Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the Stryve Foods Incorporated Fourth Quarter and Year End 2022 Earnings Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Sandy Martin of Three Part Advisors. ahead. go Please

Sandy Martin

Financial and and operator today the Foods and Stryve Stryve's Thank year welcome earnings quarter Chief Boever; Chris full Executive me Alex conference fourth Hawkins. Chief you, Officer, to Officer, call. are With

like begin, statements Reform that forward-looking part remind we of Litigation made are of pursuant discussion Before XXXX. Safe to will the Harbor Securities our provisions today everyone Act would I include that of to the Private

of guarantees refer the their differ undue nature are at performance placed outside We not later be results expectations. uncertain Forward-looking on and and not control. statements to could statements do company's a date and undertake materially These only by Actual statements of therefore these today. update from to should forward-looking they them. are reliance not future these

In financial call you for Non-GAAP as of non-GAAP to a and nearest a measures adjusted the for to non-GAAP discussion measures not in including a should addition, of EPS. will included further We refer and press considered financial measures. release measure earnings be to detail. financial EBITDA today's today's reconciliation include supplement GAAP GAAP adjusted substitute

link Form Events in at be webcast a included of the being to call on website earnings posted the our been Also This page the submitted has the & and press copy is accessed the the through News of audio ir.stryve.com. the and release section can on X-K Investors SEC. release is

over Chris like I Boever. would call Chris? that, to to now the turn With

Christopher Boever

discussing I in our our everyone will you XXXX. our business standpoint year call. and earnings us recent Welcome joining in thank for Thank Sandy. and updates you, start today by operational end for

our products, expanded better better Honor. of of with and our to market and broad beginning even partnership agenda then now of products have highly encouraged retail and great leaders merchandising We the packaging by see renovations new numerous am will our in have our distribution innovation, quality, are great we new confirmed our our I quality as traction acceptance and channel our first Folds ever experienced. of round growth

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our I In August business. or plan our transformation of had Stryve communicated year, of X.X aspect that last every

valued a created platforms rationalization, category our retailers. three Board have capabilities, lean and repositioning organization delivered strategically improved and We our brands new with growth solution a portfolio composition, the innovation our core executed introduced announced to better

promise we with category quality our separates then Since peers. breakthrough have consumer from unlocked further that a our

have will that margins created program gross a and value pricing, both EBITDA. implemented We executed and accelerate productivity based

improving cash We and costs maniacal are about better reducing focused and conversion.

that new a The marketing that material growth. sales see our lowered with of new changes impact cash burn. operational a volume impacted efficiency and positioned better productivity we X.X these strategy now profitable company's can company is the run today we we significantly and This and strategy on is will business how and positive made deliver have

will will expand level become the and margins category above We will grow profitable. we we well and

true operating to their and is dedication for my commitment now like creating I what thank team members a would all Stryve company.

few a our short consumers have about We just partners, time perform retail accomplished deliver new am and our This delight quarters. amount enthusiastic our now to and the for for is confident I incredible our Stryve. an in investors.

business hold alternative unique steak, the Foods the unique of snacks. quality healthy we Stryve with processing. in differentiated Before I lovers market. briefly positioning consumers, on specific seasoned, collection let cover progress traditional We'll represents minimal me the as delicious air-dried a have reiterate brands and initiatives, position a especially with our that start and meat for high snack of

more with than no water, delivers jerky, ounce natural Our with all beef experience no no broth, unique and MSG, texture of a nothing no no process taste superior protein truly consumer artificial, no ingredients. gluten, along sugar, per nitrates,

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higher search to that deliver taste. continue without nutritional for healthier compromising snacks value Consumers

value quality, great high are new adding Our consumers. brands,

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margins, speed on progress the made with our in and pleased our in seen am major can XXXX expenses operating significant in and performance which of lower channels. results improvement transformation, I with we be measured

in XX.X% We the margins prior terms again in to once gross quarter year QX versus of quarter the adjusted have delivered in the XX% company best and EBITDA. improved margins history

financial down will going up delivered and impact initiatives forward. which meaningfully in has are and having organization Our The QX the progress outcomes. positive productivity across, accelerate an

incremental have and our soon prioritize evidenced to market. focus renovation resources customers be retailer better I identified opportunities continue our consumer, will been I and and and in to our that team leveraging sales to against introduced shopper and implemented we on We core are and both insights generation will and demand have the innovation with portfolio. marketing and work

