase a refrigerated truck.
TRAVEL EXPENSES: GAF will send qualified personnel to Africa to increase our suppliers and supervise the new facility
NEW EQUIPMENT: GAF recently moved to a brand new larger facility, which is in need of crucial technology updates.
The market is for our products is increasing rapidly. We have a business model that has been proven to work, we have the space, the management team, and the ability to continue expansion. Now, we just need funding to become the next big thing in the ethnic aisle of America's supermarkets, as well as be a voice for thousands of African farmers.
GAF established Majors business relationships with Cub Foods and Supervalu.June, 2013
GAF expanded the product portfolio to over one-hundred unique productsOctober, 2013
GAF established a business relationship with Cooper Grocery Stores and Festival Foods.March, 2014
SuperValu, authorized GAF to expand the product portfolio on a direct basis to all 77 corporate and franchise stores of CUBOctober, 2014
GAF sales grew by 100% in a year, making over $300,000 during 2015December, 2015
GAF moved to a bigger facility to increase storage for inventory and keep expandingJanuary, 2016
GAF started supplying plantain chips, which will bring $50,000 alone anuallyApril, 2016