NEW YORK, U.S. – GenTech Holdings, Inc., an emerging leader in the high-end food and drinks marketplace, is taking critical steps to drive accelerating revenue growth for both its subscription premium coffee segment (“Secret Javas”) and its recently acquired Functional Food segment.
“We will have more to say in the very near future about our recent acquisition, but it’s important at this point to let our shareholders know how we are building value,” commented David Lovatt, CEO of GenTech. “This isn’t just a big sales play. It’s an extremely potent value-add from a talent and experience standpoint. It puts GenTech firmly on the playing board in the powerhouse functional foods market, which represents an exceptional complement to our premium subscription coffee operations.”
Through its recent acquisition, a Company that wrote over $2 million in annual revenue in 2019, it has also acquired key relationships with top-tier talent that boasts over 20 years’ experience in international sales in the Sports Nutrition industry driving millions in sales spread across over 70 countries around the world. This includes frontline experience at powerhouses EAS and MusclePharm, and direct experience successfully marketing products to teams in the MLB, NBA, and NFL. This also includes A-level relationships with a wide network of distributors in the Midwest and California and notable top-selling industry performers distributing over the Amazon.com platform.
GenTech is already leveraging these assets to form a virtual team tasked with bringing accelerating revenue growth to the table. Management believes the functional foods space represents a powerful opportunity to drive tremendous value for shareholders. According to Grand View Research, the global functional foods market is projected to exceed $275 billion by 2025, growing at nearly 8% CAGR, from an estimated $161 billion in 2018.
Lovatt continued, “Our recent acquisition positions GenTech to capitalize on a robust growth trend while balancing the equally exciting growth opportunity we are already targeting in the premium subscription coffee market through our Secret Javas line.”
According to a consumer survey conducted by National Coffee Association of America, the total retail value of the U.S. coffee market is estimated to be $48 billion dollars with specialty comprising approximately 55% value share. In other words, the “Specialty” category in coffee is becoming dominant in both volume and sales. Coffee is also becoming increasingly popular with younger consumers, who are more likely to adopt an online subscription consumer pattern, with the number of 18-24 year-olds who drink specialty coffee rising from 28% to 35% since 2013.
In addition, revenue in food and beverages ecommerce in the US is expected to reach $15bn by 2021, rising from $9bn in 2016. But, inside of that, Payments News reports that the approximate revenue from those who subscribe to products using the Amazon platform, rose from $2.9 billion to $11 billion from 2014 to 2018, with a significant proportion of these purchases in the grocery and gourmet food section. That’s a 260% increase over this period, which gives a strong indication of the growth wave in this segment as more and more consumers transition to ecommerce for perishable goods.