TORONTO, ON, Feb. 20, 2018 (GLOBE NEWSWIRE) -- Amfil Technologies Inc. (OTC Pink: AMFE) is pleased to provide shareholders and the investment community with an update regarding the company’s most recent acquisition and newest subsidiary: Natural Stuff Inc. (NSI)
Amfil Technologies Inc. announced the acquisition of NSI on November 1st 2017 as an addition to the product distribution side of the business that the Snakes & Lattes Inc. subsidiary has grown so tremendously over the past 12 months. Natural Stuff Inc. holds distribution rights to several food and beverage brands including 28 Black, a popular premium energy drink. At the time of the acquisition, NSI had a distribution customer base of over 300 accounts across Canada. We are pleased to announce that the client base has now grown to exceed 500 accounts across Canada.
As part of the acquisition agreement, the founder and President of NSI, Silvano Racioppo, remains in a leadership position for the entity to drive the expansion of all associated business. Mr. Racioppo has over 25 years' experience in distribution and logistics for numerous food and drink brands which lead to the generation of approximately $18 Million per year in revenue for the business prior to a family tragedy which pulled him away from his business completely.
Mr. Racioppo has been working diligently to regain client accounts and additional brands for direct store distribution (DSD) having now been able to return to actively focusing on his business. DSD companies are not a ‘drop and run’ type of distributor. DSD reps carry inventory on their trucks, assess what the retailer needs, then pick from the truck, invoice, merchandise and collect payment. Product positioning and placement at retail are vital to the success of each product. DSD companies typically guarantee the sale of their products. Premier DSD companies, like NSI, maintain a low return rate against a high sell through across their product lines. NSI is poised to become the premier DSD company for major Fortune 500 CPG (consumer packaged goods) companies to small format channels in Canada, including the convenience, gas and drug channels. Very few major CPG companies have a DSD model and therefore are not maximizing the potential sales through these lucrative channels. As mentioned above, NSI’s client base has grown from approximately 300 accounts upon acquisition to over 500 accounts currently, a 66% increase in two months. Mr. Racioppo has also recently secured some key deals to expand the product lines being distributed through NSI.
The distribution of bread products was a major contributor to the annual revenues generated by Natural Stuff Inc. prior to the family tragedy which pulled Mr. Racioppo from the business. Distribution to small format retail is an ongoing challenge for the two major Canadian bread companies, leaving this sector largely under served. These two national bread companies struggle with distribution to small format retail due to the limited shelf life of the products. NSI is excited to announce that it has secured the exclusive distribution rights in Canada of HBCI bread products, which will not only service the distribution void, but disrupt the current prevailing bread distribution model.
HBCI bread products are the first to market in Canada with a proprietary blend of 35-day clean-label extended shelf life bread, which also goes through a natural proofing process. The bread will be distributed in boxes, bypassing the cost of deadheading trays. This bread product line alone will create a disruptive opening in the above-mentioned channels primarily due to its 35-day shelf-life compared to the industry standard 9-12 days.
Some of the new distribution agreements include:
HBCI Bread, exclusive Canadian distribution of 35-day extended shelf life bread products using a clean-label proprietary mix, versus the industry standard 9 to 12 days. There will be ten bread products, including white, wheat, hot dog buns, hamburger buns, bagels, multigrain, Italian, etc. breads. This is the first and only formulation of it’s kind in Canada. Planters Nuts and snacks. Metzger meats in Ontario Aggressive expansion into Bars/Clubs/Restaurants with sales of 28 Black (New & old flavours & support material from Spa Springs.) Various products from Conagra Brands NSI is also actively negotiating distribution deals with several major Fortune 500 CPG companies, with two of these deals to be announced shortly once they are secured.
NSI will be hosting a booth with the 28 Black Product Line at the CARWACS Convenience and Gas Show on March 6th & 7th 2018.
The company is pleased with the rapid successes obtained by the Natural Stuff Inc. subsidiary, and look forward to assisting with the drive to regain and exceed its previous $18Million per year market share which would dramatically contribute to overall company revenues.
So 66% increase in 2 months.. it's been another 2 months+ :-)
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