December 2008

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Announcing the new gourmet cheese enterprise

Gourmet Cheese Meets Kosher Cuisine

-- Abigail Meyer

A new company, Saratoga Cheese Corporation, is promising to bring high quality, all milk, specialty soft cheeses to the Cholov Yisroel kosher market at normal gourmet cheese prices.

The business model proposes that Cholov Yisroel products can with proper planning compete in the larger national marketplace, at highest quality and best price selection.

Last week New York State and local officials announced a package of business incentives worth over $16 million. These incentives are designed to help complete the final equity investment round from private qualified investors.

will produce 30 million pounds of specialty soft cheeses annually, including Feta, fresh Mozzarella, Muenster, Havarti, and Hispanic melting cheeses. The Saratoga Cheese plant will also offer a level of kashruth that has never before been available in the U.S. which is expected to appeal to Orthodox Jewish consumers and other kosher consumers. Whereas all domestic kosher cheese is currently produced in borrowed facilities that have been koshered for the kosher run, Saratoga Cheese will produce Cholov Yisroel kosher cheeses 24/6. (Production will cease on Shabbat) This will help end the chronic supply shortages of Cholov Yisroel kosher cheese found in supermarkets around the country. With virtually no human contact in the automated production, the factory will also be Cholov Yisroel kosher at all times. Arrangements are already underway with kosher certifying agencies.

By producing only Cholov Yisroel, Saratoga Cheese is able to pay farmers an additional kosher premium, which guarantees a continuous, high quality milk supply. With the use of world class technology and government subsidies, the Cholov Yisroel cheese will be competitive in price with non-Kosher gourmet cheese varieties. The target market is the total cheese marketplace in the U.S., not just the kosher marketplace. Also, significant amounts of Saratoga Cheese will be exported.

The immediate goal for the company is to attract the final equity investment needed from qualified investors. Because of significant government support, world class technology and proximity of SCC to the East Coast markets, Saratoga Cheese is projected to yield an unusually high return for investors. The entire project cost is estimated at $40 million, of which over $30 million is already accounted for. Based on a cautious projection of milk/cheese block pricing, an investment may yield a 20%-30% annual return.

SCC is still able to accept investment for its’ final equity installment. All inquiries should be directed to Mr. Larry Rosenbaum at Lrosenbaum1126@cs.com or 518-253-4202.

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