Rritual Superfoods (CSE: RSF) (FSE: 0RW), a Vancouver-based supplier of natural wellness products, has provided a comprehensive picture of its rapid growth, tapping a growing public awareness of the benefits of healthy foods and wellness.
Growth at Rritual this year has been such that it is revising its retail distribution targets for the end of 2021, having already exceeded its existing targets of 2,400 retail locations and 10,000 points of distribution.
Rritual’s growth strategy has successfully built its commercial relationships by securing listings with distribution partners such as CVS, Rite Aid, Amazon, The Good Trends and Vitacost. The revised target, based on retailer commitments to carrying the Rritual brand, is to reach 6,000 stores and 20,000 points of distribution by the end of this year.
Rritual has hit a significant milestone
In a letter to shareholders, David Kerbel, CEO and Director, said: “Rritual’s recent placement with CVS, the largest drugstore chain in the USA, is a significant milestone for Rritual’s national retail rollout. In terms of the Rritual brand, placement with CVS further establishes confidence in our products, escalating demand for this category with consumers.”
Rritual’s placement with CVS is particularly important because its products have been chosen for CVS’ new HealthHUB concept, which aims to transform the ‘consumer health experience’ with education and personalised service from CVS trained professionals at the community level.
Rite Aid, as Rritual’s first national retail rollout, also represents a major achievement for the Rritual brand. Kerbel says: “It validates both supply and demand for the category, specifically, our product quality and the rapidly growing interest of consumers in functional superfoods.”
Rite Aid has indicated a 20% increase in the number of its stores that will carry Reishi Relax, Chaga Immune and Lion’s Mane Focus, Rritual’s core products, while 100% more Rite Aid locations will carry the Variety Pack.
Omni-channel e-commerce strategy
Estimates on the size and growth of the global superfoods market vary. In 2019, Grandview Research estimated that the market would be worth $275bn by 2025, growing at 7.9% each year. Statista gives a more conservative estimate of almost $210bn in 2026, which represents an increase of $70bn from 2020’s predicted estimate of almost $140bn.
North America accounted for 39.4% of the total market revenue share in 2018, a share that Grand View expects to grow over the forecast period. The drivers of the healthy foods market are, according to Grand View Research, factors such as “rising middle-class population, upsurge in disposable income, rapid urbanization, changing consumer lifestyle and a rising popularity of veganism. This, in turn, is projected to drive the market for superfoods.”
Rritual Superfoods is currently trading at $0.64, up on the launch price of $0.54 on 8 March, when it commenced trading on the Canadian Securities Exchange.