Food-Navigator recently published an article titled “Six top trends set to impact APAC’s F&B development in 2021”
The author looks at plant-based, health & wellness, COVID, immunity, and other factors driving international opportunity and R&D across the snacking universe.
Companies featured in the article include Chobani, Mondelez International (NASDAQ: MDLZ), Sapporo Holdings (TYO: 2501), Kirin Holdings (OTCMKTS: KNBWY), and Nestle (OTCMKTS: NSRGY).
Many of these global trends have roots in the United States. Here’s a young US-based company that’s looking to capitalize on another major international trend: nighttime snacking.
With gross sales growing 88% to date over 2019, NightFood Holdings (OTCQB: NGTF) has their sleep-friendly ice cream in over 800 stores including the largest supermarket chains in the country such as Kroger (NYSE: KR), H-E-B, Albertsons (NYSE: ACI), and additional major distribution news is expected in 2021 Q1.
– Have you ever heard of “Sleep Friendly Snacks”?
Over 85% of Americans snack regularly at night, and approximately 80% of consumers want better sleep. Yet the most popular nighttime snack choices have long been cookies, chips, candy, and ice cream. All of these are both unhealthy AND disruptive to sleep quality.
Nightfood Holdings (OTCQB: NGTF) is pioneering the projected billion-dollar “sleep-friendly” snack category. Over 200 million Americans spend over a billion dollars a week on snacks consumed between dinner and bed.
Gross sales for the first three quarters of 2020 were up 88% over the same 3 quarters of 2019.
Launched in 2019, Nightfood is now available in over 800 stores and quickly growing. The ice cream has been prominently featured on The Today Show, Rachael Ray, The Wall Street Journal, USA Today, Oprah Magazine, The Washington Post, The New York Times, Fox Business, and more.
Nightfood was recently endorsed as the Official Ice Cream of the American Pregnancy Association because of its healthier nutritional profile. Ice cream is the first sleep-friendly snack format for Nightfood, but the company has stated they intend to add offerings in other popular nighttime snack formats, such as cookies, chips, and more.
Top executives from the world’s largest food and beverage companies including Kellogg’s (NYSE: K), Mondelez (NASDAQ: MDLZ), and Nestle (OTCMKTS: NSRGY) have publicly commented on the importance of nighttime snacking. Doug Munk, director of new business ventures for Nestle USA recently stated “…people are looking to replace some of their junk foods before they go to sleep with something that is a little better.”
PepsiCo (NASDAQ: PEP) recently announced it was accelerating the launch of Driftwell, their new beverage designed to help consumers relax at night and get better sleep, now set to hit shelves in just a few weeks. Pepsi VP of innovation & capabilities Emily Silver stated, “We started this project before COVID, but especially now with all the stress, we’re juggling a lot of things and need sleep. “The concentration around sleep wellness or sleep hygiene has massively increased in the last few years.”
Nightfood CEO and founder Sean Folkson remarked publicly, “With over 200 million adults snacking regularly at night, Pepsi’s hard work and marketing dollars will complement our efforts and help bring the spotlight to Nightfood as the leader in the sleep-friendly nutrition category. With Pepsi on the beverage side, and Nightfood on the snack side, their efforts can help drive our growth.”
Amid all the interest in night snacking from global food and beverage giants, Nightfood remains the leader in this nascent category that many believe has billion-dollar potential. Dr. Oz stated in October, 2020, “The single most underappreciated problem in America, in fact, the world, is sleep.”
CEO Folkson, NGTF’s single-largest shareholder, is incentivized to grow the company and maximize shareholder value. His new agreement with the company went into effect on January 1, 2021 and contains significant bonuses in the form of warrants with strike prices of $.50 and $1. Trigger events include revenue targets as well as entry into strategic partnership with a multi-national food and beverage company during calendar 2021.
In addition to the national rollout in supermarkets and other mass retail, Folkson has previously identified the hotel market as representing a great opportunity for Nightfood’s sleep-friendly ice cream. Ice cream is one of the top-selling items in hotel lobby shops. Before COVID disrupted the hotel industry, Nightfood had secured distribution in select Marriott (NYSE: MAR), Hilton (NYSE: HLT) and InterContinental (NYSE: IHT), properties.
Hotel occupancies are up to almost 70% of pre-COVID levels, and rising. Nightfood Holdings (OTCQB: NGTF) could resume expanding its footprint in the hotel sector.
NGTF is a company to keep an eye on. The company previously announced that major distribution developments are expected to be made public here in Q1.
Category creators are often awarded a significant valuation premium in the consumer goods space, and the category Nightfood is pioneering shows major growth potential. As distribution and gross sales increase, Nightfood can benefit from the consumer quest for better sleep as projected by Pepsi and other global snack players. With Americans combining to spend over $50 billion annually on nighttime snacks, and most consumers wanting better sleep, the Nightfood opportunity is not one to sleep on.
Through its evolution, EmergingGrowth.com found a niche in identifying companies that can be overlooked by the markets. We look for strong management, innovation, strategy, execution, and the overall potential for long- term growth. Aside from being a trusted resource for the Emerging Growth info-seekers, we are well known for discovering undervalued companies and bringing them to the attention of the investment community. Through our parent Company, we also have the ability to facilitate road shows to present your products and services to the most influential investment banks in the space.