AMDP Recommendation
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Professor Clark Hansen, CEO,
AMDP
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Amanda Horii
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AMDP Recommendation: Dave’s
Killer Bread
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21 October 2017
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WRIT 340
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Being a part of the Research and
Development Team at Anima Mundi Development Partners, I am called to find the
best, environmentally-conscious, socially responsible, and profitable company
to invest in. After investigating a variety of businesses, I would like to
propose investing in Dave’s Killer Bread. The #1 organic bread company is not
only known for its product’s delicious fresh taste, but for its eco-friendly and
community-benefiting business procedures.
AMDP Standards
·
Triple
Bottom Line: An evaluation of a company’s three components: people, profit,
and planet.
-
People: Measure of company’s care of its
customers, employees, and community.
-
Profit: Measure of company’s revenues against
its expenses.
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Planet: Measure of company’s environmental
consciousness and eco-friendly practices
·
Corporate
Social Responsibility: The company’s actions that are advantageous to the
communities and environment around them, but will be beneficial in the long-run
despite short-run costs.
·
Social
Enterprise: A company that addresses its social goals with commercial
strategies.
·
Carbon
Footprint: The total of greenhouse gas (GHG) emissions produced from a
company’s cooperation. It conveys the measure of heat trapped within the
atmosphere over a 100-year time span. A company may undergo a GHG assessment to
measure its carbon footprint. A low carbon footprint is important because
greenhouse gas emissions contribute to global warming and we must be conscious
of our planet’s health.
Overview: The Story Behind the Grain
Dave’s Killer Bread originated from a
family bakery started in 1955 and located in Milwaukee, Oregon that was
previously named, “Midway Bakery”. The founders, Jim and Waene Dahl, shared a love
for baking bread that was passed down to their sons, Glen and Dave. Their sons
reestablished the company as Dave’s Killer Bread in 2005. Shortly prior to this
decision, Dave had finished serving 15 years in prison. He was the prodigal
son, being welcomed back to his family bakery by his brother Glen. Glen’s son,
Shobi, later joined the company to head marketing. As a new man, Dave created a
new recipe for a “killer” organic and non-GMO bread. The company made its debut
at the 2005 Portland Farmers Market and its bread received rave reviews (“Our
History”). From this event, the company gained notoriety and now sells its
bread at popular retailers including Whole Foods, New Seasons, WineCo., and
Costco. The company owes much of its success to Portland’s Farmers Market and is
an annual sponsor for the event (Adamshick). The Dahl family and shareholder, Good
Partners, made the decision in 2015 to sell the company for $275 million to
Flower Foods, Inc (“Flower Foods to Acquire Dave’s Killer Bread for $275
Million”).
Dave’s Profitable Recipe
Dave’s Killer Bread may appear to be
a small-time company with only one bakery in Milwaukee Oregon, but its success
has grown exponentially. It is the top-selling organic bread in the U.S. with a
revenue compound average growth rate of 32% over the past three years. New York
Times blogger Alex Kuczynski claims that “Dave’s Bread has more protein, fewer carbohydrates,
and a little less sodium than many. It would be easy to think this is a crunchy
gimmick…but Dave’s Killer Bread is actually the best bread I’ve ever bought in
a supermarket” (Kuczynski). According to IRI data, the company had increased
retail sales by 25% in 2010 and by 168% during the three years beforehand (“Flower
Foods to Acquire Dave’s Killer Bread for $275 Million”). Since 2010, the
company has more than doubled its daily production and bakes 80,0000 to 90,000
loaves per day (Hadley). The company’s shareholder, Goode Partners, has
realized a return of 3.6x its invested capital and an IRR of 60% on the
investment for Dave’s Killer Bread. The company has proved to be a success as
it has branched out its distribution from 11 to all 50 states (Goode Partners
LLC).
Social Enterprise: Second Chances
As in the example of co-founder Dave
receiving a second chance at life, his company gives those same opportunities to
its employees. One in three employees at Dave’s Killer Bread have criminal
backgrounds and it proves to be a recipe for success. The company launched
Dave’s Killer Bread Foundation to provide information to employers on why and
how they should give second chances to individuals with the Second Chance
Project (DKB Foundation). In addition, the company launched a website, TheSecondChanceProject.com,
to tell the stories of their employees with criminal backgrounds and the
powerful impact of having job it has had on them. The website serves to break
the negative stigma surrounding such individuals to be job candidates, as 50
percent of applicants with a criminal background never get a callback from
hiring managers. Beverly Parenti,
co-founder of the successful Technology Accelerator “Last Mile” that hires
incarcerated individuals as well, partnered with and supports the Second Chance
Project. She states that the Project “[demonstrates] that Second Chance
Employment is powerful, one voice at a time. This is why we’re honored to be a
part of this project. Because together we can make a difference.” (Kieper) Dave’s
Killer Bread Food has the power to bring people of all different backgrounds
together and transform them for the better.
