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Section J -- COMMERCIAL POST-PROCESSING OF THE JERKY:
- Using scissors, CUT the (bacon-like) strips of the Jerky into bite-size chips (for the Indian market), say, 1” × 1”.
- Then, using a small weighing scale, the Jerky should then be PORTIONED into (approximately) 333 gram portions. Erring on the side of caution, put in a few extra grams of Jerky for each portion, so that it is always 300+ grams, close to 333 grams, in each sales packet (which will be marked for 300 grams).
- Each such portion is then to be PACKED into suitably-sized air-tight Zip-lock bags, or using a Vacuum-Sealer machine.
- The bags are then to be correctly LABELLED (using stick-on labels). Ideally, each label should contain the
| A. |
Company Name (and Website), e.g., CalcuttaDeli.com |
| B. |
Meat type used (initially only Buffalo) |
| C. |
Jerky Brand / Sub-Brand, e.g., “JerkyMax”, “Indians & Cowboys”, “Wild Wild East”, “Tonongahela”, “Athabaska”, “Alaskan Elk”, “Yukon Moose”, “Russian Glory”, “Ukrainian Pride”, “Cherokee Trail”, “Eskimo Igloo”, “Grizzly Kodiak”, “Danube-Volga”, “Taiga”, “Severnaya Tundra”, “Yenisey”, “Tungska”, “Baikal”, “Dnieper”, “Kiev-Kamiansk”, “Paslyedni Romaan”, “Caspian-Kavkaz”, “Ukrainskiy Mal'chik”, “Favorit Murchika”, “Kamchatka”, “Yakut-Lena”, “Jim Corbett’s Terai Bison”, “Captain Younghusband’s Yak’n’Yeti”, etc. |
| D. |
Flavor Name and/or Description |
| E. |
Nominal weight in grams of Jerky contained in the bag (should be marked 300 gms / 11 Oz) |
| F. |
Exact weight in grams of Jerky contained in the bag (should be about 333 grams) |
| G. |
Price per gram (initially suggest pricing at INR 3 per gram) |
| H. |
Price of the pack (works out to INR 999 per pack) ** |
| I. |
Manufacture date (date packaged) |
| J. |
Recommended ‘Eat by’ date (date packaged + 3 weeks at room temperature; up to 4 months in refrigerator; up to 8 months in freezer, 12 months if stored air-sealed; 15 days from opening air-sealed package [within the 1st 6 months]) |
- The labeled bags are then to be STORED in a cool dark place, under ambient conditions.
- The bags of Jerky are now READY to be
| A. |
CONSUMED, |
| B. |
SERVED at our own restaurant(s) / food delivery business |
| C. |
RETAILED over the counter at our store |
| D. |
Sold WHOLESALE to our institutional customers |
| E. |
MARKETED ONLINE -- over the Internet, on our own website(s), or using online marketplaces. |
| F. |
MAILED ANYWHERE -- IN THE WORLD -- through the POSTal Service – UNREFRIGERATED -- to customers who have ordered it from us over the Internet (and paid for it in full in advance). |
Section K – PRICING LOGIC:
- The USA leads the world in the production, sales and consumption of Jerky (mostly Beef Jerky; Buffalo meat, aka Bison, is much more expensive than Beef in the USA and most western countries).
- The biggest Jerky Brand and Manufacturer is “Jack Links” (www.JackLinks.com). One of the better Online Brands is BeefJerky.com, which commands a mid-level premium by comparison to Jack Links.
- As of 2020-08-18, Amazon.com was selling -- in the US Domestic Market -- a single 8 Oz (226 grams) pack of the ‘BeefJerky.com, Gourmet Garlic Beef Jerky (Galactic Garlic, 8 oz)’ for USD 19.95 (INR 1492) per pack -- https://www.amazon.com/dp/B086RVXH3H/ref=cm_sw_em_r_mt_dp_UMUoFb17DJJS9. That works out to about INR 6.60 per gram of Beef Jerky.
- This above -- INR 6.60 per gram of Beef Jerky from the USA -- is not including any delivery charges or other fees.
- If delivered to India, the freight from the USA to India, plus the Customs Duties, handling and other charges, etc. would likely double the cost of that package.
- However, it is not available at all for delivery to India on Amazon.com, as it is beef and Amazon and other major Online retailers do not sell retail beef products in India.
- To compare, my proposed 333 gram pack, about 11.75 Oz (but marked 300 grams / 11 Oz), is proposed to be sold at INR 999. I am pricing our proposed product at (999 / 333) = INR 3.00 per gram. Soon, smaller packs will be introduced, which will be more profitable, e.g., a 150 gram packet for INR 699.
- Based on our experience so far with CalcuttaDeli.com, it is believed that a certain segment of the market in India would like to buy Buff / Beef Jerky, particularly if inexpensively and discreetly delivered to their door in India, and can afford the Amazon.com price above, and much more so at our price -- which is less than half of that of Amazon.com, as illustrated in the above example.
- I believe that a sub-segment of these above up-market Indian customers will happily buy from us at this price. Particularly so if I deliver discreetly and cheaply, by India Post / etc. (the government-run, often subsidized, national postal services of every country).
Section L – BUSINESS VIABILITY:
- On the cost side, if we buy 1 kg of buff / beef at INR 300 / kg (2020-08-17-Monday Kolkata Beck Bagan market price), we get 333 gms of Jerky from it (the balance two-thirds by weight is moisture contained in the meat, which is lost when drying the meat using the dehydrator machine to make Jerky).
