DAVIS, CALIF. — Arcadia Biosciences plans to launch five stock-keeping units of fiber-rich GoodWheat pastas at retail in May, hoping the move into consumer packaged goods changes the trajectory of its struggling stock price.
The GoodWheat pastas contain proprietary GoodWheat grain as the sole ingredient to provide four times the fiber of traditional pasta and 9 grams of protein per serving without sacrificing taste, according to the company, which also offers specialty wheat ingredients under its GoodWheat portfolio to food manufacturers and processors.
“In terms of timing, we have made the decision to launch our pasta at retail first and are thrilled to announce that GoodWheat will begin shipping to several hundred stores beginning in May, with more stores to follow as retailers complete their annual pasta category resets,” said Stan Jacot, president and chief executive officer, in a March 30 conference call. “And closely following our retail launch, we plan to have GoodWheat available for purchase online in June.
“As we look into 2022 and beyond, we are excited about the prospects for GoodWheat. The feedback we have received from retailers about our pasta has been overwhelmingly positive in regard to taste and texture. In a blind consumer in-home taste survey, our pasta significantly outperformed the leading better-for-you competitor and was at parity with the world's largest pasta brand.”
He added Davis-based Arcadia Biosciences will continue its relationships with Ardent Mills, Denver, and Bay State Milling Co., Quincy, Mass.
“We absolutely see them as valuable partners, and as a matter of fact, the shift in Arcadia towards more of a consumer product organization means there’s less competition,” Mr. Jacot said.
Russia’s invasion of Ukraine has yet to affect the company’s wheat supply.
“We recognize the recent global concerns around wheat supply, but our first production run is complete, and we have ample supply of finished goods inventory on hand to meet our needs for the foreseeable future,” Mr. Jacot said. “We are also carrying millions of pounds of wheat inventory, which allows us to quickly scale back up when needed.”
Arcadia, after the Nasdaq closed March 30, gave financial results for the fiscal year ended Dec. 31, 2021. A net loss attributable to common stockholders was $14.66 million, which compared with a net loss attributable to common shareholders of $4.66 million in the previous fiscal year. Arcadia’s stock price on the Nasdaq was trading at $1.43 per share midday March 31, which was down 25% from a closing price of $1.89 per share March 30 and down 54% from a closing price of $3.10 per share June 28, 2021.
Net revenues in 2021 dropped 70% to $2.17 million from $7.13 million. Revenues in 2021 mainly were related to the product sales of the newly acquired portfolio of wellness brands. Revenues in 2020 predominantly were comprised of license revenue generated from a transaction with Bioceres in November 2020 as well as sales of GoodWheat grain and GoodHemp seed. Operating expenses more than doubled to $42.31 million in 2021 from $20.81 million in 2020.
Arcadia in 2021 expanded its reach in the CPG sector by acquiring Zola, a coconut-water brand, and ProVault, a topical pain relief product.
“The acquisitions from 2021 have broadened our reach within the health and wellness sector by entering the coconut water, topical pain relief and body care categories,” Mr. Jacot said. “In addition, we have made tremendous progress in becoming a CPG-driven company by adding new talent, sharpening our focus on the GoodWheat retail launch and winding down some of our existing non-core businesses, such as GoodHemp and Archipelago. We see significant opportunities to grow our business by accelerating the monetization of our GoodWheat portfolio, commercializing and scaling our consumer brands, and evaluating future acquisition opportunities.”
Mr. Jacot joined Arcadia Biosciences as president and CEO in February. Most recently he was president and CEO at Jane’s Dough Foods, which achieved a double-digit compound annual growth rate during his six years with the company. Mr. Jacot also has held marketing and operations roles at Mission Foods, Borden Dairy Co., ConAgra Foods (now Conagra Brands) and the Kellogg Co.In the fourth quarter, Arcadia Biosciences had a net loss attributable to common shareholders of $9.28 million, which compared with net income of $8.90 million in the same time of the previous year. Fourth-quarter total revenues were $6.78 million, down 16% from $8.03 million.