July 27th, 2018
The global snack bar market has experienced double digit growth over the past few years and according to Market Research, is expected to see significant growth over the coming years, driven by Millennial and Baby Boomer demand for healthy daily snacks to support their health and nutrition. With the passage of Bill C-45, the market could expand to include a whole new category of cannabinoid-infused bars to support health and wellness, and as regulations allow for, to provide multiple products for recreational cannabis enjoyment.
Naturally Splendid Enterprises Ltd. (TSX-V: NSP) (OTCQB: NSPDF) has made tremendous strides in building out its snack business over the past couple of years including the acquisition in late-2017 of Prosnack Natural Foods Inc.. Investors should take note of the robust trends in the healthy snacks and nutritional bar categories. To capitalize on this growing market, the company recently announced a rebranding of Prosnack to, “The Bar Makers”.. The company continues to do ‘the heavy lifting behind the scenes’ and focus on executing the company’s strategic business plan and driving long-term shareholder value.
Rebranding the Prosnack Business
Naturally Splendid acquired Prosnack Natural Foods Inc. in October 2017 to enhance its lifestyle and health foods & snacks division. Prosnack has built a reputation for private labeling for major retailers in North America, as well as co-packing for other global manufacturers and continues to aggressively expand this business. The company’s ‘original house-brand’, “Elevate Me™”, products can be found in over 1,500 retail stores throughout North America which sets the stage for distribution of new products currently being developed. Historical revenue from Elevate Me™ and private label clients totaled nearly C$8 million over the past four years.
Naturally Splendid recently announced that it restructured and rebranded Prosnack to “The Bar Makers” in early July with a new interactive website set to launch before the end of July, 2018. The company enhanced the rebranding effort with the acquisition of additional manufacturing equipment allowing for a much wider array of product offerings as well as a new R&D Test Kitchen at its Pitt Meadows facility. The combination of enhanced production capability and capacity, with increased R&D abilities, is a winning combination for new business opportunities.
The market opportunity for snack bars is extremely large and growing. According to Mordor Intelligence, the U.S. snack bar market is estimated to reach $6.8 billion by 2023, representing a compound annual growth rate of seven percent, and the global healthy snack market is expected to reach USD 32.8 billion by 2025, according to a new report by Grand View Research, Inc. Rising awareness about healthy snacking habits along with the easy to use, and mobility of product is further propelling the market growth. The upcoming changes to the hemp and marijuana regulations under Bill C-45 could further open the door to the use of cannabinoids for fortify these products over time and reach new consumers.
Building an Exceptional Management Team
Naturally Splendid hasn’t stopped at expanding its facilities operations — it has also been expanding its talent pool with world class appointments.
In July, the company appointed Mr. Kevin Flanagan as Lead Food Scientist with the company’s Product Development Team. As well, Kevin has been appointed to the company’s Advisory Board.
Mr. Flanagan is a Food Science & Technology Innovation Specialist with over 35 years of experience across a broad range of food categories, ingredients, products and process technologies with some of the largest food manufacturers in North America including McCain Foods Limited, with sales of $8.5B in 2017.
Mr. Flanagan’s role at McCain Foods Limited, where he held the position of Director Food Science, included; Research & Development; Scientific and Regulatory Affairs; Intellectual Property; Private Label Manufacturing and Corporate Intelligence Management. Prior to being named Director of Food Science for McCain, Mr. Flanagan held the position of Director, Research & Development at McCain where he directed multiple R&D Teams engaged in experimental development and innovation of Pizza, Bakery, Frozen Dessert, Juice and Beverage Products, as well as Food Safety Development and technical support for processed & prepared foods factories in Canada and around the world.
Mr. Flanagan’s notable achievements at McCain include record growth, record earnings and record profits resulting from award winning category leading products.
In addition to his distinguished career at McCain Foods, Mr. Flanagan was Vice President of Food Technology for National Sea Products Limited. National Sea continues to prosper as the High Liner Corporation.
“Kevin’s extensive food development acumen and manufacturing facility experience will be a significant asset to the company in his role as Lead Food Scientist and Advisory Board Member,” said Naturally Splendid CEO Mr. Douglas Mason. “His proven track record in product development and maximizing facility logistics will become increasingly important as we continue to expand operations and product offerings.”
Mr. Flanagan is joined by other experts in building leading food companies, including Naturally Splendid’s Vice President, Alan Maddox. Mr. Maddox previously served as Director of International Sales for McCain Foods where he was responsible for overseeing sales development in over 70 countries around the world, as well as President of Sepp’s Food Group in the early 1990s where he was instrumental in developing the company into one of the leading natural organic frozen breakfast food firms.
Naturally Splendid Enterprises Ltd.’s (TSX-V: NSP) (OTCQB: NSPDF) move to restructure and rebrand its Prosnacks business could create new growth opportunities moving forward. With an exceptional management team at the helm, investors may want to keep an eye on the stock over the coming quarters.
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About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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