The Well Told Company Inc. (WLCO.V): A Closer Look

$21.653M Market Capitalization

The Well Told Company Inc. (WLCO.V) (“Well Told”) is a female-founded, emerging plant-based wellness company. The Company formulates, develops, distributes, and sells a variety of supplements, remedies, and other functional wellness products. With the mission, “clean wellness for all,” Well Told’s products are currently available in over 2,000 well-known retailers throughout Canada and 800 stores in the United States (US).

The Company is led by its founder Monica Ruffo, a serial entrepreneur and award-winning leader. Recognized for her ability to lead, grow, and inspire innovative purpose-driven companies, Monica is credited for co-founding Amuse. Just three years later, Interpublic Group acquired Amuse, which boasts an impressive portfolio of clients, including Warner Bros. Films Canada, Couche-Tard, and Ice Hotel.

Additionally, Monica has quite a few shiny international awards under her belt, such as the coveted Cannes Lions and a podium win for Agency of the Year in 2012. Furthermore, her agency earned the 2014 distinction of ranking as one of the 25 smartest creative agencies in the world.

At the peak of her career, Monica was diagnosed with an aggressive form of breast cancer. Following her diagnosis, she decided to take her health into her own hands, putting her passion for health and wellness to work. As a result, she completed a Certificate in Plant-Based Nutrition from Cornell University and founded Well Told Health, an apothecary characterized for crafting highly efficacious, clean supplements from organic plants without fillers, isolates, or gluten.

Some of the strongest people I know are women, and Monica is a testament to this. Much like Monica, my mother was diagnosed with breast cancer during one of the hardest moments in my family’s history. Against all odds, my mother began pursuing a clean lifestyle, competed in multiple fitness competitions, and managed to conquer her breast cancer. That being said, a healthier lifestyle played a pivotal role in the betterment of both Monica and my mother.

A Natural Solution

One of the most common misconceptions related to natural products is that they are inherently better for us. In fact, researchers found that a person’s preference for natural things involves a range of ideas, including the belief that nature is pure and inherently superior to humans. Needless to say, these beliefs and biases affect the decisions people make about their health.

For example, some dietary herbal supplements have failed to demonstrate any sort of benefit when studied. Several major studies of the herb Echinacea did not find evidence of benefit against the common cold. Similarly, studies of ginkgo, including a study that enrolled more than 3,000 older adults, found that ginkgo supplements did not help prevent or slow dementia or cognitive decline. See where this is going?

With this in mind, even if a herbal or dietary supplement comes from a natural source, this does not always mean that it is safer or better for your health. These same supplements may contain dozens of chemical compounds, and all of their ingredients may not be known.

That being said, Monica founded Well Told with the hopes of disrupting the Supplements Market, which experienced 14.5% growth in 2020. Keep in mind, Well Told also has a foot in the Dietary Supplements Market, which was valued at USD$140.3 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2021 and 2028. More impressively, this market is expected to reach a valuation of $272.3 billion by 2028.

Furthermore, Well Told offers a variety of non-synthetic, filler-free, dairy-free, soy-free, and vegan products. However, the Company upholds the belief that supplements should never replace a proper whole food plant-based diet. With this in mind, Well Told only offers formulations that you either can’t get from food alone, such as Vitamin D, or that are next to impossible to get in therapeutic doses.

The Company works with whole plants that have been dehydrated and milled to make the most of the tens of thousands of nutrients found in plants. Furthermore, Well Told’s science-based approach offers complete transparency around every ingredient used. The Company’s packaging is also made from recycled paper and is printed with water-based inks. Everything is recyclable including the caps and bottles, which are BPA-free.

As previously mentioned, Well Told’s products are available at more than 2,000 stores across Canada. In total, the Company has 12,959 points of distribution and has its products listed at major retailers, including Loblaws, Sobeys, Metro, Whole Foods, and Shoppers Drug Mart, to name just a few.

Latest News

Most recently, on November 23, 2021, Well Told announced that it had signed on Brooklyn, NY-based Good Moose LLC (“Good Moose”). Launched in 2007, Good Moose is a performance marketing agency created as part of the Red Antler family to help companies launch, grow, and scale.

“We are delighted to have started working with Good Moose, having seen their significant contributions to the success of fast growing companies like Casper and Allbirds…As an omni channel brand, our online presence and digital strategy are critical to our growth, and we’re confident we’re in good hands,” said Monica Ruffo, founder and CEO of Well Told.

