Business Analysis of Comestibles Aldor S.A.

Executive Summary

It is not common when a company like Comestibles Aldor S.A. opens itself to investors. Aldor is an extremely liquid company that is extremely successful and ambitious, but wants something more. It is the type of company that looks for something else, someone that is willing to put more than money into a company, an individual that feels they are part of the organization. This type investor will not only invest money, but themselves. They will immerse themselves in a product they believe in and keep the company’s vision of bringing joy to the world.

At Aldor we believe that if an individual has a stake in something, they will work as if it was theirs, but if they like the product, it will be part of their life. The company has managed to go into over 60 countries but it is going to try a new approach, something that is innovative like the rest of the company; something unprecedented. We want to present to the world the joy of life and we are looking for someone to help us do so in another country, Canada.

As in every new market, Canada poses new challenges, challenges for which we need an investor from the country itself to launch the product. At Aldor we believe that having someone from within the country that knows the market, how it operates and more importantly, how people think, is only a recipe for success. It is the essence of what we believe in and it is the essence of what you will too.

We are presenting to you Videns Joy, a product that keeps the company’s vision of bringing joy to the world and a profit that few companies are able to offer. It is in a recession like the one we are in that we are able too see a hole in the market, a gap that has yet to be filled.

Fortunately we have an answer, the product we are about to present will not only satisfy this gap but will give you the opportunity to be part of it. Videns Joy will consist of a new chewing gum that will not only enhance the way people live, but it will become part of their life.

Videns will present the consumer a less expensive, more nutritious and more convenient way of being healthy while giving them a natural boost. It is this chewing gum that will set the benchmark of health products and the way they are ingested.

One hand cannot clap by itself, it needs another one, we want this other hand to be you.

To launch a one-year campaign in Canada and produce Videns Joy, we will need to expand the factory and buy new machinery. At a cost of 1.4 million, will be able to do so with some of the best machinery in the confectionary industry.

To advertise the product for one year we will also invest 1.4 million on advertisements ranging from TV ads to billboards and pamphlets.

The cost of raw materials for one year with a production of 30 tons per month will be 4.5 million for the entire year. For a total of 7.3 million we will be able to bring this product to the country with an aggressive marketing campaign.

This cost will be divided in two; we will pay 3.65 million as well as the investing party. A return on investment of 10.5 million is expected by the end of the year. To be divided equally among Aldor and the investor. 25% royalties of the net profit from the subsequent years will be given to you, the investing party.

INTRODUCTION

The Company

Comestibles Aldor S.A. was founded in 1991 by Raif Aljure; the company produces candy which it sells in over sixty countries around the world. Aldor manufactures candy for other companies and has a competitive advantage that is virtually impossible to beat. Manufacturing over 200 billion pieces of candy, it is the biggest candy company by quantity and volume in the world. Specializing in products that range in cost from $.01 cent to $.25 , it appeals mostly to the bigger part of the population in the world, those that have limited resources. The company has expanded at a such rapid rate that it has outpaced its current market. The plant currently runs at full capacity and produces over 300 tons of candy per day. At this point, the market for its products is saturated, and with the development of the new chewing gum Videns Joy, the company is now expanding its market segment. Currently the most expensive product the company manufactures, Videns has a cost to the consumer of approximately one quarter of a dollar. It is a phenomenon similar to the case of Walmart at a lesser degree. The market for low-cost candy is saturated and the biggest consumer, children between the ages of 8 to 17 years old is already familiar and consuming the product in the countries the company sells. With a monopoly in the majority of Africa, Aldor has reached its peak with the current products it sells.

Our people

“With More than 2000 skilled and experienced employees committed to working as a team . While keeping an open mind towards a changing world.

Through its research and development, Aldor is constantly searching for new ideas and products, which keep it one step ahead of the competitors.

Aldor has a professional team devoted to standard control, thereby assuring high quality products.”

Agility and flexibility

“Aldor is agile and flexible, it adapts to the consumers and clients needs, taking into account different cultures, beliefs, demands and international commerce dynamics resulting form globalization”

Mission

“Our main promise and commitment: Research, create, and develop innovative and fun products for our customers.

We are a dynamic, innovative and flexible company with an international vision. We will continue to grow, open up new markets and bring fun and joy to life.”

