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Novelty might be a factor if this business was 6 months old....

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Inferno31

3,790 Posts.

218

10/12/18

15:05

Post #: 36807581
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Originally posted by kittymittens ↑

Originally posted by Inferno31
Exactly! They have generated around $1 Mil in revenue in 3 months with a skeleton crew on the B2B side since they launched it in August. Now they have hired experienced sales staff who have hit the ground running. Candy Club has been picked up by Amazon and it is another retail sales channel.

From memory their average order value is around $45+ and margins are huge as COGS and Cust Acquistion costs are low since they have mainly spread through social media and word of mouth.

They have signed up big corporates in the last quarter and companies like Puma HQ has been clients now for 1-2 years. B2B side will be the main bread winner for the company. I think general sentiment towards sugar, sentiments towards confectionery stocks such as Yowie or scrapped listing like the Sugar Dragon might be making some people wary. But make no mistake - this is a legit business that has been around for a while. It is making millions in revenue.
Might want to read the reviews on Amazon... dig a little deeper. I suspect that once the novelty factor wears off repeat orders might struggle as per the customer reviews. In saying that B2B is the real opportunity here so i'd value the business based on that and not the direct to retail consumer revenue. Businesses have often miscalculated the revenue growth from the novelty factor as being sustainable revenue and although i'm not saying this is the case here, this business is a prime candidate for that.

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Novelty might be a factor if this business was 6 months old. Business has grown merely from social media and word of mouth . See how the b2c side has been performing over last 2 years .
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