eMerge Interactive: Sustainability and Success

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eMerge Interactive Sustainability and Success

• Jacob AcMoody
• Michael Gunderson
• Whitney Oliver Peake
• 2005 American Agricultural Economics Association
  Graduate Student Case Study Competition

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eMerge Interactive

• a technology company serving the U.S. beef
  production industry

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Service Line and Product Line

• CattleLOG
• Individual animal data
• collection

• VerifEYE
• Improving food safety
• with cutting-edge
• products

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CattleLOG

• Weaknesses
• Dependent
• Tarnished
• Riveted

• Strengths
• Aligned
• Reliable
• Approved

• Opportunities
• Branded beef
• Traceability
• F2P value chain

• Threats
• Commodity competition
• Government delays
• Fragmented industry

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CattleLOG

• Strengths
• Aligned
• Reliable
• Approved

• Weaknesses
• Dependent
• Tarnished
• Riveted

• Opportunities
• Branded beef
• Traceability
• F2P value chain

• Threats
• Commodity competition
• Government delays
• Fragmented industry

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CattleLOG

• Strengths
• Aligned
• Reliable
• Approved

• Weaknesses
• Dependent
• Tarnished
• Riveted

• Threats
• Commodity competition
• Government delays
• Fragmented industry

• Opportunities
• Branded beef
• Traceability
• F2P value chain

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CattleLOG

• Strengths
• Aligned
• Reliable
• Approved

• Weaknesses
• Dependent
• Tarnished
• Riveted

• Opportunities
• Branded beef
• Traceability
• F2P value chain

• Threats
• Commodity competition
• Government delays
• Fragmented industry

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VerifEYE

• Weaknesses
• Unknown
• Limited
• Constrained

• Strengths
• Innovative
• Exclusive
• Efficient
• Committed

• Opportunities
• Alliances
• Hand hygiene
• International markets

• Threats
• Benefit difficult to quantify
• High costs
• Export slowdown

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VerifEYE

• Strengths
• Innovative
• Exclusive
• Efficient
• Committed

• Weaknesses
• Unknown
• Limited
• Constrained

• Opportunities
• Alliances
• Hand hygiene
• International markets

• Threats
• Benefit difficult to quantify
• High costs
• Export slowdown

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VerifEYE

• Strengths
• Innovative
• Exclusive
• Efficient
• Committed

• Weaknesses
• Unknown
• Limited
• Constrained

• Threats
• Benefit difficult to quantify
• High costs
• Export slowdown

• Opportunities
• Alliances
• Hand hygiene
• International markets

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VerifEYE

• Strengths
• Innovative
• Exclusive
• Efficient
• Committed

• Weaknesses
• Unknown
• Limited
• Constrained

• Opportunities
• Alliances
• Hand hygiene
• International markets

• Threats
• Benefit difficult to quantify
• High costs
• Export slowdown

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Quarterly Financials
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Strategic Direction

• eMerge Interactive a technology company serving
  the U.S. beef production industry

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Strategic Direction

• eMerge Interactive a technology creation company
  serving the U.S. meat processing industry

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Who Is The Target Market?
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Beef Processing Industry
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Value of Brand Protection

• Hudson Foods, Inc.
• 25 million pounds of beef recalled

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Values of Food Safety

• Marginal WTP for Traceability 8
• Marginal WTP for Food Safety 21

Individuals in the US and Canada are willing to
pay even more for food safety guarantees than for
traceability alone
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Implementation

• establishing sustainability,
• aiming for long term success

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Sell CattleLOG

• No sustainable competitive advantage
• Existing customer value

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eMerge Present and Future
Market Expansion Grid
Unrelated Diversification
MarketDevelopment
New
CustomersorMarkets

ProductDevelopment
Current
Penetration
Current
New
Products
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Sales Growth of VerifEYE

• 200,000 for capital lease
• 450,000/year for three years

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Pro Forma Financials
millions of operating margin

• millions
• of
• revenues

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Hand Held VerifEYE
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Sustainable Competitive Advantage

• Technology development
• Early contaminant detection systems
• Growth in technology budget

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eMerge Interactive

• Refocusing for sustainability
• Using experience to deliver reliable food safety
  solutions for processors
• Enhancing shareholder value by innovating
  detection technology

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Questions?