Nighttime Snacking Market Soars Past $50 Billion, with Nightfood Set to Take Center Stage
Pioneering growth-stage company breaks new ground at intersection of two massive health categories: nutrition and sleep.
New York, NY - (NewMediaWire) - June 15, 2021 - PCG Digital -- Nightfood Holdings (OCTQB: NGTF), a better-for-you snack company, is targeting the $50 billion Americans spend each year on nighttime snacks. Leading with its award-winning, sleep-friendly ice cream, the company is dedicated to creating nutritional and functional options for the 80% of Americans who snack regularly at night. As the company develops its portfolio of snack products, Nightfood’s recent results showcase a clean balance sheet, strong management team and key customer additions.
Management strengthened the company’s corporate balance sheet through a $4.5 million financing round which closed in April, adding more than $1.4 million in cash to the balance sheet, eliminating 100 percent of its debt, including all convertible debt, and securing operating capital to pursue a variety of well-timed major corporate initiatives.
Convergence of three macro trends drives sleep-friendly nutrition focus
A trifecta of trends is bolstering growth in the sleep-focused nutrition category.
First, nearly half of Americans report a decline in sleep quality over the past two years, meanwhile, snacking has increased, with 47 percent of consumers enjoying at least three snacks per day.
Almost half of all snacking occurs between dinner and bedtime--representing 800 million U.S. nighttime snacks per week--and the scientifically proven link between sleep and nutrition is now being explored by major players in the food and beverage space.
Finally, more and more consumers are turning to functional foods with the awareness that nutrition and sleep alike can influence weight management, energy levels, physical appearance and overall health.
The convergence of these three key trends and the fact that better sleep is a top consumer priority mean that the time is right for Nightfood’s better-for-you, offering. With less sugar, less fat and fewer calories and more protein and prebiotic fiber than traditional snacks, Nightfood delivers foundational nutrition for a better night’s sleep without sleep aids or drugs. In addition, Nightfood’s team of leading sleep and nutrition experts identified certain vitamins and minerals that can enhance sleep quality. Formulation considerations included minimizing bloating and digestive issues related to lactose intolerance, production of serotonin and melatonin to support sleep, muscle relaxation and craving satisfaction.
Nightfood expands distribution and innovation during pandemic
Nightfood added Walmart as a customer in its most recent quarter, rolling into over 1,000 Walmart locations across the country, and more than doubling its footprint to nearly 2,000 U.S. retail stores. This helped the ice-cream company exceed last year’s gross sales and nearly double net revenue with six weeks remaining in the fiscal year.
Likewise, management successfully initiated a retail pilot of Nightfood in the lobby grab-and-go shops of a global hotel group. The result of a successful pilot test would be national distribution in thousands of hotels nationwide across the brand’s portfolio and footprint. This non-traditional retail placement can serve as a tremendous growth driver with high brand visibility, and no slotting fees or ads required.
Already lining the freezers in major divisions of Kroger and Albertson’s, Nightfood is expected to expand to other major grocery and hotel chains in 2021 and beyond.
Nightfood is also the official ice cream of the American Pregnancy Association, building an audience that craves sleep, heartburn reduction and healthier snacks for themselves and their growing babies. With approximately 4 million babies born in the United States each year and an education and awareness program with Brandshare to introduce Nightfood to expecting moms through hundreds of OBGYN offices around the country, the growth potential in this important demographic is extensive.
Global Conglomerates Showing Strong Interest in Nightfood’s Category
The global functional food market is expected to reach $309 billion by 2027, growing at a compound annual growth rate of 7.5 percent, according to Precedence Research. Last September Pepsi announced the launch of Driftwell, a new drink enhanced with ingredients to promote relaxation and sleep. It's a play by PepsiCo to compete within a small but growing "functional nutrition" category built by niche, independent companies. Last quarter, the world’s largest ice cream company, Unilever, announced its partnership with Microba Life Sciences to identify ways diet and nutrition can be used to improve global sleep. A conglomerate of more than 400 brands, Unilever recently noted that functional nutrition is one of the company's priority growth segments for acquisitions.
Nightfood Founder and CEO, Sean Folkson, appreciates this validation by declaring, “This category has all the signals of being a billion-dollar category in the coming years. The interest from the largest food companies in the world greatly substantiates the coming of the category our company pioneered and continues to lead. It also explains the interest we are receiving from the media, retailers and the investment community.”
Leadership team and national wins inspire confidence
Unlike traditional snacks, Nightfood’s recipes were developed by Nightfood’s pioneering ice cream development lab with direction from the leading sleep and nutrition experts on Nightfood’s Scientific Advisory Board. Ice cream industry vet and CPA Jerry Isaacson was recently added to the team, with the title of Chief Financial Officer, bolstering expertise in ice cream logistics, manufacturing and procurement. Spokesperson and scientific advisor Dr. Michael Breus is known to millions as The Sleep Doctor™ and the ice cream’s nine mouth-watering flavors are acclaimed by world-class athletes and sleep experts alike.
Touted by The Today Show, The Wall Street Journal, Rachael Ray, The Washington Post, Fast Company, People, The Oprah Magazine, Parents and more, Nightfood was crowned winner of the 2019 World Dairy Innovation Awards for Best New Ice Cream and Best Dairy Dessert and voted Product of the Year in the Ice Cream category by the Consumer Survey of Product Innovation.
Positioned for Future Growth
After finishing the fiscal year with the company’s biggest year in terms of both gross sales and net revenue, the strength of Nightfood’s balance sheet should not be lost on investors. Folkson stated, “I’m extremely proud of what we’ve been able to accomplish in the last few months. The company is in great shape and we are looking forward to a transformational year ahead.”
Nightfood is the perfect food for nighttime snacking and the perfect vehicle for uncharted long-term growth. Stay tuned for what’s next. This story will be worth keeping an eye on as it unfolds.
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