2. What is Michigan Farm Market?
This is what we do
In a Nutshell: We help Michigan food entrepreneurs reach a wider audience through
Marketing, distribution, and eCommerce.
We are Mi Farm Market - a family owned business with one simple goal: To spread the breadth
and wealth of the Michigan we love to people all over the country. In order to achieve this goal
we’ve established partnerships with a hand-picked group of Michigan’s finest food
entrepreneurs: Farmers, chocolatiers, bee keepers, ice cream makers, coffee roasters, and
wineries. Through our website, our two retail stores, festival appearances, and a mail-order
catalog we work with these Michiganders to gather the insanely-talented and the irresistibly-
tasty in to one place. Founded in 2012 in Ellsworth, MI (Population 400) – we started out as a
simple retail store and have since grown into a fully functional eCommerce and food
distribution company with partnerships with Pure Michigan and Kroger.
Click Here to See it Happen on Video
3. Who is Michigan Farm Market?
This is what we stand for
Put Simply: We see ourselves as stewards of our northern Michigan community - working
hard, having fun, and sharing our prosperity.
As you browse through our catalog you’re likely to recognize a few labels along the way. But
along with these familiar faces, we work hard to discover new and exciting companies - Food
entrepreneurs who are chasing the American dream and making a great product. We believe
in a simple philosophy that has driven Michigan’s buy-local movement thus far: We’re all in
this together. And this process of constant collaboration, innovation, and just old fashioned
working together is something we pride ourselves in. As we enter our third year in business,
we’ve found that the collaborative effort isn’t just limited to our producers. Our community of
Ellsworth is a hot bed of proactive community members and enthusiastic customers. These
folks play as important a role in our product selection and development as any of us do.
Before
After
Click Here to See Our Proudest Initiative
4. The last 365 Days Have Been Pretty Big for Us
We established wholesale relationships with over 250 stores and restaurants across the
state: By developing our own freight logistics and wholesale shipping program, we secured an
agreement to distribute Michigan products to 250 wholesale locations across the state. Our
increase in volume allowed us to strengthen our buying power: Purchasing products in pallet
quantities direct from our producers bumped our gross margins on both the wholesale and
retail parts of or business.
We purchased two of our long time producers – The Underground Cheesecake Co. and
Charles Layton Chocolates: These acquisition added 5 employees to our company and
doubled our annual revenue. By tying these companies in with our existing marketing and
distribution channels, we unlocked a whole new level of profitability for these long standing
brands, while providing succession plans for their previous owners.
2015 YTD Revenue is up 307% over 2014 YTD revenue. Through last year’s acquisitions and
by adding support staff to both the Traverse City kitchen and Ellsworth warehouse, we’ve
had more time than ever to focus on sales and business development.
Read About our Expansion in this
Traverse City Record Eagle Article
5. Continuing with Community Investment
As we’ve continued to grow, we’ve mainained a focus on investing in our local
community:
We purchased and developed our new warehouse within Ellsworth Village limits: We
Reinvested in our community as we purchased and renovated a vacant property just
blocks from downtown - passing our former leased building to The Good Samaritan Food
Pantry and Resale Shop
We’ve partnered with a local developer to open an Ellsworth retail location: We are
working with a local developer to renovate a long vacant Ellsworth building which would
hold our new farm market and grocery. This store would provide a much needed
resource for The Village of Ellsworth and act as the flagship store for our entire brand.
This developer has agreed to pay for the cost of building renovations and give us a 5-
year, rent-free lease.
6. Although we are very proud of accomplishments, there is a still a lot of work to be done. We have a
couple role models whom we not only aspire to be like in size - but also hope to mimic in our own
community involvement
These businesses - who believe in place making as much as profit margins – have driven economic
development for their rural communities. We have formulated a plan that will allow Michigan Farm
Market to have the same impact for Ellsworth and our surrounding region.
