3. Product Features

Feature 1: Overproduction of vitamin B2 in yeast

By overexpressing ADE4, RIB1, and RIB7 in S. cerevisiae, we created a yeast strain with a 91% increase in vitamin B2 production. Our baking mix contains this engineered yeast, enabling the production of vitamin B2-enriched food.

Feature 2: Suitable for various food

To broaden the market, we plan to develop different series of baking mixes for different target consumer groups. The following is our product line.

4. Product Line

1. Homemade Bread Series:

Baking mix for common bread: suitable for toasts, bagels, baguettes, etc.

Baking mix for whole-wheat bread: whole-wheat flour added.

Baking mix for flavored bread: flavors (chocolate, vanilla, etc.) added.

2. Homemade Dim Sum Series:

Baking mix for steamed bun-based food: suitable for Chinese steamed buns, baozi, Mandarin rolls, etc.

Baking mix for fried dough sticks: fried dough sticks require a special mix.

3. Special Series:

Low-sugar/sugar-free baking mix: specially designed for diabetics and consumers trying to lose weight.

Gluten-free baking mix: specially designed for people with gluten intolerance.

Calcium-fortified baking mix: specially designed for children and the elderly.

4. Children Series:

Colorful baking mix: natural pigments are added, enabling the production of colorful food. Designed to increase children’s interest and appetite.

5. Price Analysis

Prices of current baking mix products in China range from about 10 to 25 Chinese yuan/kilogram. The prices are determined by manufacturer and use. Generally, baking mixes for bread are more expensive than that for steamed buns. Our products have a special advantage, which is the capacity of making vitamin B2-enriched food. This advantage could help us increase the prices. Through the analysis, we determined the appropriate prices for our products.

The price of the Homemade Bread Series is set to 30 Chinese yuan per kilogram and the price of the Homemade Dim Sum Series is set to 15 yuan. The price of the Special and Children Series should be higher than that of the Homemade Bread Series, which is set to 40 yuan.

Table 1. List of popular baking mixes in China.

6. SWOT analysis

Strengths:

Technical advantages: the unique synthetic biology method enables yeast to produce a large amount of vitamin B2 during fermentation.

Health orientated: meet the growing demand of consumers for healthy food.

Diversified product line: covering the needs of different consumer groups.

Weaknesses:

High start-up cost: the research on synthetic biology may require high investment.

Consumer acceptance: consumers may have concerns about genetically modified yeasts.

Opportunities:

Healthy food market growth: as people pay more attention to health, the healthy food market has great growth potential.

Partners: cooperate with dietitians, gyms, and government to promote our products.

International market: In addition to the local market, you can also consider exporting products to other countries and regions.

Threats:

Competitors: some companies such as Xinliang have captured a certain market share. Other companies may employ engineered yeast as well.

Regulatory risks: Regulations on GM products may become stricter.

7. Regulations

As food made with genetically modified organisms, it was meant to be a special product that acquired unusual restrictions. We did literature research to find the regulations and evaluation processes for engineered organisms and new food raw materials. To conclude, the vitamin-B2-enriched food made with our yeast has to go through two rounds of assessment. The yeast’s safety as a genetically modified organism will be evaluated first. After approval, we can move to the next step, which is to evaluate the safety of our yeast as a food material. After that, we can use our yeast to make bread and buns and sell them in supermarkets. Although complicated, the yeast and food can be approved if we comply with all the regulations

1. Our yeast must pass three stages of trials: intermediate test, environmental release test, and production test (the Measures for the Administration of the Safety Evaluation of Agricultural Genetically Modified Organisms (2016 Revision, Article 13).

2. The State Commission for the Safety of Agricultural Genetically Modified Organisms and the Office for the Safety Management of Agricultural Genetically Modified Organisms are responsible for the general safety evaluation of our yeast, and we must submit the Application for the Safety Evaluation.

3. The Ministry of Agriculture and Rural Affairs is responsible for issuing the Agricultural Genetically Modified Organisms Safety Certificate.

4. The Chinese National Center for Food Safety Risk Assessment is responsible for the safety evaluation of our yeast as a food raw material, and we must submit the Application for the Evaluation of New Food Raw Materials (Administrative Measures for the Safety Review of New Food Raw Materials (2017 Amendment), Article 6).

5. The Chinese National Center for Food Safety Risk Assessment will publish the  Consultation Paper on our yeast (Administrative Measures for the Safety Review of New Food Raw Materials (2017 Amendment), Article 6).

6. The National Health Commission is responsible for issuing the Approved List of New Food Raw Materials.

8. Early stage timeline

1. Market Research: Year 0-1.

Research the market. Analyze competitors. Understand industry trends and regulatory requirements.

2. Recruitment and training: Year 0-5

Determine the core team structure of the company. Recruit key positions. Design employee training procedures

3. Fundraising: Year 1-6

Make budget plans and financial forecasts. Look for potential investors or partners.

4. Product development: Year 0-2

Optimize genetically engineered yeast. Develop and test different baking mixes.

5. Product approval: Year 2-3

Get the GMO and the GM food approved.

6. Product promotion: Year 4-10

Create an attractive brand image. Formulate preliminary marketing strategies, such as advertising, social media promotion, etc. Establish communication channels with consumers.

7. Supply chain and production: Year 4-10

Evaluate raw material suppliers and establish a stable cooperative relationship. Design the production process to ensure efficiency. Invest in equipment.

Figure 3. Project’s timeline by years.

9. Company structure

1. Management team:

Chief Executive Officer (CEO): Responsible for the company's overall strategy and important decisions.

Chief Financial Officer (CFO): Responsible for financial management, budget, and investment strategy.

2. Research and Development Department:

Responsible for microorganism and product research. Ensures that the techniques match the company's business goals.

3. Production and Supply Chain Department:

Responsible for production management, inventory management, and quality control. Establishes and maintains relationships with suppliers.

4. Marketing and Sales Department:

Responsible for making marketing strategies. Responsible for advertising and brand building. Establish relationships with customers.

5. Customer Service and Support Department:

Provide market support and customer service. Collect customer feedback and cooperate with other departments to improve products.

6. Human Resources Department:

Responsible for recruitment, employee training, and employee management. Ensures employee satisfaction.

7. Finance and Administration Department:

Responsible for daily affairs, budget, and investment strategy. Ensure the company's compliance and handle legal and administrative problems.

10. Financing plan

1. Seed round:

Target: US$200,000.

Main sources: start-up incubators, personal relationships (family and friends)

Expected time: year one.

2. Angel round:

Target: US$1,000,000.

Main source: angel investor, professional financing platform.

Expected time: year three, after product approval.

11. Market promotion

In the early stage of the company, the budget is often limited, so it is necessary to adopt efficient and low-cost methods to promote our products.

Social media:

Pay for targeted advertising to accurately target the customer.

Reward customers who leave comments about our products on social media.

Register accounts on platforms (Xiaohongshu, Instagram, WeChat, Weibo, etc.) and create attractive content, such as cooking videos and recipe sharing.

Partnership:

Cooperate with baking influencers on social media to promote our products.

Cooperate with bakery schools, online stores, and supermarkets.

Provide free tasting in supermarkets.

Brand building:

Reward customers who leave comments about our products on social media.

Provide free tastings in supermarkets.

Membership system:

Reward customers for membership.

Regularly send news, offers, and recipes to members.

References