- Microcap stock Else Nutrition has negotiated a two-year agreement with a top U.S. powder manufacturer
- The agreement will result in an estimated 50 per cent reduction in manufacturing costs
- Else Nutrition is developing plant-based soy and dairy alternatives for infants, toddlers, children and adults
- Else Nutrition stock has given back 71.28 per cent year-over-year and 61.43 per cent since 2019
Microcap stock Else Nutrition (TSX:BABY) has negotiated a two-year agreement with a top U.S. powder manufacturer, resulting in an estimated 50 per cent reduction in manufacturing costs.
The manufacturer will shore up Else’s powder production to meet growing demand for its toddler complete nutrition beverage and kids shakes, while introducing a low-heat process that better preserves nutrient content while improving product texture and solubility.
“This agreement is transformative for our company as it dramatically reduces our cost of goods sold and improves our margins, allowing us to better compete in the market,” Hamutal Yitzhak, Else Nutrition’s co-founder and chief executive officer, said in a statement. “Equally important, this agreement will help ensure an adequate, consistent and uninterrupted powder supply to support our projected growth. Specifically, we see a strong online sales uptake, while we continue to expand our retail network, adding new grocery chains and superstores across the U.S. and Canada. By growing revenues, while driving operational efficiency across our supply chain and gaining economies of scale, we are well-positioned to maximize returns for our investors.”
According to Else’s latest investor presentation, the company’s products can be purchased in approximately 13,000 stores across North America as of March 2023, including 7,000 CVS locations and 1,100 Walmart locations, representing a more than 10x jump from only 1,200 stores in January 2022.
Else has expanded on this growth through a steady flow of new partnerships, including:
The company recently released ready-to-drink kids shakes that are quickly gaining market share, and it is continuing development of the infant version of its complete nutrition beverage to tackle the US$70 billion formula market.
Else Nutrition is developing plant-based food and nutrition products for infants, toddlers, children and adults. The company specializes in soy and dairy alternatives.
Else Nutrition stock (TSX:BABY) is up by 10.20 per cent trading at C$0.27 per share as of 10:14 am ET. The stock has given back 71.28 per cent year-over-year and 61.43 per cent since 2019.
Join the discussion: Learn what other investors are saying about this plant-based food stock on the Else Nutrition Bullboard, and check out Stockhouse’s stock forums and message boards.
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