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Cleveland

MinusG

About Documents
258%
$25,750 Funded
$10,000 Target
Closed Time Left
30 Investors
$10,000 Min. Raise
$65,000 Max. Raise
60 mo. Term Length
9.0% Interest Rate
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   Overview

MinusG manufactures gluten-free and allergy-friendly products with uncompromised quality, specifically targeting those who have celiac disease, gluten-intolerance, food allergies, vegan diets, or a desire for healthy options. Our current product line consists of seven baking mixes: Pizza Crust, Bread, Pancake & Waffle, Muffin, Pie Crust, Chocolate Chip Cookies, and Chocolate Cake. The ingredients are plant-based, non-GMO, preservative-free and sourced from local growers where possible. They are sold within Ohio on the company website, at farmers markets, and in select stores.

The mixes also deliver on taste and texture. Finding good gluten-free is finding a treasure! The reason customers buy MinusG Baking Mixes is because the quality, taste, and texture are superior to competitor brands, filling a void in the marketplace. The consistent 5-star ratings, positive feedback, and thank yous are a testimony to the fact that MinusG is solving the need for good food, resolving digestive health needs, and putting a smile on the faces of many with limited diets.

We are raising $65,000 at an interest rate of 9.00%. There will be a six-month interest-only period followed by a 54-month fully amortizing period. The campaign ends on June 26, 2020 at 11:59pm.

 

 

The Project

We are seeking funds for Phase One to build out our commercial manufacturing facility. The build-out will utilize $10-$15K towards an architect and $30-$45K towards necessary alterations to make the space compliant and functional. The remaining funds will go toward pre-printed bags, hiring 2-3 additional employees and working capital.

Obtaining a commercial facility will allow for expansion out of state for both wholesale and online. The cottage industry regulations have been a limiting factor for business growth. We currently use a 300 sq ft space for mixing, bagging, and sealing along with storing inventory and shipping. The commercial facility will allow us to increase production with more room to make and house inventory, become gluten-free certified and continue our growth path.

 

We're looking to upgrade our production space from a home kitchen to a commercial facility.

  

Business

History

MinusG was established by Katherine Krage in August 2015 while also working a full-time job. In 2004 she was diagnosed with celiac disease which started her gluten-free journey. Every gluten-free item she found either tasted like cardboard, was too dry and crumbled apart, or was too dense. Nothing tasted like the product it was supposed to reflect. The lack of delicious options led her to create her own gluten-free flour blends. Her friends and family were very impressed and loved every bite! Realizing that she could bring hope to others struggling to find delicious gluten-free food, Katherine founded MinusG. 



Katherine attended classes at the CCLK (Cleveland Culinary Launch Kitchen) to learn how to successfully launch her food business. In the summer of 2016 she introduced her first collection of 4 mixes. To learn how well they would be received, she debuted us at 2 farmers markets. MinusG quickly had customers who raved: “this is so good we can’t believe it’s gluten-free!” Based on feedback concerning another dietary need, corn starch was removed from the mixes and 3 sugar-free mixes were introduced the following year, which completed the full line offered today.

To engage the growing audience, we created an email newsletter, a social media presence, an online store, and a recipe blog. Allergen substitutes were tested to provide the best options for each mix. As awareness spread by word-of-mouth and modest advertising, our business doubled each year. In the following three years, we expanded into 13 Farmer’s Markets, 18 large events, and 15 retailers from Cleveland to Cincinnati. By 2019 our reputation was established as “must buy” mixes. MinusG is positioned for growth beyond a cottage industry business and ready to reach the next level.

 

Lemon ricotta pancakes.

 

The Future

Over the next three years, we intend to reach our growth goals through a three-phased approach using crowdfunded sources or small business loans. Phase One will fund and outfit a commercial space. Phase Two will acquire machinery for mixing and bagging products, and Phase Three will explore fresh-baked and frozen product lines.

2020-2021: Acquire a commercial production facility, hire 2-3 additional employees to increase production, use the RangeMe platform to bring MinusG into mainstream grocery stores, grow the wholesale side of the business, introduce a new Egg Replacer product, adjust the yield on product to be more price friendly, obtain gluten-free certification, and continue raising brand awareness through online marketing.

2021-2022: Attend larger events in and out of state, expand the online business from local-only to a nationwide audience, use increased revenue to pay down Phase One loan, seek Phase Two funding to acquire mixing and bagging machinery for streamlining production costs and keep up with growing demand.

2022-2023: Explore ready-to-bake and frozen options with CIFT (Center for Innovative Food Technologies) and how to bring us to market efficiently. Assess financial position to determine what is necessary to keep proper levels of inventory and working capital in place. Mix, bag, sell, repeat.

 

We're growing to meet the demand!

 

Why We Stand Out

Over 30 million people in the United States face dilemmas with food every day due to celiac, gluten-intolerance, and food allergies. MinusG offers hope through the elimination of gluten and 16 of the most common allergens from our ingredients, filling a void in the marketplace. Our baking mixes are preferred over the leading brands for taste and texture, earning consistent 5-star ratings and positive reviews. Our mixes have the least number of allergens compared to other brands and contain less sugar and fewer calories per serving, bringing more people together around the table.

