Vino Cocoa has struck its very first distribution deal with Florida's own ABC Fine Wine & Spirits. Vino Cocoa sells extremely well in liquor/wine shops and will be selling in every ABC location starting this fall. This distribution deal is just the beginning of Vino Cocoa's global triumph. By selling in all 124 locations throughout Florida Vino Cocoa's revenue with this chain alone is expected to be $112k annually and the sales record will be enough to gain national distribution with major food distributor's UNFI and Kehe.

The Global Premium Chocolate market size is estimated to be worth USD $176 billion in 2022 and is forecast to a readjusted size of USD $278 billion by 2028 with a CAGR of 7.9% during the review period.

• Since COVID-19, comfort food has become more important to consumers

• 83% of global consumers agree that chocolate needs to be tasty and "good for me".

• 67% of global consumers want to know more about where their chocolate comes from and what is in it

• 75% of global consumers want to try new and exciting chocolate experiences

(Source: https://www.barry-callebaut.com/en-US/manufacturers/trends-insights/top-chocolate-trends)

• Premium Italian organic chocolate

• wine flavored chocolates, made with no alcohol

• ethically sourced fair trade chocolate

• SRP $5

• Wholesale $2.50

• Landed cost $1.50

• Profit per bar $1

• 100% reorder rate while selling in liquor/wine shops, wineries, gift stores. 80% reorder rate in grocery

• Stores reorder 2 cases or more a month.

• 12 bars per case

• Great impulse buy

• Return customers guaranteed

Vino Cocoa will be produced by Las Olas Confections and Snacks, a facilities located in Orlando, Florida. Las Olas has created products that have gone on to sell in major retailers such as Costco and has products featured in Opera Winfrey's Magazine and the Food Network. Las Olas has a short 4-6 week lead time and can produce 2 pallets a day. 1 Truck load of 20 pallets can be produced in just 10 days.

• With 9 out of 10 viewers that clicked on Facebook ads being women, Vino Cocoa to keep brand imagery focused on women interests by keeping the brand light, fun, and vivacious.

• In addition to selling at registers Vino Cocoa can be placed on hanging strips in wine and candy isles which can potentially double sales in every store that has 2 points of sale

• With online grocery sales increasing any advertising can be done digitally which is highly measurable,on advertising/selling platforms such as Instacart, Shipt, and Amazon.

Vino Cocoa's competition is Godiva, Ghiradelli, Lindt, and Lily's.

With Godiva, Ghiradelli, and Lindt being some of the world's most established brands, they are recognized to the mass population as being luxury brands, but they are outdated.

Although Godiva was established well over 100 years ago the company's net worth is only $800M. Lily's chocolate was established in 2011 and after just 10 years of being in business the company was recently sold to Hershey's in 2021 for $425M.

If Lily's chocolate can sell for $425M in just 10 years, Vino Cocoa can have a net worth $425M or more in 10 years as well.

Godiva Pros:

• Holds 1.8% of world's market share

• Has 600 stores including chocolate shops and cafes

• Defines what consumers consider to be fine chocolate

• Is packaged in a way that wouldn't need to be gift wrapped

• European exoticism contributes to overall luxury image

Godiva Cons:

• Appeals to the average shopper that doesn't have extensive knowledge about fine chocolate

• Packaging is more memorable than the chocolate

• Asian market doesn't tend to buy cream filled chocolates

• Will be shutting down all USA and Canadian stores

Ghiradelli Pros:

• Oldest chocolate maker in the America

• Was purchased my Lindt

• Seen as most affordable luxury chocolate

• Has 19 outlets

• was one of the first chocolates to include cacao content on packaging

Ghiradelli Cons:

• Has mislead consumers by providing false information about ingredients and the amount of product actually in the packaging

Pros:

• Between Lindt, Ghiradelli and Russel Stover products Lindt holds 9% of the world's market share

• Had market share increased in nearly all countries

• online business is 5% of sales, which have doubled since the pandemic

• large sales growth in Germany, UK, Spain as well as emerging Asian markets: China and Japan

• Shares were gained in Lidnt and Ghiradelli bars and Russel Stover sugar free line.

