Rritual Superfoods Issues Letter to Shareholders
Rritual CEO & Director, Mr. David Kerbel, Delivers Comprehensive Progress Report, Increased 2021 Targets for Expansion
VANCOUVER, July 15 , 2021 – Rritual Superfoods Inc. (“Rritual” or the “Company”) (CSE: RSF) (FSE: 0RW) (OTCQB: RRSFF) is pleased to provide the following letter to shareholders, outlining the Company’s advancements and increased retail targets, as previously announced, for the Rritual Superfoods product line in the USA.
To the Shareholders of Rritual Superfoods:
It is with great excitement that I am taking this opportunity to provide you with a comprehensive picture of Rritual’s rapid growth, highlighted by wins with CVS, RiteAid, Amazon, The Good Trends and Vitacost, which combine to represent the growing fruition of our model, from product innovation to strategic agency partnerships, to retail and online expansion all the way to customer satisfaction.
Growth & Expansion
In the first six months of the year, Rritual has surpassed its retail distribution targets for the end of 2021, exceeding 2400 retail locations and 10,000 points of distribution within the first half of the year. These were aggressive targets, and I am extremely proud of our team and highly encouraged by the commitment we have seen from retailers to the Rritual Superfoods brand and product line.
We are revising our targets based on the current lineup of SKU’s to reach 6000 stores and 20,000 points of distribution by the end of this year, delivering on our brand promise to bring Rritual within arm’s length of consumer desire. Additional upward revisions of our targets may indeed be forthcoming as it relates to new products we are launching.
These revisions are based on retailer commitments to carrying the Rritual brand as a result of the e Company’s product line is being widely embraced by consumers..
National USA Retail Wins for Rritual
Rritual’s recent placement at CVS, the largest drugstore chain in the USA,1 is a significant milestone for Rritual’s national retail rollout. In terms of the Rritual brand, placement with CVS further establishes confidence in our products and escalating demand for this category with consumers
Rritual’s placement in CVS is doubly significant because our products have been chosen for CVS’s new HealthHUB concept, which aims to transform the ‘consumer health experience’ with education and personalized service from CVS trained professionals at the community level.
As the first national retail rollout, RiteAid represents a major achievement for the Rritual brand. It validates both supply and demand for the category, specifically, our product quality and the rapidly growing interest of consumers in functional superfoods.
Rite Aid has indicated 20% more stores than anticipated will carry Reishi Relax, Chaga Immune, and Lion's Mane Focus as well as 100% more Rite Aid locations will carry the Variety Pack. The Company's product line is being embraced by consumers, with initial sell through triggering new purchase orders and expansion of retail locations.
We are striving to not only lead this emerging category, but to define it. A significant part of achieving that goal is accomplished through gaining the trust and support of consumers through top tier retailers such as Rite Aid and CVS.
Rritual’s retail strategy is disruptive, the Company is aiming at national retailers rather than regional rollouts in order to gain market share and category defining leadership.
Strategic Sales Agency Partnership with CROSSMARK
In the second quarter we announced the Company’s partnership with CROSSMARK Inc. (“CROSSMARK”), representing a foundational leap for Rritual, designed to accelerate brand growth and open up retail channels to reach and exceed 40,000 points of distribution in the USA.
CROSSMARK is a leading North American wide CPG (consumer packaged goods) sales agency based in Texas with over 25,000 employees, providing wholesale, retail head office listing strategy and support, which includes in-field execution across multiple retail channels to optimize in-store acceptance, merchandising and facilitate reorders. CROSSMARK will also deliver promotional, trade marketing and analytics support and actionable insights to drive growth and establish Rritual as a superfoods category defining brand.
What Crossmark brings to Rritual’s Growth Trajectory:
- Expertise in every channel – Drug, Convenience, Natural & Specialty, Mass, Grocery, +
- Headquarter Sales – Planning, Selling, Execution
- Retail Services – Merchandising, Selling, Audits, Resets & Teams
- Marketing Services – In-store or out, 360-degree consumer journey through omnichannel offerings
- Insights & Analytics – Proprietary Data Sets, Integrated Insights, Smartest Solutions
Currently, CROSSMARK Account and Business Executives have been fully trained on the Rritual brand and product line and have mobilized their sophisticated effort to schedule sales appointments with 57 specifically targeted retailers throughout the USA.
