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Butterfield Institutional

What is a Butterfield Institutional Bakery (BIB)?

A partnership between a suitable institution and Butterfield Empowerment Company to develop and maintain a sustainable enterprise for the supply of bread to such institution for its own use.

Through replacing existing procurement channels with a BIB, various empowerment and social upliftment objectives are achieved.

How it works

Butterfield Institutional Bakery 5 Step Process

  • Identification of suitable institution & bread supply agreement with bakery
    • At least one identifiable captured market segment – min 800 loaves per day
    • Direct or indirect control over current supply – may terminate
    • Authorised to enter into new bread supply agreement with BIB
  • Identification and assessment of suitable owner operator
    • Preferably institution nominated – 5 candidates – may also be sourced by Butterfield
    • Assessed per Butterfield criteria
    • Own contribution essential – R100 000,00
  • Identification of suitable premises
    • Ideally located at target market and provided subsidised by institution
    • 100 Amp 3 phase
    • 120 m²
    • Delivery facility if not at market
  • Procurement of finance
    • Institution may provide funding or guarantee
    • Institution may provide owners contribution
    • Bread supply agreement and ability of OO basis of funding application
    • Funding to be arranged by BSP or subsidiary
  • Business support agreement between Butterfield and bakery
    • No royalties – 15% premium on raw material
    • Obligations of OO
      • Adhere to prescriptions of business system
    • Obligations of BSP
      • Operational support and training – initial and on-going
      • Administrative support
      • Management of supply chain

Critical Success Factors

  • Bread supply agreement – 800 loaves per day for 60 months
  • Owner Operator – competency and ownership
  • Butterfield Business System
    • Operational support and training – initial and on-going
    • Administrative support
    • Management of supply chain