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American Company Spotlight
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Cross Atlantic Commodities Inc. Website:
Click Here |
Information As Of July 16,
2008 |
| Exchange:
OTCBB |
Market
Cap:
200K |
| Outstanding Shares:
400 Million |
52 Low / High:
$0.0003 / $0.15 |
|
Price July 16, 2008:
$0.0005 |
CXAC Recent Stock Quote and News:
Click Here |
'Cross Atlantic
Commodities, Inc., manufactures, distributes and markets
specialty food products and general merchandise to large food
chains, clubs and mass merchants. Through the Company's
moniker, Import Foods Division, CXAC assists overseas
manufacturers in the conformities of US packaging and label
standards.'
Overview
Cross Atlantic Commodities, Inc. is a diversified
commodity importer and holding company, specializing in the
coordination of bringing unique food products from the
source to commercial worldwide markets. Cross Atlantic
Commodities' offices in New York, Miami, provide global
reach and focus on product diversification. Cross Atlantic
Commodities will through its wholesale food division work
with major retailers in sourcing and importing unique food
items for the US markets.
Cross Atlantic Commodities, Inc., (CXAC) manufactures,
distributes and markets specialty food products and general
merchandise to large food chains, clubs and mass merchants.
Through the Company's business name, Import Foods Division,
CXAC assists overseas manufacturers in the conformities of
US packaging and label standards.
Investment Highlights
- CXAC’s three-year revenue goal is $9.3 million.
Management expects to achieve this goal through placement of
its products in major retail venues throughout North
America. The first year post-funding, the Company expects to
achieve revenues of $6.5 million.
- The Company expects margins in excess of 20% from
revenues in 2008.
- CXAC announced in June 2008, that it had signed an 18
month marketing agreement that would entitle CXAC to direct
access to nearly 4,000 top national food chains and major
food club stores.
- CXAC's product line includes a waterless car wash
product that is an eco-friendly product that combines a bug
removal, car cleaning solution and wax in one bottle, Fruit2
Go, a one of a kind packaged fruit product that is 100%
Natural with no additives or preservatives, Re-Juv – Anti
Wrinkle Cream which is a fast-acting anti-wrinkle cream as
well as a super moisturizer and lastly, Dr. Beer Gourmet
Pasta which is an organic, gourmet pasta.
- According to the International Carwash Association (ICA),
people spend more than $22 Billion for professional cleaning
in 2008, whereas the Supermarket and grocery Industry
(excluding Convenience Stores) hit $444 billion in 2005
growing to $720 billion by 2008 in the United States according
to research by IBISWorld, a business analysis and reporting
company.
- CXAC announced in April 2008, that its newest division
“Import Foods Division,” signed a leading European pasta
manufacturer. The specialty pasta Company manufactures all
natural and organic pasta. They are one of the largest
specialty pasta companies in Europe, selling to all the
major retailers in throughout Europe. Under the Import Foods
Division program, CXAC will have a marketing budget of
$200,000. This budget provides CXAC the flexibility to
capture the major retailers in the U.S and Canada. CXAC also
receives 10% on sales which could be as much as $2,000,000.
- CXAC's management team is complimented by the Company’s
national broker network of over fifty seasoned retail
insiders.
Profile
With confusing and increasingly negative
economic times ahead, investors are becoming clever in where
to invest their money and how to ride out a painful housing
crisis, skyrocketing fuel and food prices, rising unemployment
and other negative economic factors. One approach to
investing is taking a grass roots approach to making money.
The question investors need to ask
themselves is what companies are making money during these
tough economic times? Well, the obvious companies come to
mind: oil and gas explorers and refiners, agriculture
companies, and thanks to the booming commodity markets,
resource companies in general have also had a good run. But
looking even further, one must look at basic consumer products
as a strong sector to be in. We’re not talking about plasma
TVS, and high end gadgets, but basic consumer products such as
food products, every day household products as well as items
such as clothing and cosmetics.