Vision

“Since the very beginning, Aldor has opened up markets in different countries, offering innovative products to people of different cultures. Its marketing division is constantly looking for new opportunities, studying the worldwide consumer, needs and preferences.

Aldors international vision enables it to position itself with its products in more than 60 countries throughout the five continents”

The Plant

“Colombia is recognized as the second most productive land for sugar cane plantation in addition, it is recognized for the purity of its sugar.

With one of the most modern plants of America, inaugurated in June of 2004, and under a 280,000 sm. We produce 300 tons per day of sugar confectionery: lollypops with different fillings, hard and soft caramels.

Today we produce more than 2 hundred billions of lollypops a year, demonstrating growth in a global market that changes constantly. We have extended our products through the development of international brands maintaining a global thought with local performance.

Our quality management system is certificate by SGS. de Colombia S.A. in fulfillment of the requirements of ISO 9001: 2.000 since February 20 of 2,004 and initially certified since January 21 of 2002 with ISO 9001: 1.994.”

Why we will be successful?

After commenting our idea with numerous individuals that have influence over many people and have established companies that are now in the billions of dollars, we have received an unanimous opinion, one that has success written all over it. Now, opinions have in reality no real monetary value, no matter if the individual is the wealthiest in the world or a worker at a fast food restaurant, but they are important. On a recent trip to Colombia, one of our team members José F. Del Corral conducted numerous survey and studies on the idea we are offering. The results were exorbitant and expected.

PRODUCTS

Since its very beginning in 1991, Aldor has been characterized as having a dynamic production infrastructure that is pivotal to both a productive and efficient confectionery manufacturing process. Today, our company is viewed as one of the best candy production plants in the world. Our products range from filled and chewy candies to a variety of lollipops that have been distinguished because of the addition of different fillings and extracts, all manufactured in plants and facilities that are internally owned and managed.

Aldor’s major products are lollipops with several varieties including chewy centered, gum centered and solids. The gums filled lollipops are made with different fruit flavors including watermelon, cherry, blackberry, mango and wild fruit with both juicy and sour features.

Lollipops that were first launched by Aldor include the Yoguetas. This is a variation of lollipops that are very unique to the industry. Not only do these lollipops have gum-filled centers, they also include fruit flavored and chewy centers along with assorted yogurt-filled middles.

Products that include gum contain forty percent of gum base and composed of PVAC to sometime include synthetic or derivative wax. In addition, gum also contains polyols that results from the hydrogenation of sugar with the major one being Xylitol. Xylitol is a sugar alcohol that aids in preventing cavities and help to whiten teeth by neutralizing the PH level in the mouth. In rare cases when Xylitol is unavailable, other sugars or derivatives of sugar namely sorbitol and manithol are sometimes used in bubble gum manufacturing primarily because of its very long molecular strength.

PRODUCT INTRODUCTION

In keeping with the company’s history of innovation, Aldor intends to introduce a line of candy products that aims to satisfy the healthy trends of our current lifestyles by promoting the inclusion of not only cavity-fighting but health-conscious alternatives to the regular candy offerings.

According to investigations made by different agencies the percentage of people suffering from health troubles due to eating disorders and bad consumption of food keeps growing every day. As a result, many people have chosen to consume products with very little or no preservatives compare to what they previously consumed. This has revolutionized the food market and has lead to the evolution of new restaurants serving only organic food. Other existing ones have managed to change their menu to include more natural choices. Today, the choice of natural products is a trend that continues to increase and consumers are open to try foods that are consistent with their every day diet.

In keeping with this revelation, we have chosen to produce candies with botanical extracts and infusions that have the potential to become an integral part of the daily diet of our consumers.

Such approach to market will not only have a significant impact on the kids market but also the adult market as well. With this innovative idea, we plan on giving customers the pleasure of enjoying a hundred percent natural candy alternative that will at the same time will give them a sensation that will be consistent with that of maintaining a healthy lifestyle along with the ultimate comfort and relaxation at the same time.

We have focused our research and developments around finding botanical extracts that will fit into the lifestyles of potential customers within our target market. We have decided to include the following extracts into our product offerings.

