Credit Crunch Affecting Small Businesses
Released
on: October 9, 2008, 5:20 am
Press Release Author: Susan Knapp
Industry:
Food
& Beverage
Press
Release Summary: Customers Willing To Wait For Their Orders While
Gourmet Food Company Struggles To Find Working Capital
Press
Release Body: Napa, CA (Oct 8, 2008) – Eight years ago Susan
Knapp began making Cinnamon Pear Jelly
in her kitchen as a holiday treat. When she realized there was
a demand for her healthy and delicious pear creations, she left
her lucrative executive position to focus on building her own
gourmet food company.
Knapp
launched Aunt Sue’s in 1998 with four products,
each one winning top awards at the Lake County and California
State Fairs. As the company gained momentum, Knapp changed the
name to A Perfect Pear from Napa Valley and introduced
15 new products. Now, major wholesale customers include Whole
Foods, Bristol Farms, Disney, Luxor Hotel & Casino, and the
United States Navy, in addition to hundreds of boutique retailers,
wineries, restaurants, and caterers across the nation.
Knapp’s
commitment to make healthy products that taste delicious, look
beautiful, and are friendly to the environment has propelled her
company to the brink of the big leagues. And yet, the business
is struggling. “Our problem has never been sales,”
Knapp says. “Our biggest challenge is undercapitalization.”
With
product rapidly flying off the shelves, Knapp finds herself in
a unique position: over $100,000 in pending holiday backorders
and not enough cash in reserves to manufacture. The rising costs
of raw goods and the current credit crunch had brought a rapid
halt to production, and yet, the customers are willing to wait.
“Everyday
I get calls from customers who tell me they can no longer find
our products,” says customer service rep Kat Patterson.
“I have to tell them that we are sold out and unfortunately,
we don’t know when we will be able to make more. They always
tell me they’ll wait. They love our products and don’t
care how long it takes. But I know people are anxious to place
their holiday orders.”
Each
time I go to production I am making more product, which is great!”
Knapp says. “But that also means I always need
more money to keep up with growing demand.”
With
SBA and bank loans halted, Knapp is now seeking funding from private
parties. In this economic crisis, we’re thinking outside
of the box and we’re getting pretty creative.”
Knapp
currently needs $200,000 to fill backorders and put inventory
on the shelves for the busy holiday season. She could save money
by using less expensive ingredients and materials, but refuses
to cut corners on quality. “Our commitment is to make
healthy, delicious products with all-natural, mostly organic and
mostly local ingredients. Our customers expect that and are willing
to wait. They know we’ll be back.”
Web
Site: http://www.aperfectpear.net
Contact
Details:
Susan Knapp - Founder, President & CEO
918 Enterprise Way #E
Napa, CA 94558
(800) 553-5753
susan@aperfectpear.net
www.aperfectpear.net
fax 707/257-6830
2009
