TASTEMAKERS INITIATIVE 2019 Kick-off Convened by CEI in partnership with FocusMaine

1. TASTEMAKERS INITIATIVE2019 Kick-offConvened by CEI in partnership with FocusMaine January 24, 2019 DaVinci’s Eatery Lewiston

2. Project Goals Grow your business Create jobs Develop Maine’s future economy TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

3. STRATEGY • Support value-add companies that source local • Land & Sea • Research emerging opportunities • Resources for entrepreneurs TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

4. Goals for Today • SHARE RESEARCH FINDINGS • Market opportunities & sales channels • Current landscape of facilities in Maine • RESOURCES FOR ENTREPRENEURS • Network with similar businesses with shared needs • Explore existing programs to access funding • Learn how to apply for Tastemakers resources TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

5. Two Questions for Today • What assets do I have? • Brand • Market intelligence • Skilled workforce • Facility & equipment capacity • What do I need to grow? • Network with businesses with shared needs • Explore existing programs to access funding • Learn how to apply for Tastemakers resources TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

6. AGENDA 12:00 Welcome and Lunch is served 12:05 Attendee Introductions 12:20 Introduction to the Tastemakers Initiative 12:25 Emerging market opportunities for your business -- Jed Beach, FarmSmart 12:40 Maine’s food processing landscape -- June Sleeper, Cultivating the New Economy 12:55 Growth-based Solutions for Maine food producers --Bill Whittier, MMEP 1:05 Workforce development innovation strategies –Cynthia Murphy, CEI 1:15 Networking Break 1:30 Thank You from our Partner – Kim Hamilton, FocusMaine 1:35 Cultivator Program Overview – Sue Hanson, Maine Center for Entrepreneurs 1:40 Business expansion needs – Leverage what you have to find what you need 2:15 Group discussion 2:45 Next steps 3:00 Networking at Baxter Brewing Co. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

7. Market Opportunities for Maine Processed Foods Jed Beach, FarmSmart Business Services For Coastal Enterprises, Inc. 1/24/19

8. About Jed/This project • Business Consultant who works with Maine food businesses (mostly farms). • Provides market research, cost & profitability analysis, and bookkeeping support. • This project identifies market opportunities for Maine processed foods. Sources • USDA ERS food consumption data • Pew Research eating habits survey • Hartman Group reporting • Buyer interviews TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

9. The Four Ingredients of a Successful Food Product TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

11. The Four Ingredients of a Successful Food Product TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

12. Healthy then . . . TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

13. ...Now Source: The Hartman Group The “core principles” include, “fresh, less processed, nutrient dense, diverse, digestion + energy supporting” TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

14. Brassicas on the rise • Nutrient dense foods • Strong demand for frozen brassica across many types of buyers • 16.6 m lbs. In New England Retail • Frozen broccoli = half of all frozen veg TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

15. Berries are on the rise • A source of nutrient density TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

16. Dairy is being repositioned • Fluid milk, once a staple of the American diet, is now viewed with suspicion. • Yogurt is on the rise (a source of probiotics) • Potential to reposition grass-fed dairy as a healthy source of fats. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

17. Grain flour is being repositioned • Once a source of calories at base of pyramid. • Now “carbs” and “gluten” are viewed with suspicion • In the “New Healthy,” flour is a source of plant-based protein and nutrients • Alternative flours marketed as high protein are growing quickly. • Retailers expressed interest in “heritage” or “ancient” grains. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

18. Profile of the Health Seeking Customer • About 19% of the population. More likely than the average to: • Believe that healthy eating habits and exercise matter more than genetics in determining health. • Believe that they are already eating a healthy diet. • Buy organic food, and believe that organic foods are healthier. • Buy local • Buy non-GMO, and to care about whether or not foods are GMO • Have friends and family who also eat healthy. • Trust what small farmers say more than food industry leaders and other experts. • Be female • Have a high level of religious commitment • Have an income of $30k-$40k (becomes less common as income bracket increases). Source: Cross reference of Pew Research data, week 17 2016. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

19. Convenience Source: The Hartman Group, Food Shopping in America 2017 The New Convenience = products that save on cooking and prep time without sacrificing the variety necessary to satisfy a diversity of dietary needs and preferences. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

20. Examples of convenience Generally, more finished foods in small packaging sizes • Pre-cooked carrots are the only growing segment of carrots overall • Salad kits • Chopped/Peeled/Washed • Grab and go • Meal kits TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

21. Adding convenience can add net margin • The markups for convenience that consumers are willing to pay usually exceed the costs. • This allows niche producers to reach their profit goals at a smaller scale. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

22. Flavor • The American palate has broadened to include many new types of flavors. • Examples of 2017-18 fine dining trends: asian noodle bowls, pickles and other lactofermented foods. • This desire for flavor is best exemplified in the customer segment called the “Food Enthusiast” by the US Potato Board; the “creative cook” who “loves to eat; this segment is about 25% of the population. Pew Center notes that Flavor Seekers are more likely than the average to: • Seek convenience • Be non-vegetarian • Have family and friends that eat healthy TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