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further have growth. now and in and return revenue foundation the can place, We our invest deliver with we quality pricing strategy for executed organizational we where will

is planning. enterprise capital including fact-based have mindful consistently stated, clear, agenda I of intentional, As disciplined resources demand and our focused,

hard from works historical known objections from awareness with along to addressing team barriers address consumer retail partners and gaining big Our trial.

at now category many brand that low impactful, express innovation with offers shoppers challenges in varieties snacks on has as offering, of work been creates retail. for other Brand it or tasting structured exceptional in locating brand with benefits brand an us snack features This appealing choice. for will harder products to manner. products differentiated compared historically the a we and and assortments large sizes. meat have newer trend The meats categories is and crucial and a the We

renovations in starting the We in that be have late our that done market will packaging with QX.

to the it is need for a in and bag Our research you confirmed what's understand that why better consumers solution. quickly

in accomplishes maintaining utilizing and streamlined simplified our fashion potential resources branding lower better year trend new while the priorities have we have our appealing portfolio, rapid potential Our deliver packaging by returns. directing this less away to expressing upon from and food benefits further and that features manner. Last a embarked greater SKU photography, that rationalization simplified that forward initiative ones

the also last quarter exited nutrition fourth in business the early We year.

a may you the As recall, XXX initiative was over eliminated enterprise. SKUs. significant we simplifying for successfully That

the required. of scale change However, was

we for completing inventory this, higher timeline industry-wide, initiative. slowing the While the of executing ultimately levels faced

of portfolio. to grow We core on quality the revenue focused our execute promise continue our and on stay to

sales The stated impacted it's successful proven never time implemented program again. We to I times easy, have while have As moments be Alex XXXX. I and successfully that our -- multiple reserves guidance. and a built QX. this year time and inventory XXXX rationalization in we December in cover sell-throughs discuss similar our career provide continued to has few full booked from into in initiatives revenues will results previously, my

on with for for We platforms a creating funnel renovation of are parallel the our core of portfolio, path a innovation future. coupled

have packaging in renovation QX. important for How we we package unveiled price with and is our of

currently our are feedback, further selling new our offerings very are we of and receiving these future. We about categories adding excitement solution positive

expanded after win QX. packaging starting us, in Our for distribution significantly new win is resulting in securing

Finally, we far earnings. volatility in continued meat range at of less since fall, prices last a see but to

communicated when it. and will and we facts process enterprise-wide adjust dynamics swift and support have review we an As action market where continuously we take previously

on the the environment. category. expect choices best of consumer per the gram deliver in value that protein economic to value impact and with We rise will continue I entire will

the greeny of is minimally of products, We our clean our a result which informing position. consumer value and are on the and processed direct marketing

no to As I gets or ounce. per say, fillers, are like protein we we purchases more the the a one preservative most. the therefore deliver consumer deliver the There reason in clean number and category and just consumer is protein. lean Protein

environment our operate a to are more continue business complex year today ago. than our and a sophisticated in We strategies

our institutionalized to have CPG a in company. build order procedures world-class and We processes

have is we waste. and Stryve is to reduced waste centered intensive our formulas, approach with profitable to and a redesigned XXXX late culture. circular manufacture mindset materials as resource use, X.X products. zero a historical be to innovation less This a now economic commitment new that services growth renovation the projects Our our is with part Embedded in materials of resource value products recaptured we've around deliver and

the progress liquidity. to Alex? will I discuss come that, financial call Alex to I turn will over With discuss and to results initiatives. on back key

