Very Profitable Manufacturer of Frozen Treats
About this business for saleVery Profitable Manufacturer of Frozen Treats
This family owned and operated business's speciality is making and supplying drinks and frozen treats for all ages. They supply the wholesale and school markets in South Africa with very well established and much loved brands. They own four trademarks on their brands and these are held by Adams and Adams Attorneys.
Quality is a cornerstone of their business and they are dedicated to supplying products that are not only affordable but also fantastic tasting and in great demand. Their products are tartrazine free and they do not use artificial sweeteners thus making it ideal for their target market which is mainly the younger generation, although according to Instagram, their products remain a firm favorite with young adults who recall it from their schooldays.
Their target market is schools in Gauteng and Mpumalanga, and they have a network of distributors that service these markets and averaging 18% - 20% year on year growth. They are under-represented with the major retailers, with only some stores of one major retailer currently stocking their product.
They deliver directly to independent wholesalers and retailers with their own fleet of two four ton vehicles.
The business is COD based and only about 10% of their major distributors have accounts, all of which is paid within the month of delivery.
There are significant opportunities for growth by expanding their distributor network to KZN and the Cape Province. In addition they have consistent enquiries from SADC countries but have never realised this opportunity.
The business has about 40% in spare capacity and this can easily be taken up by an expanded footprint with little additional investment in assets, and only an increase in shift work.
They have owned the business since 1998 and the owner now wishes to relocate to the coast.
*EBPIDTA 2017 : R 2,920,189.00; Return on Investment 36.5%; Payback - 33 months.
(*Earnings Before Proprietors Income, Interest, Depreciation, Tax and Amortization)
Price exclude VAT if applicable and average stock holding of R 500,000.00