Milling & Baking News - August 23, 2022 - 16

ARCADIA BIOSCIENCES
TUES | 08 23 202 2
Arcadia Bioscience's growth plan
to depend heavily on GoodWheat
DAVIS, CALIF. - Recently launched
GoodWheat pasta will serve as a driving
force behind Arcadia Bioscience's Project
Greenfield three-year growth plan.
Company executives explained Project
Greenfield along with plans to divest in
other areas, including the hemp business,
in an Aug. 11 earnings call to discuss second-quarter
earnings.
Arcadia launched GoodWheat pasta at
to double again by the end of Q4, " he said.
Current retail stores selling GoodWheat
are in the East, the Midwest and
the West Coast.
" Pasta is the first category for GoodWheat,
but there are a number of other
categories where our value proposition
is poised to break through and win while
also clearly aligning with the investment
criteria that I outlined: opportunity, scalability
and profitability, " Mr. Jacot said.
" Our approach will be deliberate and executable
and may include a mix of product
launches as well as potential acquisitions. "
Growing the brands ProVault topical
palm relief and Zola coconut water make
up part of Project Greenfield, too.
" These brands have superior prodretail
during the quarter ended June 30.
It contains 4 grams of fiber and 9 grams
of protein per serving. GoodWheat pasta
was in 200 retail stores by June 30, and it
is being shipped to 500 stores now, said
Stanley E. Jacot, president and chief executive
officer of Arcadia.
" We have good visibility for that number
uct performance in large established
categories, " Mr. Jacot said. " So there is
compelling upside in improving our small
retail footprint. We can grow significantly
faster than the category through
expanded distribution, trial-driving marketing
and targeted innovation. "
A third part in Project Greenfield
comes in building future licensing revenue
in channels such as business-to-business
(B2B) and foodservice.
Arcadia also plans to exit the GoodHemp
seed business as well as the Archipelago
Amy's Kitchen to close California
frozen pizza plant in San Jose
SAN JOSE, CALIF. - Amy's Kitchen
has announced plans to close its frozen
pizza manufacturing plant in San Jose
in September, citing " widespread supply
chain disruptions, fluctuating consumer
demand and persistent inflation. " The
shutdown will affect 331 employees.
Amy's Kitchen began leasing the San
Jose plant in 2021 following " significant
increases in demand " for its products in
late 2020. The facility was expected to give
Amy's Kitchen additional space to provide
its team with the room needed for safe
16
MILLING & BAKING NEWS
production and social distancing in the
face of the coronavirus pandemic.
Like many consumer packaged goods
companies, Amy's Kitchen over the past
year has faced a tight labor market and
supply chain challenges. In the case of the
San Jose plant, the challenges were too
much for the company to overcome.
" Since its founding, Amy's Kitchen has
brought thoughtful deliberation and a
culture of care when making business
decisions, " the company said. " Like many
other businesses, we are working to meet
business, a joint venture with Legacy
Ventures Hawaii focused on hemp extract.
Body care production will move to co-packers
with plans to divest the manufacturing
facility in Los Angeles. Arcadia's portfolio
no longer includes Savvy natural brands.
" We recently reached agreement for
the original founders to take over the
brand effective Aug. 1, " Mr. Jacot said.
Arcadia in the second quarter had a net
loss attributable to common shareholders
of $3.78 million, which compared with a
loss of $5.26 million in the previous year's
second quarter. Revenues of $3.86 million
compared with $1.41 million in the previous
year's second quarter. Sales of Zola
coconut water and body care products
primarily drove the increase.
" Sales are outpacing units as higher
costs are being passed along through
price increases, and Zola is no different, "
Mr. Jacot said. " We implemented a price
increase across our customer base in Q2,
which had a negative impact on volumes
due to lower promotional activity. "
The impact should be temporary, he
said, adding promotions and revenues
should return to a more normal level by
the fourth quarter.
Over the six-month period ended June
30, the net loss attributable to common
shareholders was $8.27 million, which
compared with a loss of $3.20 million
in the same time of the previous year.
Six-month revenues of $7.08 million compared
with $2.23 million. MBN
the challenges posed by widespread
supply chain disruptions, fluctuating
consumer demand, and persistent inflation.
While Amy's Kitchen's three other
food processing facilities have been able
to meet production and revenue goals,
the San Jose plant was losing $1 million a
month, which could not be offset by the
company's other facilities. We therefore
made the difficult decision to cease operations
at our San Jose food processing facility.
We will continue to live our promise
of doing what is best for our customers,
our farmers, our employees, and our
planet. "
Amy's Kitchen's other facilities are
located in Santa Rosa, Calif.; White City,
Ore.; and Pocatello, Idaho. MBN
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http://www.bakingbusiness.com
Milling & Baking News - August 23, 2022

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