Release Date: April 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Simply Better Brands Corp (SBBCF, Financial) reported a significant growth in gross sales, with an increase of almost 95% for Truebar.
- The company successfully expanded its distribution network, increasing from 4,500 stores in 2023 to over 15,000 stores in 2024, with a target of 25,000 stores in 2025.
- Truebar's performance on Amazon is strong, with a $13 million dollar runway and two flavors in the top 10.
- The company has built a world-class leadership team with over 100 years of combined CPG experience to support growth.
- Simply Better Brands Corp (SBBCF) is focusing on rebranding to Truebar, indicating a clear strategic direction and commitment to its strongest brand.
Negative Points
- The company is still undergoing restructuring and accounting adjustments, which may cause some noise in financial statements.
- There is a heavy reliance on trade spend to drive consumer awareness and trial, which could impact profitability.
- The company is in the process of implementing an ERP system, which may pose risks if not executed smoothly.
- Simply Better Brands Corp (SBBCF) is pausing all business development activities to focus solely on Truebar, which could limit diversification.
- The company faces challenges in balancing wholesale club channel expansion with the growing strength of its direct-to-consumer channels like Amazon.
Q & A Highlights
Q: Could you provide more details about the marketing plans for the year ahead and which channels you're prioritizing?
A: Erica Grossman, CEO of Truebar, stated that they are focusing on influencer marketing, PR, and a full funnel paid media strategy. They are investing in national ad campaigns and building brand awareness through retailers like Walmart and Target.
Q: How do you plan to expand from 15,000 stores in 2024 to 25,000 in 2025, and which major retailers will drive this growth?
A: Erica Grossman mentioned that they are expanding in existing doors and bringing on new retailers. Kingsley Ward, Chairman and CEO, added that they are reducing dependency on Costco and expanding across multiple channels, including Target and Costco Mexico.
Q: Can you provide details on the Western Canada rollout at Costco?
A: Erica Grossman reported that the numbers are phenomenal, with strong sell-through rates, indicating positive traction in the region.
Q: How are you balancing wholesale club channel expansion with the growing strength of your DTC channel, particularly Amazon?
A: Erica Grossman explained that they aim for ubiquitous distribution, with each channel being its own ecosystem. Kingsley Ward added that trade spend in certain areas like club channels has driven growth, which is now transferring to online DTC activity.
Q: What are your international expansion plans, particularly regarding markets like the UK, Mexico, or Australia?
A: Erica Grossman stated they are only going international with strong partners, as seen with their expansion into Mexico. Kingsley Ward added that tariffs are not currently affecting their export plans, and they are managing risks effectively.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