Green Tea Extract

Dental techniques have improved greatly in the past few years, but once teeth have been damaged by cavities they can never be restored to their original condition. It is of the highest priority, therefore, to prevent cavities from developing in the first place. By the end of the 19th century, it had been determined that cartes are caused by cariogenic bacteria. Cavity production begins when the cariogenic bacteria first produce non-watersoluble glucan from sugar or other foods, and this glucan adheres to the tooth enamel as hard plaque. They then feed on sugar to generate acids such as lactic acid in the plaque then these acids dissolve the tooth enamel. In order to prevent cavities it is necessary to keep plaque off the teeth by brushing. However, experiments have shown that green tea catechin can suppress the process by which cariogenic bacteria create glucan. Experiments have also shown that that green tea catechin can destroy cariogenic bacteria, making it antibacterial. Green tea catechin then not only suppresses the formation of plaque by the cariogenic bacteria but also kills the bacteria themselves.
It has also been known for some time now that small amounts of fluorine can strengthen teeth and help prevent cavities. As a result, many cities across the world have added fluorine to their drinking water. Green tea extract, however, contains natural fluorine that is thought to help prevent cavities. Various reports have shown a reduction in cavities among grade school children who drank green tea after lunch. We strongly feel that kids will have a natural gravitation toward candy with green tea extract while parents will have the peace of mind while giving candy to their kids.

Halitosis or bad breath is caused by a number of bacteria that flourish in the mouth. Green tea is also known to kill other oral bacteria besides those causing cartes and therefore as a result, possess the ability to prevent bad breath by destroying the cause of bad breath. It is also reported that the consumption of green tea is often recommended as a good treatment for diarrhea. Research has also shown that catechin is a powerful sterilizing agent for many types of bacteria that cause food poisoning. Green tea extract contains caffeine which, when taken in the proper quantity, simulates every organ in the body. It has a particularly strong effect on the central nervous system, the heart, and liver. This reaction is even more pronounced when one is sleepy or tired. The consumption of green tea will help clear a dull mind after rising in the morning or after a prolonged period without sleep. The power to stimulate and awaken the mind comes from caffeine. It is also said that the amount of caffeine contained in normal servings of green tea can stimulate the skeletal muscles and facilitate muscular contraction. As a result, it is quite helpful and recommended to consume green tea in the middle of the work day in order to refresh the mind and restore the body. The caffeine in green tea is mostly extracted in the first infusion of the leaves, but the quantities in subsequent infusions will still be greater than coffee. And since green tea caffeine combines with catechin in the brewing water, its action is said to be rather milder than other caffeine-containing beverages. Green tea is known for its rich source of anti oxidants and having a high extract is also said to help repair the effects of aging from environmental factors

Kava Kava

Kava is sedating and is primarily consumed to relax without disrupting mental clarity. The kava extract has been known to be a herbal medicine against stress, insomnia, and anxiety. Research has shown that kava may be effective in treating ovarian cancer and leukemia. Study shows that kava compounds inhibited the activation of a nuclear factor that led to the growth of cancer cells. The Aberdeen University researchers published in the journal The South Pacific Journal of Natural Science that kava methanol extracts had been shown to kill leukemia and ovarian cancer cells in test tubes. Kava has been known to relax aching muscles, calm nerves, create a general feeling of well-being, induces a feeling of peace, relaxation and contentment, enhances mental alertness and concentration, reduces inhibitions, and has historical use as an herbal aphrodisiac.