The prioritization of eCommerce is central to Rritual’s growth strategy. eCommerce Growth in 2021 is aimed at securing major platforms, while growing the Company’s own shop. Over the last quarter Rritual products have now launched on the following major platforms:
- Vitacost.com (owned by Kroger)
Rritual’s Amazon launch represents a significant milestone for the Company. Rritual’s multi-stage targeted launch is focused primarily on ‘being where the customers are,’ and no storefront in our world can help us more than Amazon to achieve that objective.
With Rritual live on Amazon, it instantly becomes the focal point for our digital strategy, introducing the brand to many more customers and providing us with data and insights that will inform our leadership team in the ways we can be even more effective in serving customers and maximizing our opportunities for growth in every facet of our marketing program.
The Good Trends B2B wholesale marketplace is on a mission to connect local healthy specialty food brands and mission-driven retailers. As a result, Rritual’s innovative product line is an ideal fit with ‘The Good Trends.’
It is important to note that the data driven sophistication that exists in today’s online marketplace requires up to the minute data, analysis and insights that can be deployed in real time to optimize and maximize sales and the best possible customer experience.
On this note we have appointed the top-rated digital agency - Tinuiti. Tinuiti provides expertise with their proprietary technology, resulting in a trail blazing and highly responsive approach to building the Rritual brand and making the most efficient use of resources directed at sales results.
Rritual is excited to be working with Tinuity, the largest independent performance marketing firm across Amazon, Google and Facebook. We anticipate substantial growth with our omni-channel eCommerce strategy, and know that Rritual will benefit greatly from Tinuity’s proprietary technology and experience, allowing us to expand our reach rapidly and most importantly grow Rritual’s revenue.
The online strategies being deployed are designed to accelerate growth for Rritual products on all eCommerce platforms including the Company’s own direct to consumer shop, Amazon.com, Riteaid.com, Kroger owned Vitacost.com,TheGoodTrends.com, and will give a lift to new listings that Rritual obtains going forward on major health and wellness platforms.
Product Innovation Pipeline
Functional foods and “Superfoods” are foods that offer maximum nutritional benefits and are packed with vitamins, minerals, and antioxidants. They can possess unique properties that boost immunity, improve cognitive function, and more. As an emerging category, consumer interest for Superfoods is building rapidly, and Rritual in embracing a consumer centric model is cognizant of the opportunity that exists to educate consumers in addition to providing them with a line of products that are differentiated, efficacious and most importantly taste good.
As Rritual aims to define the functional superfoods sector, the Company has put in place the leadership and expertise to create organizational knowledge for the long term in its approach to product development in serving the end consumer. Rritual has embraced the concept of being a consumer centred enterprise, and as it relates to product development that means we begin with an understanding of consumer desires and industry trends from our research and relationships, and we design and commercialize our products to meet those desires and trends on a timely basis.
Adding to the successful initial product line now available across the USA, the Company’s Product Innovation and Research team has completed testing on the first of its new superfood mushroom latte blend formulations, incorporating plant-based collagen enhancers as a key market differentiator.
In the fall of 2021, Rritual will be introducing two new superfood latte powder mixes to promote skin-deep beauty and to boost energy & cognitive performance.* Rritual’s plant-based formulation, deploying Tremella, allows the skin to retain moisture and enhance collagen fibers to keep skin healthy and supple – beauty from within.
NEW Superfood “Remodel” Latte Blend Highlights:
- Flavor – Blushing Rose Chai
- Product Description - A hot mushroom latte powder mix formulated with tremella, or snow mushroom extract, reishi and an array of botanicals and berries known to promote healthy and hydrated skin, nails, and hair*
- Key Active Ingredient - Tremella fuciformis fruiting body extract 1200 mg, an antioxidant-rich mushroom known to help maintain levels collagen which helps to keep skin hydrated, toned and youthful*
It is crucial to emphasize the significance of the Company’s recent announcement that its superfoods product line has passed the industry leading Tested to be Trusted program.