According to research conducted by Food Business News and MarketsandMarkets, the North American gluten-free industry has grown from projections in 2016 of USD $1,328 million to $7.59 billion in 2020. Factors include the rising prevalence of celiac disease, prevention of health disorders, and the increase in demand for gluten-free and dairy-free products. MinusG mixes fall into the bakery product category expected to witness the fastest CAGR of 10.4% over 2020-2025. With big brands owning less than 30% market share, there is room to realize some of these gains. In 2019 Katherine began working full-time in her business and MinusG is seeing the benefits. Her efforts resulted in an increase in 2020 sales of 71% in Q1 and is on track to see a similar increase in Q2. Our baking mixes are the right product, at the right time.

MinusG has a proven track record for growth and fiscal prudence. The company takes a debt-conservative approach to have sure footing before getting too big too fast. Moving to a manufacturing facility is the only way to increase volume, grow margins, increase marketshare, and put smiles on more faces. Your investment will help get us there.

 

The North American gluten-free industry has grown from $1,328 million in 2016 to $7.59 billion in 2020.

 

Fast Facts

  • Woman-owned business
  • Exceptional on-trend marketing and presence online
  • MinusG mixes achieve a hard-to-find distinction: they are not only gluten-free, but also free-from 16 allergens, are plant-based, non-GMO, preservative-free and contain nothing artificial.
  • Consistent 5-star reviews
  • Loyal customer base and growing
  • Customer service and success is our #1 priority!
  • Check out our website here!

 

About the Owner

Katherine Krage is the founder and innovator of the MinusG line of baking mixes. As a 5th generation baker, she carries on her family’s tradition of baking excellence. By the age of 10 she was learning the secrets passed down through generations. One of her loves was baking, decorating cakes for special occasions, and trying her hand at new recipes. She received her BS in Surface Design in 1991 and worked as a high-end designer for 20 years. After being diagnosed with celiac disease, she redirected her focus toward solving how to make gluten-free food taste good. She put her understanding of baking and natural talent together and formulated gluten-free flour recipes for sweet and savory foods.

Being a designer, Katherine wore many hats from designing the company logo and branding, co-designing the website, developing product, and designing MinusG’s packaging. Katherine now oversees the day-to-day operations of MinusG, coordinating and working the farmers markets, educating customers, and sharing her delicious eats at tasting events. She showcases her culinary skills through her fan-favorite recipe blog where she creates recipes from each mix keeping her customers drooling for more.

Katherine serves as a deacon at her church and oversees the hospitality and women’s ministries. She enjoys music and the arts. In her downtime she enjoys gardening, transforming family recipes to be celiac-safe, enjoying nature, or spending time with family and friends.

 

Owner Katherine Krage.

 

Investor Testimonials

 

 

 

 

 

Deal Summary

Summary

Issuer

  Minus G LLC

Security Type

  Secured loan

Loan Purpose

 Purchase of equipment

Offering Amount

  $10,000 - $65,000

Interest Rate

 9.00%

Payments

  Monthly, disbursed to investors quarterly

Maturity

  6 months interest only + 54 months amortizing

Personal Guaranty  

  Katherine Krage

Security Interest

 Blanket lien on assets of company

 

Your Earnings Potential

If you choose to invest, you will make a one-time investment via ACH that will be transferred to a secure escrow account. If the campaign successfully reaches its target, the funds will be distributed to Minus G LLC.

For more information on the mechanics of Honeycomb’s crowd investing platform, please review our Education Materials.

Investment Amount One-Time Fee

Potential Quarterly

Return: Interest-Only Period*

Potential Quarterly

Return: Amortization Period*

Potential Total Repayment*
$100 $1.40 $2.25 $6.78 $126.48
$500 $7.00 $11.25 $33.88 $632.41
$1,000 $14.00 $22.50 $67.77 $1,264.83
$5,000 $37.25 $112.50 $338.84 $6,324.13

Your ongoing responsibilities from investing are very limited. Over the life of the loan, you will receive a yearly 1099-INT, which is a simple tax document similar to what you receive for most savings accounts.*Individual payments may vary slightly based on rounding. Potential repayments include principal and interest; they do not include the one-time fee which is assessed when you make your investment. These amounts are calculated as a hybrid interest-only + amortizing loan, which means that there is a specified interest-only period followed by a an amortization period. There are no prepayment penalties and Minus G LLC may pay down their loan early, which may impact your earnings potential. Please note: returns are not guaranteed and investors could lose some or all of their investment.

Minus G LLC pays as agreed. You will receive quarterly payments directly into your bank account. In the event of a default, you will be contacted by the administrative agent to manage the collections process on the investors' behalf.

 

How Honeycomb is Compensated

Honeycomb charges Minus G LLC a $250 posting fee and a 6.0% loan origination fee on the total amount funded.

Additionally, to cover expenses associated with each investment, Honeycomb charges a 1.40% investment fee capped at $37.25 per investor.

Like what you see?  Check out our other campaigns here! 

  

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