|1||The $225 billion pet care industry is growing; North American sales expected to hit $281 billion by 2023.|
|2||Dynamic market 68% of all U.S. households own a pet, and 90-million of those pets are dogs.|
|3||Emerging regional brand now capable of reaching over 1,200 retailers in the Pacific Northwest and California.|
|4||Direct to consumer successful launch with subscription option at dogcertified.com.|
|5||Direct to retailer traction in Southern California averaging 5 new stores monthly.|
|6||True rotational feeding system. Our single-sourced meat and fish proteins provide optimal nutrition.|
|7||D.O.G. commitment to ingredient sustainability, Bioflex® sustainable packaging and we are a member of the Pet Sustainability Coalition|
|8||D.O.G. is expected to be attractive for Millennials - largest group of US pet owners; 40% of dog food purchasing.|
Rick Pack is a person who has a longstanding reputation as a capable and successful entrepreneur. His accomplishments and enthusiasm go beyond the boardroom, as he has an established and authentic commitment to the health and well-being of dogs.
Additionally, the steady and long-term projected growth of the pet food industry makes for a sound investment. D.O.G.’s dedication to optimal nutrition, ingredient transparency, and sustainability speaks to the increasing demand by pet parents for products committed to these ethical principles and environmental practices.
Finally, I have absolute confidence in both Rick and D.O.G. products. I have fed my Irish Setter, Flynn, D.O.G. for the past two years. Flynn’s outstanding physical condition and energy can be directly attributed to the excellent nutrition of D.O.G. Pet Food. As a person devoted to the holistic health of my pets, I believe my investment in D.O.G. Pet Food is an investment in the future well-being of all dogs.
We started in 2016 with an idea to make dog food with a purpose ... to Do Only Good for dogs’ health and the planet.
I wanted my dogs to live a long, healthy, and active life. Just like humans, dogs need proper nutrition to help achieve vitality and longevity. Do Only Good (D.O.G.) Certified Pet Nutrition® is a new pet food company that is taking an active approach toward the humanization of pet nutrition. D.O.G. pet products promote “the best in nature formulated with the best of science.” ™
We partnered with Dr. Randy Johnson, one of the foremost and respected Pet Nutritionists in the nation, with a worldwide reputation for excellence in the field.
We began to build brand philosophy: Single-sourced proteins, true rotational feeding system, superior digestibility, and geared toward sustainability of the planet. Dr. Johnson formulated protein diets (kibble and can) in six varieties: Beef, Chicken, Duck, Lamb, Turkey, and White Fish.
Manufactured test runs of kibble with C.J. Foods. Full product line tested for palatability, stool, digestibility, and confirmed guaranteed analysis. Testing met and exceeded all goals!
We opted to source sustainable packaging for our kibble. We then began manufacturing of kibble with C.J. Foods for sale and our canned diet in all six varieties with American Nutrition.
D.O.G. began with a traditional distribution model with independent distributors in the Pacific Northwest, New England, and the Upper Midwest region, and late 2019 launched D.O.G self-distribution in California.
Launched social media platforms: Facebook, Instagram, and Twitter.
Brenda Watson, Founder & President of Vital Planet Natural Pet Care Experts
The U.S. Dog Food market has never been larger – projected to reach nearly $39.0 billion in 2020. Coupled with this consistent annual growth since 2011, the major shift now is that millennials are the #1 owner of dogs in the US. These new pet parents and the “humanization” of dogs demand the best quality dog food.
In addition to our line of dog kibble and cans, we launched a line of pumpkin supplements. Our pumpkin supplements are a family of products to aid in the digestive health of both dogs and cats. It comes in three varieties: Pumpkin with Electrolytes, Pumpkin with Antioxidants, and Pumpkin with Omega Fatty Acids.
D.O.G. products are now in pet retailers through our current independent distribution partners. We are exploring more regional distribution affiliations in the mid-Atlantic and southern regions of the country.
We also have plans to expand D.O.G. self-distribution in California to include 50+ stores by December 2020.
D.O.G. has advantageously pivoted and reimagined the industry’s traditional, single distribution channel by creating direct to consumer opportunities to sell our products that exceed and anticipate consumer demands. Recently, we have established online direct to consumer sales, and an online subscription program geared to millennial clientele, #1 owners of dogs today! The D.O.G. Subscription launch is strengthened by a national digital marketing and advertising campaign planned and managed by the Brandetize agency.
