$275,000 - The Three Businesses ● $300,000 - Warehouse Building and Land ● $750,000 - Inventory

An Exciting Opportunity to Own the Leading Fine Wine and Organic Food
Store and its Associated Businesses in Cabo San Lucas, Mexico

Introduction

Tutto Bene the Retail Store: A licensed retail store featuring fine wines, low carbohydrate/calorie organic foods and accessories from around the world, conveniently located in a dynamic retail setting right on Cabo’s main strip.  Tutto Bene has the finest location of any retail wine and food purveyor in town, the largest wine collection in the State, and a strong balance sheet. 

Tutto Bene the Wholesale and Distribution Company: A second division of Tutto Bene is a licensed wine wholesale and distribution company which currently serves over 165 wine wholesalers and retailers, restaurants, hotels and catering accounts.  This part of the firm has shown a rapid increase in growth and is expandable into the wholesale food market as well. 

Cabosol Companies the Importer: Cabosol Companies, a separately licensed import company, supplies Tutto Bene’s retail and wholesale businesses.  This division is an important component of Tutto Bene’s retail and wholesale operation as it has established transportation and import contracts for the movement of goods into Mexico. 

Retail Store Overview

Established............................ June 2002
Employees............................. 9
Retail Sales............................ $809,206.00 US
(12 months ending 30 April 2006)

The Store:  Tutto Bene is a purveyor of over 450 fine wines including wines from California, Washington, Italy, Australia and Chile.  Many of the wines are produced in small boutique wineries.  Tutto Bene represents more wineries than all other retailers and wholesalers (including Costco) in the State of Baja.  

Furthermore, Tutto Bene, the retail store offers a variety of natural and organic foods and drinks, fresh breads and low carbohydrate and low calorie refrigerated and frozen products from around the world.  The majority of the foods are supplied by United Natural Foods (a public company, NYSE listed: UNFI), the largest organic and natural food wholesaler in the United States.  Moreover, the store also offers an assortment of wine accessories, gifts, cookbooks and magazines.

Competition: There are two main competitors: Costco and La Europea – neither is located in downtown. Moreover, no other markets or wine merchants are located on the main thoroughfare; furthermore, within this 1-km beachfront strip there is no real estate upon which to build.

Why Buy Tutto Bene & Its Related Businesses 

As an operator, the businesses would make available a synergistic, vertically integrated, import, distribution and retail machine unique in all of Cabo San Lucas and Baja.  Moreover, Tutto Bene would provide, as it does now, a rewarding, safe, reliable and profitable revenue stream:

1. The manpower and supply resources are in place – it’s truly a turnkey operation.
2. You would be the largest wine distributor in the entire State of Baja California.
3. You would control an established concept that is successful and poised for growth.
4. Business relationships would protect many of the wines you will distribute.
5. Tested relationships would protect your transportation reliability and fees.
6. The difficultly of setting up a business in Mexico is accomplished.
7. Resources such as freight forwarders, accountants and lawyers are in place.
8. You get training and help with management and marketing.
9. Financing is available with regard to the inventory.
10. Tutto Bene has brand-name recognition in Cabo San Lucas and Baja.

Premises 

More about the Retail Store:  Tutto Bene is well located on the southwestern section of the Boulevard Marina - Cabo San Lucas’ 1-kilometer long main street - the city’s principal retail traffic area and tourist destination.  Boulevard Marina winds along the downtown hotel properties that border the beachfront. 

The premises consist of 1350 square feet of temperature controlled retail space.  The store is equipped with huge floor to ceiling high security bank type glass, excellent signage, parking, overhead fixtures, custom built wine display racks, a freezer and two refrigeration cases. 

Adjoining the retail space, a rear office, preparation area, storage room and bathroom exist.

The retail premises lease-hold has 12 years of life remaining; furthermore, the lessee has positioned the first right of refusal to purchase the building.

The Office and the Apartment:  Currently, the firm maintains an apartment for the sales manager above the retail store.  Within the apartment a distinct office area is setup with computers a wireless network, a telephone system and an intercom system.  The apartment has a view of Boulevard Marina and the city’s marina.

