Collaborative Business for Local Sustainable Meats Part 3 Slav Heller St. Paul, AB November 2012

Two options for ownership of the local meat brand 1.Typical option 1.Typical option – brand is owned by one of the enterprises in the chain (meat plant or urban retail) 2.New optiona non- profit organization 2.New option – brand is own by a non- profit organization formed to assist formation and operations of the chain, and to market the brand

A non-profit organization (NPO) A non-profit organization (NPO) committed to development of a sustainable local food system NPO NPO represent interests of all parts of the local food chain NPO will represent interests of all parts of the local food chain but it will have strong representation of urban consumers New concept

This business model has been developed as one of four key projects by: ARSAN To learn more about ARSAN and its projects visit

Tasty – Healthy – Ethical To learn more about the brand and proposed project visit ARSAN developed the brand which also be the name for the chain

 meat stores  Local meat stores  localfoods  Expanded to local foods in the future  foodservice  Limited food service  learningcontacts relationships communities  Places of learning, making contacts and building relationships and forming new communities Beyond meat stores Urban retail centres Urban retail centres may serve various functions

Retailersprofit Retailers primary goal is to make profit consumers NPOrightfood Primary goal of consumers represented by NPO is to keep the right food flowing to them Consumersprimary beneficiaries Consumers will be primary beneficiaries NPO consumers top of the supply chain NPO will put consumers rather than retailers on the top of the supply chain Primary beneficiaries

NPO control balance of power NPO will be in position to control balance of power (and profits) along the chain Supply chain control vested, strong and balanced interest There is a chance to organize the chain so all its parts have vested, strong and balanced interest in success of the whole chain (all eggs in one basket is possible)

NPOfranchise NPO will have right to franchise the concept Growth Growth potential Growth potential of the concept and the brand is great as it can be spread to many other jurisdictions and even countries

grow horizontally If concept is successful, it will grow but horizontally not vertically Business integrity Vertical growth sacrifices its initial valuespartnerships relationships Vertical growth of individual businesses usually changes its nature and sacrifices its initial values, tearing partnerships and relationships apart Size volumes limited Size and volumes sold by a single chain will be limited

stability of profitsbusiness longevity The new scenario may offer stability of profits and business longevity Business satisfaction None is expected to get rich in this business scenario but entrepreneurs may achieve high level of economic and social satisfaction

NPO financial independence sustainability NPO royalties and/or franchise fees in the long term will allow for its financial independence and sustainability initially funded public funds Potential to be initially funded at least to some degree by public funds Financing NPO donorangel investors NPO and what it represents can be attractive to donor and angel investors

Slav Heller, MBA, M Sc., P Eng. St. Paul, Alberta Phone: Thank you for your time and attention Please, give me your comments and questions