$NGTF Nightfood Comments on Potential for 2020 Baby Boom Resulting from Coronavirus and Other Impacts of the Disruption
Tarrytown, NY, March 13, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Sean Folkson, CEO of Nightfood, Inc. (NGTF), the better-for-you ice cream recently recommended as the Official Ice Cream of the American Pregnancy Association (APA), today addressed investor inquiries regarding the Coronavirus, specifically relating to short-term ice cream demand and the possibility of a baby boom in 2020.
“I’m certainly not an expert on this topic, but I am obligated to address the issue because multiple shareholders this week have asked about birthrates and their impact on our business, as well as what other temporary lifestyle changes might mean for our company,” explained Folkson. “As a society, I’m happy to see we’re working together and making prudent sacrifices so that the situation can be brought under control, and life for all of us can return to normal as swiftly as possible. I’m being careful in my language, as I do not want to be misinterpreted as an opportunist. At the same time, I certainly do not see doom and gloom for our Company or other food brands.
“Nightfood sales have been growing, our distribution footprint is aggressively multiplying, and our awareness within the pregnant community is growing exponentially. The volume of retailer and distributor reorders we received last week alone is more than we did most months in 2019, and almost all of it was to restock existing partners.”
Management believes baby boom inquiries have been spurred by media coverage. Daymond John, star of Shark Tank star, entrepreneur, and prolific investor, stated last week, “We will definitely see a baby boom, 100 percent.” Popular parenting site Romper ran a story about the potential for a baby boom as did The Institute for Family Studies. Not all outlets agreed with John, some indicating we could expect a decrease in birth rates.
“Whether or not there’s a baby boom or a reduction in the birth rate is not particularly important to our Company,” continued Folkson. “We anticipate that life will begin to return to normal at some point soon, there will still be millions of pregnant moms, they’ll still be craving and eating ice cream. There are approximately 3 million pregnant women in the United States at any given time. Nightfood ice cream will either start to capture a meaningful share of that market, or we won’t. And if the number of pregnant women grows to 3.3 million or shrinks to 2.7 million, that’s immaterial at this stage. Moderate success in a market of either size would bring a massive change to revenues, profits, and the value of the Company.
“For illustration purposes, let’s use a market of 3 million. If 1% of the expectant moms become customers and they and their family go through 2 pints of Nightfood a week, that would translate into over $10,000,000 in annual revenue. If 2% of the moms become customers and go through 2 pints a week, that would result in revenue of over $20,000,000. Anybody can do the math on 5 or 10 percent, or more than 2 pints per week and what that would mean in terms of revenue and the value of our brand. All true with or without the virus.
“It’s easy to get excited about what servicing even a small percentage of this demographic can mean for our company. Remember, this is not ‘just a marketing angle’. We’re recommended as the Official Ice Cream of the American Pregnancy Association because of our objectively healthier nutritional profile for pregnant women compared to any other ice cream on the market.
https://finance.yahoo.com/news/nightfood-comm...42661.html
Tarrytown, NY, March 13, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Sean Folkson, CEO of Nightfood, Inc. (NGTF), the better-for-you ice cream recently recommended as the Official Ice Cream of the American Pregnancy Association (APA), today addressed investor inquiries regarding the Coronavirus, specifically relating to short-term ice cream demand and the possibility of a baby boom in 2020.
“I’m certainly not an expert on this topic, but I am obligated to address the issue because multiple shareholders this week have asked about birthrates and their impact on our business, as well as what other temporary lifestyle changes might mean for our company,” explained Folkson. “As a society, I’m happy to see we’re working together and making prudent sacrifices so that the situation can be brought under control, and life for all of us can return to normal as swiftly as possible. I’m being careful in my language, as I do not want to be misinterpreted as an opportunist. At the same time, I certainly do not see doom and gloom for our Company or other food brands.
“Nightfood sales have been growing, our distribution footprint is aggressively multiplying, and our awareness within the pregnant community is growing exponentially. The volume of retailer and distributor reorders we received last week alone is more than we did most months in 2019, and almost all of it was to restock existing partners.”
Management believes baby boom inquiries have been spurred by media coverage. Daymond John, star of Shark Tank star, entrepreneur, and prolific investor, stated last week, “We will definitely see a baby boom, 100 percent.” Popular parenting site Romper ran a story about the potential for a baby boom as did The Institute for Family Studies. Not all outlets agreed with John, some indicating we could expect a decrease in birth rates.
“Whether or not there’s a baby boom or a reduction in the birth rate is not particularly important to our Company,” continued Folkson. “We anticipate that life will begin to return to normal at some point soon, there will still be millions of pregnant moms, they’ll still be craving and eating ice cream. There are approximately 3 million pregnant women in the United States at any given time. Nightfood ice cream will either start to capture a meaningful share of that market, or we won’t. And if the number of pregnant women grows to 3.3 million or shrinks to 2.7 million, that’s immaterial at this stage. Moderate success in a market of either size would bring a massive change to revenues, profits, and the value of the Company.
“For illustration purposes, let’s use a market of 3 million. If 1% of the expectant moms become customers and they and their family go through 2 pints of Nightfood a week, that would translate into over $10,000,000 in annual revenue. If 2% of the moms become customers and go through 2 pints a week, that would result in revenue of over $20,000,000. Anybody can do the math on 5 or 10 percent, or more than 2 pints per week and what that would mean in terms of revenue and the value of our brand. All true with or without the virus.
“It’s easy to get excited about what servicing even a small percentage of this demographic can mean for our company. Remember, this is not ‘just a marketing angle’. We’re recommended as the Official Ice Cream of the American Pregnancy Association because of our objectively healthier nutritional profile for pregnant women compared to any other ice cream on the market.
https://finance.yahoo.com/news/nightfood-comm...42661.html
