Here’s a sweet rally for shareholders in WA confectionary company – the shares were up 14.7% to 19.5 cents yesterday after it revealed an announced an expansion into the US via key distributors.
Retailers Albertsons, Bookshire Bros. Bed Bath and Beyond and Five Below will stock Yowie’s chocolates, with management expecting the partnership move to result in an increase in sales in the first half of 2018.
Yesterday’s surge trimmed the fall so far in 2017 to 70% as it has disappointed investors. At Thursday’s close it had a market value of $42 million
As a result of the new deal, Yowie stock will be available in 8000 stores across America including 1250 Target sites after a successful 300-store trial earlier this year.
Yowie products will now be stocked in four times the 300 Target stores in the trial and they will be pushed into more than 8,000 convenience stores.
The conservation-themed confectionary will also be available in more supermarkets on both the east and west coasts of the US.
The expansion includes speciality stores, such as Bed Bath and Beyond with more than 1,500 stores across the US.
The move, which follows a restructure of its US operations this year and a trial in 300 Target stores, will increase sales in the first half of the 2018 calendar year, Yowie said in a statement on Thursday to the ASX.
Yowie chief operating officer Mark Schuessler said there was scope for further expansion in the US.
“We see distribution growth potential extending beyond fiscal 2018 … driven by our current product innovation and investments in brand awareness through our marketing programs,” Mr Schuessler said.
The company moved into Canada in October, New Zealand in August and made a return to Australian shelves in February after its WA-based maker struck a new distribution deal.