Natural foods company GreenSpace Brands Inc. (TSX-V:JTR) on Tuesday said it expanded its Canadian footprint, winning an aggregate of 1,700 new points of distribution for 34 of its products spanning five of its seven brands. The sales channels are diverse, comprised of grocery stores, pharmacies and quick service restaurants.
GreenSpace's portfolio includes the brands Life Choices (meat), Rolling Meadow Dairy, Holistic Choice (pet food), nudge, Love Child (organics), Central Roast (healthy snacks) and Kiju (organic).
The biggest beneficiary of the new distribution points was the Love Child brand, which gained 1,350 new stores to put 14 products on shelves at grocers, natural foods stores and pharmacies. Other brands and products benefited as well, with the sales team, in the words of GreenSpace CEO Matthew von Teichman, starting to "fill the holes in the distribution network throughout Canada." This includes Kiju products making their way into 131 new stores, including grocers and independent and natural chains. Central Roast widespread additions included Relay locations in airports. Rolling Meadows Dairy, Canada's first grass fed dairy product line, is expanding nationwide, underscored by new product launches, such as chocolate milk, bagged milk, sour cream and Greek yogurt across British Columbia, Quebec and Ontario. GreenSpace also noted distribution wins for its Life Choices BBQ line of grass fed hot dogs and burgers, including a major Ontario grocer.
Investors will be watching to see how all these new distribution points translate to sales. In the fiscal year ended March 31, 2017, GreenSpace reported C$41.96 million in gross revenue, a huge leap from C$12.31 million in the prior fiscal year. During the latest quarter, the Toronto-based company earned positive operating cash flow for the first time in its history. Net loss was trimmed to $722,000 for the quarter and to $3.25 million for the full fiscal year from $1.97 million and $5.39 million, respectively, a year earlier.
Shares of JTR are ahead 23.8% so far in 2017, including a gain of 1.3% in Tuesday morning trading to $1.56.
