(Image via Else Nutrition Holdings Inc.)
A market that has been steadily growing is the infant nutrition market, which was valued at $77,448.15 million (USD) in 2021 and is expected to register a CAGR of 7.01% over the next seven years, according to the recent report, “Infant Nutrition Market - Growths, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)”.
Offering a unique slice of this market is
Else Nutrition Holdings Inc. (TSX: BABY, OTCQX: BABYF, Forum), focused on developing innovative, clean, and plant-based food and nutrition products for infants, toddlers, children, and adults. Its plant-based, non-soy, formula is a clean-ingredient alternative to dairy-based formula. The company recently announced its
Q4 and fiscal year-end results.
Fiscal year 2021 revenues were $4.7 million, a 219% increase over fiscal year 2020, driven by the expansion of the company’s toddler products across all channels and the introduction of the new Kids Complete Nutritional shake product line.
Q4 revenues of $1.3 million, an increase of 8% over Q3, were the result of the company’s continued expansion into retail stores and its steady online sales growth, including listings on Walmart.com and Kroger-owned online platforms.
Management commentary:
Else Nutrition’s CEO & Co-Founder, Hamutal Yitzhak sat down with Shoran Devi to discuss the results.
(Click to play video.)
She stated that the team is more than happy with the progress the company made last year, as the brand continues its journey to become a global leader in the plant-based nutrition arena.
“In 2021 we focused on growing our online sales while penetrating US retail stores, and we are proud to report that our plant-based complete nutrition products for toddlers are in over 1,200 bricks and mortar stores as well as in 5 large and reputable online retailers.”
Coming to store shelves near you:
CEO Yitzhak added that the company is continuing to see stronger re-orders from the retailers which had began buying Else products in 2021. By the end of this year, the company expects to triple its door count to roughly a few thousand.
This year alone, Else Nutrition’s product range will grow to roughly 8-10 products and offer more than 20 SKUs in the United States. Two new product lines have and will be introduced, a non-organic Toddler Omega product with a more affordable price point that will allow more babies to enjoy Else, along with a Super Cereal in flavours for 6+ month babies. Also on deck: the company plans to add liquid products for kids and / or adults later in the year.
The company is focusing on international expansion this year as well. Q2 2022 will see the launch of its products in Canada via Amazon.ca, their own e-store, and in natural food retailers and independents, regional grocery, and drug retailers. By the end of Q2, the brand is expected to reach the UK and Western Europe via Amazon and is also targeting online sales in China (Cross Border) by mid-2022.
Looking to Q3 2022, the company expects to launch a ready-to-drink (RTD) kids product line and the team is also working on an RTD line for adults.
The COVID factor:
Despite good news around its decreasing prevalence in our lives, the effects of the COVID–19 pandemic continues to be felt. According to data released by Reportlinker.com in its report
“Infant Nutrition Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)”, the pandemic is still expected to have a short-term negative impact on the export-import of the nutrition sector.
However, the report points out that the short-term impact on the nutrition segment is less prominent. Meanwhile, the negative impact of COVID-19 on the global economy could have significant indirect effects on the nutrition segment of the market. Most baby food manufacturers were found focusing on ramping up the production of baby food to ensure availability. The healthcare facilities, such as market players and governments, are investing heavily in maintaining the supply of essential nutrition and food.
Investment summary:
Else Nutrition Holdings Inc. has grown substantially in the past year, but is still an early-stage investment opportunity, given the market size, recent expansion, and future expansion.
In the past month, Else stock has risen 15% and is on track to keep adding to this growth, as 2022 looks to be a transformative year for the company, as it both widens its product range in parallel with accelerating retail penetration in the US, igniting its global expansion. The company’s incoming product lines are anticipated to significantly widen its product range and make it more attractive to brick-and-mortar retailers.
To keep up to date with all that is going on with the company, visit
elsenutrition.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.