During tough economic times, items such
as those don’t experience much of a down swing because
products such as those are the basics to living. People can
get away with not upgrading their TV, or buying a new car, but
they can’t get away from buying food to eat, clothes to wear
and cosmetics to use on a daily basis. Wal-Mart recently
announced their June sales figures, and as was widely
expected, the sales performed well. Why is that? It’s quite
simple, as North America’s leading department store, consumers
can always expect to find all the items they require, and at
an affordable price. People are definitely becoming more
conscious with their spending habits, but Wal-Mart is a
classic example of what consumer consistently need during any
kind of economic boom or bust. In case anyone was wondering
from Wal-Mart’s sales figures, the strongest results remained
in grocery, entertainment and health and wellness.
Cross Atlantic Commodities, Inc. trading
on the OTCBB market under the symbol CXAC fits in well with
this back to basics approach. In fact, CXAC has just gone
through their own back to basics re-organization at the
corporate level.
Under the leadership of Jorge Bravo, CXAC’s former Vice
President of Operations and current Chief Executive Officer,
the Company has streamlined its business model and operations
by concentrating on a set of products that it has either
acquired or to which it maintains exclusive distribution
rights. By selecting products with a high likelihood of
success, CXAC is efficiently concentrating its resources on
creating sales volume through big-box retailers as well as
national and regional grocery outlets.
The Company’s shift in emphasis and
revenue approach is a function of the organization’s maturity
allowing it to move from an opportunistic approach to more
controlled model.
This previous model suppresses manufacturer risk with
CXAC’s purchasing inventory outright from its partners and
absorbing the cost of negotiating with retail outlets for
placement and positioning. In addition to inventory and/or
manufacturing costs (under this scenario) CXAC financed all
duty, freight, warehousing, and marketing activities.
CXAC’s management team has extensive experience in
specialty food marketing enjoying relationships with major
North American grocery and retail chains. The team has also
developed the expertise to identify products that will
resonate with consumers. This expertise is complimented by the
Company’s national broker network of over fifty seasoned
retail insiders.
The Company’s new focus results in a competitive advantage
derived by leveraging its knowledge of sourcing products from
the global market that will find a welcome consumer audience
in North America. Furthermore CXAC has extensive inside
knowledge of the retail space in North America.
With over twenty years of experience in this domain, CXAC
recently identified a targeted roster of products to
concentrate the contacts and resources built over the last two
decades of operation. With an extensive broker network and
direct relationships with major retailers who value CXAC’s
ability to identify and package retail products, the Company
is uniquely positioned to translate investment into
high-margin solid operations in a relatively short timeframe.
CXAC recently launched their new division, Import Foods
Division (“IFD”). IFD will primarily focus on European
manufacturers who desire to enter the US markets to sell
products. Most foreign manufacturers are unfamiliar with US
standards and require assistance with packaging, labeling,
nutritional disclosures, distribution and sales. The Company's
target clients are manufacturers that gross over $20 million
in revenues and contracts primarily with major retailers in
their respective countries.
These manufacturers desire to enter new markets but lack
the knowledge and/or experience of producing compliant
packaging or labeling when crossing borders. IFD is the agent
and consultant that will create a ‘turn key operation’ for
these manufacturers to seamlessly sell their products to new
markets abroad.
Regardless of the state of the economy, one thing is
certain; consumers will continue to consume basic products.
CXAC is poised to market their own products or assist European
manufacturers via their Import Foods Division to market their
products to the U.S. market, CXAC is meeting a demand that
will never diminish or sway with the direction of the economy
and investors are encouraged to watch this Company as it
continues to pursue the realization of their own
back-to-basics business model.
Products
Beyond CACI Brand’s ability to generate markets for certain
products; the Company has been very adept at identifying and
packaging products for the North American market. This is a
key element of its strategy moving forward. To this end, it
has selected products in retail niches that have proven very
promising and that show signs of growth in the future. These
products include individual fruit snacks, waterless car wash products,
gourmet organic pasta and
beauty products.
Waterless Car Wash — Eco-friendly Car Wash & Wax Product
CACI Brands recently acquired of a waterless car wash and
wax product, effectively placing it at the center of the
multi-billion dollar car care industry. This provides the
Company with proprietary
product in a huge market.
The product, which is packaged in 17.5 ounce cans, safely
cleans lightly soiled vehicles without using water and leaves
a protective Carnauba wax finish. It effectively removes and
cleans dirt, grime,
water spots, bird droppings, tree sap, or road tar without
harmful CFCs or consuming water.