Rritual products were independently tested by UL Laboratories, based on exacting criteria aimed at providing consumers and retailers with confidence in product ingredients and efficacy. We are committed to best practices, ensuring that consumers, and our retail partners have total confidence in the quality and effectiveness of our products, this certification is a major step in establishing the Rritual brand promise.
Ongoing independent lab testing is a key feature of Rritual’s future product strategy, adhering to and establishing the highest possible standards to gain consumer and retail confidence the Company’s product integrity.
We also announced a product innovation partnership with NEXE. The two companies will work together, building on their initial feasibility work, which included product testing in the areas of taste profile and mixability. The initial product envisioned will be branded as Rritual Superfood pods ‘Powered by Xoma,’ NEXE’s in house coffee and superfoods brand. The product line will be added to Rritual’s current SKU’s for online sales, to the CROSSMARK sales and distribution network and made available to other current and future retailers.
Team Expertise and Manufacturing Capacity
In the last quarter I have been thrilled to make some substantial appointments to our team, including:
- Chief Innovation Officer, Stacey Gillespie, has launched the Company’s Research and Development division, establishing best practices toward the development of a category leading product pipeline.
- VP Sales USA, Sarton Molnar-Fenton to lead the Company’s sales function as, developing go to market and growth strategies to maximize results across multiple channels including, mass, grocery, convenience, club and through sales and distribution partners.
To meet growing demand, we have significantly increased our manufacturing capacity. The Company has successfully completed a second and third commercial scale manufacturing runs. Achieving commercial scale production while maintaining high quality products represents a major inflection point towards executing upon the companies go to market strategy.
As the demand forecast continues to accelerate, the Company has developed the relationships and capacity to exceed the production and fulfillment requirements of our most aggressive modelling. Our team, including our foundational relationships such as CROSSMARK, have exceeded expectations putting the Company in position to embrace its growth trajectory as our national rollout begins to build momentum.
In continuing to grow awareness for Rritual with customers and the business community, we were fortunate to have a Feature Story on Worldwide Business with kathy ireland®, air on FOX Business Network on Sunday, June 27th, here is the link: https://www.youtube.com/watch?v=Es38PnrdqQ8. In addition, the Company’s shares are now trading on the OTCQB in the USA, broadening our investor base.
Overall, we are executing at a rapid pace on our strategy, focused on establishing all the right relationships to grow the Rritual brand and the Superfoods category to the benefit of Rritual customers and shareholders.
CEO & Director
Rritual is a fast-growing functional superfood company that creates natural wellness products which support a holistic approach to a healthy lifestyle. The company is poised to dominate a segment where demand and sales are growing exponentially. Under the executive leadership with over 100 years of CPG pedigree, Rritual has launched distribution to major retailers and is positioning itself as a leader in the functional health and wellness industry as a superfood platform. Rritual markets organic wellness products in the United States through initial retail rollout which includes over 10,000 points of sale and through www.rritual.com.
For further information please contact:
David Kerbel – Chief Executive Officer and Director
Functional Foods Market
According to Grandview Research*, it is estimated that the global functional food market is projected to reach $275 billion by 2025, growing at 7.9% each year with consumers putting more emphasis on health and wellness.
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, “forward-looking statements“) that relate to Rritual’s current expectations and views of future events. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as “will likely result”, “are expected to”, “expects”, “will continue”, “is anticipated”, “anticipates”, “believes”, “estimated”, “intends”, “plans”, “forecast”, “projection”, “strategy”, “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. In particular and without limitation, this news release contains forward-looking statements relating to the Company’s plans to leverage third party manufacturing and logistics, the Company’s broader retail distribution plans and the Company’s other plans, focus and objectives.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Rritual’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact and progression of the COVID-19 pandemic and other factors set forth under “Forward-Looking Statements” and “Risk Factors” in the final long form prospectus of the Company dated February 26, 2021 and available under the Company’s profile on SEDAR at www.sedar.com. Rritual undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Rritual to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.