Chilau Foods

Chilau Foods

Early Stage

Bold Southern Flavors, Effortless Cooking, Better for you!

Bold Southern Flavors, Effortless Cooking, Better for you!

Overview

Raised this Round: Raised: $113,658

Total Commitments ($USD)

Platform

Wefunder

Start Date

12/25/2023

Close Date

04/29/2024

Min. Goal
$50,000
Max. Goal
$1,000,000
Min. Investment

$100

Security Type

SAFE

Series

Pre-Seed

SEC Filing Type

RegCF    Open SEC Filing

Early Bird Val. Cap

$4,000,000

Valuation Cap

$5,000,000

Discount

10%

Year Founded

2012

Industry

Food, Beverage, & Restaurants

Tech Sector

Non-Tech

Distribution Model

B2C

Margin

Medium

Capital Intensity

Low

Location

Orlando, Florida

Business Type

Growth

Chilau Foods, with a valuation of $5 million, is raising funds on Wefunder. The company makes soup stew bases inspired by bold Southern flavors. Chilau Foods’ products dominate the soup aisle and offer ethnic flavors that ignite the taste buds and elevate everyday cooking. The products are already available in more than 370 stores and have served over 20,000 customers online successfully. Michael Anderson founded Chilau Foods in October 2012. The current crowdfunding campaign has a minimum target of $50,000 and a maximum target of $1 million. The campaign proceeds will be used for inventory, distribution, debt consolidation, marketing, salaries, and market data.

Summary Profit and Loss Statement

FY 2022 FY 2021

Revenue

$146,779

$144,674

COGS

$221,603

$140,621

Tax

$0

$0

 

 

Net Income

$-95,260

$-57,850

Summary Balance Sheet

FY 2022 FY 2021

Cash

$12,216

$4,784

Accounts Receivable

$0

$0

Total Assets

$69,118

$75,925

Short-Term Debt

$89,292

$51,317

Long-Term Debt

$203,261

$152,783

Total Liabilities

$292,553

$204,100

Financials as of: 12/25/2023
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Synopsis

Chilau Foods is tapping into the rich culinary tradition of Southern cuisine with its line of soup stew bases that bring the bold and ethnic flavors of the South to the forefront of home cooking. Founded by Michael Anderson, Chilau Foods is on a mission to redefine Southern-inspired cooking by making it more accessible and effortless for cooks of all skill levels. The company's products are designed to dominate the soup aisle and offer a taste experience that ignites the taste buds and elevates the culinary experience.

With a presence in over 370 stores and a successful track record of serving more than 20,000 customers online, Chilau Foods is positioned as a brand that celebrates the joy of cooking with a nod to the founder's heritage and the traditions of his grandmother's kitchen. The company's commitment to excellence is evident in its growth trajectory and dedication to sharing the flavors of the South with a wider audience.

Next Section: Price

Price

Chilau Foods is raising funds through SAFE on Wefunder with a valuation cap of $5 million. This valuation is good for a company that has demonstrated traction in both online and retail sectors, with a strong customer base of over 20,300 online customers and a 20% repeat customer rate, which indicates a loyal and satisfied customer base. Despite the traction, the company's revenue multiple of 34.06x seems high for a company with an annual revenue of $146,779. However, considering the early stage of the company and the potential for growth in the North American Soup market, the valuation cap might be justifiable.

Next Section: Market

Market

Chilau Foods is emerging in the North American soup market, currently valued at $6.04 billion. With a modest compound annual growth rate of 1.65%, the market exhibits stable, albeit slow, growth. This suggests that while there is a consistent demand for soup products, significant market share gains may be challenging and require strategic differentiation.

The company's product line of soup stew bases capitalizes on a wider trend within the food industry—the growing demand for instant snacks and fast food, which is expected to drive demand for sauce products. As Chilau Foods positions itself as an alternative to mayonnaise and other sauces, it taps into the increasing consumer desire for convenience in meal preparation without sacrificing flavor or quality.

Moreover, the company's focus on bold Southern-inspired flavors aligns with a broader market movement toward ethnic and diverse food options. This plays well into the hands of Chilau Foods as it seeks to ignite the taste buds of consumers looking for unique and authentic culinary experiences.

However, the soup and sauce market is extremely competitive, with established giants like Campbell, Heinz, Unilever, General Mills, Conagra Brands, B&G Foods, and Nestle. These competitors have significant market power, extensive distribution networks, and strong brand recognition. To carve out a niche in this crowded space, Chilau Foods must leverage its unique value proposition of Southern-inspired flavors and the convenience of its products.

Notably, Chilau Foods has already achieved high market acceptance, with its products available in over 370 stores and a strong online customer base of over 20,000. This initial success indicates a positive reception for Chilau's offerings and suggests potential for further expansion within the North American market.

