40% growth in the last four weeks of Nielsen data – outperforming the baby food category in all areas for all time periods measured
Explore potential expansion into new product categories beyond the baby food aisle
LAVAL, QC and MONTVALE, NJ, July 20, 2022 /PRNewswire/ – Today, Neptune Wellness Solutions Inc. (“Neptune” or the “Company”) (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and for-use products from lifestyle-focused brands, provides an update on the distribution of Sprout Organics (“Sprout”), a baby food and all-in-one snacks company. Organic Plant-Based Babies, highlighting strong growth in Nielsen data over the past four weeks and discussing its potential expansion into new product categories beyond the baby food aisle.
Certain information contained in this press release has been provided by Neptune in its quarterly and annual earnings calls. Due to the timing of Neptune’s most recent call, the availability of this information, and certain other matters with which Neptune was engaged at the time of this call, this information was not available or could not be correctly or fully shared at that time. Accordingly, this information is now provided to Neptune investors in a supplemental press release to ensure that investors have this information regarding Sprout’s business and operations.
- Distribution: Now available in 90% of the organic baby food market, compared to only 50% a year ago
- Number of SKUs: 92 SKUs available vs 74 SKUs a year ago
- Number of stores: Products are now in 27,000 doors compared to 18,500 doors a year ago, an increase of 45%
- Distribution added: Over the past year, Sprout has established multiple distribution wins with leading retailers including Target, Walmart, major supermarket chains and the largest national drugstore chain in United States (in 5,000 of their 9,900 doors), and now ships direct to consumers through the Sprout Organics website
- Geographical presence: Now available in all 50 states, plus Canada
Market share and growth
- Sales growth: Sprout is up 40%, versus 15% for the category as a whole, in the last four weeks of Nielsen data for the period ending June 18, 2022outperforming the product category over all time periods measured1
- Market share by category2:
- Toddler Meals: Sprout owns 19% of the $14 million Toddler Meals category, with velocities (how quickly a product is sold) outperforming the category by 5%
- Snacks: Sprout owns a 5% share of the $199 million Snacks category, with velocities slightly lower than the category (sales of newly launched Sprout Snack Bars not yet reflected in the data)
- Sachets: Sprout owns a 5% share of the $410 million Pocket class, with speeds above class by 33%
Supply chain simplification
- Sprout has streamlined its supply chain to focus on fewer strategic partnerships, reducing the total number of suppliers it works with from 55 to 22. This has enabled Sprout to improve supply chain efficiency and reduce costs, while maintaining occupancy rates.
- According to data from Nielsen, sales of Sprout in the organic toddler meal category have grown at an accelerated rate since September 2020outpacing the growth of the organic baby food category as a whole.
- The prepared food category represents a $3.6 billion the size of the market (according to Nielsen data), which is more than twice the size of the baby food market and where the data shows gross margins in the range of 30%.
- New Up-Age meal products – Mealz™, a Sprout line of organic heat-and-serve bowls for kids, which are a convenient option for busy parents who want to ensure their children get a full serving of vegetables – should be available in fall 2022.
- Sprout is also exploring further expansion of the category, including cereals, an estimate $21 billion market size; Vitamins, an estimate $7 billion market size; and Beverages, an estimate $124 billion market size (in each case, based on Nielsen data).
Statement from Sprout Management:
“We believe that our expansion efforts, alongside our cost management strategy, will allow our products to disrupt the organic food market at a higher level. We intend to launch new products in categories where we see the potential for Sprout to capture commercial demand in high-growth markets. Leveraging our unique expertise and partnerships, we seek to continue to strengthen our position and brand as a leader in the industry. organic food and beyond.
About Neptune Wellness Solutions Inc.
Based at Laval, Quebec, Neptune is a diversified health and wellness company with a mission to redefine health and wellness. Neptune is focused on building a portfolio of affordable, high-quality consumer products in response to long-term secular trends and market demand for natural, plant-based, sustainable and health-driven lifestyle brands. an objective. The company uses a highly flexible and cost-effective manufacturing and supply chain infrastructure that can be scaled to quickly adapt to consumer demand and bring new products to market through its mass-market partners. and its e-commerce channels. For more information, please visit: https://neptunewellness.com/.
About Sprout Organics
Sprout Organics is an organic baby food brand that strives to make mealtimes easy and fun for parents and babies with delicious snacks and meals made with fresh, organic ingredients. The company aims to make life less complicated, give kids a head start in life, and explore new foods with excitement through three simple promises: Keep it real, keep it simple, and keep it fun. Sprout uses only the best real, organic ingredients in everything it makes, which means certified organic food in every bite straight from nature, non-GMO. To learn more, please visit www.sproutorganics.com.
Disclaimer – Safe Harbor Forward-Looking Statements
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release. Any statements involving discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance do not constitute statements of historical fact and may be forward-looking statements. In this press release, forward-looking statements include, among other things, statements regarding potential growth and market opportunities for Sprout, the success of Sprout’s products, the operational efficiencies achieved by Sprout, and Sprout’s ability to maintain and to improve such operational efficiencies, the development and timing of new products and product launches and Sprout’s expansion into new product categories generally. These forward-looking statements are based on assumptions and estimates made by management at the time such statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors, including, primarily, risks relating to supply chain disruptions and regulatory and litigation risks, as well as other risks discussed under “Risk Factors” in the Annual Report on Form 10-K for the year ended March 31, 2022 of Neptune Wellness Solutions Inc. (“Neptune”) filed on July 8, 2022, as well as other factors described from time to time in Neptune’s filings with the United States Securities and Exchange Commission. Sprout and Neptune undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to such or other forward-looking statements.
Neither NASDAQ nor the Toronto Stock Exchange accepts responsibility for the adequacy or accuracy of this release..
1 Source: Nielsen xAOC and Total US Food, W/E 06-18-22
2 Source: Nielsen xAOC and Total US Food, W/E 06-18-22
SOURCENeptune Wellness Solutions Inc.