The Warehouse:  A separate temperature controlled expandable storage facility consisting of approximately 2500 square feet sits on a 5000 square foot lot.  The building boasts redundant utility systems (grid and a backup generator), plus a fire-detection system (smoke detectors and sprinklers throughout) and security system redundantly connected (wired and wireless) to a security company.  The facility is owned by us and is available for lease or sale directly from us.

Margins 

The store's retail prices crush the small local operators and we consistently out-price Costco and La Europea yet, the average mark-up is 110%!  Furthermore, our wholesale prices can’t be beat by any firm located on the Baja Peninsula. 

Since inception year to year sales have been steadily increasing.  Specifically, sales for the 12 months ending 30 April 2006 were $809,206.00 US which represents a 18% increase over the proceeding 12 months.  This trend will continue as the resort building boom is about to balloon – gambling is coming to town. 

Leasehold Improvements, Fixtures and Equipment 

The sale includes all custom top of the line leasehold construction improvements:          
  *    Custom built wine and champagne display racks for the over 450 individual labels
  *    Adjustable chrome wire shelving
  *    Two 12’ four-tier modern refrigeration cases with remote three-phase condensers
  *    70 square foot glass door walk-in freezer with rear loading display racks
  *    Food preparation equipment
  *    Four new 2004 vehicles used for the sales, marketing and distribution

Goodwill and Reputation 

Tutto Bene, the retail store, is highly regarded in the community and Southern Baja for its high quality product mix, cleanliness, long hours, and its friendly, helpful service.  Its name appears all over downtown on the many bicycle chariot billboards that circle the Strip.

Advertising

Tutto Bene has an aggressive sales campaign in the local newspapers, on radio, and on bicycle chariot billboards.  Moreover, we currently pay bicycle chariot drivers to ferry customers to the store.  We also have contracts with many of the major hotels’ and cruise ships’ concierge services to send tourists our way.

Reason for Sale 

The owner, who built and is currently refining the three businesses, wishes to slow down, tinker and travel.  He no longer has the energy necessary to operate or expand the businesses to their fullest potential.

Cabo San Lucas  

The Growth of Cabo San Lucas: Just five years ago Cabo was a one-stoplight town with almost everything located along the Boulevard Marina.  Not today.  The city is expanding inland; moreover, major hotels and timeshare condominiums are pushing the city out towards the neighboring seaside town of San Jose.  Mile after mile these mega-resorts are being built - Cabo San Lucas is growing rapidly.

Gambling is Coming to Town:  Thousands of luxury hotel rooms and timeshare condominiums have brought the wealthy which has transformed this formerly rustic and rowdy outpost Steinbeck wrote about, into an area headed for prominence.  It will become, if it has not already, the most prominent resort town in all of Mexico.  And, although it currently retains a boisterous nightlife, and but a few stoplights, Cabo is poised to grow tremendously.  The current draw is its nearby world-class fairways and greens and elite resort destinations.  But, this is about to change - gambling is coming to town!

Cabo San Lucas Today:  Cabo San Lucas is located on the southern tip of the very fast growing region known as Baja California Sur (Baja), Mexico.  It’s just two hours by plane from Los Angeles and easily reached from the United States by the nine major airlines that serve its ever expanding international airport.  This dynamic, progressive and friendly community can provide an upscale quality of life complete with excellent schools, luxuriant shopping, fine dining, galleries, a vibrant nightlife and a wealth of outdoor activities such as: beachcombing, water sports, world class big-game fishing, horseback riding, mountain climbing, camping, and golfing.  It’s a very casual, stress-free lifestyle - a perfect place to raise a family.  Moreover, the locals of Cabo San Lucas are world renown for their friendship and hospitality.

Open to Scrutiny 

Come on down to Cabo San Lucas yourself!  We want you to visit!  Look under the hood: meet our people, make sales visits with our sale team, press the hands of the top people in town – learn why this town is taking off – see the explosive growth for yourself, see the actual business records, and do your own personal audit of us!