Additionally, on November 17, 2021, Well Told announced Uniprix Pharmacy (“Uniprix”), a leader in Quebec’s retail pharmacy market, as a new official retailer. It is worth noting that Uniprix is owned by the McKesson Corporation, which owns Well.ca and Rexall pharmacies across Canada, both of which carry Well Told’s full line of products. Following the news, nine Well Told products are now available in over 300 Uniprix stores.

Similarly, on November 2, 2021, the Company announced Pharmaprix, a part of the Shopper’s Drugmart Corporation, as an official retailer, adding over 900 new points of distribution for Well Told’s products. This news came shortly after Well Told announced on October 28, 2021, that its Bloating Be Gone and Energy Booster products would be available at over 850 stores and have more than 1,700 points of distribution in the US, marking the Company’s entrance into the US market.

Financials

Before we get into Well Told’s financials, it’s worth noting that the Company began trading on the TSX Venture Exchange (TSXV) through a reverse takeover. In connection with the transaction, Agau Resources acquired all of the issued and outstanding securities on the company formerly known as Well Told Inc. Following the reverse takeover, the Company changed its name to “The Well Told Company Inc.” With this in mind, the financial results covered here will be pulled from Agau Resources’ Audited Annual Financial Statement for May 31, 2021, and May 31, 2020.

According to Agau Resources’ Financial Results, the Company had cash and cash equivalents of CAD$58,848 on May 31, 2o21, compared to CAD$8,777 year-over-year (YOY). In the same period, the Company had total current assets and total current liabilities of CAD$77,445 and CAD$105,280, respectively. As of May 31, 2021, Agau Resources had 291,261,158 weighted average common shares outstanding.

Since the reverse takeover, Well Told has released a corporate update regarding YOY same-store sales as well as gross margin growth. According to this update, the Company reported a 142% increase in year-to-date (November 10, 2021), YOY same-store sales, relative to Well Told’s increasing distribution points. Furthermore, Well Told has seen an increase of its YOY gross margins by 6.4%, which was achieved through a reduction in raw material and packaging costs throughout the year.

However, Well Told cautioned that the financial information disclosed in its corporate update is unaudited and is qualified entirely by the financial results to be disclosed in the interim financial statements of the Company’s operating subsidiary, Well Told Inc., for the period ended September 30, 2021. This statement is expected to be filed on SEDAR on or before November 29, 2021. Additionally, the Company’s audited annual financial statements for the period ended December 31, 2021, are to be filed on SEDAR on or before May 1, 2022.

Commentary

Equity Guru had the privilege of communicating directly with Monica Ruffo, Well Told’s CEO and Founder. Looking forward, Well Told intends to release its powders in compostable sachets. When asked if the Company could provide a rough timeline, Monica commented, “we anticipate rolling them out progressively as of Q1 2022.” With this in mind, Well Told’s latest innovation is right around the corner, adding to the Company’s already expansive offering of products.

Regarding Well Told’s latest news, we asked the Company how it expects Good Moose to positively support the Company’s US expansion, to which Monica responded:

“Good Moose is a super talented team of media and marketing performance specialists that will be helping us to scale our online business including our recently launched Amazon site as well as providing media support for our brick and mortar business in the US as it grows…

The fact that they have such extensive experience with very successful start-ups is incredibly beneficial as it is quite a different thing to successfully market an established brand with a huge budget versus a brand that is just getting started such as us. When you are small, it is all about being scrappy and clever – outsmarting versus outspending. They will provide media strategy and planning as well as buying and optimizing so we can learn as we go.”

Lastly, when asked if she had any additional commentary related to Well Told’s latest news or the future, Monica stated:

“We have gone from 0 to over 2,000 stores in Canada in a very short period of time with a strong 143% same-store year-over-year growth to date. In the US we have literally just launched in the past 2-3 weeks at CVS Health Hubs, Goop and on Amazon and we are very proud to have been selected by Kehe distributors as a winner of their Trend Finder event; that being said, with the traction we see in Canada and the interest from US retailers, media and consumers to date, we are feeling bullish about our future.”

With this in mind, I look forward to seeing what Well Told does next. The Company has firmly established itself in the lucrative Supplements Market, with a variety of adaptogen products including Bye Bye Bloating, Plant-Based Vitamin D, and Age Defier, to name just a few. Above all else, Well Told is committed to the development of clean wellness products, and that’s something I can get behind. Having just recently listed on the TSXV, I will definitely be keeping an eye or two on Well Told going forward.