REVIEW: Dog Bag Dispenser Snags National Retailer
Proof of Concept10
David Carman | On 12, Nov 2012
CHICAGO, IL— Founded in January 2012 by Jennifer Blaese, Loft 312 Inc. designs and manufactures products for people with pets. Currently, the company offers 2 products: “The Loop,” a sleek, modern accessory for dispensing dog poop bags on a roll and the “Green Line” bag which is environmentally friendly and landfill biodegradable. Loft 312 Inc. quickly gained proof-of-concept, launched sales in July of this year, and has already secured Bed Bath & Beyond as a major customer.
Key Facts & Information:
- Loft 312 Inc. has lined up 25 independent retailers/boutique shops as clients. Many of the retailers run multiple stores.
- Bed Bath & Beyond is launching “The Loop” and the “Green Line” bag in 40 stores. BBBY has close to 1000 stores in the U.S.
- Currently, “The Loop” and the “Green Line” bag are sold in the Bark Bark Club and Jameson Loves Danger stores. Each client continues to place new orders. Since launching sales in July of 2012, Loft 312 Inc. has sold 350 “Loops,” 40,000 “Green Line” bags, and generated $38,000 in revenue. They are projecting sales of 1.3MM in the next 12 months.
- Loft 312 Inc. has 3 main sources of revenue: 1. The primary revenue stream is B2B (retailers). 2. Service-related pet industry businesses such as groomers, dog walkers, and boarding facilities. 3. Parks, municipalities, and multi-unit residences.
- There are 78 million dogs in the USA and approximately 60% of them live in urban areas. The typical dog will poop 2 to 3 times a day and require between 7000 and 12,000 bags in a lifetime.
- “The Loop” has a utility that locks the bags in place and has a superior easy-to-use delivery system. This technology could potentially be used in many dispensing applications. It’s reinforced with an aluminum rod and is both durable and lightweight. The plastic bag holders that currently populate the market break easily and must be replaced frequently.
- The “Green Line” bag is the only bag on the market that biodegrades in a landfill. The competition sell 2 types of biodegradable bags: Oxo biodegradable bags require oxygen and ultra-violet rays to break down. Vegetable or corn starch bags are designed for commercial compost and require high temperatures to biodegrade. The “Green Line” bag is also compostable with slight modification. However, there are only about 100 commercial composting facilities in the U.S. and only 1 facility currently accepts compostable plastics.
- Major competitors include Earth-Rated Poop Bags, Doggie Walk Bags, Bags on Board, Poop Bags, Bio Bag, and Bon Ton.
- “The Loop” and the “Green Line” bag are priced competitively. “The Loop” is priced at $9 and retails for $18. The “Green Line” bag is sold in packs of 4, 8, and 24 rolls. The 4-pack (48 bags) is priced at $3.50 and retails for $7.50. Gross profit margins are 52% for “The Loop” and 55% for the “Green Line” bag.
- Jennifer Blaese has over 20 years of experience in corporate sales, project management, and retail merchandising. She was a million dollar producer for Ann Sacks and Kallista, luxury divisions of the Kohler companies. Her husband, Todd, has 25 years of experience in the IT industry including project management with extensive background in enterprise processes, data systems and software security. Currently, they are the only 2 employees of the company.
- Loft 312 is seeking $200,000 to accelerate manufacturing and meet demand and for new product development, salesmen, and marketing. ❒