Kava has an effect on the nerve centre’s, at first stimulating and then depressing, ending with paralysis of the respiratory centre. The irritant action and insolubility of the resin has lessened its use as a local anesthetic, but for over 125 years kava root has been found valuable in the treatment of gonorrhea both acute and chronic, vaginitis, leucorrhoea, nocturnal incontinence and other ailments of the genitourinary tract. Being a local anesthetic it relieves pain and has an aphrodisiac effect. As kava is a strong diuretic it is useful for gout, rheumatism, bronchial and other ailments, resulting from heart troubles. Kava is an essential and integral part of life in the Pacific Islands often thought of as one of the most precious gifts from the Earth. Not only is it a pleasant drink that can be a safe alternative for alcohol. Kava Root was actually becoming more popular than Prozac in Europe. Some scientist and herb researchers feel as though kava’sinfringement on pharmaceutical sales deeply concerned the drugcompanies. In turn, they became determined to do their best to tarnish the spotless reputation of kava. It once an ancient, safe and effective herbal supplement. Kava has not been shown to be physically addictive. It has been used safely for over 3,000 years, without any reported withdrawal symptoms whatsoever. Kava gum will be marketing to the age group ranging from 40 years and up. It will be targeting Canadian citizens that may suffer from arthritis of the joints and may be hesitant to use costly and addictive pharmaceutical pain relievers that must be prescribed from a physician. Individuals that may have suffered from a minor sprain or bruise, who do not have the time for an appointment with their primary physician and are looking for quick and effective relief with a delightful taste. Kava gum will also induce a feeling of peace, relaxation and contentment. Also enhancing mental alertness and concentration, Kava Gum would seem to be extremely useful to consumers with anxiety and social barriers. Kava could be given to patients of therapist and physiologist to help cope with social problems and cut down the supply of addictive and dangerous psychiatric and anxiety drugs. “We won’t go over the details here, but a study was conducted in Germany that did a great job of making the world think that Kava caused liver damage, when in reality, this highly-publicized “study” seemed to be aimed at only doing whatever it could to damage the 3,000 year-old reputation of Kava. This alone shows the fear that pharmaceutical companies have over kava” . They refused to let a cheap yet highly effective herb surpass the production of the variety of additive and costly drugs. Aldor is certain that if kava is given a chance to prove itself on a wide based scale, that the gum will help people out with multiple ailments and will not tarnish the Canadian population with another drug for younger generations to tarnish themselves with.

Acai Berry

The health benefits of the Acai berry is widely known and is now backed by scientific research into the fruits properties. Acai is a rich source of anthocyanins and other phenolics and phyto-nutrients and are amongst the most nutritious foods of the Amazon. Acai berries are rich in B vitamins, minerals, fiber, protein and omega-3 fatty acids. Acai also contains oleic acid (omega-9), a beneficial fatty acid. Potassium is the mineral most abundant in the Acai berry that is also rich in copper and unusually high in manganese. Only a small portion of berries supply far more than the body needs of this ultra-trace mineral. Anthocyanins are compounds that have potent antioxidant activity, allowing for the neutralization of potentially harmful free radicals. The famous research regarding the “French Paradox” attributes anthocyanins as being the antioxidant that protects the French from heart disease. The French are known to consume large amounts of coffee, nicotine, sugar, white flour, cheese and saturated fats, yet they have a very low rate of heart disease compared to neighboring countries like the UK and Denmark. The red wine grape, due to its anthocyanins is what is believed to be responsible for the very low incidence of heart disease. While red wine has good quantities of anthocyanins, the Acai berry has been shown to contain many times more than the anthocyanins levels of red wine. By neutralizing these free radicals, anthocyanins from the Acai berry may actually serve to maintain the healthy function of numerous systems and organs. Some of the anthocyanins that have been found in Acai include cyanidin-3-glucoside and cyanidin-3-glucoside-coumarate. Other phenolics include catechin and epi-catechin (the same compounds in green tea), quercetin derivatives and other flavonoids. It is likely that the synergistic effects of these compounds, as present in Acai fruit are responsible for its potent antioxidant activities.

In Brazilian herbal medicine, the oil of the Acai fruit is used to treat diarrhea; an infusion of the grated fruit rind is used as a topical wash for skin ulcers; and, the fruit seeds are crushed and prepared in an infusion for fevers. In the Peruvian Amazon, an infusion of the toasted crushed seeds is used for fever. In Colombia, where the trees grow along the Pacific coast line, it is called naidí and the fruit is turned into a common and popular drink.

The Oxygen Radical Absorption Capacity (ORAC) assay, a test developed for the USDA by scientists at Tufts University to measure the antioxidant speed and power of foods and supplements measures the total antioxidant activity of a biological sample. The ORAC scale is used in human, agricultural, food and pharmaceutical products, as well as food ingredients and is quickly becoming the accepted standard for comparing antioxidant potential in foods and supplements. For the average person to cope with all the reactive oxygen and free radicals they will encounter on a daily basis, foods and beverages totaling an ORAC value of at least 2000 units per day are needed. It’s been estimated that eighty to ninety percent of the world’s population fails to consume even half of this level. Acai is reputed to be extremely high on the ORAC scale and provides levels multiple times that of many anthocyanin-rich fruits and vegetables, such as cherries, cranberries and mulberries.