- That’s INR 300 worth of meat on a cost basis, per 333 gram packet of our Jerky.
- That works out to (INR 300 ÷ 333) = INR 0.90 worth of meat per gram of Jerky.
- Counter-checking, that’s INR 0.90 × 333 = INR 300.00 worth of meat per 333 gram packet of Jerky.
- Let’s assume that all our other costs – condiments / additives, energy, labor, packaging, logistics, spatial costs, website, marketing, amortized cost of capital equipment, what we pay ourselves, etc., EVERYTHING -- comes up to INR 50 -- which is a very conservative assumption.
- That takes our cost of producing a single 333 gram packet of Buff / Beef Jerky at INR 350.
- Against this, our sale price for that same packet is INR 999, leaving us a gross margin per packet of INR 649, ≈ 185% over cost.
- This does not take into account revenues and profits from producing and selling any other related products (using the same set of business resources) – Pork / Chevon / Chicken Jerky, Jerkies made from specialty meats like Rabbit, Emu, Turkey, etc., Dehydrated Fruits, Veggies, etc. – or Export Sales. Or the probability that our regular / bulk-purchase raw material costs will likely go down significantly if we become regular wholesale customers with our suppliers.
- Furthermore, the current price of buff / beef is running much higher than normal. Obviously, if/when the meat prices go back down, our profitability increases in inverse proportionality.
Section M – PACK SIZE (for our initial offering – Buff / Beef Jerky, any flavor):
- We start with the one pack-size, nominally marked 300 grams or 11 ounces, but containing about 333 grams / 11.75 Oz. That is how much jerky is normally expected to be yielded from 1 kg of (boneless) buff / beef. We mark the price of these packs at INR 999.
- Later, we introduce a smaller pack of half that size – nominally marked 150 grams / 5.5 Oz, but containing about 161.67 grams, pack priced at INR 699.
Section N – EXPORT / GOING INTERNATIONAL:
- The decision to mark the packs in both grams and ounces is in part because we might want to explore the possibility of looking at the international market for our product in the future, since we can be very competitive, as an Artisanal brand – in both price and taste -- with the majority of the international Jerky brands, most of which come out of the USA.
- Of course, our exports may have to be routed out of neighboring Bangladesh / Bhutan / Burma, because of the contentious issues relating to beef and the current Indian political environment.
- Initially, we start the project on a cottage industry scale in Calcutta. Later, if the business realities justify, it will be relatively easy to set up a parallel operation in a neighboring country as well, particularly in Bangladesh / Bhutan, each about 1 hour or less by air from Calcutta, with cheap, multiple, daily, non-stop flights.
Section O – OTHER DEHYDRATED FOOD PRODUCTS
ADJACENT / RELATED TO BASIC BUFF JERKY:
- JERKY TYPES -- Other than the 'Original Flavor' 'whole-muscle' Buff / Beef, Jerky can be made using many other flavors, and meats -- we must definitely do multiple ones of these:
- Specialized Flavor 'whole-muscle' Buff / Beef Jerkies -- using flavors from various regional / ethnic cuisine traditions from within India and throughout the world.
Thai, Korean, Goan, Chettinad, Burmese, Naga, Chinese, Bengalee, Mughal -- the possibilities for innobative new product development is almost endless in this area. And fortunately, not at all competitive as yet.
- MINCED Buff / Beef -- less stringy and easier to chew, Minced-meat Jerkies need a little extra Binder to hold the meat firmly in shape (and not disintegrate); and Filler(s) to give a better mouthfeel. They are also easier to flavor.
Mixed Mince Jerky, using a combination of, say, beef and pork, or pork and chicken, etc.is possible.
The lesser cuts of meat, as well as the Filler(s) used -- generally being cheaper -- Mince Jerkies are generally a more profitable business.
America's Slim Jim Beef Sticks are the most iconic product in this category.
- Chicken, Pork, Fish, Chevon / Lamb ('Whole-muscle' / Minced)
The process is the same, only the marinade, temperatures and drying times might be a little different for each type of meat.
- Specialty meats ('Whole-muscle' / Minced) -- Duck, Turkey, Rabbit, Emu, Yak, ...
As inspiration, Australian airport duty-free shops routinely feature Crocodile, Kangaroo & Wallaby Jerky!
- There are a vast number of very delicious and healthy foods -- veggies, herbs, fruits and nuts -- that can be produced and marketed commercially, in a Deli setting -- which are, in many cases, already popular and premium products in India, & internationally. There is much scope for innovation in this space. Some obvious such (proven, established) products include
- Dried Pumpkin Seeds, and other healthy seeds & nuts,
- Candied Pumpkin
- Candied Ginger
- Candied Pineapple
- (Not Sun)Dried Tomatoes
- Apple chips
- Banana chips
- Broccoli
- Mushrooms
- Potato Chips
- Garlic, Onions, Celery, Scallions, and Leeks
- Various other Fruits and Vegerables, and snack foods
- Specialty Seasonal Fruits, like Himsagar Mango
- Cold-weather Berries
There are many other appealing options.
- There can be an exciting market to be explored for "Trail Mix"-style snack-packs containing a combination or blend of both Jerky and other dehydrated foods, such as veggies, nuts, herbs & fruits. Being extremely convenient, highly nutritious and delicious, and as of today, unique -- these can be very appealing to up-market urban Indians.
Quoniam Res Ipsa Loquitur – Carpe Diem!
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