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Nature View Farms

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Submitted By jacobbcox
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Founded in 1989, Natureview Farm manufacturers and markets refrigerated cup yogurt under the Natureview Farm brand name. Natureview grew the company revenue from $100,000 in 1989 to over $13 million in 1999. In 1989 Natureview entered the market with two 8oz flavors including vanilla and plain. Based on early success, they continued to launch new 8oz flavors with fruit on the bottom and by the year 2000, they had twelve 8oz flavors representing 86% revenues and four flavors in 32-oz cups representing 14% revenues. Natureview has strong relationships with leading natural foods retailers, including Whole Foods and Wild Oats. Natureview Yogurt uses a family recipe that uses natural ingredients and a special process that gives the yogurt a smooth and creamy texture, without using the artificial thickeners that many major yogurt brands use. In addition, Natureview Farms has significantly higher shelf life of 50 days while many of its largest competitors are at 30 days. The business objective for Natureview is to reach $20 million in revenue by the end of 2001. To achieve this goal Natureview needs consider expanding into the supermarket channel Currently 97% of all yogurt consumed is distributed through the supermarket channel. 46% of organic food consumers purchase organic products at a supermarket. Supermarket chains continue to look for ways to offer more organic products to entice a growing consumer demand and minimize lost market share to other retail stores in the organic foods channel. The case references supermarket growth of organic yogurt by 20% per year from 2001 to 2006. Further, 44% of consumers identified a need to expand current selection of organic products in supermarkets, indicating a great opportunity for organic yogurt manufacturers to gain share in a growing channel. Entry into the supermarket channel does not come without risk.

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