NEW YORK — Artisanal Brands, Inc., reported sales of $846,169 for the quarter ended November 30, 2011. Revenues for the quarter do not include $380,000 in revenues from the sale of 100 units of its new customized stationary refrigeration cases which the company expected to book in the quarter. Had these sales been included as final sales, the company's revenues for the quarter would have been $1,226,169. Artisanal's CheeseClock(TM) customized refrigeration cases are produced overseas and were subject to open purchase orders and a partial prepayment, but the transaction was not deemed completed and recognizable as a sale until the units were all physically documented as delivered. While the unit sales were not recorded in the quarter, the Company incurred sales and marketing expenses in the quarter associated with these sales.
In the 6 month period ended November 30, 2011, Artisanal also recorded non-cash expenses of $1,112,000 for equity and debt-related transactions.
The Company's Artisanal CheeseClock(TM) retail program is currently in 165 stores across the country. It has also sold 26 units of its larger customized stationary case which sell at $3,800 per unit and has 24 of the newer smaller mobile customized refrigeration cases which retail for $1,500, sold or on order to ship this week.
Artisanal's President and CEO, Daniel Dowe remarked, "Our branded merchandising units will change the manner is which we market our retail program, driving sales as we work toward operating profitability. With each participating store earmarked to generate an average monthly volume of $500 and most stores now wanting to purchase one of our customized refrigeration cases for $1,500 or $3,800, respectively, we expect to generate higher revenue levels and achieve profitability with this new retail concept. Additionally, with anticipated lower costs to fund demos and samples at Costco locations we expect our quarterly SG&A costs to decrease in future quarters.
"We are in the process of executing a regional plan with senior KeHE management to place the Artisanal CheeseClock(TM) retail program in 500 stores during the first calendar quarter of 2012. These stores will range from large format supermarkets operated by national and regional chains to independently-owned grocery, natural and wine stores. We are offering special promotions to encourage every retailer to purchase either of the two customized cases we offer to allow for specialized merchandising of the Artisanal brand distinguishing our cheese from other cheese sold by retailers. Our customized cases also make cross-merchandising with wine and beer much easier which is a major selling feature of our program, as retailers tend to sell more wines, beers and crackers with sales of Artisanal cheeses.
"By the end of our third fiscal quarter closing February 29th, we expect to conclude hires for two senior mangers for our E-Commerce and Foodservice businesses. Our retail business is now moving in the right direction with increased staff and one senior manager overseeing the roll-out of our strategy. We need this level of focus on our two other business lines to achieve our strategic, operating and financial goals. Our business has radically changed from our original focus as a purveyor of premium artisan cheeses to the finest restaurants to a consumer-branded company that will exploit opportunities in the premium sector of three classes of trade — retail, foodservice, E-commerce. With a redirected strategy, we look to continue building our brand in the marketplace and to drive revenue growth and profitability.
About Artisanal Brands, Inc.
Artisanal Brands, Inc. markets and distributes a line of specialty, artisanal and farmstead cheese products, as well as other related specialty food products under its own brand to food wholesalers and retailers, as well as directly to consumers through its catalogue and Web site, artisanalcheese.com. The Company is based in New York, New York.
Safe Harbor Statement:
Forward-looking statements made in this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in Company filings made with the Securities and Exchange Commission.
Source: Artisanal Brands, Inc.