I think we provide — I know we provide exceptional service and that should — I think the profits for what we do to help the retailers sell our product, we should share in some of that. So I think on an account-by-account basis where we know that we can — certain items can get a little bit more pricing power, obviously, we have volume discounts in place for the bigger players. But we continue to push to try to get our fair share based on our performance relationship and what the market can shoulder. Mike, do you want to add anything to that?
Mike James: No, no, I think that kind of sums it up. I mean some of the price increases started to go into effect at the — in Q2 and continued into Q3. So where the grocery chain will accept it and pass it on to the consumer. Obviously, we want to see it. I mean, we’ve had increases in plastic and corrugated and fuel and health insurance, wages. So we’ve suffered as well as everybody else out in the industry. And the retailer does realize that they have to give us a price increase. So it’s…
Jim Kras: It’s an going negotiate…
Mike James: It’s an ongoing negotiation. And I think what’s nice is look, I think Mike is pretty good on the company, we’re staying focused on making sure that we’re stating towards profitability and it is important for us to – get what I think we have earned as a partner, it’s an ongoing negotiation we have fantastic relationships with our retailers probably on Mike, competitors in the industry. And so those conversations continue to go on. And it’s a constant negotiation, but we push to get what should be fair. And I think the retailer – that understands that. But obviously, they always want to be best priced, and they always – it’s a competitive environment for them. But I think, once again, I think we have a good open dialogue, which is kind of rare.
Operator: [Operator Instructions] And your next question today is coming from [Nick Pinkus] from Forest Capital.
Unidentified Analyst: Congrats on another very strong quarter. I know you’ve touched on this, but you’ve clearly built a very robust distribution network, and now you have started introducing pulp, which appears to be very high margin, shelf-stable product. Are you planning to introduce any other new products, either your own or third-party products through the distribution channel?
Jim Kras: Thank you for the question, Nick. Yes. So right now, it’s really — we’ve used the produce business to continue to drive the distribution platform. We continue to increase our door count or store count over 5,000 currently and growing. Not only have we been opening new accounts, we’ve been expanding within existing accounts that we have. So what you’ll see is you’ll see an introduction of new products. We have a pipeline, a very compelling pipeline, which is sort of tied back to who we are as company. Whether it’s a living good or something that is sustainably grown or packaged, we’re really focused on being this leader in this kind of next-gen space of better products for you with an eye on the environment. And there’s really no one else better to do this, in my humble opinion, of course, i’m bias than edible garden since we are a grower picker/packer, shipper.
We are USDA organic certified. We are a leader in the CEA space. So again, you’re going to see an interesting slate, leveraging not only the current relationships with new relationships. We’ve also set up something called EG Direct, which is going to be sourcing commodity items. So when you’re a company like Edible Garden, and you continue to deploy your resources in order to develop patented software and you have an eye on your fill rates and you achieve some of the industry’s highest fill rates in a very tough perishable industry, you leverage those relationships to work with the buyers to supply them with some of these commodities since I have field growers and other type of growers who come to us all the time who may not have the relationship that want to work with us to help bring in some of these commodity products.
So it’s really based on trust and performance to move some of this product. And so we’ve just — we’ve been working on our 20,000-square-foot pack house in Belvidere, New Jersey. We just started laying down asphalt and finishing some — finishing touches on that part of the facility. Having that type of storage processing and cross stock will allow us to leverage that facility to its fullest. And so I’m thrilled about that because I think we can really take on quite a bit of business and we have the relationships and the appetite from our customers in order to do so. So you’ll see a whole — just to recap a whole new slate of products. I’m not going to say the full spectrum. I think they will be focused on what we’re good at as well as some of the commodity items that we know that we can move pretty quickly through the distribution platform.
But the big asset at Edible Garden is the distribution platform and the name and the relationships, and I think we’re going to — you’re going to see a lot coming from us moving forward as it relates to leveraging that, sticking with the strategy that Mike and I have always deployed, which is really working with what we have.
Unidentified Analyst: That’s definitely helpful. And to follow up on that, can you elaborate specifically on the Walmart relationship, and how you intend to expand on that?
Jim Kras: Yes. The Walmart relationship continues to grow quite nicely, we put a significant investment in both facilities this past quarter in order to increase our capacity for processing. And we started in – I believe it was in July. We started to ship additional Cut herbs to more DC based on an award that we got from them. We have a very active relationship with the buyer. There, they continue to turn to us for more. They’ve already started to increase some of their orders over the holidays from their forecast. And it’s a nice relationship, and we work hard to hit their target. I mean we’re talking about a 98% fill rate in a perishable multi-SKU business that could – that always has its challenges just considering how fickle produce can be at times.
