SHAREHOLDER MEETING 2015 RECAP: quote!
Big Box:
The delay with big box stores is due to the decision to build out their own production facility, which is being totally financed by ABCO and Wade jointly. Both will be paid on per can basis which is factored in to the pricing model already.
Originally, NHMD was going to use the same facility as Batter Blaster and could have begun production faster as well as secured deals with a big box store (Eg. Costco). This is why they were announcing great meetings with big box stores because the old facility was already approved and built out The big box stores had the ability to audit the old facility which is required for any big box deal. However, the old facility was shared with other companies and production schedules were out of NHMD hands. Now they have the Fairfield facility up and running which is not fully complete as they need to complete the storage area (Phase 3) to be audited by any big box company. This phase will be complete within the next few months (before end of year). This will allow for a facility audit of big box stores and then big box contracts can be established.
BIG BOX IS NOT OUT OF THE EQUATION! IT IS ONLY DELAYED DUE TO BUILDING OUT THE FAIRFEILD FACILITY AND GETTING REQUIRED AUDITS (which are not possible at the moment). SO INSTEAD OF SITING AROUND NATE AND WADE CREATED THE KIOSK/RETAIL STORE IDEA TO BE PROAVTIVE AND TRY TO MAKE MONEY WHILE WAITING FOR PHASE 3 TO BE COMPLETE. THIS IS NOT A BAD THING!! THEY CUOLD HAVE SAID, OKAY AND WAIT MONTHS FOR PHASE 3 TO BE COMPLETE, BUT NO, THEY ARE BEING CREATIVE WITH THE KIOSKS (TO INCLUDE WAFFLE ON STICK WITH DIPPING SYRUP, GREAT IDEA!!!)
Online/Retail Stores/Kiosk/QVC:
The first kiosk is set to open in July 2015. They would have liked to have it up and running for July 4th weekend but still working out legal stuff and insurance as food kiosks/stores are very regulated and require a lot of paperwork. The first kiosk will be open during normal mall hours (7days/week) for the Fashion Island location. The idea for insulated pull string bags for customers at the mall and sporting events is a great idea to spread brand awareness! Think about all the uses for an insulated pull string bag (camping, beach trips, picnics, etc). All bags will have the nateshomeade logo.
QVC is still an option but not a priority at the moment but always an option. Focus is on the retail store layout and kiosks while waiting for the factory (Phase 3) to be complete. Once this is complete, the audits can be done by a big box stores which is required.
As far as current sales go, they are impressed that they sold that much without any marketing or advertising from the company.
FUNDING: As it stands, 1pm is covering all of the funding for the kiosk and retail store build outs. NHMD is only responsible for producing product and delivering it to 1pm. NO NEED FOR ANY SHARES TO BE ISSUED FROM NHMD, NOR DO THEY SEE THE NEED TOO IN THE IMMEDIATE FUTURE.
Facilities:
The equipment in Fairfield is complete to produce x amount of cans. The goal is to get about 45 cans per minute when demand is maxed (once things get going). They are still waiting on more equipment to improve the current capacity ( I forget what it is at the moment, but think it is 30 cans per minute.) A request was made to take pictures and videos of the production line as shareholders and outside individuals are not really permitted to tour the facility due to contamination. Nate said he would get pictures and/or videos (I will follow up with them)
The Indiana facility is still available if needed. They thought they would need this facility fast, but the partnership with ABCO has provided sufficient space and production capacity at this time. The Indiana project will be likely be used for storage (or product line) for any east cost vendors in the future. ABCO labs stepped up its game and pretty much met NHMD production needs thereby not needed Indiana at the current time.
Advertising/Marketing Plan:
The marketing plan is/was being held off until everything is ready. The company wanted to make sure that the machinery was all in place and there were no can defects. Unfortunately, some of the cans from the last run had a problem with air pockets in the interior system that didn’t allow proper flow of batter. Cans from that run are not being shipped and the company had another run last week and this week. The problem was fixed, per Nate. He also commented that the machinery is working properly. It was more a “setting” issue that caused the air pocket not the machinery itself. He added that this type of machinery typically takes 1-2 years to complete installation. NHMD did it 5-7 weeks, a great accomplishment. Marketing and advertising expected to begin with launch of kiosk next month.
Marketing plan to include print ads and social media to begin next month with commercials and radio to come at the end of 2015. The company will focus mainly on Instagram, then Twitter, FB and others. Social media will be a way for the company to promotions as well as they can direct everyone to the site and/or kiosk/retail store.
NASCAR and other sporting events. The company is planning to establish a partnership or marketing campaign touring with NASCAR races to demo, promote, and sell the product at these events. People camp out for these types of events and can always use a Nate’s pancake for breakfast! First NASCAR event is expected in October 2015.
Nate’s Pancake and Waffle Batter and other products:
The 120 shelf life test is not going too great. Too much water builds up in the batter and too high of PH level to be within regulations, still working on it, but not a priority. The flavored pancakes are on track to have for Q1 of 2016. The focus is on the pancake and waffle batter. The brownie development has launched and expected to be complete in 2017. The guacamole and other items in a can are on back burner until they ramp up activity for their flagship product. The company still has the opportunity to have private label deals but not a priority. Nate does like private label deals though and it is ALWAYS an option.
I forgot to ask during the call about the promo in November but asked them after the meeting. They did not pay for any promotion nor did a related third party. Someone outside of the company did. No payment or shares were issued by NHMD.
OVERALL, IT WAS A POSITIVE MEETING WHICH REAFFIRMED THE COMPANY GAME PLAN GOING FORWARD. IMO THE COMPANY AND MANAGEMENT ARE GIVING 110%. THE ENTIRE MANAGEMENT TEAM IS EXCELLENT AND WILL GROW SHAREHOLDER VALUE ORGANICALLY WITHOUT THE NEED FOR DILUTION. EXCITED FOR THE REST OF 2015.
THANK YOU NHMD FOR HOLDING THE SHAREHOLDER EVENT YESTERDAY, IT WAS NICE TO MEET THE TEAM...
