Chef with tattoos attempting to revive the enterprise
Tattooed Chef, Inc., a producer of plant-based prepared foods, notified the US Securities and Exchange Commission (SEC) on March 17 that it would not be submitting its 10-K annual report for the fiscal year that concluded on December 31, 2022, on schedule. Furthermore, the business informed the SEC that it did not anticipate filing the report within the allowed 15-day extension period. The date on which the corporation intended to file the annual report was not specified.
After a subpar third quarter, there is a delay. Tattooed Chef reported a $38.5 million loss for the three months that ended on September 30. This is a significant loss compared to the $8.2 million loss the company experienced during the same time last year.
According to Stephanie Dieckmann, chief financial officer, cost hikes for personnel, freight, facility-related fees, energy costs, equipment, and supply-related expenses all had an impact on the company’s quarterly performance.
Sam Galletti, the business’s president and chief executive officer, stated that the company will lower its cash burn by reducing spending and placing more emphasis on allocating resources to areas that strengthen the company’s advantages during a conference call on November 15, 2022, to discuss third-quarter results.
According to Mr. Galletti’s November statement, “We believe that we can capture approximately $30 million of cost savings by year end 2023, primarily through a combination of the following: a $15 million reduction in marketing related expenses.” “Over the past two years, we have concentrated on increasing brand awareness through targeted advertising efforts to support our retail expansion. In less than two years, this has allowed us to increase our household awareness to 23%.
We have gained knowledge about our customers’ shopping habits, values, and sources of information regarding Tattooed Chef brands over this time. Going forward, our approach will concentrate on less expensive marketing techniques that are closer to the point of sale, such as influencer campaigns, focused social media campaigns, and trade marketing programs designed just for retailers.
The corporation also intended to cut advertising activities, automate tasks, and internalize cold-storage operations in order to save money.
The corporation announced that it would miss its SEC deadlines on the same day that it predicted savings of at least $40 million in 2023. Reducing the staff, reallocating firm resources, and streamlining the product line were among the other initiatives that helped save money.
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Because of this, management anticipated that Tattooed Chef would reach cash flow neutrality by the fourth quarter of 2023—roughly six months ahead of schedule.
Mr. Galletti stated, “We are still working on a plan that we think would lower cash burn, lower our yearly losses, and improve our brand recognition and retail presence. As a vertically integrated, value-added plant-based food company, Tattooed Chef occupies a unique place in our market. We are committed to creating the best products possible, pursuing innovation, and maximizing our operational efficiency and utilization to realize the full potential of our products’ inherent profitability.
“We are seeing early indications of our progress on a sequential quarterly basis, although we still have a lot of work ahead of us. Material improvements are expected to manifest beginning in Q1 2023 and continuing throughout the year.”