Easily the most common use of the Acai fruit by Amazonians is the dark purple juice. This juice is extracted from the small round fruit by soaking the seeds in water to soften the thin outer shell and then squeezing and straining them to produce a very tasty, dense purple liquid. Acai liquid is typically served fresh and ice cold with (or sometimes without) sugar and tapioca flour. It is a nourishing and refreshing drink that is also used to produce ice cream, liquor, mousses and sweets in general. Consumption of up to two liters per day of this highly nutritious juice has been recorded amongst indigenous populations. The Acai juice has been and remains an extremely important part of northern native South American diets and has become very popular throughout all socio- economic levels.

Acai gum is designed to act as an antioxidant and remover of toxic substances left over in the human system from smoking, alcohol, drugs, and foods with many preservatives. With the help of the acai palm, which is a species of palm tree in the genus Euterpe cultivated for their fruit and superior hearts of palms. Global demand for the fruit has increased dramatically over the past several years. Acai is now cultivated as an antioxidant primarily. Eight species are native to Central and South America, from Belize southward to Brazil and Peru, growing mainly in swamps and floodplains. Acai palms are tall, slender palms growing to 15-30 meters. The overall marketing goal of the antioxidant remover is to eventually offer the gum in Canadian health and fitness centers and spas. This goal may only be achieved after success has been demonstrated in the all-natural supermarket aisles. Health conscious individuals understand the importance of having a cleansed system, which in return greatly raises the ability to produce muscle and cut fat. Many people enjoy chewing gum while they work out because they are able to keep their mouths moist. Also if the gum can cleanse the body and encourage muscle growth then most gym goers would be interested in spending a dollar per pack. Another option is to offer the product to supplement stores such as GNC, Vitamin world, and any other health stores looking to offer there customer a relief from awful tasting body cleansing drinks that cost over $50 for every bottle. Our gum cost only cost 15 cents to have in Canada and is being sold for 50 cents to the retail stores. One could buy fifty packages of our product to compare cost, then having over a years supply to help assist the customer to live a healthier life.

Rhodiola rosea

Rhodiola rosea is a popular plant in traditional medical systems in Eastern Europe and Asia with a reputation for stimulating the nervous system, decreasing depression, enhancing work performance, eliminating fatigue, and preventing high altitude sickness. Rhodiola rosea has been categorized as an adaptogen by Russian researchers due to its observed ability to increase resistance to a variety of chemical, biological, and physical stressors. It’s claimed benefits include antidepressant, anticancer, cardioprotective, and central nervous system enhancement. Research also indicates great utility in asthenic conditions (decline in work performance, sleep difficulties, poor appetite, irritability, hypertension, headaches, and fatigue) developing subsequent to intense physical or intellectual strain. The adaptogenic, cardiopulmonary protective, and central nervous system activities of Rhodiola rosea have been attributed primarily to its ability to influence levels and activity of monoamines and opioid peptides such as beta-endorphins. Rhodiola rosea, also known as golden root, is a member of the Crassulaceae family and grows across the Arctic, the mountains of Central Asia, the Rockies, the Alps, the Pyrenees, the Carpathian Mountains, Scandinavia, Iceland, Great Britain and Ireland. It is believed that it could also be a natural elixir. Rhodiola rosea may also be effective for improving mood and alleviating depression and early stage studies on people have shown some efficacy in improving physical and mental performance, alleviating fatigue, and reducing high-altitude sickness. A possible mode of action involves what could be described as “optimizing serotonin and dopamine levels”. It is said that this apparently happens by inhibition of the enzyme monoamine oxidase, which supposedly ties in with an effect on endorphins, the body’s natural opiates.

The chemical composition and physiological properties of Rhodiola species are to a degree species-dependent, although some overlap in constituents and physiological properties does exist in many Rhodiola species.

