We are a small western food business based in Pattaya Thailand, a touristic beach resort. Satearn is a legal Thai corporation with all balance sheets and documentation in order. We have been serving the local community with various products for over a half a decade. The business is owned and operated by Bruno Vincent, the founder. Here is some information about this ground floor opportunity.
Why Is Funding Needed?
We need investment to get Thai FDA certification. In order to get this, we need a small factory certified as a production facility, once we have this we can apply for a food production license and after that we can sell nationally in major supermarkets across Thailand.
Here is a list of questions you may have:
1. Any changes or additions to product lineup anticipated. Will future sales be marketed to foreigners or Thais?
- We have many product ideas with tested recipes, future sales will be marketed to Thais and foreigners.
2. What is the FDA and what licensing do they issue, what exactly are you waiting on?
- FDA is Thai Food And Drug Administration. They issue a variety of licenses according to product specifications. We understand product classes and what is required, we also know where to get the lab tests and meet packaging/labeling requirements and so on, we have done all the research on this. We know how to pasteurize products, we understand the science and chemistry involved to pass all tests. We follow cooking procedures according to USA health standards, exceeding food safety is always the best option. Passing Thai tests will be easily acheived.
3. Is government approval or inspections of production facilities required?
-Yes indeed, actually, this is the first and most important step. No factory, no FDA, this is the major reason why we seek investment.
4. Do you have any connections in the food industry?
- Yes, once FDA licensing is granted we are pre-approved in most major supermarkets. We have been dealing with supermarket managers at Makro and Big C. We have sent product samples and been in negotiation to have our products on shelves, and they have signalled their intention that as soon as we get FDA they will accept our products with open arms.
5. Will you wait for FDA approval before starting expansion plans?
- We can start promotion right away, but then it would create expectations and customers can't get access to the products...so better to wait until approval is granted and at least "some"distribution is established before marketing the items. We now sell in small supermarkets but only locally in Pattaya.
6. Do you anticipate the possibility of getting more orders than you could produce? Could this wonderful problem become a nightmare?
- This is not a problem, although our website lists fresh items, we plan to mostly sell frozen and canned goods. This means we will mostly be selling long shelf-life items that are produced in batches. We know how to batch cook products, and we use software for the recipes, which mean that our volumes are easily scalable. Therefore, if we have the equipment and staff, we can make as many products as required according to per day, week, and monthly requirements.
7. How long will it take to get a return on investment?
- Expected return is 6-12 months. After getting FDA approval, we can quickly ramp up production leading to making more make money right away. Within months of FDA approval, we can make the product, ship them to supermarkets, and get paid. Usual terms in Thailand are 30 days. As we already sell in supermarkets we have experience with the systems such as invoicing. Although our current customers are small supermarkets, their systems are similar to larger outfits. We're hoping to get FDA within 3 months to a year, and our lawyer has the expertise to speed up the process.
8. What kind of percentage are can I expect?
- This will be negotiated in order to seek an agreement that benefits all parties. All investment expenses will be meticulously tracked and recorded.
9. How will we handle the transaction?
- Part of the investment expense will be spent on lawyers and legal procedures. This can be done with my lawyer or your lawyer at your discretion. Everything WILL be transparent and legal.