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The Very Good Food Company (CSE:VERY) ramps up for record orders

Consumer
CSE:VERY
09 October 2020 16:05 (EDT)
The Very Good Food Company Inc. - CEO, Mitchell Scott (Right)

Source: Peninsula News Review

The Very Good Food Company (VERY) has received record orders for its popular vegan holiday product, “The Stuffed Beast”.

Thanksgiving and Christmas pre-sales for the alternative meat specialty item are already at maximum capacity. The unprecedented orders include 2,000 units for Thanksgiving, 4,500 for Christmas, and 1,500 sold direct-to-consumers through the company’s e-commerce store.

During last year’s holiday season, The Very Good Food Company sold less than 2,000 units of “The Stuffed Beast”. As such, the orders for 2020’s holiday season represent an annual increase in units of over 300 per cent.

This percentage increase is only going to get bigger, since the numbers don’t even yet include upcoming e-commerce sales for Christmas or American Thanksgiving. They will also be boosted by sales through retailers Whole Foods and Sobeys, which will sell “The Stuffed Beast” in their British Columbia stores.

The Very Good Food Company’s CEO, Mitchell Scott, commented on the encouraging number of orders for the company’s product.

“We are delighted to see not only record demand for one of our most popular products, but continued repeat orders from key partners Whole Food and Sobeys.

“As we look to expand across their large combined network, the robust sales velocity we are experiencing at the stores we’re currently in gives us a lot of optimism for the future,” he said.

In response to growing demand, the company has been working to increase production at its facility in Victoria. Thus far, the company has implemented an updated inventory management system, which will streamline inventory tracking and procurement. 

Once the company obtains extra warehouse space in Victoria early next year, the company will be able to implement a just-in-time inventory management system. This will increase capacity even further, and decrease wait times for orders.

So far, efforts to ramp up production has increased weekly production volume to 11,000 pounds a week. Given time, the company hopes to eventually reach its production goal of 19,000 pounds per week.

In related news, The Very Good Food Company has announced a new distribution partnership with online retailer, Sustainable Produce Urban Delivery (SPUD). Spud.ca will carry Very Good Butchers products, and distribute them through its online store and retail network in Alberta.

The Very Good Food Company (VERY) is up 12.74 per cent and is trading at $1.77 per share at 10:41am EDT.

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