Development of future lines includes single-sourced meat treats and Veterinarian formulated nutritional supplement for raw feeders and home cooks.
Do Only Good Certified Pet Nutrition has financial statements ending December 31 2019. Our cash in hand is $5,000, as of May 2020. Over the three months prior, revenues averaged $58,240/month, cost of goods sold has averaged $9,577/month, and operational expenses have averaged $31,475/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
D.O.G. Certified makes super-premium dog food (kibble and cans) and pumpkin supplements. D.O.G. single meat and fish protein recipes ensure the health and vitality of dogs while also allowing variety in their diet without creating digestive issues. Our pumpkin supplements are a family of products to aid in the digestive health of both dogs and cats. With sustainable packaging, ingredient transparency, and commitment to the ecosystem, our mission is Do Only Good for dogs’ health and the planet.
5-year projected revenue $15.0+ mm and we plan to seek to sell our company around such time and hope to obtain a valuation ranging between $25 million and $30 million assuming our revenue projections are reasonably accurate. (Disclaimer: Projections are not guaranteed). A few recent examples of successful companies in our industry include: Health Extension Pet Care being by acquired Ancestry Pet Food, Better Choice Company closed its $28 million financings and the acquisition of Halo, Purely for Pets, and Whitebridge continues acquiring multiple brands like DOGSWELL and TikiPet.
The above projections are based upon material assumptions mentioned throughout this Form C, which cannot be guaranteed.
Do Only Good Certified Pet Nutrition LLC was incorporated in the State of California in July 2016.
Since then, we have:
Historical Results of Operations
Our company was organized in July 2016 and has limited operations upon which prospective investors may base an evaluation of its performance.
Liquidity & Capital Resources
To-date, the company has been financed with $40,000 in debt, $390,000 in equity, and $188,452 in convertibles.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 3 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 3 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Do Only Good Certified Pet Nutrition LLC cash in hand is $5,000, as of May 2020. Over the last three months, revenues have averaged $58,240/month, cost of goods sold has averaged $9,577/month, and operational expenses have averaged $31,475/month, for an average net margin of $17,188 per month. Our intent is to be profitable in 12 months.
The launch of the Do Only Good (D.O.G.) Pet Food online shopping cart with subscription option.
While these projections cannot be guaranteed, our goal for generated revenue for the period July to December 2020 is $325,000. (39% Distributor, 35% DOG Direct CA Retailers and 26% Direct to customer ”D2C“). Projected costs for the period are expected to be $507,000. This includes $ 197,500 for additional kibble inventory in August. We expect to have $147,500 of this in inventory at the end of the year.
The forecast sales for 2021 are $1,250,000 at an anticipated gross margin of 35%; with more emphasis on D2C as our primary revenue source (D2C 41%, Distributors 35%, and DOG Direct CA 24%). Once again, this cannot be guaranteed.
The above forecasts are based on our current best estimates of future sales and costs. The actual results may differ materially from these estimates.
For additional capital, we can solicit investment from equity investors, as well as use funds from sales distributors, direct to retailer transactions and online/subscription sales.
Successful executions of our business model pivot that has reimagined the industry’s traditional, single distribution channel by creating additional diverse sales networks to sell direct to retailers and consumers.
Finding and managing the right team to create and execute both targeted and effective digital media plans to connect with consumers, independent pet retailers, online customers and subscription customers. Plus expand our education platform for consumer and retailers.
The company needs sufficient capital to produce kibble and cans this summer. The company also plans to produce and acquire new product lines that support our online and subscription sale. A curated line of products that appeals to subscription customers.
To be successful in expanding distribution through independent distributors nationally, we need to build a sales force/rep team focused on our brands that support the distributor's sales teams. We need to attract a sales manager to build and manage this team.
The company will have to grow the management team to facilitate our pending growth. The risk is our ability to attract the right team that will understand and manage the company's growth needs.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
This offering is being conducted on an expedited basis due to circumstances relating to COVID-19 and pursuant to the SEC’s temporary regulatory COVID-19 relief. [Rule 201(z)(1)(i)].
The Company may never undergo a liquidity event such as a sale of the Company or an IPO. If a liquidity event does not occur, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them.
All forward-looking projections are based on material assumptions that cannot be guaranteed. If our assumptions are not correct, we will most likely not meet our forecasts.
Derek McGowan is a part-time officer. As such, it is likely that the company will not make the same progress as it would if that were not the case.
Already have a Wefunder account? Login
Don't have a Wefunder account? Signup