2016 Year End - Investor Update

 

2016 "Top 10" Highlights

  1. Topped $1.5 million in sales (70% growth), including best Quarter in history (Q3)
  2. Launched new Squares (approximately $175k in sales) - the first muesli bar in the US!
  3. Introduced new Cocoa & Coconut muesli (approximately $100k in sales)
  4. Raised $1.6 million in growth equity
  5. Notable new key accounts: Sprouts, Kroger, Safeway, Giant Eagle, Natural Grocers (first bulk muesli customer) and 4 new Whole Foods regions
  6. Successfully defended our turf at Target against Kellogg's and General Mills who both launched a muesli (we were leading muesli brand).
  7. Transitioned entire line to gluten free
  8. Achieved Non-GMO Project Verification on all products
  9. Filled 2,400 backpacks with the non-profit Sheridan Story
  10. Executed our first Costco launch, and sales off to a 'very, very good' start according to buyer!

 

2016 Challenges

  1. Target store reduction – 1,800 to 350 (~$200k annual sales lost)
  2. Squares start-up lessons – quality issues and high labor/packaging costs
  3. Fulfillment costs – third party warehouse costs higher than expected
  4. Price reduction – 17% price reduction was implemented on 1/1/16. This was hard to swallow and harder to implement than expected but appears to be working very well with Safeway and Sprouts
  5. Shifted marketing focus away from bloggers, brand ambassadors and events to invest in the brand and digital marketing. 

     

    2017 Goals

    1. $3 million in gross sales (100% growth)
    2. 20% gross margins, after free-fill and deductions
    3. Secure a long-term strategic capital partner
    4. Transition to a full-service co-packer
    5. Implement a brand refresh
    6. Introduce a hot cereal line

      

    FINANCIALS

    Gross Sales By Quarter

    Income Statements

     

    Balance Sheet