DAVIS, CALIF. — The introduction of GoodWheat pasta marked a spotlight for Arcadia Biosciences, Inc. within the fiscal yr ended Dec. 31, 2022. The Davis-based firm additionally handled provide chain points for its Zola model coconut water and quite a lot of points that led to a gross sales decline for its Soul Spring cannabidiol (CBD) merchandise.
Arcadia Biosciences suffered a lack of $15.38 million within the fiscal yr, which in contrast with a lack of $14.66 million within the earlier fiscal yr. Revenues rose 47% to $9.96 million from $6.78 million.
GoodWheat pasta has 4 instances as a lot fiber as common pasta together with 9 grams of protein per serving.
“GoodWheat continued its spectacular distribution positive factors in This fall as retailer depend elevated 34% in (a) quarter not usually related to vital new shelf placements,” mentioned Stanley E. Jacot, president and chief government officer, in a March 30 earnings name. “From the preliminary launch in June, now we have added greater than 1,200 shops in seven months, beating our personal inner projections by greater than 50%.
“As we glance ahead into 2023, our focus will stay on gaining vital new distribution and launching or buying new classes,, however we can even assist our retail prospects via quite a lot of applications that can drive site visitors to our model and enhance velocities.”
4 obstacles negatively impacted the CBD class, together with the Soul Spring model, Mr. Jacot mentioned.
“One, the overwhelming majority of US retailers won’t take CBD merchandise, together with on-line retailers reminiscent of Amazon,” he mentioned. “Two, many retailers that do promote CBD put the product behind locked glass doorways, which has had a considerably destructive affect on gross sales. Three, CBD merchandise can’t be marketed on giant mainstream platforms reminiscent of Google Search, Fb and Instagram, limiting the flexibility to promote the product, and fourth, many retailers that when bought CBD have both considerably diminished the set or (gotten) out of CBD utterly.”
Within the fourth quarter, a lack of $4.24 million in contrast with a lack of $9.28 million in the identical time of the earlier yr. Fourth-quarter revenues plunged to $1 million from $2.17 million, primarily due to decrease gross sales in physique care. Arcadia divested its Saavy Naturals physique care model within the third quarter.
“Within the fourth quarter, Zola gross sales declined in comparison with the identical interval final yr, pushed by some distribution losses in Q3 on account of provide chain constraints,” Mr. Jacot mentioned. “For the complete yr, Zola gained market share as gross sales have been up 12% from our worth enhance within the first half of the yr to offset increased freight prices.”
Arcadia gave its fiscal-year outcomes after the Nasdaq market closed on March 30. The inventory worth was buying and selling at $7.37 close to noon on March 31, which was down over 6% from a detailed of $7.87 on March 30.