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Dea
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Thi
sprojec
tpropos a
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lshowhowa ninv
estmentof$16.
5MNc ouldy
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ivenetprotsinexces
sof
$79.
3MNov erat en-
yea
rperiod,
wit
ha v
eragemonthlysal
esof$2MNa tf
ullca
pacit
y,whil
ema i
ntai
ning
adequat
elevelsofli
qui
dit
y.Thepur
poseofthi
sproposali
stosecur
eaddit
ionalf
undingtocovers
tra
tegic
busi
nessexpansioncos
ts.

Establi
shedin2010, SPAGnVOL AisaGa it
hersburg, Ma r
ylandba s
edma nufactur
erofthe nes tquali
ty,
single-
estat
epr emi um c hocolat
e,usingbea nssour cedfrom theCa ribbea na ndWes tAfri
ca.Ourchocolates
ha vegarneredmul tiplea wardsanda ccoladesincludingaS i
l
v erAwa rdf r
om t heAcademyofChoc ol
ates
(2015),aBestda rkchoc olat
eba rcategoryGol dAwa rdfr
om t heAc ademyofMedi aTasteMa ker
s(2015)a nda
Na ti
onalGeogra phicT op10: Worl
dbes tChoc olateshopsdes i
gna ti
on( 2016) ,j
usttonameaf ew. Ourvertica
ll
y
i
nt egrat
edbea nt oba rmodel andeffic ientoper ati
onsha sena bledust ocreateahea l
thybalancesheet,
gener a
tec a
s h owst oadequa tel
ymeetouroper ati
ona ll
iquidityneeds ,ma intai
nprot abil
i
tya ndprovide
ampl eretur
nstos t
a keholdersoverthel a
stteny ears.Ourmedi um tol ongt erms t
rat
egicobjecti
veistogr ow
ouroper ati
onstoena bleust ocapit
a l
iz
eonma rketoppor tuniti
estha tplayt oourcompet i
ti
vema r
ket
adv ant
age .

Pursuanttoourgrowthstr
ategyandinkeepingwithourv ert
ica
ll
yintegrat
edmodel ,
wea reexpa
ndingour
operat
ionswiththeopeningofawor l
dc l
asssi
ngle-es
tatepremium chocola
tema nuf
ac t
uri
ngfac
il
it
yin
Nigeri
a,WestAfr
ica.
Wea lsohavepla
nsinplacetoopena ddi
ti
onalfa
c i
li
ti
esinGhanaa ndtheDominic
an
Republic
.AlongwithourGa it
her
sburgfac
il
ity,
thesethreefaci
l
iti
eswill
signicant
lyexpandproducti
on
capaci
tyofourawa r
d-winning,ne a v
ored,si
ngle-est
atepremium chocolat
es.

Steadyc onsumpt i
onofpr emium c hoc ola
teha sri
senbyov ert wentyper centoverthelastdecade,ledby
Swi t
zerland,I
reland, t
heUni t
edKi ngdom a ndtheUni t
edS tates.I
ncreasedc onsumpt i
oninemer gingma rket
s
i
sl edbyRus si
a ,Turkey, Brazi
l
, Mexico,Indonesia,Chinaa ndI ndia.Thesegmentc urr
entlyaccountsforten
per c
entofa nes ti
ma t
ed$132BNi na nnualgloba l
c hocolates al
esandi sproject
edt ogrowa ta v epercent
annua l
iz
edrate. Wea rel ocat
ingournewpr oduc t
ionf aci
li
tiesinregions(Wes tAfri
ca&t heCa r
ibbea n)
which
toget heracc
ountf orov erseventyper centofgloba lCoc oapr oduction.Thesefacil
i
tiesgiv
euss tr
ategicacces
s
togr owthma rk etsinE urope,Asiaa ndt heAmer icas,provi
di ngusa ndourpa r
tnerssignicantleverageto
meetourmedi um t olongt erm growt hobj ect
ives.

Wea
ppr
eci
atey
ouri
nter
esta
ndl
ookf
orwa
rdt
odi
scus
singne
xts
tepswi
thy
ou.

S
inc
erel
yyour
s,

Er
icA.Rei
d
ChiefE
xec
uti
veOfficer
SPAGnVOLAChoc
ola
tier
s

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 1
AboutS
PAGnVOL
A
OurMi
ssi
on

T
obet hev oiceofne a voredc ocoa
-pr
oducersi
ntheCaribbeanandAfr
icanregion.
Ourgoal
i
stosecureas teadyi
ncomet oourmember sandas uppl
yoft heworl
d’
s nestchocol
a t
efr
om
t
heCa r
ibbea na ndAf
ri
catoc onsumersgl
oball
y.Thosewhoi nves
tin ne avoredcocoamust
r
ecei
veaf airretur
nontheirinvest
ments!