Alex Hawkins

Chris. Thanks

profitability. promotions. repeat retail business restructure marketing This is The on our ongoing responsible that trade profitable executed and distribution our shopper second retailers distribution means all swiftly best, focused sized We successfully be securing sustainable episodic trial to of doors and turnaround represented for with the half revenues we operational channels or most consumers. Chris supporting retail to versus shortly as major right across that placements to efforts increasing and started. productive a XXXX know path continues and our at expanding on retool most of expenses major drive and with to after focus and direct-to-consumer We

fix the SKU higher our profitable to our and we project was quality pricing second focus our transition to better as to revenue XXXX. as have produce, and half been primary well improve unit to Our the how cost drive economics. to These to in able efforts business importantly model are starting in rationalization broken

from atypical For we consumers. our that products the patterns didn't and customers track consumption end experienced oddly retail the of and our distribution of XXXX by order sell-through

closely to products inventory the consumption fills, not believe products orders categories, new In we typical order shelves. quarter our patterns Notwithstanding XXXX, brands. distributors their specifically just of saw targeting our indicates of managing we which retailers the and levels mirror consumption been diverge, related most the across and off brand's that have distribution orders of down pipeline fourth

The of twofold is our net this for effect business. dynamic

a play quarter. seen this that out year. timing to and is consumption late targeted actually This we've a levels, sales should to inventories fourth net our in orders their was begin primarily again, believe there the of impact this once QX reach issue we customers' as First, negative in track with once

across quarter most implemented the companies categories inventory in initiatives. CPG Second, fourth in the during similar markets rationalization U.S.

slow our planned was goods influx obsolete and in monetize quickly of moving So inventory market. to to our the ability the impacted due as

Both signs of into business dynamics year, in positive the seen have continued the in with the the of which we the wins mentioned, And of secured resulting normalization our driver Chris quarter function quarter. end growth XXXX have of this step quarter. second primary be with as wins beginning distribution new growth with will traction towards first occurring in

strategy. These sales have $X you rationalization me now quarter quality go compared through channel. to grow results look and of product, base or Net that mix $XX operating million We of decisions ago the million gross account based that That's estimate rationalized accounts, annualized. million that million were upon estimate $X.X cash market million $X.X we walk analysis came which XXXX. to really financial changes and or revenues from channels year's our last to in the margins in about model rationalized Let our margins, the of the on to our of end of net quarter. were due conversion year revenue core as a from We for in each QX is an of approximately been base products, $XX net the QX.

margins since gross for event $XXX,XXX sales over sales second of the of promotional our for have year million last Gross results turnaround XXXX improved or or ago the of major year to retailer. net Our profit the began, compared Recall XXXX. at XX% gross net meaningfully in profit turning $X.X quarter in quarter to from XX.X% time XX% nationwide of was quarter. slightly a a negative included QX large that half second limited

and gross were Despite QX, be reduced our volumes our drag. by our unabsorbed in should margins the labor resulting unit improved in a of negatively alleviated slight volumes economics in plant XXXX creating QX impacted as This to begin in ramp. overhead quality

$XX.X million favorably XXXX compares fourth prior year QX million, this which sequentially from Operating expenses of $X.X for of and the were year to $X.X quarter of the million. a QX

the strategies. to a on second XXXX cost of mitigation in testament half our progress the are made results we've Our

We the and to expenses, dollar. throughout ways of spending previously on unnecessary examined focus and best remove efficiencies, of to reduction identified every impact half our and operating back that second alone. we our compared each in use XX% you in reduction committed a eliminate the QX to XX% area efforts The and was of year drive period, business expenses in of XX% We expenses resulting operating prior we the delivered. highest would half XXXX

quarter outstanding the $X.XX per that weighted The were XX.X due or loss of of contracted count loss share the XXXX. the in in per were per our loss QX to capital in to per from was $X.XX for loss per ago XX.X fourth to or of in and compares to net share fourth share that in share. compares This shares $X.XX $X.X quarter. million a quarter. XXXX. increases a for favorably quarter share occurred fourth per impacted year the shares XXXX the average the prior quarter favorably loss by The recall shares Also net amounts adjusted million change to million $X.XX million primarily raise $XX year Share of January adjusted share

fourth of year EBITDA company. favorably EBITDA Finally, the lowest for loss compares $X.X a quarter ago. the the is QX's million history of $X.X million, adjusted to which million adjusted our in loss EBITDA adjusted $XX.X was our the

XXXX. to GAAP end are while this the progress year the with we and today's at by to can path encouraged continue along we of reconciliations for our find are release, initiatives non-GAAP press You productivity pleased our this

amounts we net position. balance of Turning million. $XXX,XXX financial managing line drawn as the the on the positive we sheet At $X.X scale to of balance, dictated of Note working time, available equivalents quarter, end to with cash on approximately accounts our minimize facilities actively us capital to amounts are credit and our our expense. that our cash should we largely fourth receivable interest over and varies by The grow. which is had but

to response we've has will retailers fortunately, packaging secured year. this end that, QX our our and present have new Unfortunately been inventories. new not inventories quality From looking are product to had other amazing of new retailers support inventories net new our we from distribution The were ramp for come build products that which Accordingly, existing we seen or we've in our very these for to continue substantial channels. while and in year this quality through work through see. significant to online

point by financing result liquidity to do a positive their reasonably these where strained it's likely of if we that concern has growing our auditors qualified the our opinion position near-term. As developments, a a been additional secure issue think not we in

in this to bridge path a the team believes we are of needed we capital this value shareholder that strongly and have our participate capital maximize navigating cost run. forward options portion those long in collectively and funding time so we real plan the of in Fortunately, to to ramp. optimize meaningful in to Further,

continue are to focus and the managing and losses We working carefully reducing company's on capital. cash

We strictly overseeing manage our are discipline to cash executing carefully liquidity. planning and business, to continue and with

million. accounts of QX $X.X balance about was inventory Our end the was and $X.X receivable at million balance

And our rapidly of consumed consumption business inventory which tremendous while to self-sustaining reduced a more approach we volumes new our we even with of great cash period a pinch transition distribution, once the our see made time. this with in Notwithstanding creating liquidity, model. in as ramp very we presents opportunity a reducing expect by in us short progress have this cash

year, for see results. full in the We not sales our $XX with both range QX the volatility respect representing similar guidance to our we million, directionally to fall revenue With do $XX quarters to within this expect remaining a at to net line bottom year the and trough of but in looking turnaround. expect million of time. to top significant quarter first

XXXX, from means results approximately XXXX over after growth base net sales that flat While removing to in that show is estimated by modest our $XX revenues. to quality core our we anticipating are to mostly in top overall year-over-year. unprofitable million That recall growing line XX% be will range the rationalized

short-term While margins. increase distribution our the to lower meaningful expect margin QX, our improvement have the we to in utilization, our allowed lower gross volumes gross and several volumes in in wins has point it drive plant chain to as due affected our our plant improvements see a throughout to support us supply

into margins any in year to requires from end. the gross subject working revenues continuing an volumes, in QX expect to mid-XXs with due that quality ramp scale to inventory QX externalities, consistent capital the by transition. This to And we investment

execution, implications so, on this able addressing that for overall dramatically to dynamic we are estimate dynamics carefully liquidity or conditions. in to growth we share to improved navigate and these changes because ensure be today's macro believe doing and material trajectory are the could and We the our see P&L we based of successful and by we today if show a assumes adjusted climate volatility will macro be view business. The

it With to that, would back like turn Chris. I to

Christopher Boever

you, Thank Alex.

with even plan X.X in on and our expect date We Stryve progress more to we XXXX. are pleased made improvements the

continue Although to closer and to closely will cost take meat actions cost has we somewhat shifts. stabilized, monitor price much we

much selling proposition quarter, protein meat that last a value pricing and As a quality evaluate I our different are mentioned snacks. per to lens to better is high believe ounce using we our Stryve approach

stands clear, with We simple. our availability approach with with shelf, quickly identify in so distribution is that starts that better to on the more Our understandable, coupled products. consumers compelling our approachability, increasing out shoppers believe packaging consumer stores,

This provide example as and a focused find products our created our and brands shopper protein, better make more to are much easier have the our healthier products. approachability. for one better deliver our to why consumer We will of billboard just clarity tasting,

Also, and on made pricing hit progress Consumption for we our the significant numbers periods XXXX. flowing the have reporting most productivity through. in QX good are and delivered on plans market is expense operating our reductions in and recent

As ways discovering yield. zero waste focus increase to we and reduce on to creative I continue waste and mentioned,

focus with of After to now over our This our on a the SKUs partners. of assortment has difficult and the rapidly plan necessary from core meet demands the us improved. was merchandising removing and but process, streamlined quality meaningfully to retail assortment, XXX revenue a more allows

