The Smoothie Wars are heating up...and our #1 consumer trend is making BarFresh the go to player for quick-service restaurant (QSR) chains to get into the game. 3000 stores is a MAJOR win...at an average of 90 smoothies a week, that’s 270,000 smoothies a WEEK when the chain is fully up and operating next year. Multiply 270,000 by 52 weeks times $.50 wholesale price per ready-to-blend Smoo TM smoothie...and this is a $5 million+ deal.
Put a 10x valuation on that revenue and that’s $50 million in new shareholder value---not bad for a $20M market cap company!
The best analogy for the BarFresh single service ready-to-blend smoothie line is the single service gourmet coffee strategy of Green Mountain. Every time a Keurig single serve machine is installed, Green Mountain adds another “distributor” of its coffee.
Similarly, EVERY blender sold becomes a “sales agent” for custom formulated “Smoo” smoothies. The BRFH plan puts smoothies on the menu for QSRs in the most cost efficient way possible. Buy a heavy duty blender for $250—NOW you are in the smoothie business!
BarFresh also makes custom flavors for each brand QSR they are selling—another key value to the QSR brand.
MOST important—this national deal puts Smoo smoothies on the national food distributors—Sysco and US Foodservice. With national distribution comes over 15,000 route salespeople to sell Smoo smoothies to OTHER QSR locations—over 2 MILLION by our estimates.
This is the first BIG national deal for BRFH...we are building a model for 2013 and 2014 sales right now...and expect MANY other national deals to close shortly.
In short—BRFH is on a role closing national deals for its Smoo smoothie line. They are the ONLY ready to blend single serving provider in the market...and will hit critical mass early next year as they start to deliver on national distribution.
Look at this chart of GMCR during the ramp up to critical mass for single serve coffee.
The smoothing trend is strong and very real---BRFH is THE only pure-play on the food manufacturing side—which makes then the SOLE “arms dealer” in the war for smoothie market share by QSRs and Fast Casual Dining locations.
GREAT story....great value at current valuation.
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Founder and Editor-in-Chief for NBTEquitiesResearch.com. Contributor and Anchor for the Fox News Channel and Fox Business Network 2000-2013. Chairman & CEO of NBT Group, Inc., a boutique private capital investment bank and investor relations organization.
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