“Killer” Eco-Friendly
Dave’s Killer Bread is not only known
for its “killer” taste, but for its “killer” eco-friendly, organic ingredients.
Dave Killer Bread’s CEO states that their product goes with the trend that “a
lot of people are getting hip to the fact that whole grains are a tremendous
source of powerful nutrition” (Hadley). According to the NDP, American
consumption of white bread has dropped by 30% over the span of 30 years and now
is being replaced with the consumption of wheat bread, accounting for 35% of
at-home bread consumption. Dave’s Killer Bread is classified as sprouted bread,
containing all of the benefits of whole grain but having less gluten “regular
grains” (Rochelle). The company has come up with the perfect recipe for success
that combines both healthy ingredients and delicious taste. Wire’s Kieper
reports that, “Feeding consumers’ love of whole grain and rocking the bread
aisle comes naturally to Dave’s Killer Bread” (Kieper). In addition, they do
not use chemicals on their farms and promote sustainable agricultural practices
using seed tests, farm sponsorships, and apprentice programs (“Organic Farms”).
USAToday reports that a “part of Dave’s success [is] being transparent about
its roots”, having products that are approvingly stamped with being “non-GMO (genetically
modified organism) project verified and certified organic” (Malcolm).
The Final Investment Decision
AMDP should choose to invest in
Dave’s Killer Bread not only for the profitable success of its delicious bread,
but for its business practices that demonstrate environmental and community
consciousness. Dave’s Killer Bread is a company that cares about and gives
opportunities to their employees with criminal backgrounds and thus, inspires
them to transform into new beings. Thus, by example, the company motivates
others in the community to give second chances to such individuals. Investing
in Dave’s Killer Bread would be a “killer decision”
Works Cited
Adamshick, Dave.
“Dave’s Killer Bread Rises to Become Season Sponsor”. Portlandfarmersmarket.org, Portland Farmers’ Market. 2 May, 2011.
Web. 6 October 2017. http://www.portlandfarmersmarket.org/daves-killer-bread-rises-to-become-season-sponsor/
DKB Foundation, “Who
We Are”, dkbfoundation.org, n.p, n.d.
Web. 14 Oct. 2017. http://www.dkbfoundation.org/about.html.
“Flowers Foods to
Acquire Dave's Killer Bread for $275 Million.” Nutraceutical.org. Nutraceuticals World,
17 August 2015 Web. 14 October 2017. www.nutraceuticalsworld.com/issues/2015-10/view_breaking-news/flowers-foods-to-acquire-daves-killer-bread-for-275-million/.
Good Partners LLC,
“Goode Partners Announce Exit of Dave’s Killer Bread Following Acquisition by
Flowers Foods Inc.” GoodePartners.
Good Partners, 14 September 2015 Web. 16 October 2017. http://www.goodepartners.com/press-releases/2/goode-partners-announces-exit-of-dave-s-killer-bread-following-acquisition-by-flowers-foods-inc.
Kieper, Katie. “Dave’s
Killer Bread Challenges Stigma of Criminal Backgrounds, Launches Second Chance
Project Collect First-Hand Experiences with Employment” markets.on.nytimes. NYTimes, 1 August 2017. Web. 20 October 2017. http://markets.on.nytimes.com/research/stocks/news/press_release.asp?docTag=201708011000BIZWIRE_USPRX____BW5399&feedID=600&press_symbol=107938
Kuczynski, Alex.
“Obsessions | Dave's Killer Bread.” The New York Times, The New York
Times, 20 Jan. 2010 Web. 14 Oct. 2017. tmagazine.blogs.nytimes.com/2010/01/20/obsessions-daves-killer-bread/.
Malcolm, Hadley.
“Portland's Famous Killer Bread Goes National.” USA Today,
Gannett Satellite Information Network, 22 Jan. 2015, Web. 16 October 2017.
“Our History” Dave'sKillerBread.com, Dave's Killer
Bread, n.p., n.d., Web. 15 October 2017. www.daveskillerbread.com/our-history#our-history-1
“Organic Farming” DavesKillerBread.com, Dave’s Killer
Bread, n.p., n.d. Web. 15 October 2017/. http://www.daveskillerbread.com/organic-farming.
Rochelle, Billow. “How
to Find the Healthiest Bagged Bread at the Supermarket”. Bonappetit. Bon Apetit, 23 June, 2016. Web. 13 October 2017. https://www.bonappetit.com/test-kitchen/ingredients/article/healthiest-supermarket-bread
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