My insight comes from working with a Fortune 50 company food company for 20 years and having another 7 years in DSD and retailer experience.
Distribution I understand well, now if the company doesn't get the convenience stores and the supermarkets to take this product out of the gates then we have a different story.
As for producing the product, I do not know. It sounds as if the company knows they will a great demand for the product and are ahead of the demand.