23. Authenticity [There has been a] “deprioritization of the mealtime ritual and of cooking in general. . . .Though these changes have helped erode traditional mealtime routines, especially around breakfast and lunch, consumers continue to aspire to an ideal meal based on an imagined past. . . Few want to return to this vision . . . but consumers do want the imagined meal that results.” • The Hartman Group, Transformation of the American Meal TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

24. The Imagined Past is Changing

25. Transparency is a cornerstone of the New Authenticity Rather than relying on “Experts” to tell us whether something is good or bad, the new authentic product tells us exactly what’s in the container and how it was made, and lets us decide whether or not it’s good or bad for us. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

27. The Four Ingredients of a Successful Food Product TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

28. Next Steps We can use the market research provided by this project to: • Identify trends within your product category. • Estimate the total market size for your products. • Identify your competition, their pricing strategies, and their share of the market. • Compare how you and you competitors deliver health, convenience, flavor, and authenticity to your customers. • Put you in touch with potential buyers. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

29. FOOD PROCESSING & MANUFACTURING LANDSCAPE JUNE SLEEPER 1/24/2019

30. PRIMER PURPOSE • Establisha foundation of common knowledge and shared terminology for project stakeholders and review potential models for Maine • Methodology • Regulatory Framework Summary • Product Seasonality / Overlaps /Off-Season • Strategies for Growth • Co-Packers • Co-Location • Opportunities TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

31. BUSINESS CLASSIFICATIONS

32. REGULATORY FRAMEWORK TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

33. SEASONALITY TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

34. STRATEGIES FOR GROWTH • RECONFIGURE BUILDING • Opportunities to create efficiencies in existing footprint or add on to structure • NEW FACILITY • Conventional Construction • The Locker TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

35. CO-PACKERS • Co-packers manufacture and package foods for other companies to sell and may range from nationally known brands to private labels. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

36. CO-LOCATED BUSINESSES • The practice of locating multiple, complementary businesses, in close geographical proximity. Promoting the development of competitive advantages that are mutually beneficial. • Ocean Approved—Saco, Maine • Sea Vegetable • Fin Fish • Land Vegetables • Increased cash flow • Potential to cross-train labor TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

37. Maine Food Means Business BILL WHITTIER Maine Manufacturing Extension Partnership

38. Food Industry Growth Strategies Maine MEP In the last decade Maine MEP has focused on building the state’s food infrastructure successfully completing projects in the following sectors and areas: Fresh Entrée Dehydrated Foods Baking Mixes Sauces Salsas and Soups Frozen Dough Beans and Vegetables Spices and Rubs Cheese and Butter Ice Cream and Gelato Nutraceuticals / Botanicals Lobster and Shellfish Fin Fish Meat and Poultry Bakery and Tortilla Snack Foods Juice and Fresh Fruit Brewing and Malting Confectionary / Desserts Microbiological Laboratory TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

39. Revenue Growth Sales Training and Mentoring Evaluating Distribution Options New Product Development Global Food Safety Initiative Certification - SQF Third Party Audit Preparation TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

40. Cost Improvement Process Assessment Kaizen Team Process Improvement Improving Process Stability and Predictability Portioning and Filling Statistical Process Control Standard Operating Procedures TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

41. Scale Up and Plant Layout Process Scale Up New Equipment Evaluation Utilization Improvement - Existing Space New Site Evaluation Plant Layout Workforce Development TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

42. Team Development Management Leadership Development Supervisory Training and Coaching Lean Employee Engagement and Problem Solving SuccessionPlanning Health and Safety Compliance Bill Whittier billw@mainemep.org 207-831-1855 TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

43. Workforce Strategies for Growth Cynthia Murphy Sr. Program Director, Workforce Solutions

44. I am struggling to hire enough qualified workers to fulfill all of our orders. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

45. How We Can Help You Grow: Recruiting Tactics On-the Job Training Skills Gap Solutions TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

46. Hiring for my peak season is stressful & when it’s over, great workers leave. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

47. How We Can Help You Grow: Mutually-Beneficial Jobs Framework Organization Design Job Design TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

48. Next Steps:  Join the Workforce Breakout session  Apply for Tastemakers Resources to Grow Funding  Partner with me to scope your workforce-related growth project  Receive recommendations, including alignment with Jobs Framework and, if applicable, financial models TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

49. AGENDA 1:30 Thank You from our Partner – Kim Hamilton, FocusMaine 1:35 Cultivator Overview – Sue Hanson, Maine Center for Entrepreneurs 1:40 Business expansion needs 2:15 Group discussion 2:45 Next steps 3:00 Networking at Baxter Brewing Co. TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner

50. Business expansion needs • Select your breakout networking conversation topic • Sales channel development (Jed Beach) • Scaling production with facility & equipment planning (Bill Whittier) • Workforce strategies (Cynthia Murphy) • Big Picture Needs (June Sleeper) TASTEMAKERS INITIATIVE Convened by CEI / FocusMaine Partner