1. How to Start a Food Business Seminar Presentation
CITY OF TORONTO
How to Start a Food Business Seminar Presentation
Presentation by:
Michael Wolfson, Food and Beverage Sector Specialist City of Toronto Economic Development

2. Importance of the Food Sector to Toronto’s Economy
Food Industry is Canada’s second largest manufacturing sector.
Over $16 Billion of Sales in Toronto alone.
Directly employs over 50,000 people who would not readily find employment elsewhere.
12% of the Industrial Workforce.
Growth of more than 5% per annum.
‘Toronto's unsung heroes are its food processors, the Number 2 manufacturing category behind the auto sector, because they have helped stabilize factory output,’ Theriault of the Conference Board of Canada. Toronto Star Oct. 7, 2005.

3. There are 6 major Automotive manufacturers in Ontario.
450 auto parts manufacturers.
There are 135,000 workers in Automotive manufacturing in Ontario.
There are more than 3,000 food processing establishments in Ontario. The majority being SME.
There are 114,000 jobs in just the food processing sector in Ontario.
The spill over affect of this industry in retailing and foodservice adds another 500,000 jobs.

4. The GTA Food Processing Cluster

5. Traditional Model
Farmers
Food Processors
Consumers

6. A New Way of Thinking!!!!
Consumers
Food
Processors
Farmers

7. Corporate Logo and Branding
Spend a great deal of time and thought on this!!!
Do not pigeon hole your company with what you are currently doing.
Create an image that will work with all your products.
Feelings and Imagery are the keys.
Don’t be descriptive!!!!!!!!!!!!

8. Branding
A multi-national confectionary company, who had recently won a mandate from a number of their other worldwide facilities needed to expand their facility quickly in order to meet strict corporate deadlines. The EDO staff assisted with building permits, conservation land issues, and utilities in order to open new production lines on time. Company was not experienced in any of these issues and appreciated the help the City Economic Development Division offered them.
A large dairy company in Toronto had explained how periodically they have had issues with a broken water main in their area and when this occurs they have to significantly reduce production. The SDO along with the EDO made arrangements for the company to be able to tap into a secondary water main in order to have a back up in the likelihood that this occurs again.
A bakery that was going through an expansion and required additional hydro capacity was asked to put up a large Letter of Credit from Toronto Hydro in order to secure the capital expenditure. SDO acted as intermediary between company and TH in order to reduce the amount of the LC requested. This freed up much needed Credit Line for client company at a time ( expansion ) when they needed it most.

9. Strengths: Personal Strengths Strength of Product ( Hook )
S W O T Analysis
Strengths: Personal Strengths
Strength of Product ( Hook )
Weaknesses: Personal Weaknesses
Is my product a me tooo!!
Opportunities: What are the trends?
What publications do you
read?
Threats: Focus????????
Financial Burdens?????
Workplans: We have developed a "Venturing into Food" program and symposium in Toronto in order to assist new start ups gain knowledge and insight into the Toronto food processing sector from seasoned business people. They can continue to get assistance in their start up businesses by attending seminars given by our Enterprise Toronto Division.
Business Connections: A company came to SDO with a new snack product that he thought would be great for schools. After meeting with SDO and determining the capability of producer, the company was told to contact the Community Representative for Toronto Partners for Student Nutrition. A non profit organization that sets up nutritional programs for Toronto schools. This resulted in the company selling 10,000 units of his snack items to the TDSB lunch program.

10. USP not UPS
A pasta sauce by any other name may be just a pasta sauce!!

11. Channels of Distribution
Product Developer
Broker
Distributor
Retailer
Co-packer or Manufacturer
Cost $1.00
50% $2.00
30% $2.85
10% $3.17
25% $4.23
35 % $6.51
Labour Force Readiness: We recently concluded a Labour Force Readiness Plan for the food processing sector in Toronto. One of the recommendations coming out of the study was to assist medium size companies with hiring and training practices. We are in the process of developing these programs and when ready will assist manufacturers with a better trained workforce and better managerial practices in the field of human resources in order to better prepare them for the future.
Export Connections: In order to help foreign buyers and trade advisors access the capabilities of Toronto food processors, we have recently developed a Co-packing Directory for the City of Toronto Food Processing Sector. This directory will help buyers connected with companies that can fit their needs and can also be used as a marketing tool for the Toronto food sector.

12. Labeling and Packaging Your Products
Produce a small run of your product.
Contact a label company and have them register you for a UPC Code.
Nutritional Information can be done for as little as $ per item. These are mandatory.

13. Important Websites

14. Toronto Food Business Incubator

15. TFBI Client Graduate Hemant Tallur CEO, Eat-In Foods Inc.
Shipping to grocery stores including 6-pack size to Costco Wholesale Corporation

16. THANK YOU Michael Wolfson City of Toronto Economic Development
Food & Beverage Sector Specialist
5100 Yonge St. Main Floor
Toronto, Ontario
M2N 5V7
Phone: