DAVIS, CA. — The recently launched GoodWheat Pasta will drive Arcadia Bioscience’s three-year Project Greenfield growth plan. Company executives explained Project Greenfield as well as divestment plans in other areas, including the hemp sector, during an Aug. 11 earnings call to discuss second-quarter results.
Arcadia launched GoodWheat Pasta at retail during the quarter ended June 30. They contain 4 grams of fiber and 9 grams of protein per serving. GoodWheat pasta was in 200 retail stores as of June 30, and it’s currently shipping to 500 stores, said Stanley E. Jacot, president and CEO of Arcadia.
“We have good visibility for that number to double again by the end of the fourth quarter,” he said.
Current retail stores selling GoodWheat are in the East, Midwest and West Coast.
“Pasta is the number one category for GoodWheat, but there are a number of other categories where our value proposition is poised to break through and win while clearly aligning with the investment criteria I have defined: opportunity, scalability and profitability,” said Mr. Jacot. said. “Our approach will be deliberate and executable and may include a combination of product launches as well as potential acquisitions.”
The growth of the ProVault Topic Palm Relief and Zola Coconut Water brands is also part of the Greenfield project.
“These brands have superior product performance in major established categories,” Mr. Jacot said. “So there is a compelling upside to improving our small retail footprint. We can grow much faster than the category through expanded distribution, test marketing and targeted innovation.”
A third part of the Greenfield project is to generate future licensing revenue in channels such as business-to-business (B2B) and restaurant.
Arcadia also plans to exit the GoodHemp seed business and the Archipelago business, a joint venture with Legacy Ventures Hawaii focused on hemp extract. Body care production will be transferred to co-packers with plans to divest the Los Angeles manufacturing plant. Arcadia’s portfolio no longer includes Natural Savvy brands.
“We recently reached an agreement for the original founders to take over the brand effective August 1,” Mr. Jacot said.
Arcadia in the second quarter recorded a net loss attributable to common shareholders of $3.78 million, compared to a loss of $5.26 million in the second quarter of the previous year. Revenues of $3.86 million compared to $1.41 million in the second quarter of the previous year. Sales of coconut water and Zola body care products mainly contributed to the increase.
“Sales are outpacing units as higher costs are passed on to price increases, and Zola is no different,” Jacot said. “We implemented a price increase across our entire customer base in the second quarter, which negatively impacted volumes due to lower promotional activity.”
The impact should be temporary, he said, with the addition of promotions and revenue expected to return to a more normal level by the fourth quarter.
During the six-month period ended June 30, net loss attributable to common shareholders amounted to $8.27 million, compared to a net loss of $3.20 million for the same period last year. ‘last year. Half-year revenue of $7.08 million compared to $2.23 million.