Yowie Group Ltd (ASX: YOW) has announced that as of August 2015, Yowie confectionary products will be distributed to approximately 4300 Walmart stores across the United States.
Yowie Group Ltd is a global brand licensing Company specialising in the development of consumer products designed to promote learning, understanding and engagement with the natural world through the adventures and exploits of six endearing Yowie characters. Yowie Group employs its company-owned intellectual property rights in the outsourcing of the manufacturing and distribution of the Yowie chocolate confectionery products and in the development of the Yowie digital platform and Yowie branded licensed consumer products.
In September 2014 Yowie launched a trial with Walmart to roll out the companies confectionary products throughout 50 Texas Walmart stores. Following promising sales performance from the trial, Walmart and Yowie agreed to expand the trial and distribute to 1500 Walmart stores in March this year. This has subsequently lead to a roll out of approximately 4300 Walmart stores across the United States which is planned for August 2015. With only 11 months between the initial trial and the full national roll out, it demonstrates Walmart’s confidence in Yowie’s products.
Yowie’s products will be displayed at “assisted’ and ‘self-checkout’ stands in most of the 4300 stores allowing prime visibility for impulse purchases. Purchase orders from Walmart will be issued by end June 2015 to allow for distribution to Walmart’s distribution centres to be completed by the end of July 2015.
Walmart has more than 4,300 stores and 645 club stores across the United States and sales of approximately US$288 billion in FY2015. When compared by revenue Walmart is the largest company in the world. It goes without saying that a successful nationwide roll out with Walmart will provide Yowie with an encouraging outlook going forward. Yowie plans to expand the brand further into Australia, New Zealand and Asia, where the brand is known but has been inactive for the last 8 years.
Yowie currently trades on the ASX at 88c and has seen significant growth since announcing its relationship with Walmart in September last year.
Author: Imran Valibhoy
Jun 17, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.