African Cuisine Brand, Paani Foods, Reborn
Amidst the economic down turn that has left many food companies struggling to stay afloat, a company based out of the Midwest is hoping to ride on the wave of the public's interest in healthier food selections to secure angel funding.
Online, February 24, 2011 (Newswire.com) - In 2006, Paani Foods Inc. was riding high in the wake of marketing its brand of frozen meals from the African cuisine to Walmart and Kehe Foods distributor. Back then, the Company was funded through seed money from its founder, family members and friends, and with equity funds from a not-for-profit community action firm. "The market was very different in 2006. We succeeded in marketing a product line that was received positively by our consumer base," says founder, Philippa Akem. The Company's vision to capture the specialty food market as the first of its kind to brand frozen dishes from the African cuisine was cut short by the challenges faced by many new comers into the treacherous path of the food manufacturing industry. First, Paani was plagued with the problem of being under-capitalized to leverage the sudden demand for its products generated by media coverage of its products' launch from grocers from other regions of the country and as far away as China and New Zealand, then Europe and Canada. Second, the Company had to contend with major logistical problems that were created with outsourcing its production to a third-party food manufacturer. "We were limited with what could be achieved with outsourcing our entire production: The larger manufacturers were efficient and could have cost the Company less headaches. But, the production quotas were a liability for a young company to assume." The management team at the time approached this issue by choosing to work with a less vested manufacturer to fill orders as they came in. Today, with a new management team, the Company has secured fresh funding from an unlikely source, the customer who has a flair for ethnic food. Although the president declined to disclose how it connected to customers to raise capital, she hoped that the Paani vision to become the leading producer for its specialty meals is getting a fresh boost. Beyond these hurdles, Paani is breaking all the rules raising capital during this economic decline. The Company website is www.paanifoods.com.