Blender Bites Blends Into the North American Market
I am lazy. That being said, going to the gym a few times a week is the extent of my fitness routine. My dietary choices are questionable, my cooking skills are abysmal, and I can’t be bothered to go grocery shopping. As a result, whether it’s meal prepping or making a smoothie, you can bet your bottom dollar I won’t be doing either. Thankfully, there are frozen meals to compensate for my lack of motivation.
With this in mind, the frozen meals category experienced significant growth following the onset of the COVID-19 pandemic. To be more specific, the Global Frozen Food Market was valued at $167.34 billion in 2020 and is expected to reach $224.2 billion in 2025, registering at a compound annual growth rate (CAGR) of 6%. Unsurprisingly, the frozen food market’s growth can be attributed to a growing number of consumers looking for quick, easy, and quality solutions with longer shelf life.
The pandemic has been a miserable experience for everyone, however, there is somewhat of a silver lining. According to the International Food and Information Council’s 2020 Food and Health Survey, 54% of all consumers cared more about the nutritional value of their food and beverage choices in 2020 than they did in 2010. More impressively, in 2019, 80% of Americans tried to limit their sugar intake.
That being the case, the Global Organic Food and Beverages Market is expected to grow from USD$255.2 billion in 2020, to USD$849.7 billion by 2028, expanding at a CAGR of 16.42%. Furthermore, in addition to wanting locally sourced and organic ingredients, 55% of Millennials, myself included, said that convenience is one of the most important factors when deciding what foods to buy. Amen.
With this in mind, the North American Smoothie Segment was worth USD$4.58 billion in 2021 and is expected to reach USD$6.28 billion by 2026. As you’d expect, this market is driven primarily by increasing demand for products that are both convenient and affordable, such as smoothies, juices, and frozen meals. Now, let’s talk about a company that has uniquely positioned itself in the smoothie market with an innovative portfolio of…smoothie pucks?
Blender Bites Limited.
- $35.129M Market Capitalization
Blender Bites Ltd. (BITE.C) is a Vancouver, Canada-based consumer packaged goods (CPG) company founded in 2016. The Company develops and markets a line of premium frozen food products, namely its pre-portioned frozen smoothie pucks, to provide customers with organic, nutritious, and convenient solutions. Currently, the Company boasts strong Canadian distribution partners, including Tree of Life and Horizon.
Blender Bites’ frozen smoothie pucks come in three different varieties including Power Berry, Vita Smoothie, and Green D-Tox. All of Blender Bites’ frozen smoothie pucks are pre-portioned and easy to prepare, requiring consumers to either shake or blend pucks with their liquid of choice. Moreover, the Company’s products are able to save money for operators by reducing produce waste and labor.
Blender Bites is the first company to produce a pre-portioned smoothie puck in the Canadian market. In addition to being certified organic, non-GMO, and plant-based, the Company’s pucks are available in more than 850 retail stores across Canada and the US, including Loblaws, Sobeys, and Costco. Moreover, Blender Bites possesses strong mass production capabilities through the Company’s large-scale manufacturing facility.
Latest News
Most recently, on February 17, 2022, Blender Bites announced that it has partnered with Gordon Food Services (GFS), the largest family-operated food distribution company in North America, for a food service launch of the Company’s frozen smoothie pucks in Ontario. With over 120 years of experience, GFS operates more than 175 stores with 14 distribution centers across 12 Eastern US states and 10 distribution centers across Canada.
“I truly believe our initial launch with GFS in Ontario, will result in additional GFS distribution agreements in other regions of Canada, and potentially within the US. This is a great first step into the Food Service industry which because of the pandemic is heavily relying on options that are quick, easy, and require the least amount of manpower as possible,” said Chelsie Hodge, the Company’s CEO and Founder.
Serving approximately 4 million customers in North America and generating CAD$17 billion in annual sales, GFS has secured a position as No. 18 on Forbes’ America’s Largest Private Companies 2021. Through this partnership, GFS will distribute Blender Bites’ products to client hotels, restaurants, cafes, hospitals, universities, and airports throughout Ontario.