We from and expecting have and received we the in coming more very positive customers are quarters. gain responses encouraged distribution our even

the focused, half enable consumer and last to it During is difference agenda at expansion rolled retail. of we've growth renovation highlighting out of innovation and XXXX, successfully our is points and is that designed a and designated

We in the build continue channels maintain and discipline that focused on on momentum will measured to execution. a

distribution, through a outlook We built and packaging and the availability that have we deliver. value supreme three-year through marketing approachability internal affordability prioritizes with

Our rates greatly modeling contemplates the forecast that category. growth exceed for Stryve

staying As last our quality we and productivity, disciplined on growth, vigilant introduced made year, execution since initiatives earnings we and call. progress around these are last

rolled out funnel. sizes building assortment innovation core optimized out while wants First, our We've we meet and and renovated portions needs. to consumers' our

and over in We will this time. are more growth managing drivers responsibly phase

retail and other term for believe Biltong now what's by from the attention Secondly, optimized in beef snacks. conversion we developed sets with bag healthy that packaging meat special and us protein this packaging we to were per and confused Customers the ounce. Cherokee the an store apart

are currently on the organization. focused of cross-functional culture changing driving we and entire productivity the Third, are

the our our like about to final path that owners. profitability are teammates retail with we operating Fifth, I'd reduction maniacal engaged like say, to our Fourth, highly to of execution are as us, and shareholders. accountable all includes partners our to SKU We sell-through plan. to are

unmatched I margin, with delivers gross are products company With the momentum I a progress and toward great differentiated, beginning around operating on our earnings. that expenses by to tasting highly excited XX months that ultimately am EBITDA attributes with to high-quality, work and our just see company, for peers. am sales, positive

most potential. brands with significant have the We on-trend growth

ability from our of to the Our and great confidence build enduring me with brands. team, plan, the energy an commitment gives in along franchise our

As financial a focus operational our am fellow all executing and as on aligned with shareholder, core we and on imperatives. fully our of growing I stakeholders the

would Operator? I to like line that, With for the questions. open

Operator

Alex Thank you. first question go from Group. ahead. Instructions] from Craig-Hallum comes [Operator Please Fuhrman Our Capital

Alex Fuhrman

are wanted shelves? Thanks should to ask we to my and and mentioned store guys. I late when When that about packaging retail second Hey shop? quarter, when be to for new it on the it on And to actually should it expect would purchasing taking seeing website? the we see in question. see be expect sometime think your consumers consumers on I in market. going you it

Christopher Boever

the question. Good morning for Alex. Thanks

start start have patterns package and ship it going order We order month in customers when their based it's May, the to hit. to to on on of being the produced will and

it the market a flow shelf of QX type to in that the has through So their part of latter of I in by think, the that in way inventory implemented end worked range. will through fully, be the and QX

on conservative from been standpoint. our pretty plan outlook a velocity improvement with we've our So

we So lot as velocities that going points. a that's the improve and of distribution plus to well, believe

is big And about going our So it's this we're We excited there going It to this. without what about brands to a have shoppers. we're for and even do being impact. really very is, yet. already excited know our

Alex Fuhrman

you year? hear, velocity slices of research that's Can increase there on the That's calling steak in instead of baked meaningful you've you it are is see Chris. into gave about the done into an much the things you for talk like great in Biltong? increase expecting to guidance And based to how far a that so velocity

Christopher Boever

in national distribution fashion. improve basis, greater and and we'll a factoring bring time. the customers the especially velocity And we marketing our see get will. Yes. early and quicker baked we've we think, fast at turn growth. basically distribution as the plan, the ultimately strategy we'll And as will into invest velocity learn a that consumer for I same and tactics our be will it with to We driver on, actually zero increase that our on really awareness understanding But so expect as we takeaway, through good, a more gain able more been

get So level, when turn will that we'll We'll choices be additional then on we investment, investment-grade on getting ramp will return that on got and impact comparing at, where we're velocity first, up to change those obviously the based and marketing have distribution. distribution then the of the where we've be dollars further marketing that velocity. we

Alex Fuhrman

lastly very That same and for the really to lot volume? in to much helpful. more you've Okay. is for inventory could retailers a ask it to I time you going then about in target inventory Thank along if harder stores -- And velocities retail How has have started to been levels long little doors that. And it sales normalize channel, bit. of take of own it inventory see and sounds as new like line, get warehouses? their kind as match your a is normalize into the potential to