Twenty-eight compounds have been isolated from the roots and above-ground parts of Rhodiola rosea, including twelve novel compounds. The roots contain a range of biologically active substances including organic acids, flavonoids, tannins, and phenolic glycosides. The stimulating and adaptogenic properties of Rhodiola rosea were originally attributed to two compounds isolated from its roots, identified as p-tyrosol and the phenolic glycoside rhodioloside. Rhodioloside was later determined to be structurally similar to the known glycoside salidroside found in several other plant species. Salidroside, rhodioloside, and occasionally rhodosin are used to describe this compound and are considered to be synonyms. Additional glycoside compounds isolated from the root include rhodioniside, rhodiolin, rosin, rosavin, rosarin, and rosiridin. These glycoside compounds are also thought to be critical for the plant’s observed adaptogenic properties.

The adaptogenic properties, cardio-pulmonary protective effects, and central nervous system activities of Rhodiola rosea have been attributed primarily to its ability to influence levels and activity of monoamines and opioid peptides such as beta-endorphins.

Rhodiola rosea has also been shown to moderate against stress-induced damage and dysfunction in cardiovascular tissue. Treatment with Rhodiola rosea extract prevents the decrease in cardiac contractile force secondary to environmental stress in the form of acute cooling and contributes to stable contractility.

The new product is named Energize and is primarily made of the herb Rhodiola rosea. Rhodiola rosea is a plant known as the “golden root”, member of the Crassulaceae family that grows in cold regions of the world, the perennial plants grows in areas up to 2280 meters elevation. Rhodiola may help induce weight loss by activating the body’s store of adipose lipase, a key enzyme that helps burn its fat stores. A Russian study found that participants who consumed Rhodiola rosea lost 20 pounds in three months, compared to just 7 pounds in those who took placebos. Rhodiola rosea also strengthens the immune system by reducing the effect of stress, which is known to weaken the body’s ability to defend against illness. Studies have shown that Rhodiola may be of special benefit to athletes; it appears to help normalize heart rate after intense exercise, and increases protein synthesis and blood flow throughout the body. It may also lower blood pressure and decrease stress-induced arrhythmia. There have been no toxic side effects associated with this substance to date, and no tolerable upper limit has been established. Energize gum has the benefit of being a credited weight loss tool; it contains none of the sometimes deadly drugs that are the main ingredient of the major weight loss scam programs. All they contain is harmful drugs like Ephedra, Chitosan, and hoodia. Many deaths have been reported in past five to ten years ever since the skinny craze started as a result of these weights loss drugs. If there is a perfect weight loss/stress-relieving herb this could be it. In Energize we’ve managed to formulate the two essential elements needed by most people to lose weight and truly feel great. Not only does it have the ability to lift the stress that causes your body to crave foods of comfort and store more fat. It also has the power in of itself to make you cut weight in fewer than three to six months. All one must do is chew this gum before and after a workout routine or a run around the neighborhood with your dog, then you will be on your way to losing some serious weight while enjoying the refreshing taste and teeth whiting effect of our newest product. We plan to offer this product to Canada in the main supermarkets and herb + vitamin stores. We hope to carry the product along side all the powerful and unhealthy weight loss pills that are sold throughout the country. Aldor is confident the Energize gum will make its consumers feel significantly better daily and have the same result if not superior to its competitors.

St John’s wort

St. John’s wort is a long-living plant with yellow flowers whose medicinal uses were first recorded in ancient Greece. It contains many chemical compounds. Some are believed to be the active ingredients that produce the herb’s effects, including the compounds hypericin and hyperforin.

Preliminary studies suggest that St. John’s wort might work by preventing nerve cells in the brain from reabsorbing the chemical messenger serotonin, or by reducing levels of a protein involved in the body’s immune system functioning. St. John’s wort has been used over the centuries for mental conditions, nerve pain, and a wide variety of other health conditions.

Today, St. John’s wort is used for anxiety, mild to moderate depression, and sleep disorders. In Europe, St. John’s wort is widely prescribed for depression. In the United States and Canada, there is public interest in St. John’s wort as a treatment for depression, but it is not a prescription medicine.

In the United States and Canada, St. John’s wort products are sold mainly as capsules, tablets, teas, and liquid extracts where specific types of chemicals are removed from the herb, leaving the desired chemicals in a concentrated form.

Scientific evidence co-funded by the National Center for Complementary and Alternative Medicine (NCCAM) and two other components of the National Institutes of Health (NIH), the National Institute of Mental Health and the Office of Dietary Supplements regarding the effectiveness of St. John’s wort for depression