PRANA FOODS PRIVATE INVESTMENT OFFERING

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PLEASE *DO NOT SHARE* THIS INFORMATION PUBLICLY. ESPECIALLY NOT ON SOCIAL MEDIA! THIS IS A *PRIVATE* INVESTMENT OFFERING AND MAY ONLY BE SHARED SELECTIVELY ONE PERSON AT A TIME.

THANK YOU!

 

HELLO! WELCOME TO OUR PROSPECTUS. 

 

COMPANY OVERVIEW

Prana Foods, a Delaware Public Benefit Corporation, produces a line of organic, gluten free, plant based cookie mixes, pancake mixes and veggie burgers. The products are balanced, complete foods and nutritionally meaningful.

OUR MISSION

We feed your soul with edible forms of light, inspired by Ayurveda. We make your food with your physical, mental and spiritual well-being in mind so you can go uplift the world from the healthiest, purest foundation. And we do it while uplifting the lives of our workers and caring deeply for the environment.

OUR VISION

There is deep wisdom in the ancient science of Ayurveda, and in regional food. There is an old saying, What Grows Together Goes Together. Our formulas combine ingredients that grow together wherever possible. This means our foods are highly digestible and incredibly delicious. We have ancient mantras chanted over the foods while they are being made. Our business model is to hire previously incarcerated and systems impacted individuals. The whole business, from top down and bottom up, is designed to be uplifting. We envision a world where food is digestible, natural, pure and healing and the opportunity for personal growth, spiritual growth, independence and abundance is available for everyone.

MARKET

Prana Foods lands in, or rather creates, a unique intersection of important and newly emerging trends. 

  • Veganism is up 500% in the US since 2014. Meanwhile some members of European Parliament has urged Europe to shift to a plant-based diet. The population at large, even that do not self define as vegan or vegetarian, is looking for more plant based options.
  • Organic food sales are on a steep upward climb and expected to multiply many times over. Organic food sales are expected to rise to 211 billion by 2020 and 320 billion by 2025. The growth rate in organic food sales in 2016 was 10 times that of conventional food.
  • 9 in 10 Millennials will switch to a brand associated with a cause. 73% of Millennials are willing to spend more on a product if it comes from a sustainable brand. 
  • While growth rates have slowed in the Gluten Free sector, consumers continue to seek out Gluten Free options with fewer allergens and more nutritionally meaningful ingredients
  • Free From food sales (meaning foods made without a growing list of common allergens) are expected to double by 2020.

 

THE PROBLEM

Virtually all Gluten Free, Vegan or Organic cookie mixes are still severely lacking in texture and taste, or they contain soy, corn or other allergen . Consumers still do not have attractive AND healthy options.  Products that taste good or have a superior texture are GMO or full of allergens.  ALL the other options we know of call for the addition of animal ingredients in the cooking instructions. Learn why it's important to leave other allergens out of Gluten Free foods.

Take a look at the chart below that compares Prana Foods Chocolate Chip Cookie Mix to several popular brands.

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What is clear from the chart is that no one is adequately serving large groups of consumers. Learn more about our methodology in making the chart. 

The Obvious Gaps and Solution

Besides Prana Foods,

  • All the Gluten Free products are lacking in texture except one, which is not organic or Non GMO.
  • All the Organic products are lacking in texture except one, which contains soy and other allergens.
  • Despite all the ingredients being plant based, every single one calls for egg. Having to figure out how to come up with an egg replacer does not a comfort food make. Not all egg replacers are created equal or have the same effect.

Prana Foods saves customers the trouble and ensures a perfect, consistent result by optimizing the recipe to use completely without egg. 

Prana Foods is obviously the answer. 

MARKET TEST/PROOF OF CONCEPT

Prana Foods products have been sold in stores in two states previously--Washington State and North Carolina. 

The first store that carried Prana Foods products was called Manna Mills Market in Lake Forest Park, Washington. We did a demo at a Gluten Free Fair they invited us to where vendors could exhibit and sell products. We brought 12 cases of cookie mix with us to sell, on recommendation of the store owner as the right amount. By noon, less than halfway through the show, we had sold entirely out of cookie mix.

