This Company is Taking a Bite Out of $50 Billion Night-Time Snack Spend, Entering Ice Cream, CBD & Cannabis Edibles Market
Small companies in the Snack Food Industry are getting gobbled up
Nightfood Holdings, Inc. (OTC: NGTF) offers investors an opportunity to get in front of this industry boom with the launch of Nightfood nighttime ice cream.
Americans are obese. Let’s face it. As a culture, we like to eat AND we love our snacks. In fact, we are biologically wired to get cravings at night.
I personally can’t fall asleep on an empty stomach and find myself rummaging through the cupboards just before bedtime looking for one final snack to inhale. The truth is, I’m not alone. Big Data analytics Corp IRI Worldwide recently released their State of the Snack Food Industry report and the results are astonishing. All categories of snacking have outpaced projected growth yet again. In fact, 44% of snack consumption occurs at night, representing a consumer spend of over $1B weekly on nighttime snacks.
Market research giant Mintel recently released a report identifying nighttime specific food and beverages as one of their most “compelling and category changing” trends for 2017 and beyond. One key takeaway from the report: “…the increasingly hectic pace of modern life is creating a market for food and drink that helps people of all ages calm down before bedtime, sleep better and restore the body while they rest.”
91% of consumers snack multiple times a day. Snacking now accounts for half (50%) of all eating occasions as Americans believe snacking is essential to daily nutrition.
Have a look at NightSnacking.com to get an idea of just how big this opportunity can be.
The U.S. snack market is worth roughly $118 billion, and growing 3 percent annually. Evidence of this has new trend has seen major M&A action in industry. Just within the past year, Kellogg announced its $600 million acquisition of RXBar, Conagra Brands acquired Angie’s Artisan Treats, Mars invested in the parent company of Kind Bar, and chocolate giant Hershey announced plans to acquire Skinny Pop parent Amplify Snack Brands for about $1.6 billion. Even Campbell Soup got into the action buying Snyder’s Lance for $4.87 Billion.
Major corporations see better economics in acquiring developed snack food brands rather than trying to launch new product lines from scratch.
The facts show, the later it gets, the worse we eat. Consumer’s most popular choices at night are cookies, chips, ice cream, and candy. These options are unhealthy, and often contain ingredients and nutritional profiles that can impair sleep quality.
Now if only there was a healthy alternative to eat at night when cravings kick in ….maybe something which could satisfy those cravings AND support better asleep.
Zero Guilt before Bed: Nightfood Holdings, Inc. (OTC: NGTF) – the pioneer (and currently the only player) in this growing and evolving space is making a name for themselves with high growth, new products, a sexy brand name, and expansion into the CBD and marijuana edibles markets. As humans, we are hard-wired to get cravings at night, and Nightfood Holdings, Inc. provides a vital solution for this dilemma.
Nightfood, Inc., “The Nighttime Snack Company”, manufactures and distributes better-for-you snacks specifically formulated to satisfy unhealthy nighttime cravings in a better, healthier, more sleep-friendly way.
NGTF’s Nightfood bars have been available on Amazon in 12-Packs for over a year, and sales have been steadily increasing. These bars are specifically formulated for snacking between dinner and bed.
Consumers seem to love the bars as evidenced by great reviews on Amazon and Facebook, and creating records for highest monthly sales to date.
NGTF recently created a new wholly owned subsidiary, MJ Munchies, Inc., under which it will pursue snack and other consumer-facing opportunities within the growing marijuana and CBD sectors. MJ Munchies, Inc. was formed to exploit legally compliant opportunities in the Cannabis-Related Snack and Edibles Lines and related spaces.
NGTF intends to market some of these new products under the brand name “Half-Baked”. They acquired HalfBaked.com and even filed with the United States Patent and Trademark Office for trademark protection related to the Half-Baked brand name for use in packaged snacks. Registration was fully granted in California, and federal trademark protection is very close.
These valuable intellectual property assets can be leveraged to create a national brand of snacks under the Half-Baked trademark. The Half-Baked brand is expected to include CBD-containing snacks which contain no THC or cannabis in any form, as well as a line of cannabis-containing snacks.
Think about all the potential licensing opportunities available.
Licensing the trademark to qualified partners in certain verticals and geographic locations is the quickest and most efficient method of gaining widespread distribution of Half-Baked products in both the THC edibles and CBD space.
Due to restrictions on advertising & marketing CBD and THC products, companies are expected to face stringent restrictions on how they can market directly to consumers. This makes the strategic advantage of licensing a powerful name like Half-Baked just that much more valuable. When new states come online and allow sales of cannabis edibles, companies will be looking for any legal edge they can muster. Where do you think they will turn? Half-Baked!
This could be the birth of a leading national edibles brand in the marijuana space.
It is still very early in the recreational THC edibles space. Only 9 states have legalized recreational use. Most experts predict federal legalization in the coming years.
Since Half-Baked is one of the first edibles players, they could grow tremendously if/when this happens. Globally, an increasing number of countries decriminalizing cannabis is driving market growth. Several nations, such as Canada, have legalized the use of marijuana both for recreational and medical purposes. The growing social acceptance of cannabis will drive this market growth. Also, the increasing social acceptance of recreational marijuana and cannabis-infused edible products globally offers high growth opportunities to the vendors.
