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

Page 4 of 4

So we were already authorizing, and let’s just say we’re in 10% of their stores with one SKU and we go to 50% of the stores with that same SKU, it just gets more ACV within that particular retailer’s area of coverage. So you’re going to see all different components of ways that you’re going to see distribution growing for us. And it won’t happen overnight, you’ll see it continue to build and accelerate. And in my experience in consumer packaged goods win, you start to get momentum and the numbers become even more favorable and highly impactfully favorable, the momentum will continue, and we will continue to experience more and more. We have so much white space. We’re so lowly distributed today, which gives me even more excitement and jump in mindset because I can see how once we get this thing out and about, but this thing will continue to grow in compound in a material way.

So I think you’re going to see it across all sectors, and you’ll be able to see it in the reporting data as we begin to roll into the latter parts of Q2. Our new ship — our new product, again, will be packaged in latter part of May, it’s starting to ship in June to retail partners and distributors and wholesalers. Thank you.

Mike Grondahl: Got it. Last question from me, and I’ll point it at Alex. Alex, how much capital do you need to execute this plan and the increase in inventory to ship?

Alex Hawkins: No, it’s a great question. I think we spent a lot of time analyzing this and scenario planning to say, we have a first-mover advantage. The market seems to be primed and it’s very accepting of our products. Is now the time to lean in a bit more in sales and marketing to continue to fund and drive that for 2024 and 2025’s benefit or given that we’re going to need to tap some external financing here? Do we look to bring in just what we need right now to execute against this ramp and continue to operate lean and mean? And I think where we’ve come out is that, to execute against the plan as we see it right now to ramp these Q2 distribution wins, it’s probably a $3 million to $4 million need to bring into the business and we’re working a number of different avenues to bring that in.

We have options on the table and we’re looking to maximize long-term shareholder value as we evaluate these. And as I mentioned, we’ve got a meaningful portion of that coming from the team here.

Mike Grondahl: Got it. Got it. Well, hey, thanks for giving us a little bit of color there and good luck in 2023 guys.

Christopher Boever: Thank you.

Operator: Thanks. This concludes our question-and-answer session. I would like to turn the conference back over to Chris Boever for any closing remarks.

Christopher Boever: Thank you, operator, and thank you all for listening in this morning. This is an exciting time for us. This is an inflection point like I have anticipated and now I’m even more excited about. It’s about time to really deliver on all the potential that we have in front of us, and we are up for the challenge. We’re excited about the momentum that is clearly starting to build, and we know that the future is very bright. So I’m fully committed to this. Our team is committed to this, and our Board is highly supportive. I believe our stock price is a great value and I continue and we’ll continue to invest in this company because I believe, and I hope you do as well. Thank you for your time, and we will be talking to you all soon. Have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

Follow Stryve Foods Inc. (NASDAQ:SNAX)

Page 4 of 4