Stryve Foods, Inc. (NASDAQ:SNAX) Q4 2022 Earnings Call Transcript

And then the last part of that is about being able to convert our operating model within our manufacturing facility even better. We’ve been able to unlock the ability to transition from into bag at a more rapid pace delivering a much, much moisture consumer experience now in a foil bag that holds that moisture better, ultimately delivering a two-pronged better consumer experience. So we’re really excited about getting the new bags with the new improved, better quality combination to the stores and into people’s homes.

Mike Grondahl: Got it. That’s helpful. And I just want to make sure I’m clear. The new distribution gains, can you break that out maybe between new retailers or expanded existing retailers? How do we think of that increase that’s coming broken out between kind of existing and new retailers?

Christopher Boever: Well, on average today, we have two items and 16% of the ACV. We will see rapid expansion of both those metrics as well as total points of distribution. As we all know, every distribution point is not equal. Some retailers turn this category at a faster velocity. Therefore, their distribution point is worth more and they deliver higher volume per point of distribution. So you’re going to see a combination of expansion in the natural channel. You’re going to see C-store expansion. You’re going to see much greater penetration in the grocery channel, which historically has approached this category as a bit more of a profit generator. And therefore, we have positioned appropriately our health and wellness position because every retailer has some sort of strategy around providing the best, healthiest assortment for their shoppers, which we hit the center of a fairway on.

So I think you’re going to see expansion in every channel. You’re going to see better merchandising support as well, which is spearheaded and lifted by the Folds of Honor partnership. is a big deal. Retailers really get behind that. Everybody else in the category from our competitors have different strategies for how they’re connecting. Nobody has used the red, white and blue. So we’re excited about our positioning as well giving back to a great organization at the same time and giving the consumer the best absolute experience that they will have as an option available to them. All that combined together, you’re going to continue to see in-store execution metrics that are better and significantly ramped up, starting in Q2 to a shipment and build-out and rolling into Q3 and beyond.

All retailers timing is very different on when they review and prioritize this category. So we’re on cycle. We’re gaining a lot of guesses, which gives us the absolute confidence with zero about that we know that the distribution is coming because we’ve already seen and earned the acceptances and now it’s about executing those, getting those shipments out, ensuring we’ve got our shelving position right, our pricing right, all those fundamentals around the core that we talked about around executing against those fundamentals and then really getting that uplift from better merchandising. So we’re really excited about the expanded distribution with current customers and total points of distribution where we didn’t even exist. Then the third way is the number of stores that stock your product.