We were approved to be on store shelves at PCC (formerly Puget Consumers Coop, now Pacific Community Markets) in Seattle. It is the largest consumer-owned food coop in the US. At the time we were too small to take on the order so we did not go through with it. Quality wise though, our product resonated with the Buyer.

In Boon, North Carolina, two stores carried our products. As at Manna Mills Market, whenever we offered samples of our cookie mix, we sold out of all available stock. 

We took a basket of cookies to Expo East in late 2013. Expo attendees that tried the cookies told us they were better than everything else in the Expo.

In March of 2017, our team walked the entire floor at Expo West in Anaheim. This is the country's largest food trade show. We tested every single competing product--meaning every cookie mix, pancake mix and veggie burger in the whole Expo, and tracked the results. Here are the conclusions we came to:

  • Our cookie mix tastes better and has a far superior texture to every single competitor.
  • Our cookie mix is free from more allergens than every single competitor. In fact, for the number of allergens we are free from, we have no competition.
  • Even if you compare our mix to brands that have gluten, ours are still tastier and the texture is even better.

 

MARKETING PLAN

Our Marketing Plan consists of three main prongs: Online, Local and Events. We plan to let our online presence be the main driver for our national expansion. Since Millennials are such a large part of our target market, and they usually have devices in hand and spend lots of time on social media, our quickest path to this market is online via social media.

Online:

  • Promote through Art of Living and other like minded groups
  • Facebook ads to target market
  • Expand social media presence
  • Network through our Kiva loan
  • Education on Ayurvedic Science

Local:

  • Get into local stores, Good Earth first!
  • Stick with Value Aligned high quality markets to start
  • Farmers Markets

Events:

  • We will attend important trade shows to gain a larger market share.

Expansion through value-aligned partners:

  • We intend to put our products in Good Earth in Fairfax as our flagship store. 
  • We plan to line up Dove Distributors as our first distributor.

View a more detailed marketing plan here.

MANAGEMENT TEAM

Our Management and Advisory Team has more than 100 years combined experience with a lot of focus in the Food Industry.  View full bios.

 

Financial projections

We anticipate profitability in 2020 and onwards based on our conservative growth projections.  Here is a snapshot.

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View the full sheet and learn how we arrived at this projection.

details of our offering

Prana Foods is excited to offer Revenue Based equity in the form of preferred stock.  Investors will receive a return of 3% of Gross Margin (gross margin = gross revenue - cost of goods sold), up until the point that the they have received a total profit share that equals a multiple of the original investment, including the original investment, according to the following schedule:

  • for investments of $100,000 or more: 10 times the amount invested

  • for investments of $50,000 or more but less than $100,000: 5 times the amount invested

  • for investments of $25,000 or more but less than $50,000: 3 times the amount invested

  • for investments of $10,000 or more but less than $25,000: 2.5 times the amount invested

  • for investments of $1,000 or more but less than $10,000: 2 times the amount invested.

  • View the full term sheet here.

We feel this is extraordinarily generous compared to other investment offerings you might encounter.  Most investments that pay a 10x return would require an initial investment of 1 million or more. We have lowered the barrier of entry significantly to make this attractive to both professional investors and regular people.

On the other hand, most sustainable, local investments pay an annual dividend of around 5% of the original investment. In this case, it would take an investor 20 years to get back their original investment, let alone any increase. We looked at that approach first, because we want to grow consciously with our values in mind and not overpromise a large return or sell out. 

Enter Revenue Based Returns!  We are so excited about this approach because it allows us to reward our investors by paying an unprecedented and generous return while we retain our values as a company.

In our model, according to projections, investors would receive their full multiple between 2028 and 2029, depending how many investors there are at the various multiples.  For a quick summary of when you get paid, view here.

Revenue based investing is a newly emerging area just starting to gain recognition in Angel Investing circles. In this model, investors stand to gain a significant return, while companies can retain their values, because the return is based on revenue, not on sale of the company. Expect to hear a lot more about this in coming years. Learn more about our unique investment approach.