Strong AmazeBalls Sales Prompt Ashgrove Cheese to Order Second EnWave REV Dryer
Last month EnWave Corporation (CA: ENW – $2.24 & US: NWVCF – $1.72 & GER: E4U – €1.58) reported its quarterly earnings statement. Within the commentary and guidance, the Company disclosed a backlog of REV machine orders from previous sales agreements. This represents additional sales growth carried forward to future quarters. Sales revenue from REV machines is partly realized when the new units are delivered. The manufacturing operations are running at capacity to meet this demand. But the sales team is not slowing down and new orders are continuing to be secured.
This week EnWave reported that an existing licensed partner, Ashgrove Cheese Pty Ltd, submitted a purchase order for a second REV machine. Based in the State of Tasmania, Australia, Ashgrove is a private company active in the dairy products sector. Family owned, Ashgrove produces and markets conventional dairy foods including milk, butter and cheese.
Based on the expanding worldwide popularity of dried cheese products, Ashgrove opted to develop its own cheese snack line. The company considered using REV technology as a premium processing option. After a lengthy evaluation process, Ashgrove commenced production of its AmazeBalls dehydrated cheese snacks using REV technology in 2017. The company purchased a 10kW REV unit and was granted exclusivity for distribution within Australia. EnWave receives a royalty payment of 5% for the wholesale value of all AmazeBalls sales.
The AmazeBalls cheese snack product line is considered a healthy choice snack food. Six different flavors are currently available. Distinctive flavor choices, including Pizza Supreme and Salted Caramel, add to the appeal of these snacks. AmazeBalls are sold in high volume retail chain stores including IGA, Leo and Drakes Superstores, Ritchies and Woolworth. It is the popularity of AmazeBalls that prompted Ashgrove to order another REV machine and increase production output. The second REV machine ordered by Ashgrove will also be a 10kW unit.
Dried Cheese Food Products Are a Growing Sub-Sector for REV Technology
The use of REV technology within the dairy products sector is another emerging growth center for EnWave. Wholly owned subsidiary NutraDried Foods demonstrated an attractive example of new product development with dried cheese snacks. Its launch of the Moon Cheese snack food is contributing to a sensational retail success story. Sales of the Moon Cheese product line are expected to further increase during the coming year to no less than $50 million! This illustrates how popular the dried cheese snack foods are becoming.
Other worldwide markets have embraced REV technology for production of dried cheese products. Gay Lea Foods, Kesito LLC in Greece, Lake Blue Spa in Chile, and Dominant Slice in Europe, are among the roster of licensed royalty partners currently operating in this sector. The increased production expected in Australia from Ashgrove is just the latest chapter in this successful rollout.
Due to the success of its AmazeBalls line of dried cheese snacks, Ashgrove is making the investment to purchase a second 10kW REV machine. As a consequence, the increased production of AmazeBalls will generate higher royalty payments to EnWave.
The decision by existing royalty partners to purchase additional REV machines validates the processing advantages of this technology. It communicates to other companies that REV processing is effective and beneficial. It also demonstrates that EnWave is a reliable and reputable partner to do business with. This ultimately makes it easier for EnWave to advance the sales process and achieve additional breakthroughs with other partner companies.
The trend of long term growth for EnWave is not slowing down. The appeal of its technology and the effectiveness of its marketing strategy are generating results. Growth in revenues from royalty payments by its partners is underpinning a much higher market capitalization for the Company. EnWave continues to perform among the best small cap technology stocks in Canada. The repeat business secured from successful REV licensed partners is one channel to continue this growth.
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