Christopher Boever

we talking distribution where going say we'll that retailers right? that distribution first first they have you're distributors It's to pretty have the I fill need that they're especially through multiple is area pipeline SKUs in, get where their shift think already, you're that as that when basis, serving QX see thousands if out about I'll national gains, wholesalers Actually, currently in gaining inventory because a substantial, of in work inventory to in. and those stores be to

it get through ones quickly. see going the watching you'll transition. to think there spattered that closely be the So We're I

transition. providers retailers that transitioning other we with, and to are the working be the mitigate monitor certainly, will third-party ensuring and of We the speed that their service

that exceed as and inventory lots So to us. distribution I it's of with pipeline expanded currently to distribution bag, with and new start I see fill mixed think that greatly we the shipments a going be consumption you'll points build believe our but carry customers

going be, think, I So catch-up it's in a QX. to

Alex Fuhrman

much that very thanks Chris. Okay, for

Operator

next Mike Securities. The from Northland Grondahl ahead. Please from comes question go

Mike Grondahl

morning. Hey guys. Good

product Can a you mentioned packaging, about new and new quality. on details also described lot little you products and you talked of bit, talk I about fronts? improved that those a but You two kind think some

Christopher Boever

Absolutely. Thank you question. for the

produce capabilities of said, sales. about ability look we are what able to type capital packages. investment in our different manufacture It in been half the to to First, sell at being be now from any unlock a to ability packaging excited us products the presents. afforded standpoint, which is we've and steaks, obviously increasing also able of With this that without the to forms and category

Stryve have only had steaks steaks now traditionally under we the Vacadillos We the brand. brand, under

see Vacadillos starting You'll investment that One place launch take make it perfecting redistribution of as in Stryve convenience leading example, the QX our to operator. steaks Vacadillos. in business, store of of a with grade and major to steaks market, viable a well on portion the reformulation

into are that quarter inch consumer-friendly that categories. consumer-friendly Second, snacks that's a bites shareable. taking piece ways our way the are them steaks most and they and putting popable that shop continue most into in multiple We're probably

you can very good a return, you get experience. and grade, can can You very,

that that positioning So way.

utilizing to Treats and channels. training bites a for Two the grade, exciting now that selling but way slice And talked finally, Pet to offers third utilize us and waste. called we brand then a those take Honor a we in of a many We've under is present waste and different stores. of and bites SKU balance online, our are across creating created and between human lot The about to Folds a generation lot we're Tails, retailers starting

that's all complement all So tied together. to it's the and renovation, innovation

now have standard of we experience going all in will will a and All our an conversion penetrates better foil We're And drives with bags that no the same unquestionably not doubt product well Vacadillos that much have goes stage. is learned our -- the and and be as to out have tested that bags does efficient and a shelf from because aging comes impact more life brand. lift. it, through, that foil a out consumer our wrap our That to effective cost way delivers unquestionably, oxygen which pouch. throughout

the brand to So it of being in experience. thinly deliver what's delivers has by the opportunity sliced whatever and or the be clear better then very us Seca, expressing bag, it and that represents food a quality steak express photography, using whether deliciousness Carne

consumer [indiscernible] two-pronged a then been model And to now delivering facility pace about our a convert better. better, that even much, bag part able rapid much to is operating more last moisture the that bag at We've a holds unlock within of foil better our to being from experience. moisture consumer ability ultimately in transition into manufacturing able a experience that delivering the

combination the people's excited new with quality to we're about stores into So bags new homes. improved, better really getting the the and

Mike Grondahl

want make helpful. That's existing and retailers? sure retailers? increase that that or just can new gains, that's between maybe And we expanded The I I'm broken new new it. kind existing do How of distribution to Got between of retailers coming break think out you clear. out

Christopher Boever

on today, the and have of items average XX% ACV. we Well, two

We of rapid points well see of as expansion those as metrics distribution. both will total

we As equal. not all every know, distribution point is

a category deliver of this Therefore, turn retailers is volume and per more Some higher velocity. faster distribution their they at worth point point distribution.