The growth trajectory for Chilau Foods will likely hinge on its ability to continue differentiating its offerings and expand its reach in retail and online platforms. With a low capital intensity level, Chilau Foods is positioned to seize market opportunities and scale up production as demand grows.

Next Section: Team

Team

Chilau Foods was founded by CEO Michael Anderson. With 12 years of relevant industry experience, Anderson is the driving force behind Chilau Foods. His love for family, Southern cuisine, and the cooking traditions of his grandmother's kitchen inspired him to create a brand that celebrates bold Southern tastes and the joy of effortless cooking.

Next Section: Differentiation

Differentiation

Chilau Foods differentiates itself in the highly competitive North American soup market by offering soup stew bases inspired by bold Southern flavors. The company has successfully captured the attention of customers, earning over 1,100 five-star reviews and building a strong social media presence with 30K followers. Additionally, Chilau Foods has achieved a 20% repeat customer rate, highlighting the loyalty and satisfaction of its customer base.

In the retail sector, Chilau Foods has made significant strides since its debut at the Winter Fancy Food Show. The company received the Specialty Food Association's "On Trend Product" award, paving the way for successful promotions with major retailers like Hy-Vee and Market District. This momentum led to Chilau Foods' retail launch in October 2023, where it secured partnerships with leading grocery chains such as Winn-Dixie, United Grocers, Albertsons Market, and Market Street.

Impressively, within 10 months of its introduction to retail, Chilau Foods has secured distribution with anchor accounts at the two largest distributors in the country, UNFI and KeHE. Furthermore, the company has captured Food Services Distribution through Performance Food Service, which includes chefs who have tested the product and expressed excitement about the opportunities ahead in 2024.

While Chilau Foods operates in a market with established competitors like Campbell, Heinz, Unilever, General Mills, Conagra Brands, B&G Foods, and Nestle, it sets itself apart by offering unique Southern-inspired flavors dominating the soup aisle. The products have already gained traction, being available in over 370 stores and serving over 20,000 customers online.

Chilau Foods' success can be attributed to its customer-centric approach, flavorful product offerings, and strategic partnerships. However, the company faces a highly competitive landscape with over 100 direct competitors. To maintain its differentiation, Chilau Foods must continue to innovate, expand its distribution network, and effectively market its unique Southern-inspired soup stew bases to capture a larger share of the North American soup market.

Next Section: Performance

Performance

Chilau Foods has demonstrated a strong performance in the food and beverage industry, particularly within the North American Soup market. The company's customer-centric approach has yielded impressive results, with over 20,300 customers served online and a significant social media following of 30K. Chilau Foods has also established a commendable 20% repeat customer rate, highlighting the brand loyalty and customer satisfaction that the company has fostered.

Chilau Foods' retail sector traction is noteworthy, having launched successfully in major grocery chains such as Winn-Dixie, United Grocers, Albertsons Market, and Market Street in October 2023. The company's products have been recognized as 'On Trend' by the Specialty Food Association and have enjoyed successful IN/OUT promotions with retailers like Hy-Vee and Market District. This has led to Chilau Foods securing distribution with the two largest distributors in the country—UNFI and KeHE—in less than ten months from the retail introduction. Performance Food Service's distribution has also been captured, with chefs expressing enthusiasm for Chilau Foods' products looking ahead to 2024.

Financially, Chilau Foods is still in the pre-profit development phase, with an annual revenue of $146,779 and a growth of 0.98%. The company operates on a monthly burn rate of $7,938.33, which is manageable given their cash on hand and the recent fiscal year-end cash and cash equivalents of $12,216. It's important to note that Chilau Foods has not raised any funds through prior rounds, which may indicate a reliance on its revenue generation and potential cautiousness in managing its financial resources.

The company's distribution model is primarily B2C, with a transactional revenue model. Chilau Foods operates in an extremely competitive landscape, yet its unique product offering—soup stew bases inspired by bold Southern flavors—has allowed it to carve out a niche and dominate the soup aisle with ethnic flavors that resonate with consumers.

Chilau Foods has shown promising growth and market penetration, particularly in the retail sector. The company is poised for further expansion, with its products already available in over 370 stores and a strong online customer base. The current crowdfunding campaign aims to support inventory, distribution, marketing, and other operational costs to continue this growth trajectory.

Next Section: Risk

Risk

Chilau Foods, operating in the highly competitive food and beverage industry, faces significant risks that investors should consider. The company competes with large and well-established entities like Campbell, Heinz, Unilever, General Mills, Conagra Brands, B&G Foods, and Nestle in the soup and stew bases category. These competitors have extensive resources, established brand recognition, and a powerful market presence, which could challenge Chilau Foods' growth and market penetration efforts.