• Good growth in baking segment

Cons:

• Organic sales are declining

• Countries with high tourism such as Austria, Italy and Switzerland sales declined

• rest of the world had -16% decline due to restrictions

• Has 10%-15% profit margin

Pros:

• Lily's specializes in sugar free chocolate, one of the most in demand chocolate segments

• After being established for just 10 years was sold to Hershey's for $425M

Cons: none

Pros:

• Fresh new exciting brand

• Crosses over 2 major food markets: chocolate and wine

• Sells well where competitors don't sell: in liquor stores and wine shops = less competition

• Has higher SRP and can justify price with quality and superior packaging

• Can be placed on store shelves hanging strips in wine isle and chocolate isle

Cons:

• only 75% of population likes wine

• New product will require new customers to risk buying the product

Vino Cocoa is expected to have one of the highest profit margins for a chocolate product on the market. While major competitors such as Lindt chocolate makes a 10%-15% profit margin Vino Cocoa will make a 40% profit margin.

With room to lower costs as production increases the initial estimated landed cost per bar is $1.40. With $2.50 being the wholesale price Vino Cocoa will produce $1.10 in profit for every bar sold, a 44% profit margin.

To set up production there are 3 main costs:

1. Moulds

2. Packaging attachment

3. Pilot run before mass manufacturing

By selling just 1 bar a day per store in ABC Fine Wine & Spirit stores Vino Cocoa will sell 124 bars a day, 3,782 bars a month, and 45,260 bars a year. With a $2.50 wholesale price annual revenue in ABC stores alone will produce $113,150 in sales

By selling just 1 bar per day per store Vino Cocoa will produce $49,786 in profit annually. This is assuming each store has 1 point of sale. Sales can be expected to increase if each store has multiple points of sale which may include: on isle hanging strips, on the candy shelf, or near the register.

Assuming each stores sells 1 bar per day, and with a wholesale price of $2.50 each store is worth $912.50 annually.

It will take a estimated 1,095 stores to produce $1M in sales. Just 1 chain store such as Publix (1,297 stores) will create $1M in sales. This is just one example. The potential for mega sales is great.

To gain more stores and sales one sure method way to attain this is to hire a food broker from KeHe. In order to get 3,000 stores Vino Cocoa will need 5-8 distributors. A food broker will charge $1,000 monthly retainer and $500 per distributor they get Vino Cocoa into. A normal salary for a food broker is 5% of the gross sale. Once the 5% gross of the sale is above $1,000 a month the monthly $1,000 retainer is lifted.

Considering that major chocolate luxury brands such as Godiva make only 18% of their sales in the USA, and with chocolate sales booming globally in areas such as Europe and the Asian pacific setting goals to become a global brand is more than ideal.

Vino Cocoa is made with premium organic chocolate from Italy. The very same manufacturing facilities that creates Vino Cocoa's main ingredient, chocolate, has the ability to create chocolate products which can be distributed to Europe and surrounding areas.

Vino Cocoa has massive opportunity to become one of the world's newest, most iconic chocolate brands the world has ever seen. In a global chocolate market currently $178B and chocolate trends rising Vino Cocoa's fresh, new and cutting edge products are bound to take it's share of the global market.

Vino Cocoa is strategized to start small and end big. The good news is that hardest part is already done, getting distribution! Vino Cocoa is set to launch in 124 stores this fall in all 124 ABC Fine Wine & Spirits. Vino Cocoa is expected to exceed $100k of annual sales in ABC stores alone. All Vino Cocoa needs to get started are the funds to produce products.

Vino Cocoa is here today asking for enough funds to start production and produce enough inventory for 1 full year, roughly 45k bars. Start up costs will be $27k and inventory costs will be $63k, an estimated $90k total. Funding for future sales and expansion will be considered.

Thank you for your consideration and being a part of the Vino Cocoa team.