Simply Better Brands Corp.’s Trubar Brand to Assist Sodexo.
SBBC released news this morning, “Simply Better Brands Corp.’s Trubar Brand to Assist Sodexo in Accelerating their clean ingredient, plant-based food efforts.”. My first reaction was meh, this is just another fluff release from the company and it still might be. But Sodexo is a massive company. In fact, they are worth ~$13B EUR. Why would they care about SBBC, a company with a $25M market cap?
They mention that the Trubar Brand will “assist” Sodexo in accelerating their clean ingredient, plant-based food efforts. What exactly does “assist” mean. Will Sodexo be offering Trubars in their various locations? Or will Trubar help them generate clean recipes going forward? It’s not like Trubar has a team of chefs they can offer Sodexo to help them out.
I believe Sodexo will be able to sell Trubars and that is my interpretation of the NR. It also looks like a trial, as they state TRUBAR will begin work in the state of Texas in select micro-markets in Q2 2023. WTF is a micro-market? Seems small. So maybe they begin selling Trubar in a couple locations. Nothing material today but over time this could grow into more locations, more states, larger markets.
We know Trubar is selling very well in Costco. Any additional brand awareness will help. I do believe they will sell Trubar in 1-3 years. So good for them in partnering with such a large company. It’s all about growing the brand and this will not hurt those efforts.
Overall, maybe this was a meh release, maybe it turns into more down the road. Brand awareness is key at this stage, and this relationship with Sodexo may or may not help but it will not hurt the brand.
Q4 fins will be out in a month, Q1 fins the following month. I’m really looking forward to those and believe they will both open some eyes and attract more attention to this name.