The company is pre-profit, with a modest annual revenue of $146,779 and a net income loss of -$95,260 in the most recent fiscal year. This indicates that Chilau Foods has yet to achieve a profitable business model. In addition, the company's monthly burn rate of $7,938.33 suggests that sustaining operations could be challenging without additional capital or increased revenue. Thus, the company's financial stability relies on its ability to raise funds and scale its production effectively.

Next Section: Bullish Outlook

Bullish Outlook

Chilau Foods is well-positioned to capitalize on the growing demand for bold Southern flavors and convenient cooking solutions. With its line of soup stew bases, the company has already established a strong presence in the soup aisle, with its products dominating the market. Chilau Foods' commitment to delivering ethnic flavors that ignite the taste buds and elevate everyday cooking sets it apart from competitors in the industry.

The company has demonstrated its ability to attract customers, with over 20,000 successful online orders and availability in more than 370 stores. This existing customer base provides a solid foundation for Chilau Foods' future growth. With a focus on B2C distribution, Chilau Foods can directly engage with consumers and build brand loyalty.

Despite being in the pre-profit stage, Chilau Foods has achieved a revenue of $146,779, showing its potential for generating substantial sales. With a positive annual revenue growth rate of 0.98%, the company is steadily increasing its market share.

Chilau Foods' founder, Michael Anderson, brings a deep-rooted connection to Southern cuisine and a strong commitment to excellence. His vision to share the flavors of his Southern heritage and redefine Southern-inspired cooking resonates with consumers. With a valuation of $5 million, Chilau Foods' crowdfunding campaign on Wefunder presents an opportunity for investors to participate in the company's growth.

While the market potential for Chilau Foods may be considered low, the company's unique product offerings and strong customer base provide a solid foundation for future success. The funds raised from the current campaign will be crucial in supporting inventory, distribution, marketing, and overall business expansion.

Next Section: Bearish Outlook

Bearish Outlook

Chilau Foods operates in a highly competitive food, beverage, and restaurant market. The company's competitors include well-established brands such as Campbell, Heinz, Unilever, General Mills, Conagra Brands, B&G Foods, and Nestle. These competitors have a strong presence in the soup market and offer a wide range of products that appeal to a broad consumer base.

While Chilau Foods has experienced some success with its soup stew bases, it still has a long way to go to establish itself as a dominant player in the market. Despite being available in over 370 stores and serving over 20,000 customers online, the company's annual revenue of $146,779 is relatively low. This indicates that Chilau Foods has not yet achieved significant traction or widespread adoption of its products.

Moreover, Chilau Foods operates in a low-margin industry, which could limit its profitability potential. The company's net income of -$95,260 suggests it is losing. Furthermore, with a monthly burn rate of $7,938.33, Chilau Foods will require continued funding to sustain its operations and support growth initiatives.

Given the competitive landscape and the company's limited revenue growth, there are concerns about Chilau Foods' ability to compete with established players and achieve sustainable profitability effectively. Investors should consider these factors and the company's financial performance before making investment decisions.

Next Section: Executive Summary

Executive Summary

Chilau Foods is a food and beverage company that produces soup stew bases inspired by bold Southern flavors. The company's products are designed to elevate everyday cooking and offer ethnic flavors that ignite the taste buds. Chilau Foods' products are already available in over 370 stores and have successfully served over 20,000 customers online.

The company operates in a highly competitive market with low barriers to entry. Its top competitors include well-established food companies such as Campbell, Heinz, Unilever, General Mills, Conagra Brands, B&G Foods, and Nestle. Despite this, Chilau Foods has managed to carve out a niche with its unique product offerings and a strong emphasis on southern-inspired flavors.

Chilau Foods has demonstrated strong traction in the retail sector, securing distribution with major retailers like Hy-Vee and Market Street and anchor accounts at two of the country's largest distributors - UNFI and KeHE. The company has also managed to achieve a 20% repeat customer rate, indicating a high level of customer satisfaction and loyalty.

However, it's worth noting that Chilau Foods is still in the pre-profit stage, with a net income of -$95,260 in the most recent fiscal year. The company seeks to raise funds through crowdfunding, with a minimum target of $50,000 and a maximum target of $1 million. The funds will be used for inventory, distribution, debt consolidation, marketing, salaries, and market data.

In conclusion, while Chilau Foods operates in a highly competitive market, its unique product offerings, strong retail traction, and high customer satisfaction rate position it well for future growth. However, investors should know the company's current financial position and the risks associated with investing in a pre-profit company.

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Chilau Foods on Wefunder 2023
Platform: Wefunder
Security Type: SAFE
Valuation: $5,000,000

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