7. ● Specialty food & gifts brand with headquarters in Glen Arbor,
MI. Population: 600
● Mail order and ecommerce are primary sales models but still
maintains 4 brick and mortar stores, including original Glen
Arbor location
● Distributes 800,000 mail order catalogs per year while
shipping 80,000+ packages to consumers all over the world
● Owns 4 retail locations across Michigan but maintains
headquarters in Glen Arbor, adding new jobs to the local
economy with each expansion
● Donated $130,000 last year to “charities and causes that we
see making a difference in our communities”
Our Role Models:
This is who we aspire to be like. Both in
customer size and philosophy
8. ● Craft beer company founded as brew pub in 2004 in Bellaire,
MI. Population: 1,000
● Distribution is primary revenue source but still maintains
brew pub and store to serve local community and tourists
● Employs 150+ Northern Michigan residents in their bottling
plant and brew pup
● Recently expanded Bellaire brew pub and merchandise store
by purchasing and renovating two downtown buildings
● Active involevement in community initiatives like Paddle
Antrim
Our Role Models:
This is who we aspire to be like. Both in
customer size and philosophy
9. ● Specialty food brand founded as a retail store in Ellsworth, MI.
Population: 400
● $21,000,000 in annual revenue
● Employs 80+ Michigan residents across the state
● Distributes 2,500,000 mail order catalogs annually while
shipping 195,000 packages
● eCommerce is primary revenue source but maintains 5 Retail
locations across Michigan – including Ellsworth headquarters
● co-packing and wholesale distribution services compliment
online sales and increase overall gross margins
● Dedicated “Special Projects & Community Outreach” staff
member involved in Northern Michigan community initiatives
● Has provided Michigan food entrepreneurs with $27,000,000
worth of businesss since 2015
Our Goal - 2021
This is who we aspire to be like. Both in
customer size and philosophy
10. Round 1 Investment Ask
• $250,000
• Raised through investor crowdfunding in increments of $5,000 to $20,000 – these funds will be used in two
primary purposes:
–Statewide marketing campaign to reach 2,000,000 Michiganders
– Equipment and furnishing for Ellsworth building to house new headquarters, farm market & grocery,
and accommodate our need for increased capacity
• Investor Repayment: 2.5% of annual revenue paid to investors over 5 years - Until investor payback reaches
1.25x their investment. This is equivalent to about 8% APR
• Update: As of 11/23/2014 we’ve gained $50,000 worth of investment interest through our investment
crowdfunding profile on LocalStake
11. $35,000
Equipment & Fixtures
$30,000
Working Capital
$185,000
Marketing, Trade Shows, &
Distribution
● Consumer marketing campaign to
reach 2,000,000 Michiganders
● 5 Wholesale Food Shows across the
midwest
● Add marketing and sales support
staff in Ellsworth headquarters
● Increase shipping and production
capacity
● Farm market and grocery to serve
community
● Live tests of merchandising and
sampling techniques
● Develop programs for shipping
beer, wine, and ice cream
● Packaging development to
decrease shipping costs and order
fulfillment times
● Accounting and legal fees to
accommodate the expansion
Use of Funds Breakdown
12. Michigan Farm Market - 5 Year Plan
Phase 1 – 2016 - 2017 Crowdfunding Capital Raise
Grow eCommerce & Distribution Sales to $3,000,000 Annually. The first two years of our business plan are to make a huge splash in
Michigan’s specialty food market. We do this by investing nearly $700,000 over 2 years in to marketing our products to a wider audience
through social media, catalog distribution, and e-mail campaigns. We will also have metrics in place to measure and optimize our
marketing spend, decreasing our cost of customer acquisition for future years. We will also standardize our order fullfilment processes.
By the end of 2017, we will be shipping over 30,000 packages of Michigan products annually. In 2016 will establish our Ellsworth retail
locaton and headquarters – the flagship for our entire brand - then open one new store each year through 2020.
Phase 2 – 2018 – 2019 Equity/Debt Capital Raise
Establish Ellsworth Co-Packing Production Facility and Identify Producers to Consolidate into this Facility. Once we’ve built our
distribution and sales channels to capacity, our next step will be to increase the gross margins for ourselves and our producers by
consolidating production, sales, marketing, and distribution in to one operation. To fund this expansion we will seek to raise an additional
$500,000. This will allow us to invest in the people, equipment, and marketing needed to achieve this capacity. Investing in new
production equipment, we will produce AND ship 175,000 packages and reach $19,000,000 in sales in 2019. All while sourcing production
ingredients from Northern Michigan farmers. Our optimized marketing and order fullfillment system will allow us to allocate our
$4,000,000 annual marketing budget in the most effective way possible.
