The Very Good Food Company Announces Management Changes and Formation of an Executive Committee - 04/04/2022 5:00:00 AM
VANCOUVER, BC, April 4, 2022 /CNW/ - The Very Good Food Company Inc. (NASDAQ: VGFC) (TSXV: VERY.V) (FSE: OSI) ("VERY GOOD" or the "Company"), a leading plant-based food technology company, today announced that Mitchell Scott's employment as Chief Executive Officer has been terminated effective immediately. The Company also announced that James Davison has resigned as Chief Research & Development Officer and as a member of the board of directors as of April 1, 2022.
The Very Good Food Company Inc. (CNW Group/The Very Good Food Company Inc.)
In lieu of immediately filling the role of Chief Executive Officer, VERY GOOD has temporarily created an Executive Committee consisting of senior executives from within the Company. The Executive Committee structure will be used by the organization to review and approve key organizational, financial, operational and strategic decisions for the Company, by drawing upon the collective knowledge, experience, business acumen and skills of the senior management team.
A search for a new Chief Executive Officer is being initiated by the Nomination Committee with the help of a leading Vancouver based recruiting agency.
"VERY GOOD is at an important juncture, and we are taking decisive steps. Our focus is to continue to build on our brand and reputation and grow our market share in the plant-based meat segment while optimizing our operations towards a path to profitable growth", stated Ana Silva, President of VERY GOOD, who is also a member of the Executive committee.
Ms. Silva continued: "As announced on March 16, 2022, VERY GOOD is implementing cost improvement measures as it transitions from a focus on top line growth, to a focus on achieving sustainable, profitable growth. These measures include:
Improve the economics of the e-commerce business. The digital marketing costs to acquire new customers through our e-commerce business have increased over the last year such that it impedes the profitability of this channel. The Company is shifting the focus from digital marketing campaigns that are aimed at acquiring new customers to our existing subscribers and those customers that are driven to our website because of our existing brand awareness and equity.
Right-size the organization through a workforce reduction. A workforce reduction will occur across multiple business operations which will result in a sizable reduction in total annual salaries. The Company is also evaluating different options for consolidating its production facilities to improve efficiencies.
"As we go forward, we will continue to execute against a strong set of strategies that will help us to further drive our top line growth by expanding our distribution points and improving our customer and consumer marketing model. And while we expect some volatility in the next couple of quarters as we set up cost improvement initiatives and work to streamline our operations, our long-term growth thesis remains intact as we continue to lead and innovate within the plant-based food industry", said Ana Silva, President.
The Q4 and Fiscal Year End 2021 Conference Call has been scheduled for Wednesday, April 6, 2022 to discuss the business outlook. This conference call includes a live Q&A session hosted by the members of the Executive Committee.
