Yuengling's Ice Cream Corp (YCRM)

[hat12trick]

Some numbers & stuff

Looking forward to additional news on rollout to new retail locations, as outlined in this earlier PR:

Aureus Inc./Yuengling's Ice Cream Allies with Distribution Giants in Bid to Expand Product Presence to 20,000 Plus Potential Retailers, Adds Industry Veteran to Retailer Relationships Team
September 4, 2019
https://finance.yahoo.com/news/aureus-inc-yuenglings-ice-cream-123000160.html

…We are thoroughly excited to update our shareholders as we gear up for a nationwide rollout of Yuengling’s Ice Cream to a potential pool of 20,000 additional retail locations.

…Especially as the recent consumer testing response to our newest premium flavors and our keto diet friendly Lite Ice Cream is so overwhelmingly positive. We feel that Yuengling’s Ice Cream deserves the widest possible distribution. We are bringing the classic taste of Yuengling’s to an entirely new generation. These new distribution relationships open the door to rapidly expand the presence of our gourmet ice cream to the shelves of thousands of new local grocery retailers across the country.


In an attempt to get some insight into what kind of revenue to anticipate going forward… I took a stab at some very rough numbers based on actual Yuengling’s Ice Cream sales when the brand was relaunched by David Yuengling.

Year 2014
Retail locations: 1200
Revenue: 2,688,135

Year 2015
Retail locations: 2700
Revenue: 4,810,475

So just taking average revenue per location over a couple year period from the initial distribution to the mid-Atlantic region ~5 years ago… one can estimate revenue generated from a national rollout and increased distribution going forward:

Retail locations: Revenue
1000: $2M
2000: $4M
5000: $10.1M
10000: $20.1M
15000: $30.2M

I think the above numbers are pretty conservative, and could be even better depending on branding & marketing to drive sales. Some of the other established well-known brands generate much higher per location numbers (think Ben & Jerry’s, Haagen-Dazs, etc.). Hopefully, the Yuengling’s name & tradition will help with branding and market acceptance.
https://www.statista.com/statistics/190426/top-ice-cream-brands-in-the-united-states/

*Now here is where I think it gets more interesting. Recently, there has been a push by companies to introduce “healthier” ice cream products. The above numbers are just estimates based on historical sales numbers, and don’t take into account their new “Lite” products/flavors coming out soon.

I think it was an excellent strategic move by company to offer Keto diet friendly - high protein, light ice cream product line. Along with the nationwide rollout of the Yuengling’s Ice Cream brand, the new products have the greatest potential to add significant revenue/growth for the company, based on current consumer trends toward healthier options, and quality ingredients.

https://yuenglingsicecream.com/new-products/

Our New Lite Flavors that Delight!

We know it’s hard to eat just one bite, but with Yuengling’s Lite Ice Cream, now you don’t have to! With approximately 90 calories per serving, packed with protein and low in fat, Yuengling’s Lite Ice Cream delivers, without skimping on taste!

Made with only high-quality ingredients and Natural flavors, Yuengling’s Lite Ice Cream is PA Preferred and certified Kosher. By utilizing a patented nutrient delivery system, Yuengling’s Lite Ice Cream serves vitamins and amino acids without sacrificing the delicious taste you’re looking for.

Whether you are looking to refuel after a workout, are watching your weight, or have dietary restrictions, grab a spoon and indulge on great tasting ice cream that both your body and taste buds will enjoy!

New Traditions – Introducing Yuengling’s Lite Ice-Cream.

The Life Style Treat!




@AureusNow
We are slightly modifying our current high protein light ice cream formula to align it with Keto diets, prior to its release into the market. This will tap us into the $15.6 billion Keto food market.
5:56 AM - 29 Oct 2019


To get an idea of the potential of tapping into this category of “lite”, lower-calorie, higher-protein, healthy, diet-friendly ice cream… just look at other players in this space that have had explosive growth. Halo Top was one of the fasted growing companies in U.S. within a couple years of launch.

https://labusinessjournal.com/news/2018/nov/09/freezer-burn/
https://www.cnbc.com/2018/11/01/halo-top-beat-ben--jerrys-brings-in-hundreds-of-millions-in-sales.html

For what it’s worth, Halo Top’s revenue growth:

2015 $1.4M (~$2M depending on source)
2016 $44.3M
2017 $350.6M (reached up to 19,000 locations)
2018 $329M (other brands entering market for healthier ice cream)


I’m not saying that we will necessarily see this level of explosive growth. But Americans love ice cream, Yuengling’s has a long tradition of brand awareness, they have recently formed nationwide distribution relationships, and they are introducing new higher-protein, lower-calorie lite products.

And ARSN is currently trading at around $1.0M market cap! (less than $2.5M fully diluted).