OurBr
and

Top10:Wor
ld’
sBes
tChocola
teShops
2016-NATI
ONALGE OGRAPHICTRAVE
L

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 2
Pr
ojec
tSumma
ry
Emer gi
ngc hoc olat
ec ons umpt i
ont rendsi nWes ternE ur opea ndt heUni tedS t
a t
esha ver ender edt he
globalchoc olateindus tryr i
pef ordi s
rupt ion.
I
nt hesema rkets,cha ngesi nc ons umert as t
esa ndi nc r
ea si
ngdema ndf orhea lthiera ndmor eet hica l
alt
ernativesha v edr i
vent hedoubl e-digitgr owt hobs er vedi nt hepr emi um c hocol ates egmentov er
thelastdec ade .Cons umpt ionofs ingl e-originc hoc ol
a t
eha sgr ownby20%, or ganicc er tied
chocolateby20%a ndhi ghc ocoac ont entda rkc hoc olateby15%a nnua l
i
z edr at
esi nt hisper iod.
Theset r
endsa repr ojectedt oc ont inuea sanewmi ddle-classwi thhi gherdi spos ablei nc omesemer ge
acrossAs i
aa ndi nt heAmer i
cas.
Webel ievet hes etrendsl ea v eourbi gges tc ompet itorsa tas i
gnic antdi sadv anta gei nt hepr emi um
chocolates pa c
e .Ha vi
ngbui ltbus i
nes smodel sov erthel astc entur yba sedonec onomi esofs ca l
ea nd
sma l
lma rgins ,
model st ha trelyonv al
uec ha i
nss prea da crossmul tiplec ont i
nent s,ourc ompet i
torsa r
e
facedwi thpr ohibitiv
ec ostst ores truct ureoper a t
ionsi na ttempt ingt or i
det hegr owi ngwa ve.
Webel ieveourv erticall
yi nt egratedbea nt oba rmodel givesusas i
gnic antc ompet i
tivea dv antage .
Byloc a
tingourma nuf ac turingf acilit
ieswher eourbea nsa res ourc ed, wes tr
ea mlineoper a
tionsby
eli
mina ti
ngs ignic ants uppl ycha inc os t
s,whi lepr eservingt hedi s ti
nc tqua l
iti
es,a vora nda romaof
ourbea nst omeetourc us tomer ’
sdema ndf ors uper i
orqua li
tya tac ompet it
ivepr icepoi nt.
Wea rec on dentt hat, withourwor ldc lassproduc tandbus i
nes se xper ienc e,wea r
ebet terpos it
ioned
thanourc ompet i
ti
ont oc a pital
izeont hedi sr
upt iveoppor tuni ti
esc urrentlys weepi ngt hei ndus try.
OurPr
opos
iti
on
Ex
pansi
onofex
ist
ingf
act
oryi
nNi
ger
iaf
rom a27t
ont
oa170t
onf
ull
pr
oces
singc
apaci
ty

Es
tabl
is
hmentoft
woaddit
iona
lfa
cil
it
ieswi
thi
dent
ica
lpr
oces
singc
apa
cit
yin
Ghanaandt
heDomini
canRepubl
ic

Managementofmanuf
act
uri
ng,mar
keti
ng,s
alesanddi
st
ri
buti
onopera
tions
uponter
msmut ua
ll
yagr
eeduponbetweeni
nv es
tor
sandSPAGnVOL
A

Developmentandexec
uti
onofastr
ategytosc
alever
ti
cal
lyi
ntegr
atedmodel
wit
ht hegoalofma
ximizi
ngours
hareofthe$13.
2bn+premi
um chocol
ate
market.

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 3
Pr
ojec
tFi
nanc
ial
s
Ourpreli
minaryanalys
isdemons tr
atesthepr
oject'
sabil
i
tytora
pidl
yreac
hprotabi
l
ity
,gener
ate
posi
ti
vec ash owwhi l
ema i
ntai
ningadequat
el i
quidi
tyandenoughcash
res
ervesforunfor
eseenfutureevents.
Someoft hehighl
ight
sarei
ll
ust
rat
edbel
ow.