While expanding the product market, this line of business
also allows the Company to tap into additional outlets such as
auto parts and accessory stores and offers another route into
department and warehouse retailers. The product has
three active ingredients, bug removal, car cleaning solution
and wax, which give the Company an edge among its competitors
as it is the only Company offering all three ingredients in
one package.
Fruit2 Go — Panal
Fruit2 go is a packaged fruit product with a large market
in Europe and manufactured in South America. CACI Brands owns
the brand in it’s North American incarnation, which is 100%
Natural, no additives or preservatives.
This product has significant appeal as a healthy snack for
people on the go and packaged in a state-of-the-art pouch
container using N.A.S.A.’s container design for food storage
on space flight. The container gives the product a
twelve-month shelf-life using no chemicals or preservatives.
Currently, the Company is the only one selling a product of
this kind, which gives it the first to market advantage, as
well as being able to not worry about direct competitors.
Re-Juv – Anti Wrinkle Cream
“Re-Juv” is the first line of Specialty Skin Products that
will help avoid the appearance of old age and leave your skin
soft, smooth and firm. Four year ago, CXAC's cosmetic
chemists, led by Jesse H. Starkman, M.S., Pharm, Enc., and
Mary Lou Doepkler Prepared a “Product Profile” for a product
that would be a very Fast-Acting Anti-Wrinkle Cream as well as
a super moisturizer. Formulating, testing, making adjustments,
then safety testing and testing the final product successfully
formulating a product that boosted natural collagen
production, quickly reduced the appearance of fine lines and
wrinkles, increased skin hydration and skin firmness, leaving
the skin soft and smooth. Using three different Peptides,
Green Tea, Aloe, Vitamin C, Vitamin E, Hyaluronic Acid, Marine
Collagen, Plant-Derived Lidid-Soluble Hydroxyproline Compound
and other moistures, the Comapny's Cosmetic Chemists produced
“Re-Juv”, an effective and safe wrinkle cream that will show
significant reduction or elimination of fine lines, in less
than three minutes, in most women. It will also help protect
against UV A/B harmful rays from the sun.
Dr. Beer Gourmet Pasta
Dr. Beer Gourmet, is made from the finest raw material.
Italian pasta is made from semolina with 900 - 1100 ash. The
semolina Dr. Beer uses, contains 800 ash maximum. The Company
demandd a minimum protein content of about 13 % and minimum
color, which is measured in "Minolta". The egg, that's used,
is not allowed to be older than 7 days, which means that the
lactic acid is not more than 200 - 250 (German standard allows
until 1000).
Dr. Beer pasta is made after very old traditional recipes and
either rolled like decades ago, pressed though bronze forms or
like the way to make Spaetzle - by dropping the dough into
boiling water.
Marketing & Sales Strategy
CXAC’s marketing and sales strategy is driven by the
merchandising requirements of its product line and the retail
industry. Since the Eighties, it has become common practice to
charge fees for retail also known as shelf space among
retailers. A significant portion of the Company’s effort will
be devoted to securing premium placement within brands that
charge for this kind of placement. The use of placement fees
is not universal, however, and many larger retailers do not
sell shelf space to the highest bidder. Rather they prefer to
select products based on merit, propensity to sell, or
suitability to the retailer’s brand.
The Company will approach both types of retailers with
equal vigor using two complementary sales strategies. In the
first case, CXAC will use a well-established network of over
fifty brokers who cover all of North America and maintain
relationships with the retail brands listed below that
collectively account for over 4,500 locations.
Sample Companies include: Kroger, Safeway, Food Lion and
Albertons among many others.
In the second scenario described above, a direct sales model,
CXAC will sell into retail organizations that conduct product
selection with a flatter, more accessible model. In these
instances, the Company will rely on its industry track record
and the product quality as well as the retail sector’s
relentless demand for additional merchandise to satisfy
consumer tastes.
Sample Companies Include: Wal-Mart, Sam’s Club, Publix,
Costco and Wegmans.
Market Opportunity
The products the Company currently possesses, access three
major markets: the highly lucrative North American consumer
grocery market, the consumer car care industry and the
consumer beauty market.