As stated by Chelsie Hodge, this agreement presents the possibility of future GFS service launches in other Canadian provinces, further expanding Blender Bite’s North American presence. This launch is expected to commence in the Spring and will include Blender Bites’ Power Berry and Green D-Tox smoothie puck products.
Additionally, on February 2, 2022, Blender Bites announced that its club size pack of Power Berry smoothie pucks are now available on shelves at the Southwest Division US Club Stores, one of the world’s leading club store chains. This will introduce Blender Bites’ Power Berry smoothie pucks as the first innovation of its kind in the US marketplace in club stores. This also marks the first time Blender Bites’ brand will hit shelve in the US, representing a significant milestone for the Company.
Blender Bites’ new club size Power Berry smoothie pucks are available in 41 warehouses of the Southwest Division including Texas, Louisiana, Oklahoma, and Arkansas. If successful, this will significantly bolster Blender Bites’ club store footprint. In order to meet this initial US club sore launch, Blender Bites has produced in excess of 40,000 bags, equating to over 480,000 Power Berry smoothie pucks.
Financials
On February 16, 2022, Blender Bites announced record sales revenues for January 2022, representing more than a 3000% increase to the same period in 2021. Furthermore, this represents the Company’s highest monthly revenue to date. In total, the Company reported revenue of CAD$560,654 with related expenses of CAD$416,238 compared to just CAD$17,932 in January 2021.
“Blender Bites is on an incredible trajectory of growth and our recent January sales is a testament to our hard work and dedication to building this brand. 2022 is going to be a monumental year for the company with aggressive US expansion and a product very much in demand as consumers turn to health forward yet convenient products that they feel good about feeding their families,” commented Chelsie Hodge.
Blender Bites attributes this growth to the Company’s rapid expansion, effective brand strategies, marketing efforts, and the introduction of US distribution channels. Looking forward, Blender Bites intends to expand within new and existing retail and Club stores in Canada and the US. Currently, Blender Bites’ products are available at Costco’s Eastern Canada Region warehouses.
However, in the near future, the Company intends to launch into the US mass market via Costco Texas. In addition to expanding its physical retail footprint, through Vejii Holdings Ltd. (VEJI.C), Blender Bites plans to provide an eCommerce US direct-to-consumer (D2C) option whereby consumers will be able to create their own variety packs and bundles.
According to Blender Bites’ Listing Statement filed for September 20, 2021, the Company had cash of CAD$726,846 on June 30, 2021, compared to CAD$457,930 on September 30, 2020. As of June 30, 2021, Blender Bites had total assets and total liabilities of CAD$755,544 and CAD$546,772, respectively. As of September 30, 2020, these numbers translate to CAD$470,141 and CAD$282,520.
In total, Blender Bites reported a net loss of CAD$199,042 for the three months ended June 30, 2021, compared to CAD$137,596 on June 30, 2020. For the nine months ended June 30, 2021, the Company reported a net loss of CAD$553,478 compared to CAD$228,407 on June 30, 2020.
As of February 10, 2022, Blender Bites had 38,966,710 total shares issued and outstanding, with 15,948,800 reserved for issuance. In total, as of February 10, 2022, the Company had fully diluted issued and outstanding options of 54,915,510. The Company’s reserved stock options include:
- 2,590,800 Warrants at $1.60
- 12,500,000 Warrant at $0.80
- 850,000 Options at $1.25
On January 13, 2022, Blender Bites announced that the Canadian Securities Exchange (CSE) had approved a forward share split in which existing shareholders of the Company received 1.25 common shares in exchange for every existing common share of Blender Bites, effective January 18, 2022.
Blender Bites’ share price opened at $0.96, down from a previous close of $0.98. The Company’s shares were down -3.06% and were trading at $0.95 as of 1:19 PM EST.
