|
DIPPY FOODS ANNOUNCES MARKETING AND EXPANSION PLANS
Company moves to new location to facilitate expansion plans
January 26, 1999 Anaheim, CA - Dippy Foods, Inc. (NASD OTC BB: DPPI) - produces and sells fresh, prepackaged, nutritious, single-serving meals to schools and other institutional food servers. Dippy Foods' product line called "Dippers", addresses the concerns and issues facing the thousands of school districts supplying breakfasts and lunches to over 33 million children daily as part of the Free School Breakfast and Lunch Program. With no competition, Dippy Foods has capitalized on this niche market and has implemented a marketing strategy to include new sectors and expand on a national level.
According to the US Department of Agriculture, there are 27 million free and cost reduced lunches served on a daily basis as part of the School Breakfast and Lunch Program. The number of breakfasts served in schools daily is over 6 million and is expected to double by the year 2002. The program was established in 1946 to provide low cost or free meals to all underprivileged children who meet the financial criteria set by the Federal Government. The need for low cost meals that meet the new FDA nutritional guidelines is growing rapidly. Numerous studies over the past eight years have shown that hungry children are more likely to have behavioral and academic problems than children who get enough to eat. Over 94,000 schools offer school lunches and about 69,000 schools nationwide offer breakfast daily with pressure building on those schools not yet offering breakfast. Legislation came into effect at the beginning of the 1996-1997 school year requiring that schools participating in the program serve meals that conform to dietary guidelines established by the FDA. This legislation has created a strong need for low cost meals that meet these guidelines. Dippy Foods' meals match these guidelines and more.
By incorporating Dippy Foods product line into their menus, schools eliminate many of the planning, storage, preparation, time restrictions, and other logistical problems faced by schools daily. Most importantly, they are providing nutritional meals to their students at a very low cost.
To maintain its edge on any competitor who may enter the market, the Company will introduce new flavored meals on a regular basis. A marketing program has been developed to target and appeal to kindergarten through sixth grade students in an effort to build early brand loyalty.
Dippy Foods introduced its line of Dippers in early 1998 to the southern California school districts. California represents 12% of the national market for school breakfasts and lunches. To expand the marketing to incorporate the entire state of California, the Company recently hired an experienced sales representative to cover central and northern California.
To expand to a national level, Dippy Foods recently signed a distribution agreement with USFoodservice, a nationwide food distribution organization serving of 85% of the nation's population. This agreement will provide Dippy Foods a strategic distribution center for its national expansion. This expansion will be further facilitated by sales efforts of over 2,800 USFoodservice sales representatives nationwide.
This marketing and expansion strategy for 1999 is showing very positive results. The Company's sales force has already met and exceeded sales forecasts for the month of January, 1999 and will sell over 120,000 meals for the month. Six new school districts have signed on to test Dipper's meals as part of their lunch menu.
The promotion of Dippy Foods line of products has been primarily through tradeshow and direct sales calls. Advertising plans are in development as well as an interactive web site directed at kids with online ordering for school districts available in early 1999. To further market Dippers, the Company has developed live action characters that regularly attend school demonstrations, tradeshows and special functions. This has been very well received by schools and children.
Dippy Foods projects to gain 2% of the national market for school breakfast and lunches within five years. Retail sales are expected to reach $50 million per year by year five.
As market share in the school meal industry is gained, the Company plans to expand its sales force to other markets. There is strong interest in Dippy Foods product lines by federal correctional facilities, state and county correctional facilities, major stadium operators, hospitals, major theme parks, retirement homes, international exporters and retail grocery chains.
As part of the Company's expansion strategy, Dippy Foods recently relocated to its new facilities at 1161 North Knollwood Circle, Anaheim, California, 92801. This new location, which is more than 10,000 square feet allows for corporate offices and ample warehouse facilities to store raw materials and ingredients, as well as a three month inventory build up of the Dippers product line. The facility will accomodate the Company's new production line which is expected to be implemented in the third quarter of 1999.
-END-
For more information, please call Heidi E. Hirst, Toll Free at (888)368-8703 |
|
