Nate's Food Company (NHMD)

[Lyons2112]

Well, here's what Pennypickalerts got us:

NHMD (Nate’s Food Co.)

What really makes NHMD appealing is its recent news that came out of Los Angeles:

Nate’s Food Co. Announces It Is Finalizing Agreements with 3 Food Brokers For Nate’s Pancakes

LOS ANGELES--(BUSINESS WIRE)--Nate’s Food Co. (NHMD) announced today that it is finalizing agreements with 3 food brokers for placement of Nate’s Pancakes. The brokers will assist the Company in selling Nate’s Pancakes through 3 different channels: (1) grocery stores, (2) big box stores (i.e. Costco), and (3) private label.

The 3 food brokers have previously worked with Nate Steck for over 14 years and assisted in the sales of nearly $200,000,000. This will represent the first time that the 3 brokers will be working together as a group. The Company’s goal is to expand its total points of distributions and leverage the work that Nate Steck has done previously with Batter Blaster to reduce the capital requirements needed to build out the production capacity to meet the demand of the product.

The process involved with grocery placement and private label is: (1) hire a food broker, (2) meet with buyers, (3) samples sent to buyer, (4) set up pricing, (5) delivery dates established (typically 1 to 3 months), and (6) begin with a rollout with a region of the stores before full deployment.
While the Company is finalizing the deal points with the brokers and pricing terms for the product, the Company is beginning to increase its capacity in anticipation of the orders from the contracts the food brokers will bring to the Company. By beginning to increase the capacity now, the Company will avoid costly expenses that plagued Batter Blaster and prevent any delays in meeting the increase in demand that is created for our products in what we expect to be over 50,000 points of distribution.

Once the final contracts have been executed the Company will provide the details of the agreements with the specific broker.

Get the full press release here: http://finance.yahoo.com/news/nate-food-co-announces-finalizing-120000329.html

BUSINESS SUMMARY
(NHMD – Nate’s Food Co. / PPS. - $.0321)
http://www.natespancakes.com/

Nate’s Pancakes is a food manufacturing and product development company with corporate offices in Huntington Beach, CA. Their product development and food science facilities are based in Fairfield CA and their production facilities are based in Southern California. Nate’s Pancakes is owned and operated by Nate’s Food Co., which is a public company.

Nate’s Pancakes are a ready-to-use, pre-mixed pancake and waffle batter delivered in a pressurized can. Our pre-made batter makes light and airy pancakes or waffles that are fun for the entire family to make together, and are a great way to start your day. With no preparation and no clean-up, Nate’s Pancakes made making breakfast easier for your busy mornings.

MARKET OUTLOOK

The food processing industry has been growing steadily in the past several years, and certain niches are emerging as the sector’s forerunners. While food manufacturers caught onto trends such as gluten-free, low-carb, all natural, and organic years ago, there are a new set of opportunities that lie ahead. Taken from Food Processing’s “2014 Food & Beverage Industry Outlook,” these are the five trends predicted to shape the food industry in the next couple years.

1) International Market Expansion
Although much M&A activity has taken place in the food industry over the years, there has been a rise in U.S. food manufacturers expanding into emerging markets such as Latin America and Asia. As foreign markets become increasingly interested in Western food, the opportunity for market expansion overseas looks brighter. Often, manufacturers can make fine adjustments in ingredients and branding to already successful products to appeal to a new cultural market.
2) Trans Fats Controversy
It is a likely possibility that the FDA will ban trans fats. While many large corporations are already phasing them out entirely, the cost to smaller manufacturers to reformulate their products could put them out of business.
3) GMO Debate
Many consumers are becoming more health conscious and interested in what they are putting into their bodies with the food they eat. GMOs, although not currently regulated in the U.S., have been restricted or banned in over 60 countries. There is a push to require labeling on all products that contain GMOs to inform the consumer in their purchasing decisions.
4) Continued Rise of Private-Label
Private label manufacturers got a sales boost during the recession as consumers tried to save money and purchase cheaper food products. However, private label foods are becoming more gourmet and higher in quality, leaving consumers to wonder why they need to pay a premium for brand name products.
5) All About Convenience
Whether it’s snacking on a breakfast bar on the way to work, microwaving a to-go soup while working through lunch, or popping a frozen dinner in the toaster oven after a long day, convenience foods can provide simplicity for busy people. There has been a rise in single-serve portion products (e.g. Keurig coffee, 100 calorie snack packs, etc.), just-add-water beverages and meals, and snacks that can be eaten cold or warm. Watch for more easily consumable food product innovations to come to market.

Source: Higgins, K.T. & Fusaro, D. (2014) 2014 food and beverage industry outlook.
Retrieved from http://http://www.foodprocessing.com/articles/2014/2014-food-and-beverage-industry-outlook/?show=all

US foodservice packaging demand will climb 2.5 percent annually through 2014. Flexible packaging will outpace rigid based on cost, convenience and performance advantages. Restaurants other than quick service types will post the fastest growth within the dominant eating and drinking places market.

This study analyzes the $7 billion US foodservice packaging industry. It presents historical demand data for the years 1999, 2004 and 2009, and forecasts for 2014 and 2019.

INVESTOR HIGHLIGHTS

NHMD and their convenience foods can provide simplicity for busy people.

NHMD is finalizing the deal points with the brokers and pricing terms for the product.

NHMD is beginning to increase its capacity in anticipation of the orders from the contracts the food brokers will bring to the company.

That’s our take on it, now you should start your own due diligence and see the possibilities for yourselves.


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