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Techlabs, Inc. acquires Byers Foods
Byers
Food Company (“Byers”) is a full service consumer products sales
and marketing company specializing in the Natural and Organic food
products. Byers’
primary goal is to build a long term growth oriented brand
development strategy that will ensure profitable results.
Byers
Food Company is an Illinois Corporation based in Franklin Park,
Illinois, developed by its' principal operator and founder, Mr.
Francis P. Manzo.
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Organic Foods Overview |
According
to Nutrition Business News, based in
San Diego
, sales of organic foods, defined as those containing no synthetic
fertilizers, pesticides or genetically engineered ingredients, have
doubled in five years, hitting $15.7 billion in 2006. Over the same
period, natural foods, defined as those without artificial
ingredients, grew 50% to $10.5 billion in 2006. Together, the two
segments accounted for 4.6% of the total food market for 2006.
According
to a study underwritten by
Michigan
State
University
, “The Organic Food Market”, William A. Knudson, April 2007, the
organic food market has experienced significant growth. It is
estimated that organic foods sold through retail channels was $ 3.6
billion for 2006, which was double the estimated amount for 2000.
The Organic Trade Association estimated that total organic food and
beverage sales were $ 13.8 billion for 2006. Further, from 2004 to
2006, sales of organic food through supermarkets, and mass
merchandisers (including Wal-Mart) increased by 38.4%. According to
Mintel Organic Foods, it is estimated that the sales of organic
foods will increase 71% from 2006 through 2011.
The trend
to offer more organic products to the consumer by the mass
merchandisers was compounded by the fact that in 2006, Wal-Mart
announced that it will significantly increase its offering of
organic foods. As a part of this announcement, Wal-Mart indicated
that it will attempt to price its organic products no more than 10%
above conventional products (Mintel Organic Foods, p. 27).
Retailing
of organic foods are somewhat concentrated with mass merchandisers
and supermarkets accounting for 58% of organic food sales (Mintel,
Organic Foods, p. 9). A significant merchandiser has emerged with
Whole Foods (NASDAQ: WFMI) becoming the largest natural food chain
in the
United States
. Combining with Wild Oats, Whole Foods will have more than 300
stores nationwide. This has created an opportunity for the Company
to concentrate its efforts with the initiation of Wal-Mart as its
first mass merchandiser customer.
According
to Mintel, Organic Foods, 25% of the consumers surveyed by them have
purchased organic foods. Most consumers believe that organic foods
are healthier and better for the environment than traditional food
products. Interestingly, Blacks, Hispanics and Asians are more
concerned about genetically modified foods than whites (Mintel,
Organic Food, p. 69). Again, according to the Mintel survey,
consumers tend to buy organic foods at more than one outlet. Of
consumers who buy organic foods 65% buy at supermarkets, 45% buy at
health food stores and 24% purchase organic products at Wal-Mart.
Obviously, Wal-Mart, as a single provider, commands a significant
share of the organic food market.
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