So of in natural you're see channel. the combination going to expansion a

see C-store going You're to expansion.

channel, and have shoppers, of bit penetration much their this approached every some assortment strategy center appropriately You're on. around our fairway we therefore, a healthiest category of a more position hit retailer profit has positioned health to And a wellness in the the for providing the see which has best, historically greater we grocery because going which as generator. sort of

every I you're to channel. expansion see going So in think

our the spearheaded of used Folds lifted deal. see which strategies white and connecting. different red, have Honor behind get the they're partnership. blue. else a competitors to big Retailers Everybody that. [Indiscernible] well, really has is by as from Nobody category in and for better going how merchandising support You're the is

at they excited great an as about the that well as giving So giving a to option to time the the consumer them. organization best will same experience available absolute have positioning back and we're our

into together, very see is they better starting that QX build-out metrics All going significantly to are when different category. combined you're continue timing and review and to shipment a and in this retailers to rolling in-store QX that execution ramped All beyond. and and prioritize up, on

because coming the pricing got talked we those, seen from guesses, that the confidence right, about that core around gives and we're us it's against on our really executing already we gaining earned shipments all is fundamentals better zero now executing of merchandising. We're those we've lot around then the we've a right, about So uplift the ensuring about that getting cycle. and shelving position those those with which acceptances and know absolute fundamentals out, getting that our distribution

So expanded excited even the about we we're points with really where and didn't of total distribution current distribution customers exist.

way the of product. Then the your third stock is stores that number

with in same So one and SKU, retailer's we just already SKU XX% ACV their with the XX% stores say of and it gets of authorizing, particular more just area let's that of we're to within go that stores we coverage. were

experience in and start consumer the accelerate. for experience going to And will you're all packaged and build continue that goods favorable see and So will more impactfully to and won't more more. to it you to it happen get components even favorable, ways of continue and numbers momentum growing you're distribution highly to us. win, And my you'll the become see we in going momentum different continue, overnight, see

more mindset continue me material in We but lowly and today, have thing out compound how will in in jump this I a so and distributed thing gives because get so way. about, space. once excitement even white to can which grow much we We're see this

So see as to parts across to I able reporting it think and it of be latter data the in going to we into the sectors, you're all roll begin QX. see you'll

to retail new June latter Our and will product, wholesalers. starting partners be new distributors you. part ship Thank packaged it’s to ship -- our in May, again, in of and

Mike Grondahl

question much need capital inventory to in to ship? point it. how increase execute and do me, from at I'll plan you this Alex. Alex, and it Got the Last

Alex Hawkins

No, question. great it's a

need to right fund look to and benefit operate against execute and we're this mean? financing XXXX's scenario first-mover a spent external or now analyzing products. to lean continue tap the bit now for to time this and here? to of given we in The lot what planning to we to marketing Is seems and just a our have primed some and drive we say, in to lean in need more accepting very sales to XXXX continue bring advantage. and going ramp time think it's a I we market that of Do to be and that

wins, as different and see to where $X I we've we now a probably is business the of that in. the that, $X working QX against distribution a to million out to it million think And execute it's plan bring to number come right need bring these into ramp we're to avenues

team We portion coming as that from as meaningful value of have mentioned, the I a options long-term on And got the table evaluate and we're shareholder looking these. here. to we've we maximize

Mike Grondahl

thanks it. in little Got it. us Well, giving good color and bit there luck guys. XXXX for a of Got hey,

Christopher Boever

you. Thank

Operator

like remarks. Thanks. the our over turn Chris I any closing This session. concludes to for would to back Boever conference question-and-answer

Christopher Boever

the exciting point to have Thank you, now and deliver excited I excited listening the for bright. This we time and to an on inflection you that we future all and starting morning. this up I'm momentum operator, challenge. It's in about about. very front of that really us. all have the is is and like we potential are We're more is build, time in even anticipated This the for is that thank us, for about clearly an know

I'm committed this. to So fully

soon. day. this committed is value continue company to our as is do continue you great is you Thank invest team a talking you highly your will in well. believe and hope I Board believe, great time, to and a to stock our and Our because we'll I this, price for Have supportive. be I I all and and we

Operator

now has concluded. conference attending for today's The presentation. you Thank

disconnect. may now You

Stryve Foods (SNAX) 3 Apr 232022 Q4 Earnings call transcript