Phase 3 – 2020 and Beyond Acquisitions, Future Growth, and Potential Exit
Identify and Purchase Food Entrepreneur Companies to Move to Ellsworth, The Consider Next Move. For each new company we
acquire, we bump up our gross margins, expand our catalog, add jobs to our local community, and provide succession plans to retiring
entrepreneurs. After achieving $21,000,000 in annual revenue we will look to new role models and explore options for further growth.
These could include Series A funding to develop in to a large scale specialty food brand (specialty food brand Omaha Steaks has annual
revenues of $450 Million), developing a franchising model (fresh fruit gift brand Edible Arrangements has over 1,000 franchise locations
with $480 Million in annual revenue), or corporate buy-out (gift giant Harry & David sold for $142.5 million in 2014).
13. Competition
Cherry Republic – Glen Arbor, MI
Yes one of our most beloved role models is also one of our main sources of competition. According to an article in Crain’s Detroit
Business News, founder Bob Sutherland and his team shipped 80,000 mail order packages in 2012. Combined with a marketing mix
that includes 800,000 catalogs, 50,000 email subscribers, and a dozen National Gift Shows – Bob has slowly perfected his sales
strategy over the last 25 years.
Our Advantage – They promote themselves, not the small food entrepreneur
No matter how many products they add to their catalog, it will always hold their label and will always be cherries. Whereas our
catalog consists of an endless supply of food entrepreneurs and product lines. With each new product they must allocate money
and time in development. We need only find what our customers are looking for and tie it in with our existing entrepreneurs. Given
the technology and talent resources we have at our disposal, we believe we can accomplish in 10 years what took Cherry Republic
25 years to achieve.
Zingermann’s – Ann Arbor, MI
Founded in 1982, Zingerman’s was originally an Ann Arbor sandwich deli. It has since created and developed a full community of
indepdendent food businesses with 500 employees and annual revenue near $40 million. The Zingerman family of businesses
includes: Zingerman’s Bakery, Catering Services, Mail Order, Creamery, Coffee Roasters, Candy , and Food Tours.
Our Advantage – They grow by starting new businesses, we grow by connecting with existing businesses
We are big fans of the Zingerman’s business model. But we believe there is a better way. Zingerman’s achieved its success by
developing its family of businesses over 30 years. We can scale much quicker because we purchase or collaberate invite already
existing food entrepreneurs in to our model. We will have the flexibility to work with these food entrepreneurs to provide
marketing, production, and administration support to help them scale quickly to meet our needs. And when those entrepreneurs
want to exit – we provide them with succession plans through acquisition. We’ve already done this twice in the last year, growing
our own portfolio of business to three unique specialty food brands.
14. Team
Scotty Bruce
• Ellsworth High School Class of 2004
• Former digital marketing and brand
manager at London, England based
marketing firm.
• Managed his first international
campaign at age 22 when he
coordinated brand ambassador
camapigns across Ireland, The UK,
and Australia
• Economics and Finance degree from
Albion College with a concentration
in Public Policy Development
Ray Bruce
• Northern Michigan Native with
30 Years of Grocery & Food
Logistics Experience
• Founding Member of Los
Angeles based Ready Pac
Produce Gift Basket Division
• Shipped 500,000 gift basket
units during his final year with
the company
• Retired to Ellsworth, MI but
came out of retirement to help
his son start Michigan Farm
Market
The Bruce Family
Scotty and Ray are supported by a large family
with various skill sets ranging from accounting to
construction. These family members have filled in
as needed, allowing us to grow aggressively while
containing costs.
The Underground Cheesecake Team
Stephanie and Jennifer use their 10 years of company
experience to manage operations for the 6 person team
at The Underground Cheesecake Co., working with Scotty
to identify new opportunities to grow the business.
15. Get Involved
Scotty Bruce
Office: 866-544-1088
Mobile: 517-897-2532
scotty@mifarmmarket.com
Ray Bruce
Office: 866-544-1088
Mobile: 231-459-8572
ray@mifarmmarket.com
Potential Investors
If you’d like more information, please email Scotty or Ray. We’d be happy to send across a more detailed version of this
document with financial statements and investor payback information. If you know of any potential investors, we’d be
happy to contact them directly.
Community Members
Outside of capital investment, our project will still need the support of community members. Everything from helping
us spread the word, to hanging up store fixtures, to providing professional services - If you’d like to get involved,
chances are we can use your help! Please email or call Scotty or Ray and we’d be happy to talk!
16. Thank You for ReadingMichigan Farm Market’s
2012 Grand Opening
Ceremony
