DAVIS, CALIF. — Executives of Arcadia Biosciences aimed to have the company’s GoodWheat pasta in more than 1,000 retail outlets by the end of the fiscal year. The goal was in reach by the third quarter’s end on Sept. 30.
GoodWheat launched in the retail channel in May and on Amazon.com in mid-August.
“At that time, GoodWheat pasta was available in nearly 500 stores, significant progress for a brand that launched just two months earlier,” said Stanley E. Jacot, president and chief executive officer, in a Nov. 10 earnings call. “We also projected that store count would double by the end of the year. Today, I’m excited to report that our distribution has already doubled in the third quarter alone, with GoodWheat pasta now available nationwide in nearly 1,000 retail stores.
“This is an amazing accomplishment for the GoodWheat brands and Arcadia as a whole. So I would like to take a minute and thank the team for all of their hard work and collaboration in making this launch a success. It was truly a cross-functional team effort, and we are extremely proud that the launch is exceeding our own internal expectations.”
Davis-based Arcadia is exploring potential acquisitions to expand the GoodWheat brand, he said.
“We believe there is a tremendous opportunity to scale our business faster by purchasing an existing brand in a different category (than pasta) that already has broad shelf placement and established distribution,” Mr. Jacot said.
GoodWheat has four times more fiber than regular pasta, according to Arcadia. Programs such as price promotions, coupons, displays, advertisements and social media are driving awareness of GoodWheat, Mr. Jacot said.
“We believe the pasta category will continue to be a bright spot in the face of rising food costs in a tough economic environment,” he said. “So we feel very good about the future prospects for GoodWheat.”
Arcadia in the quarter had a net loss attributable to common shareholders of $2.87 million, which compared with a loss of $2.18 million in the previous year’s third quarter. Companywide, revenues of $1.88 million were down 21% from $2.38 million. Lower revenues from co-packing and Saavy Naturals body care products accounted for a majority of the decrease, said Pamela Haley, chief financial officer.
“We had anticipated reduced revenue in the third quarter as we have turned our focus on our higher-margin brands,” she said.
Arcadia divested its Saavy Naturals brand this year in a transaction that was completed Aug. 1.
Over the first nine months of the fiscal year, the net loss attributable to common shareholders was $11.13 million, which compared with a loss of $5.38 million in the same time of the previous year. Nine-month total revenues were $8.96 million, up 94% from $4.61 million. Higher revenue in Zola brand coconut water and body care products, along with GoodWheat pasta and grain sales, drove the increase.