The food industry is one of the most competitive sectors in the economy.
Breaking into established markets with new products is extremely difficult. Distribution is difficult to obtain; regulations require large investment to obtain approvals; and local manufacturing and transport costs are high.
Still, lots of entrepreneurs take a run at the food business.
One of the recent is called Blender Bites and offers customers a convenience in making smoothies.
Blender Bites was invented in the North Vancouver kitchen of Chelsie Hodge, a 15-year veteran in corporate finance.
Hodge was tired of the time it took to make her morning nutritious smoothie and the waste of vegetables and fruit in her fridge.
Thinking there must be a better way she invented a frozen “puck” that is dumped into the blender with water and whatever else you want for an instant smoothie.
With help from family she developed the business and found distribution in 850 stores across Canada with product in Super Store, Safeway, Sobey’s, Costco, Save-On, Whole Foods and Sysco Foods, among others.
Recent distribution deals were announced with Gordon Food Services and US Club in the southern United States.
The company finds 42 per cent of customers are women aged 25 to 35 while 34 per cent are busy professionals.
The convenience factor and Hodge’s business connections seem to have propelled the availability on stores shelves.
The product is advertised as organic and plant based, free of added sugar and with plenty of vitamins and anti-oxidants.
Three kinds of smoothies are made at the plant.
Green D*tox has mango, coconut and banana as main ingredients. Power-berry uses strawberry, blueberry and blackberry. Vita-smoothies uses peach, raspberry and banana.
While Yours Truly only drinks the occasional sugar-filled smoothies from a fast food outlet, my partner and I bought a package of six Power-Berry pucks locally for $12.79.
The instructions claim shaking the puck in warm water, letting it stand for 15 minutes and then shaking again provides a good smoothie.
To save washing a blender we did that. Neither of us could stomach the concoction. Next time we will try adding some yogurt.
In fairness we are not of the millennial group at which these instant smoothies are aimed.
Blender Bites may be a product for the times. Studies indicate the North American market for this type of organic convenient product will increase from $4.6 billion in 2020 to $6.7 billion by 2025.
The company does not release detailed financial reports but January sales of $560,000 compared with $17,000 last January. January expenses of $416,000 left some profit margin.
Many of the stores distributing the smoothies came on line last year indicating this will be a make or break year for Blender Bites. Enough growth in sales is needed to make some money.
Shares currently trade at 71 cents with a high of $2.96 in the last 12 months and a low of 69 cents.
Listed on the Canadian Stock Exchange Blender Bites is a good candidate for the long-term watch list.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at [email protected]
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
