Innovative Food Holdings Inc (IVFH)

[Dickmo]

I just wonder if this new CEO is going to understand that he is dealing with a small business and not a mature version of a big business like Kroger. He's going to come in and I am concerned that he'll find that the company is ill-equipped to grow. The company's direct to consumer business was a one hit wonder suitable only for the Pandemic. It's too expensive, it lacks a marketing niche, and it doesn't have the distribution to ship to many people quickly and inexpensively.
As for the company's base business of serving restaurants, growth will be expensive. The company needs to shrink its reliance on US Foods - not because USF is unreliable, but because it is a major red flag to possible acquirers. This means the company is going to need other distributors or ship direct to foodservice clients. The company will need additional fulfillment centers to make that happen.
Bottom line - expect a step back in profitability before the company can move two steps forward. But from a leadership standpoint, this is excellent news.