Innovative Food Holdings Inc (IVFH)

[tjwid]

There is a lot of faith here for a board and management team that deserve none. The fundamentals of the e-com business are broken, the only path to success is to abandon it and focus on the foodservice business, however, this goes against the 'IVFH Platform' strategy, so the likelihood of that happening are slim.

Why is the e-com business broken? The GP can't cover the overhead of the huge Mountain Top facility. The only way out of that is to grow sales - yet their marketing appears to be unprofitable (i.e. customer acquisition cost > lifetime value) - so they are going to continue to bleed money until there is none left.

The brand aggregation idea is a good one (it reduces the need for marketing spend because you are benefiting from the brand owner's marketing spend), but it won't generate nearly enough volume in the timetable they have.