MamaMancini’s Holdings, a US supplier of Italian-style foods, is eyeing reaching annual sales of US$300m in four years’ time through new retail contracts and entering new sales channels.
The company, which in the nine months to 31 October, generated net sales of $19.7m, is in talks with national US retailers including Albertsons, Walmart and Kroger, for “major new authorisations” of its products. Deliveries would begin in June.
MamaMancini’s is also in negotiations with regional retailers such as HEB, Publix and HyVee for new items for delivery this summer.
“If our discussions are successful, the added locations on supermarket and club store shelves would increase locations from 43,000 as of October 31, 2017 to 70,000-75,000 by this fall, a potential 63-74% increase,” MamaMancini’s chairman and CEO Carl Wolf said in a statement. “If this occurs, we believe we could meet our goal of a $50m sales run-rate and an estimated EBITDA run-rate in excess of $8 million at that time.”
“Going forward, we believe we can reach a volume of $300m within a reasonable period of time thereafter and an estimated EBITDA of $50m-plus. This is partially the result of product expansion from regular, and stuffed, meatballs to meatloaf; stuffed pepper mix; chicken parmesan; ravioli lasagna; Italian sausage and sauce; Sunday dinner combo of meatballs and sausage; and to a limited extent retail packaged sauces and vegetarian meatballs. The company expects to add new food entree items in the future.”
MamaMancini’s sees the entry into new channels such as foodservice and convenience stores, which the company believes are as big a market as food retailers. The company would also look to enter Canada and to move into other export markets, as well as industrial sales to other customers who will use MamaMancini’s food as an element of their own products.
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Asked by just-food in which year MamaMancini’s believes it can reach sales of $300m, Wolf said: “We logically expect a goal to get to $300m in up to four years or prior. There is no guarantee we will get there.”
And asked if MamaMancini’s was in talks with any potential foodservice, export or industrial clients, he added: “We state that we are not active in food service, export or industrial business at present and we will begin these activities in the future.”