Stryve Foods has partnered with redistributor Dot Foods to enhance the sales of its meat snacks within the competitive US market.
In its announcement, Stryve Foods expressed that this collaboration with Dot Foods aims to streamline operations, elevate service quality, and broaden its distribution reach. The partnership is expected to help Stryve satisfy the rising consumer demand for brands like Stryve, Vacadillos, and Kalahari.
For context, during the first half of 2024, Stryve reported a 1.2% increase in net sales compared to the previous year. The company is optimistic, forecasting an annual sales surge between 30% and 46.9% for 2024, although it has narrowed its previous projections since releasing its half-year results in August.
Stryve Foods CEO Chris Boever emphasized the benefits of the partnership, stating, “This partnership will help to enhance service to our retail partners, drive efficiencies, and create the foundation for further distribution gains. We look forward to leveraging Dot’s expertise and scale to maximize the reach of our brands and bring our better-for-you snacks to more consumers.”
Dot Foods is a significant player, supplying around 125,000 products from over 1,020 manufacturers in the food industry through its logistics arm, Dot Transportation.
Additionally, Stryve has announced notable new retail distribution successes with a prominent nationwide retailer. This expansion will make Stryve products available in thousands of new locations across the US in the first quarter of next year, with further details about the retailer and product availability expected in early 2025.
Currently, Stryve Foods distributes products to various distributors throughout the US and in over 55 countries, operating 13 distribution centers in the US and two in Canada.
The meat snack category continues to thrive, driven by consumer preferences for delicious, high-protein snacks that are low in sugar, contain no preservatives, and are conveniently packaged. Boever noted, “Retailers are continuously optimizing their assortment, and our air-dried meat snack brands deliver on these growing consumer behaviors.”
In financial terms, Stryve recorded $10.8 million in net sales during the six months ending June, reflecting a 1.2% year-over-year increase. The company’s sales mix has improved amid the discontinuation of certain low-performing retail programs.
For the first half of the year, Stryve showed an operating loss of $5.2 million, down from $7.6 million a year prior, with net losses declining to $6.9 million from $9 million in the first half of 2023.
As a result, Stryve has adjusted its annual sales forecast to $23-$26 million, indicating growth of between 30% and 46.9% year-on-year. Previously, it anticipated sales between $24 million and $30 million.
Moreover, a preliminary assessment of the third quarter suggests net sales growth of 30% to 35% compared to the previous year.
Earlier in July, Stryve appointed Kevin Vivian, a former senior official at PepsiCo, as the new chairman of the company’s board.
As trends evolve in the food and beverage industry, Stryve’s strategic initiatives and partnership with Dot Foods position the company to capture a more significant share of the food and drink consumer market.