The Very Good Food Company (VERY.C) announced today that its flagship brand, The Very Good Butchers, will be available to US customers through its new Amazon store by the end of June 2021.
“We are quickly executing on our North American expansion strategy and expect 2021 to be a banner year for our brands. We are building our Company based on customer demand, and customers want plant-based alternatives from a trusted eCommerce source…Being on the Amazon platform affords us the opportunity to boost sales growth by leveraging strong data analytics that allows us to test and validate new products, and thus better understand our customers’ needs. We are obsessed with our customers and value their feedback and are excited to get our products into more homes,” said Mitchell Scott, Co-founder & CEO of The Very Good Food Company.
Prior to Very Good’s latest announcement, the Company plotted its expansion into US markets by signing a distribution agreement with United Natural Foods (UNFI) in May. UNFI represents the largest publicly traded wholesale distributor of health and specialty food in North America. UNFI distributes over 250,000 natural, organic and conventional products to over 30,000 retailers across both the US and Canada through its 58 distributions centers. In addition to UNFI, Very Good’s cooperation with Amazon will further facilitate the Company’s growth in the United State’s $5.6 billion plant-based food market.
According to Amazon, more than 30,000 Canadian-based small and medium sizes businesses grossed more than $2 billion in sales in 2019, prior to the onset of the COVID-19 pandemic. Through Amazon’s stores, these businesses were able to sell over 3.4 billion products in 2020. By opening its own Amazon store, Very Good will offer its popular bean-based products to customers through the Company’s Butcher Boxes. Moreover, Butcher Boxes will also be made available through Amazon’s app, making it even easier for consumers to order Very Good’s products.
Very Good’s fiscal Q4 and 2020 year end results revealed a 364% increase in revenue to $4.6 million compared to the previous year. Moreover, the Company saw an increase in adjusted gross profit of 37% in Q4 2020. With this in mind, Very Good has done quite well for itself in the last year through product innovation, expanded production capabilities, ecommerce initiatives and new retail distribution partnerships. Ultimately, Very Good’s cooperation with Amazon represents a major milestone towards the Company’s expansion into the lucrative US plant-based food market.
Very Good’s share price opened at $4.40, up from a previous close of $4.25. The Company’s shares are up 7.76% and are currently trading at $4.58. This indicates that there has been noticeable change following the news.