Nightfood: Go Ahead; Snack Before Bedtime

Disruptive snack startup gives late-night eaters – and investors – a healthy alternative

Takeaways

  • Nightfood is pioneering the new food segment of healthy foods for late-night snackers
  • Its premiere product is a lower-sugar, lower-fat ice cream branded Sleep-Friendly, which is already available in 2,000 grocery stores throughout the U.S.
  • After a recent private equity placement, Nightfood is debt-free and had $1.4 million in dry powder

New York, New York–(Newsfile Corp. – July 13, 2021) – PCG Digital — It’s old, familiar, dependable advice: Don’t eat right before bed. It’s also not necessarily true. Pigging out before bed is a bad idea because it can lead to weight gain, disrupted sleep and a bunch of other issues. But according to Healthline, a light, protein-packed nibble – especially if you’re legitimately hungry – might be the best thing for you.

Even so, a Harris Poll online survey found that more than half of those snacking at night associated their behavior with guilt and unhealthiness. They likely don’t even know that there might be an ideal, healthful-yet-satisfying snack. Many people won’t even know what it is their bodies are telling them they need to settle into restful, restorative sleep, according to sleep coach Sanchita Sen. Late-night junk food could just give you heartburn, but is it really nuts, berries and avocado toast you’re craving?

All this presents the market vacuum identified by Nightfood (OTCQB: NGTF). After 11 years in business – six as a public company – it plans to parlay the success of its ice cream into a broad-based category in which it Nightfood would have a first-mover advantage.

In addition to low fat and sugar contents, Nightfood’s nine flavors of ice cream also offers casein protein and prebiotic fiber to promote sleep and recovery. It has proven healthful enough to be chosen as the official ice cream of the American Pregnancy Association.

Nightfood has already gotten it into freezers at Walmart, Albertsons, Kroger and other grocers – nearly 2,000 outlets throughout the U.S.

Growth market

Of course, there’s more to late-night snacking than ice cream – although that’s as good a place as any to start. Nightfood estimates that Americans – eight out of ten of them – spend $50 billion annually on after-dinner snacks. The growth-stage company expects that to grow in the wake of the pandemic shutdown, as long-established sleep rhythms have neither settled into a new normal nor reverted to the old normal.

Nightfood, based in Tarrytown, N.Y., closed a $4.5 million round of Reg D financing in April. After retiring all debt and convertible notes, this left Nightfood with more than $1.4 million in cash for strategic opportunities. This provides some dry powder to enable the company to develop or acquire new product lines beyond the current ice cream offerings.

Meanwhile, Nightfood is trying out new distribution channels as well as new products. A pilot program is currently underway offering the company’s ice cream in the lobby shops of a global hotel group.

This awareness of market forces could be crucial to the company’s ability to thrive in the competitive food products industry. Its mega-caps are investing in their own late-night lines, which just tells the company’s executive team that they’re onto something.

“I take validation in PepsiCo launching their Driftwell sleep-supporting beverage,” CEO Sean Folkson told shareholders, “and by Unilever, the world’s largest ice cream company, launching a year-long research study to understand how sleep quality can be improved through diet and nutrition.”

Even before these conglomerates expressed any interest in this niche, though, he brought on board Dr. Michael Breus, a renowned sleep psychologist and now the company’s scientific advisor.

Just desserts

Nightfood has had a persistent issue with profitability and cash flow from operations. This has led to volatility in its share price, currently around $0.27 with a $21 million market cap. Still, even before April’s cash infusion, NGTF was rebounding off a trough. That likely had to do with improvement in fundamentals.

Folkson’s team had found ways to increase revenues by 28.7% last fiscal year, compared with the industry average 1.1%. Nightfood also cut SG&A expenses by almost one-third.

Has the company rebounded? Will Nightfood feast while its competitors sleep? The company is committed to improving the eating habits, sleeping habits and overall health of all late-night noshers everywhere. All it requires is a public with an appetite for nutritious bedtime snacks – and investors with an appetite for a little risk.

Disclaimer

This communication was produced by PCG Digital LLC, an affiliate of PCG Advisory Inc., (together “PCG”). PCG is an integrated investor relations, communications and strategic advisory firm. The information contained on this is ‘Paid Advertising’ for purposes of Section 17(b) of the Securities Act of 1933, as amended (together with the rules and regulations there under, the “Securities Act”). PCG is compensated by respective clients for publicizing information relating to its client’s securities. For more information in terms of compensation received for services provided by PCG, see the pertinent advertising materials relating to the respective client. By accessing this Site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy.

PCG is not a registered or licensed broker, dealer, broker-dealer, investment adviser nor investment manager, nor does PCG engage in any activities that would require such registrations. PCG does not provide investment advice, endorsement, analysis or recommendations with respect to any securities, and its services to or statements about its clients should never be construed as any endorsement of or opinion about any security of any client. No information contained in this communication constitutes an offer to sell, a solicitation of an offer to buy, or a recommendation of any security or any other similar product or service regardless of whether such security, product, or service is referenced in this communication.

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We only publish favorable information because we are compensated to publish only favorable information.

The contributors may buy and sell securities before and after any particular article, report and publication. In no event shall “PCG” or affiliates be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or made available by “PCG”, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Further, nothing in this communication is intended to provide tax, legal, or investment advice and nothing in this communication should be construed as a recommendation to buy, sell or hold any investment or security or to engage in any investment strategy or transaction. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled. Never invest in any stock featured by “PCG” unless you can afford to lose your entire investment. We urge investors to conduct their own in-depth investigation of the Profiled Issuers with the assistance of their legal, tax and investment advisers. An investor’s review of the Information should include but not be limited to the Profiled Issuer’s financial condition, operations, management, products or services, trends in the industry and risks that may be material to the profiled Issuer’s business and other information he and his advisers deem material to an investment decision. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at www.finra.org.

For full disclaimers, including compensation received for professional services, please visit www.pcgadvisory.com/disclosures.

Contact: [email protected]

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/90070

error: Content is protected !!