Nightfood Management Sees Strong Growth Indicators in Fiscal 2020
Tarrytown, NY, Oct. 14, 2020 (GLOBE NEWSWIRE) -- via NewMediaWire -- Nightfood, Inc. (OTCQB: NGTF), the better-for-you snack company pioneering the category of sleep-friendly snacks for nighttime, yesterday announced sales of 262,574 pints of Nightfood ice cream in the twelve months ended June 30, 2020, up from 63,041 for the previous year.
During that same twelve-month period, Nightfood expanded its supermarket count from approximately 190 stores to approximately 700. As of today, the brand is available in almost 800 supermarkets across the country.
In the most recent three-month quarter, ending September 30, 2020, initial unaudited reports show 99,357 pints sold. Management expects volume increases to carry forward as we continue adding new retail partners in this phase of account acquisition.
Recent Company Highlights:
- 317% increase in pints sold from prior year
- 268% increase in store count during fiscal 2020
- New distribution into divisions of Kroger, Albertsons, and H-E-B, three of the larger supermarket chains in the country.
- All indicators point to Nightfood’s largest distribution arrangement to date, not only in size of the roll out, but also in name recognition, to begin next quarter. We believe this roll out would be an indicator that Nightfood’s retail acquisition model is working.
“We recently made the decision to begin speaking about pints in addition to revenues in an effort to provide investors with what we feel is a better way to judge our performance and truly measure the growth and progress we’re making without variable slotting fees confusing the issue,” commented Nightfood CEO Sean Folkson.
“We understood that our shareholders may have noticed ‘slotting’ in our quarterly filings. We know that these slotting fees are simply the cost of doing business, and we wanted to be sure to explain slotting in more detail.
“Not all of our desired retailers charge slotting fees, but many of them do, so with variable slotting fees being front loaded, we believe that providing pint volumes as an additional metric will be helpful to our shareholders’ understanding.”
- Ex. Nightfood enters into a distribution arrangement with new chain, with slotting fees of $50,000.
- If the first order from this retailer is $52,000, Nightfood fulfills the order, and delivers $52,000 worth of ice cream.
- Nightfood would recognize Gross Sales of $52,000, and net revenue of $2,000.
Many retailers charge a slotting fee when introducing new products into their stores. The fees can range from a few thousand dollars to mid six-figures with some retailers.
These fees are normal and customary, and are charged to companies of all sizes, from start-ups to multi-nationals.
“We’re excited about the great progress reported in Fiscal 2020 and continued growth on all fronts,” added Folkson. “We’re looking forward to discussing all recent and upcoming developments on our next investor conference call, tentatively scheduled for Tuesday, October 27 at 4:30 PM eastern.”
About Nightfood Holdings:
Nightfood Holdings, Inc. (OTC: NGTF), owns Nightfood, Inc. and MJ Munchies, Inc.
Nightfood has expanded distribution for its ice cream into major divisions of the largest supermarket chains in the United States: Kroger (Harris Teeter), Albertsons Companies (Jewel-Osco and Shaw’s and Star Markets), and H-E-B (Central Market) as well as Lowe’s Foods, Rouses Markets, and other independent retailers.
Nightfood won the 2019 Product of the Year award in the ice cream category in a Kantar survey of over 40,000 consumers. Nightfood was also named Best New Ice Cream in the 2019 World Dairy Innovation Awards.
Nightfood has been endorsed as the Official Ice Cream of the American Pregnancy Association and is the recommended ice cream for pregnant women. There are approximately 3,000,000 pregnant women in the United States at any given time, and ice cream is the single most-widely reported pregnancy craving. With more calcium, magnesium, zinc, fiber, and protein, less sugar and a lower glycemic profile than regular ice cream, Nightfood has been identified as a better choice for expectant mothers.
Nightfood is not just for pregnant women. Over 80% of Americans snack regularly at night, resulting in an estimated 700M+ nighttime snack occasions weekly, and an annual spend on night snacks of over $50 billion dollars, the majority of it on options that are understood to be both unhealthy, and disruptive to sleep quality.
Nightfood was formulated by sleep and nutrition experts with ingredients that research suggests can support nighttime relaxation and better sleep quality. Scientific research indicates unhealthy nighttime cravings are driven by human biology. Willpower is also weakest at night, and stress is another contributing factor. A majority of night snackers report feeling both guilty and out-of-control when it comes to their nighttime snacking.
Because unhealthy night snacking is believed to be biologically driven, and not a trend or a fad, management believes the category of nighttime-specific nutrition, which Nightfood is pioneering, can be a billion-dollar category.
MJ Munchies, Inc. was formed in 2018 as a new, wholly owned subsidiary of Nightfood Holdings, Inc. to capitalize on legally compliant opportunities in the CBD and marijuana edibles and related spaces. The Company is seeking licensing opportunities to market such products under the brand name “Half-Baked”, for which they’ve successfully secured trademark rights.
Questions can be directed to investors@Nightfood.com
Management also encourages Nightfood shareholders to connect with the Company via these methods:
E-mail: By signing up at ir.nightfood.com, investors can receive updates of filings and news releases in their inbox.
Telegram: There is now a live, interactive Telegram group which interested parties can join to reach team members and discuss Nightfood. Ask questions, learn more about the company and discuss future prospects. Join the Telegram Group Here: https://t.me/NightfoodHoldings
YouTube: The company has established a new YouTube series which will feature weekly videos with team members, insights into latest industry developments, and provide a behind the scenes look at the latest company developments. Click here to subscribe to Nightfood’s YouTube channel.
Forward Looking Statements:
This current press release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future, including but not limited to, any products sold or cash flow from operations.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with distribution and difficulties associated with obtaining financing on acceptable terms. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our most recent annual report for our last fiscal year, our quarterly reports, and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
Released October 14, 2020