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Q1 2018 - Investor Update

 Q1 Highs

  • New Distribution Awarded – Seven Sundays is now available at Jewel stores (Chicago) as well as two new regions of Safeway (Rocky Mountain and Seattle). Since adding Stephanie as a part-time regional sales manager, we have also added approximately 100 natural and specialty stores along the West Coast.
  • New Almond Date Muesli on Amazon – We were presented with a unique opportunity to replace the current #1 muesli SKU on Amazon. Seven Sundays is taking over the “subscribe & save” business for this SKU. The new flavor, Almond Date, has started shipping to Amazon and we expect the subscribe & save conversion will occur sometime in the next few weeks.

  • Grain Free Muesli – The fastest growing segment within cereal right now is grain free. Most grain free cereals are granolas, which are laden with oils and sugar. We are launched a Berry Banana Chia Grain Free Muesli in March that has no added sugar and we can’t stop eating it! We have presented the new flavor to Whole Foods, Sprouts and Costco so far and are awaiting results.

  • Müsliwagen – We began production on a new marketing van and food truck concept focused on high end prepared muesli and coffee. We expect to launch late summer in the Twin Cities and then this fall in the Bay Area. The goal of the truck is to elevate muesli in our core focus region (NorCal). Follow us on Instagram for updates on this fun project! In the meantime, here are a few examples we are using for inspiration:

  • Welcome Steph! Beginning in January, we hired our first regional sales director to focus on growing our distribution on the west coast. She has been killing it in her first few months adding 100 new points of distribution in key independent and natural retailers on the West Coast. Steph was part of our successful Expo West and she has been a great addition to the team! 

  • Welcome Carrie! Carrie is a long time family friend and former owner of Hot Plate restaurant where Seven Sundays all began! She recently sold her business and is helping us part time with the food truck project. She always has a smile on her face and is a joy to have around the office! Her first job was to drive the van back from Maine and she knocked it out of the park!

  • Product Improvements – We’ve hired a third party operations consultant and implemented new Quality Assurance measures this year, and our proud to report 0 quality issues year-to-date. We now get almost exclusively 5-star reviews on Amazon and are flooded with emails and social media shout-outs from our muesli fans! On the ingredient front, we continue to learn and improve, visiting our date supplier in California in March and learning all there is to know about our vanilla.    
  • Packaging Updates – We completed a packaging revision that will begin rolling out this month. Our goal was to create a modern feel with clean and clear callouts focused on what exactly makes people fall in love with our muesli. Snap a photo and send it to us when you see it hit your local store shelves!

Q1 Challenges

  • Traditional Retail Business Below Plan – While our Costco business is ahead of plan, our traditional retail business is below our plan year-to-date. This is due to distributor buying patterns and slower than expected new distribution launches. The investments we have planned in marketing this year will be critical to increasing sell through at the store level.
  • Costco Northeast Test Went “OK” – We completed a 2-truckload test in the Costco Northeast region. The feedback from the buyer was that it went "OK". Specifically, she stated that sales were on par with the other natural cereal options she has tested. She is open to testing Seven Sundays again in the future. Costco's execution of the test was not ideal and in part due to the stores we were put into. We remain bullish on Costco and have traction with a couple of other regions in our key markets on the West Coast. 

Help Requested

  • Send us photos of our product in stores. You can email them to Hannah, or if easier, add 612-562-5316 to your contacts and send via text! Include name and location of the store.
  • Purchase Seven Sundays new Almond Date muesli on Amazon and write a 5-Star Review! We are very close to becoming the #1 muesli on Amazon, and every positive review helps.


    Q1 2018 Income Statement



    March 31st, 2018 Balance Sheet