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 4
Pr
ojec
tFi
nanc
ial
scont
inued

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 5
T
imel
i
ne

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 6
T
imel
i
nec
ont
inued

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 7
T
imel
i
nec
ont
inued

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 8
T
imel
i
nec
ont
inued

Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 9
OurNi
ger
iaT
eam
Cr
isoi
reZor
il
laRei
d
Vic
e-President(VP) andCo- f
ounder
oftheS PAGnVOL AChoc olat
ier
brand.Ana c
compl is
hedChoc ol
a t
ier
,
Mrs.Reidha sbeenc ommi s
sionedt o
developc hocolatedesigna nd
tr
ainingfortheL aAc ademyde
Cuisi
ne ,
US APer s
ona lChefs
Er
icAl
ber
toRei
d Associat
ion,AnaG. MendezCul inary
School,Wor l
dBa nk,Amer ican
EricReidi sCE Oa ndf ounderof
Universi
ty,GeorgetownUni vers
ity
CiBEXOGr oup( S PAGnVOL A).Hei s
andtheOr ganiza
tionoft he
ana wa rd-winning, sma l
lbusines s
Amer ic
anS tatesamongot hers.
ownera ndi ndus t
r yexpertin
des i
gningmi crotomedi um scale
choc olatema nufacturi
ngf ac
ili
ties.
Ericcont i
nuest oi mmer sehims elfi
n
thewor l
dofc hocol at
econfections
ands pec ial
izesinhi ghli
ghti
ng a vor Pet
erOs
obas
eAi
kpokpodi
on
cha r
a ct
erist
icst hroughc ocoa
genet ic
sa ndt her oletheyplayi n Awa rdedt heNor ma nE .
Bor laug
creatingdi s
tincta vorsanda roma s. Leader shipE nha ncementi n
AgriculturePr ogramf ell
ows hipin
Summer2006, Dr .
Aikpok podion
pursuedhi sPhDa ttheUni v
ersit
y
ofIba dant hroughac oll
a borati
ve
res
ea rcha rrangementwi tht he
I
nter nationa lI
nstitut
eof T r
opical
Oghener
oboEmmanI
tol
oba Agriculturea ndt heCoc oa
Resea rc
hI ns t
ituteofNiger ia.
Mr. RoboAdhuz eha sunder ta
k envarious Peter’sf
oc usi stodev el
op
resea r
cha ndsurv eywor ki ncoc oa,f
rom str
ategiesf ore xploit
ati
onof
pre-planti
ngt oc ons umpt ionpa tt
erns, national cacaogenet i
cres ources,
succ ess
full
ye x
ec utedac oc oa vari
et ydev elopment ,
relea s
eof
cons umpt i
onc ampa igna ndwor k
edwi th i
mpr ovedc a caov ari
eti
esa nd
sever a
lcoc oaf
armer s’or
ga nizati
onsa nd betterdel i
v erysy s
tems.
cooper ati
vestodev elopma rketi
ng AyoAki
nol
a
capa ci
ty,i
nputs ourc inga ndma rk
et Ayoi sane xperienc eddev el
opment
l
ink ages.Heholds2ma s
ter ’
sdegrees. Vi
ctorMobol
aji
Fol
ayan
consultanta nda gribus inesse xpert
withbr oadpr i
v ates ec t
ore xpos ur
e AMa nagementCons ultant,Mr .
spanningba nking, trade-na nce , Folayan’sexperti
ses pa nsmul tiple
commodi tye x
por ta ndi mpor ttrade
. sectorsrangingf r
om i nternationa l
Ayoi sorganicallyc onnec tedt oov er developmentwi thaf oc usongl obal
250,000Ni gerianf armer sa cross ma croeconomi csandemer ging
severalval
uec hainsa ndha sbeen ma rketstowea lthma nagementwi t
h
i
ntens elyi
nv olvedi nt heinc uba ti
on, sti
ntsa tpresti
gious r msl ik
eE dwa r
d
capac i
tyandi nstitutiona l Jones&Coa ndMer ril
l Lynch,F enner,
str
engt heningofs ev eralfar
mer Pierce&S mi t
h.Victor’
sdr ivi
ngpa ssi
on
organizati
ons . i
st ohel pl
a yadur ablef ounda tionfor
theindus t
riali
zati
onofs ub-Sa ha r
an
Afri
ca .
Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion 10
Pr
ojec
tPr
opos
al|Choc
ola
teF
act
oryEx
pans
ion

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