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| Reaping the Seeds of Success |
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Ever tried to split open a pomegranate (rimon in Hebrew) and remove the seeds? It's a messy job at best. Local entrepeneur Itzik Gvili has developed a new pomegranate separator that does away with the hassle. Following an extensive business development initiative led by Trendlines, Pomeke will be supplying its innovative machines to an American supplier of pre-cut fruits and vegetables.
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| January 2003: Getting Started |
Pomeke retains Trendlines to identify and contact potential strategic partners to market and distribute its products in the United States. First step: learn about the company, the business, and define the ideal business partner.
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| Researching the Market
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| Pomeke's innovative, easy-to-use seed separator processes pomegranates in just seconds. Pomeke is a subsidiary of Vered Mechanics Ltd. |
Our next step was to learn more about the pomegranate market and its allied products and establish the U.S. market potential for Pomeke's machines. Our research showed that cultivation of pomegranates was rapidly expanding and that availability would increase considerably over the next 10 years. In fact, many growers were concerned that there would be insufficient demand for the fruit.
We identified about 10 U.S.-based companies that fit our criteria of "the ideal business partner," and drew up a brief containing short company sketches and contact information.
Our team, led by Senior Consultant David Simons, met with Pomeke to discuss the findings and review the advantages and disadvantages of each company. Having qualified and prioritized the companies and drawn up a short list, we set a date and scheduled a series of meetings for the first business trip to California — where most of the key industry players are located.
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| March 2003: Preparing for Meetings |
 With the dates set, we started to prepare for the meetings ahead. Our marketing communications division worked with Pomeke and Mark Dollinger (president of Trendlines America) to prepare a suitable company presentation. A great deal of time and effort was spent in practicing the presentation to make sure the meetings flowed smoothly and the Pomeke machine demonstrated to its best advantage. The machine was shipped off to the States and arrangements made for suitable fruit to be available. (As the trip took place off-season, this was not a simple matter!)
Itzik set off for his meetings in the States. Mark and Itzik met in Los Angeles the day before the meeting to finalize presentation details. Stringent security at customs held up release of the machine, which meant the schedule has to be re-arranged. In an intensive five-day trip, meetings and visits were held with pomegranate growers, wholesalers, juice producers, pre-cut fresh fruit producers, pomegranate industry leaders, juice bar operators, retail outlets, and machine manufacturers.
Mark attributes the trip's success to careful planning. "Whenever possible, try to have a bit of flexibility built into the schedule to account for unexpected problems (samples held up in customs) and unexpected opportunities (Can you to visit our production facility tomorrow?)." "Prioritizing the meetings prior to the trip (and as the trip progresses)," he explains "is essential in determining which meetings should be extended when appropriate and which should be cancelled when necessary. Successful market trips entail careful planning, effective execution, and a lot of listening. If you finish the market trip with new insights, surprising findings, and a better understanding of the market, your trip was a success." Back home, the detailed notes taken throughout the trip formed the basis of a comprehensive report and action plan.
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| April–May 2003: Following-up |
Facts about Pomegranates
This ancient fruit is mentioned prominently in the Bible. Its scientific name is Punica granatum, derived from pomuni granatum or "seeded apple." Pomegranates originated in the region from Central Asia to Turkey and was brought to the New World by the Spaniards. Pliny considered pomegranates to be among the most valuable of ornamental and medicinal plants. The many seeds (840) are supposed to be a symbol of fertility. Legend also says that the pomegranate was the "tree of life" in the Garden of Eden, and from this belief it became the symbol of hope and eternal life in early Christian art.
The fruit is rich in calcium, vitamin C, carbohydrates, potassium, fiber, and iron. Research has shown that pomegranates are an excellent source of antioxidants and offers a number of health benefits. To learn more about this fascinating fruit, see the Pomegranate Council website.
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On returning to Israel, we held a number of meetings to evaluate our findings and to establish a business model for the company. Extensive follow-up with promising companies followed. Tentative negotiations with three companies were conducted, but we soon took a decision to concentrate on the potential partner with the ability to enter into a commercial agreement quickly and had the financial and commercial capabilities to bring the product to market.
 Pacific Pre-cut Produce, a leading supplier of pre-cut fruit and vegetables to major American retailers, met these criteria. Constant contact was maintained between Pomeke and the Trendlines Israel and U.S. offices. With a 10-hour time difference between Israel and California, the U.S. office was indispensable in maintaining effective contact.
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| June–August 2003: Moving toward the Close |
Negotiations with Pacific were carried out in an open and realistic manner. Substantial alterations to the original business model were needed to reach a successful conclusion. Following a number of draft agreements, the provisional agreement was signed in late August. The first machines were delivered to Pacific and started undergoing trials in early September. Pomeke has a further follow-up trip to Pacific Pre-cut planned for October. Trendlines America continues to act on Pomeke's behalf.
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| Take-Home Lessons |
| |  | Flexible business models. Visiting industry players enabled us to cross check information and resulted in more informed decision-making. It's vital to listen hard and ask the right questions.
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Natural partners — not always a natural fit. Dynamics in the industry need to be accounted for. In this case, one of the meetings was with a major industry player who was more interested in assessing Pomeke's technology than in acquiring it.
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Quick and thorough follow-up. It's essential in keeping the momentum going and ensuring good relationships with valuable business contacts are maintained.
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| | The Seeds of Success |
David attributes our success to a number of factors:
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| | | A company with a good innovative idea that meets an existing industry and market need
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Excellent preparation and presentation giving confidence to potential American partners
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Enthusiasm for the product and realistic objectives
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| | | Flexibility in negotiations
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The Trendletter team welcomes your comments.
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