3c hapter - Index of

100 Locavesting
“The numbers weren’t knocking anything out of the park,”
says Day of the business plan. “But there was a reasonable rate of
return. It’s not like investing in Google.”
Still, the venture was successful from the start. The partners
made their debut at the farmers market in April 2005 with their
soft- ripened and home- style cheese. In the course of two hours,
they sold out of everything they had. They made two trips back to
the creamery and, by the end of the day, had sold out their entire
inventory. While they are still a popular draw at the farmers market,
about 65 percent of their business now is selling wholesale to
restaurants and stores. The Creamery’s sales have grown around
30 percent each year. In 2009, sales approached $1 million. In
2010, the company was on track to hit $1.2 million. “We’re building
value over time,” says Day.
In more ways than one, as Kolff sees it. “You have a small local
creamery that hires local people and the profi ts stay local. They
use milk from local dairies and guarantee them a good price so
they have assured sales of their milk. That also reduces shipping
and transportation- related greenhouse gas. The used whey from
the cheese- making process goes back to local farms to feed the
pigs—it’s a closed loop!” he exclaims. “I feel great about my investment
with the creamery on about 10 different levels.”
Day and Trail went back to LION in 2008 for a $70,000 loan,
at 8 percent interest, to install a bulk tank. That allowed them to
store milk, rather than rising each morning to clean the tank in
the truck and drive to the dairy farm 25 miles away—all before the
dairy farmer got going in the morning.
Now, the 3,000- square- foot facility on Sherman Street is beginning
to feel tight. The partners would like to fi nd a bigger space that
would allow them to increase capacity, expand the variety of products
they offer, and sell to a broader swath of the northwest. “We’re
building a sound fi nancial case to go back out” to investors, says Day.
Small Is Beautiful
LION has inspired similar groups in Madison, Wisconsin, and
elsewhere, and Frazier spends much of his time fi elding calls from