Green PolkaDot Box (GPDB): A Win-Win-Win Opportunity for Investors in the Organic Food Revolution
September 27, 2016 9:29 pm ET
The organic food industry grew at a 10.8% pace to $43.3 billion in 2015, according to the Organic Trade Association, which is significantly faster than the overall food market’s modest 3.3% growth. Despite the industry’s rapid growth, Consumer Reports data suggests that even more consumers would buy organic food if it weren’t 47% more expensive than non-organic foods when comparing prices across over 100 common products.
In this article, we will take a look at a company that is redefining the supply chain to make organic foods more accessible to everyone and why investors may want to take note.
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Redefining the Supply Chain
Green PolkaDot Box Inc. (OTC: GPDB) is an online food distributor that aims to inform consumers about the risks of GMO-contaminated foods and deliver clean foods to millions of households at wholesale prices. In order to accomplish this mission, the company’s first step is to redefine the food supply chain and cut out the middle men to pass on savings to consumers. The goal is to reduce prices by upwards of 66% and make clean foods affordable again.
The current food supply chain includes producers, processors, distributors, and retailers, which all introduce a markup to build profit margins. For example, a product might cost a producer $0.25, which they mark up by $0.50; a processor might mark up the product by $0.38; and, a distributor might add $0.34, bringing the final price to $2.94 on retail shelves. It’s not uncommon for prices to be marked up by hundreds of percentage points.
Green PolkaDot Box aims to streamline the supply chain through vertical integration. For instance, the company’s in-house production costs might be $0.25; processing costs would add $0.50; sales costs would be $0.10 through its merchant strategy; and, its markup would add $0.50, which yields a final cost of just $1.00 for the same product. Consumers benefit from low prices, while the company is able to generate a healthy profit of its own.
Creating a Marketing Machine
The core of Green PolkaDot Box’s strategy is its network of Health Merchants that would be responsible for generating sales. These third party merchants would be able to setup their own online e-commerce grocery stores and earn a commission when their clients purchase through them. For example, a chiropractor may refer his or her clients to the online store and generate a steady recurring income every week from grocery shopping.
The company charges Health Merchants $4,997 to setup the e-commerce store plus a $195 per month service fee to keep it running. Doctors, nutritionists, chiropractors, homeopaths, and other professions that serve clients interested in improving their health can become Health Merchants and generate a recurring income from their clientele when they make weekly grocery purchases through a branded e-commerce store.
The business model provides a highly scalable method for growing revenue over time and monetizing its strategic acquisitions across the supply chain. The company has signed up over 280 Health Merchants so far. With the goal of signing up just 2,000 Health Merchants, the company believes that it will be on solid financial footing to unlock significant shareholder value over the long term. The win-win nature of these partnerships also makes word-of-mouth referrals more likely for both Health Merchants and consumers.
Green PolkaDot Box Inc. (OTC: GPDB) represents a win-win-win for investors, Health Merchants, and consumers. As a leading innovator in a $43.3 billion market, the company is uniquely positioned to capitalize on the organic food revolution and create significant value for shareholders over the long-term. Accredited investors also have an opportunity to get involved on the ground floor with a pre-IPO offering.
For more information, visit the GPDB information request page here: http://landing.secfilings.com/gpdb