Just last month, Corona Brewer and Robert Mondavi wine producer, Constellation Brands, Inc. invested about $4 Billion into Canadian marijuana grower Canopy Growth Corp. This is a microcosm of the current climate as a colossal bet has been waged on the future of cannabis infused products. This has radically changed the way investors looking at cannabis and marijuana related stocks, and provided rocket fuel for the industry.
Take a moment and consider what a huge revenue driver this can be for Nightfood. This could be a Game-Changer number one!
The legal global cannabis market has potential to experience a whopping 1,000% growth over the next decade and could reach $140 billion dollars by 2027, according to a new analysis by European investment bank Bryan, Garnier & Co. Thanks to increasing legalization and decriminalization of cannabis products, the market is reporting exorbitant progress. A recent report by ArcView Market Research indicates that consumer spending on legal cannabis in North America is outpacing previous estimates.
When assessing the size of the Half-Baked brand opportunity, Nightfood management closely evaluated the disproportionate growth of edibles in the nine states that have legalized marijuana for recreational use. RBC analyst Nik Modi, believes, “Driving the growth is recreational use of the product, particularly concentrates and edibles.”
I wonder how many major corporations would want to acquire Nightfood and gain access to this lucrative niche.
NGTF is tackling an immense opportunity in the Cannabis arena while utilizing Half-Baked – what I personally think is the best brand name in the space.
What I’m most excited about is that Nightfood is launching eight flavors of ice cream to be introduced for retail distribution next month. Their nutrition bars are delicious, and I can’t wait to see what they do with their ice cream!
NGTF announced that Jim Christensen, former Vice President of Ice Cream Sales for Unilever which owns Breyers, has joined the Nightfood team for the launch of Nightfood nighttime ice cream and is tasked with building Nightfood ice cream into a nationally recognized brand. CEO Sean Folkson recently stated, “We’ve developed a line of flavors that will blow people away, and we expect a significant mainstream retail footprint right out of the gate in early 2019.”
In just the last few years, the ice cream industry has seen two companies basically come from out of nowhere to sporting valuations in the BILLIONS. First, it was Talenti being acquired by Unilever for an undisclosed sum believed to be well over $1 Billion in 2014.
Next, Halo Top went from $230K in revenues in 2013 to reportedly being offered $2 Billion (also by Unilever) in early 2018. That’s $230K in revenue to a $2 Billion offer in only 4 years. I’m not saying Nightfood ice cream will produce those numbers…..but they don’t have to. EVERYONE loves Ice Cream. If NGTF takes even a pint size serving out of that market, you’re looking at potentially explosive revenue with retail and supermarket distribution in place for early 2019.
What price might Unilever offer to acquire Nightfood when they realize they can basically own the entire nighttime snacking category? Remember, it’s projected to grow into billions in revenue in the coming decade.
This is the perfect time to launch Nightfood ice cream. Besides promising industry trends, Nightfood has the investment capital, and nationally-known sleep expert Dr. Michael Breus, The Sleep Doctor™, to spearhead consumer education and media awareness. Breus has appeared over 100 times in the national media, including over 40 appearances on Dr. Oz, plus Good Morning America, The Today Show, and many more.
All the pieces have come together for a perfect launch.
“Nightfood continues to attract the best of the best because industry data proves unhealthy and sleep-disruptive night snacking is a significant problem for tens of millions of Americans that needs to be solved,” says Dr. Breus.
I see ice cream as Game Changer number 2. Not to be a wise-guy, but who wants to eat Nightfood nutrition bars at night when I can devour a pint of Nightfood Ice Cream?!?!
NGTF is building a huge network of brand ambassadors who are coming on board and see the vision being executed. Besides The Sleep Doctor and Jim Christensen, Tom Morse the founder of 5 Hour Energy, Doron Stern, the Former VP of Marketing at Chobani, and many other big names have joined the Nightfood team to oversee the corporate metamorphosis. Three time NFL Pro-Bowler Jarvis Landry and Pro-Bowl tight end Tyler Eifert have also joined as brand ambassadors. As they share the future vision of the brand, their compensation is strictly equity-based. World-famous multi-millionaire athletes, social media celebrities and micro-influencers are jumping on the Nightfood train.
NGTF has a perfect storm of serious partners and advisors, financial capital, new product launch, the first of its kind in a potentially skyrocketing space, and a very recognizable trademarked brand name. The company is expecting tremendous revenue growth over the next several quarters.
There is nothing standing in Nightfood’s way except execution.
Nightfood Holdings, Inc. (OTC: NGTF) is trading at just over $12M market cap, yet has the potential to be valued so much higher…remember those young snack companies I linked to selling for hundreds of millions (and billions) of dollars?
Plus, Nightfood is filling a definitive consumer need. If you looked at NightSnacking.com, you got a feeling for the size of this category, which could easily grow to the billions.
Consider just how valuable that could be, and then wait till Wall Street finally figures it out. What can this do for your portfolio? We’ve seen increasingly aggressive consolidation within the sector. Could Nightfood be an attractive candidate for a buyout or takeover once their new products are fully launched and licensed?
Investors are just beginning to notice Nightfood Holdings, Inc. As NGTF continues to exhibit this kind of growth, and pioneers two brands each with incredible potential, we could see some monster earnings and life-changing outcomes in the not too distant future. Ice cream is a huge industry which is only getting larger. Imagine what can happen to the stock price if their sleep-friendly nighttime ice cream hits it big?
Between the current market cap and recent large-scale visibility, and the ice cream launch in Q4 2018, this could evolve into one of the sweetest investment opportunities of the year. Don’t let it pass you by.
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