Good For You (“GFY”) is a British-incorporated start-up business aiming to become China’s most trusted consumer-focused safe food distribution platform. It will acquire a hundred hectares of land for installing high-end vegetable hydroponic greenhouses (we are currently reviewing large tracts of land in Zhejiang and Jiangsu), focusing initially on China-specific and Western leafy vegetables that dominate the Chinese diet. The farming concessions will be owned by the Group’s “Chelsea Farm” subsidiary, with the use of climate-controlled greenhouses, soil-less growing, natural fertilisers, and biological pesticides resulting in healthy, chemical-free vegetables with production rates far superior to mainstream Chinese farming. Specifically, Chelsea will partner with Saturn Bioponics, a British Hydroponic technology with exponentially greater production for every square metre of land while controlling any use of chemicals or pesticides. The majority of the farm’s production will be sold through higher-end supermarkets in China, whilst a growing percentage will flow into the Brand’s B2C ‘farm-to-table” vegetables-in-a-box subscriber club. Chelsea already has a verbal commitment to off-take all production from a large supermarket chain.
The Company’s brand (GFY) will have an initial focus on building a loyal B2C consumer network organically, most importantly with an unwavering and transparent focus on safety. Central to this strategy is the Company’s Advisory Panel, headed by one of the World’s foremost experts in food safety, Chris Elliott, Head of the Global Food Safety Institute with Queen’s University, Belfast. Professor Elliott is also the head of a European Union delegation to create a new set of standards and policies for a joint EU-China Safe Food programme that commences in 2018. The Company’s Advisory Panel will provide input into the company’s proprietary handbook for auditing both its own, as well as any future 3rd Party providers’ farms/production to ensure compliance with the Company’s higher-than-global standard for food safety. With every advisor being expert in each step of the fresh produce production and transport process, they will provide constant guidance on best practices, process and product certifications, whilst acting as ambassadors for the business both in China and globally. The Company intends to leverage leading-edge automation and tracking systems, as well as exciting new DNA-scanning technologies for traceability through its relationship with Professor Elliott.
As the “safe food” branding starts to really take hold, the Company may introduce other foods (third party or proprietary), such as dairy, eggs, fish and meats, all sold under the same safe Good For You consumer brand to improve efficiencies throughout the operations. Furthermore, in addition to its Supermarket and B2C sales, the Company will pursue co-branding agreements with 5-Star hotels, restaurants and airlines to further broaden the appeal and publicity of the brand. The future of the brand is to be a label of safety, integrity and healthiness, and so any future proprietary or 3rd Party products will adhere to these defining values. There is no such equivalent today (Whole Foods comes close with organic, but they will also stock items like sugary soft drinks; FairTrade represents ethical production but is not a corporate entity and covers a limited range of foods).
The company will be unique in China for its mainly foreign management team with significant experience in China, its focus on safety rather than organic, quick adoption of new technologies, and its combination of proprietary farms and platform distribution. At the core of the company will be its commercial farming division which will copy and better an existing major player in China that has generated circa 50% EBITDA margins - GFY has hired that company’s ex-CFO.
WeChat site launchedMay, 2017
Strategic Directors Keith Abel and Dawn Welham join the boardMay, 2017
Website launchedAugust, 2017
China ICP (E-Commerce sales) Registration approvedOctober, 2017