As the world's largest producer of cereal and cereal related products, American Cereal Company strives to exceed the needs of our customers by developing a wide variety of options to satisfy their needs. In order to meet our customer and stockholder demands, the Company must consistently introduce new cereals under the ACC umbrella of products.
The recent popularity of high-protein low carbohydrate diets has created the market for a product that capitalizes on this ever-expanding group. By creating a "low Carb" cereal, the ACC hopes to obtain a 20% market share of the ready-to-eat cereal market and 5% market share of the low carbohydrate, high protein diet market. Recognized as a high quality cereal line among consumers, there exists the opportunity to capitalize on this reputation with a new cereal. That cereal is "Carb Conscious."
Carb Conscious Cereal
In keeping with the goal of developing a low carbohydrate, high protein ready-to-eat cereal, the American Cereal Company introduces Carb Conscious Cereal.
Carb Conscious is a high-protein low carbohydrate cereal with great flavor. Many of our competitors have attempted to introduce low carb cereals into the marketplace and have had problems with customer satisfaction due to product taste and not a low enough "Carb count". The ACC has determined that there is a tremendous market opportunity for a good tasting low Carb cereal with six or fewer grams of carbohydrates per serving. With the ACC's reputation for healthy high-quality products, the ACC has the consumer trust needed to gain market share.
Sales of low-Carb branded merchandise hit $520 million last year. Assuming the target goal of 5% of the low Carb market is met, that would account for $26 million in sales each year. With production and distribution systems already in place, the initial capital investment is dramatically...