According to the International Carwash Association (ICA),
people spend more than $22 Billion for professional cleaning
in 2008, whereas the Supermarket and grocery Industry
(excluding Convenience Stores) hit $444 billion in 2005
growing to $720 billion by 2008 in the United States according
to research by IBISWorld, a business analysis and reporting
company. Of this figure, food merchandise accounts for over
70% of the industry’s product segment.
- In its new report, growth Retail Markets Worldwide 2007,
Planet Retail predicts expansion of retail sales will
increase by 8% to $12,329 Trillion (USD) with grocery retail
sales growing by an even faster 9% to $5,031 Trillion (USD)
in 2008. Of this growth, North America was the largest with
Economic growth alone almost as high as the overall economic
output of Africa in 2006.
- According to a report prepared by the Canadian
Department of Agriculture, Warehouse clubs and mass
merchandisers are two of the fastest growing channels in the
American retail grocery market, with projected increases in
consumable retail sales of 20% and 21% respectively, by
2008. growth areas
include private label products, home meal replacements, and
prepared, organic, natural, and ethnic foods.
- The Automotive Aftermarket Association estimates that
fifty-four percent of consumers consider themselves
do-it-yourselfers with light maintenance and twelve percent
feel they are capable of doing medium maintenance and repair
jobs.
- A report published by Global Industry Analysts, Inc.,
estimates global growth from the anti-aging cosmeceuticals
market, is projected to grow at a CAGR of 9.8% over the
years 2001 through 2010, reaching $115.5 billion USD by the
year 2010. Sales of anti-aging cosmeceuticals in
Asia-Pacific and Latin America, the two fast growing markets
worldwide, are expected to rise by U.S. $1.0 billion between
the period 2007 to 2010. The U.S. dominates the world
anti-aging drugs & pharmaceuticals market, with a 34% share
estimated in the year 2007, followed closely by Europe.
Global sales in this market is expected to rise by a strong
30.9% between the period 2007 to 2010.
Management
CXAC is led by Jorge Bravo who is responsible for the
Company’s previous business model and its growth to date.
While at the Company, he developed and managed relationships
with manufacturers as well as national retainers and club
stores. This activity has been primarily focused on
architecting and implementing numerous private-label programs
for grocery and frozen food brands. Previously he was the
Vice President for Sales & Marketing for a Frozen Food
Manufacturer where he grew sales to over $12 million/year from
$500,000/year. While there he developed an Independent
Distributor Network, sold to Major Retailers through out the
United States, Canada and the Caribbean. He also developed and
implemented a private label program, which took the company to
the next level in sales.
Contact
Cross Atlantic Commodities Inc.
4581 Weston Road #273
Weston, Florida 33331
Phone: 954.678.0698
Fax: 707.371.7039
Email:
investorrelations@crossac.com
FORWARD LOOKING STATEMENTS
This report includes forward-looking
statements that reflect Cross Atlantic Commodities Inc. current
expectations about its future results, performance,
prospects and opportunities.
Cross Atlantic Commodities Inc. has
tried to identify these forward-looking statements by using
words and phrases such as "may," "will," "expects,"
"anticipates," "believes," "intends," "estimates," "plan,"
"should," "typical," "preliminary," "we are confident" or
similar expressions. These forward-looking statements are
based on information currently available and are subject to
a number of risks, uncertainties and other factors that
could cause Cross Atlantic Commodities
Inc.'s actual results,
performance, prospects or opportunities to differ materially
from those expressed in, or implied by, these
forward-looking statements. These risks, uncertainties and
other factors include, without limitation, the Company's
growth expectations and ongoing funding requirements, and
specifically, the Company's growth prospects with scalable
customers, and those outlined above. Other risks include the
Company's limited operating history, the Company's history
of operating losses, consumers' acceptance, the Company's
use of licensed technologies, risk of increased competition,
the potential need for additional financing, the terms and
conditions of any financing that is consummated, the limited
trading market for the Company's securities, the possible
volatility of the Company's stock price, the concentration
of ownership, and the potential fluctuation in the Company's
operating results.
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Section 27A of the Securities Act of 1933 and Sections 21E
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the safe harbor created by these sections. Actual results
may differ materially from the Company's expectations and
estimates. This is an advertisement for
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