US speciality food group Inventure Foods has attributed its third-quarter profits to rising sales of its frozen natural and health food products.
Net income in the three months to 29 September increased to US$1.7m, compared a loss of $190,812 in the comparable period of last year.
Sales for the quarter rose 24.2%, climbing to $46.6m. Revenue gains were driven by a 63% increase of Inventure's frozen products, which include Jamba smoothies and frozen berries. Snack sales were up 1.4% - led by an 11% increase in TGI Friday's brand sales - while private-label sales increased 21%. However, Boulder Canyon Natural Foods sales dropped 13%.
"The increase in our healthy/natural portfolio, which represents 60% of total revenues, was led by strong increases in our frozen segment with frozen fruit sales up 72.7% and Jamba 'at home' Smoothie sales up 28.6% over prior year, primarily due to increased distribution to new and existing customers and increased velocity of existing business," said CEO Terry McDaniel. "The increase in the healthy/natural portfolio was partially offset by a decline in sales of our Boulder Canyon products primarily due to increased pricing pressure."
Nevertheless, McDaniel insisted Inventure plans to grow the Boulder Canyon brand by adding sales and marketing resources to regain momentum. Inventure also plans to expand the brand into new categories beyond salty snacks, he said.
