Thanks Odessa99 for your time & effort in trying to help figure out the possible future potential Revenues of FPFI going forward if ?? and when they go to full production operations at Prep kitchens very soon now.
Sounds very reasonable & possible to me. Thanks !!!
According to the recent 10-Q filing, Fresh Promise has acquired production equipment valued at $12,611, which appears on the balance sheet.
Although I know very little regarding production of organic juice, I'm going to take a stab at working through the numbers to see what type of production volume might be expected from such equipment.
Let us say that production is run with two shifts daily, each shift 8 hours long. That would give FPFI 16 hours of daily production capacity. If they were to process 10 gallons per hour, which equates to a little less than 1.5 cubic feet of juice product (or one large chef's (40 quart) cooking pot), they would be able to produce 160 gallons per day. Since Fresh Promise has stated via a PR that there is a 100 gallon capacity commercial blender at the production facilities , the 160 gallons I have used as an assumption would equate to less than 2 (commercial blender) batches per day, or less than one batch per shift.
Since each gallon of juice processed would yield eight pint size (16 oz) bottles, or four quart size (32 oz) bottles, a daily production of 1.5 cubic feet per hour would translate to about 1,280 pint size bottles. FP has expressed in a PR dated 6/27/14 that they'll initially be selling 16 oz bottles.
If the suggested retail price will be around $9 per bottle, the 1,280 bottles per day (see above for how I've come up with that figure), would yield about $4 million in annual sales, at the retail level. And obviously a much smaller number would be revenue recorded by FPFI, possibly in the the neighborhood of $1.5 million. But again, those figures are based upon a production pace of about 1.5 cubic feet (10 gallons) of juice per hour. My instincts tell me that production equipment in the ballpark of $12k should be able to handle juice processing at a pace many times greater than 1.5 cubic feet per hour. Especially when the company has stated that a 100 gallon capacity commercial blender is present at the production facilities.
As always, simply my opinion.
FPFI
