EX-99.1 2 bf043_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

Columbus, OH February 26, 2024

 

Subject:  BFYW's Growth Initiative Gives Our Stock Room to Grow

 

Dear Fellow Shareholders:

 

Some of you have asked what kind of growth we foresee by making our premium coffee collection, Stephen James Curated Coffee Collection (SJCCC), BFYW's North Star. We thought that question deserved a well-reasoned answer and the details we relied upon to reach our conclusions. I want to walk you through our analysis below.

 

Our competitive market analysis identified and intensely scrutinized ten synergistic publicly traded coffee companies. As a measure of growth, we examined each company's TTM Revenue and Market Cap as of February 19, 2024. The analysis revealed an average Price-to-Sales ratio of 2.04, leading us to determine low and high estimates to establish an average price-to-sale benchmark of 1.97. Furthermore, many companies have negative price-to-earnings; conversely, after funding, we project SJCCC to break even by the 20th month and remain profitable for the foreseeable future.

 

As a measure of growth, we examined each company's TTM Revenue and Market Cap as of February 19, 2024. The analysis revealed an average Price-to-Sales ratio of 2.04. Furthermore, many companies have negative price-to-earnings. After funding, we project SJCCC to break even by the 20th month and remain profitable for the foreseeable future.

 

We utilized a comprehensive analysis incorporating low and high estimates to establish an average price-to-sale benchmark of 1.97.

 

Competitive Market Analysis 


Companies

 

Ticker

 

 

Exchange

 

 

Share
Price

 

 

Market Cap

 

 

Revenue TTM

 

 

Price-
to-
Sale

 

Dutch Brothers, Inc.

 

 

BROS

 

 

 

NYSE

 

 

 

27.40

 

 

 

4,852,961,000

 

 

 

913,480,000

 

 

 

5.31

 

Westrock Coffee Company

 

 

WEST

 

 

 

NASDAQ

 

 

 

10.99

 

 

 

978,260,000

 

 

 

877,500,000

 

 

 

1.11

 

Black Rifle Coffee Company

 

 

BRCC

 

 

 

NYSE

 

 

 

4.25

 

 

 

901,180,000

 

 

 

369,600,000

 

 

 

2.44

 

Restaurant Brands International, Inc.

 

 

QSR

 

 

 

NYSE

 

 

 

77.19

 

 

 

24,118,390,000

 

 

 

7,020,000,000

 

 

 

3.44

 

Farmer Brothers, Inc.

 

 

FARM

 

 

 

NASDAQ

 

 

 

3.77

 

 

 

76,500,200

 

 

 

342,600,000

 

 

 

0.22

 

Hain Celestial Group, Inc.

 

 

HAIN

 

 

 

NASDAQ

 

 

 

9.70

 

 

 

870,925,400

 

 

 

1,890,000,000

 

 

 

0.46

 

Keurig Dr Pepper, Inc

 

 

KDP

 

 

 

NASDAQ

 

 

 

30.97

 

 

 

43,306,470,000

 

 

 

14,060,000,000

 

 

 

3.08

 

Coffee Holding Company

 

 

JVA

 

 

 

NASDAQ

 

 

 

1.25

 

 

 

6,964,490

 

 

 

68,200,000

 

 

 

0.10

 

Nestle

 

 

NSRGY

 

 

 

OTCM

 

 

 

110.23

 

 

 

294,314,100,000

 

 

 

107,560,000,000

 

 

 

2.74

 

Peets

 

 

JDPE

 

 

 

AEX

 

 

 

24.78

 

 

 

12,455,932,900

 

 

 

8,150,000,000

 

 

 

1.53

 

Average

 

 

N/A

 

 

 

N/A

 

 

 

30.05

 

 

 

38,188,168,399

 

 

 

14,125,138,000

 

 

 

2.04

 

Better For You Wellness

 

 

BFYW

 

 

 

OTCM

 

 

 

Low Estimate*

 

 

 

   

1.91

 

Better For You Wellness

 

 

BFYW

 

 

 

OTCM

 

 

 

Average Price-to-Sale**

 

 

 

1.97

 

Better For You Wellness

 

 

BFYW

 

 

 

OTCM

 

 

 

High Estimate

 

 

 

 

 

 

2.04

 

 

*

Lower removes the two top and two low P/S

**

The Average of the Low and High P/S


Source: Market Data collected from Fidelity, WSJ.com, and StockAnalysis.com on February 19, 2024



 


Having strategically entered Kroger last year, our sales projections for 2024 anticipate a presence in 250 stores by late summer, with a remarkable doubling of doors served year-over-year for the next four years. Our ambitious expansion plan projects nearly 4,000 stores by the fifth year, including significant grocers such as Kroger, Giant Eagle, Wegmans, etc.

 

Our revenue projections and associated costs like COGs and operational expenses are meticulously calculated by leveraging Kroger's metrics and drawing on our collective experiences with manufacturing and distribution partners. The annual multiplication of revenue and price-to-sales ratios forms the basis for establishing a year-over-year projected market capitalization (i.e., revenue x P/S = market cap). Further, to estimate the Share Price, we divide the market cap by authorized shares, providing a projection for the share price (i.e., market cap / authorized shares = share price).

 

The graph below vividly illustrates the compelling results derived from this analysis. It substantiates our decision to take the brand to the public market and indicates significant growth potential for BFYW Stock. It's essential to note that we have truncated the P/S decimal value in the graph for clarity and illustration purposes. These findings collectively underscore the favorable trajectory and potential for growth that BFYW's stock, your stock, holds in the market.

 

BETTER FOR YOU WELLNESS, INC. (OTCM: BFYW)

 

As of February 19, 2024

 

Per Share Price $0.0040

 

Current Market Cap

 

$

1,676,837

 

 

 

Shares Outstanding 

  

  

  

419,209,200 

  

Estimated Price-to-Sale Ratio (P/S) 

 

 

1.97

 

 

 

Estimated P/S applied to the Term of the Note for projection purposes only

 

 

 

 

Year One

 

 

Year Two

 

 

Year Three

 

 

Year Four

 

 

Year Five

 

Total Projected Revenue

 

$

1,055,503

 

 

$

8,036,770

 

 

$

23,340,949

 

 

$

39,254,052

 

 

$

59,795,058

 

Estimated YE Cash-in-Hand (Projected Retained Earnings)

 

$

906,044

 

 

$

125,430

 

 

$

1,220,542

 

 

$

6,791,360

 

 

$

17,306,217

 

Estimated Shares Outstanding *

 

 

419,609,200

 

 

 

420,009,200

 

 

 

420,409,200

 

 

 

420,809,200

 

 

 

421,209,200

 

Estimated Price Per Share

 

$

0.0050

 

 

$

0.0377

 

 

$

0.1094

 

 

$

0.1838

 

 

$

0.2797

 

Projected Market Cap

 

$ 

2,079,341 

  

  

$ 

15,832,437 

  

  

$ 

45,981,669 

  

  

$ 

77,330,483 

  

  

$ 

117,796,263 

  

 

*

Assumes issuance of 100,000 Shares per Independent Director per year.


The projections above are based on a comprehensive market analysis of ten prominent publicly traded coffee companies.


Source: Market Data collected from Fidelity, WSJ.com, and StockAnalysis.com on February 19, 2024.

These projections only include SJCCC.

 

We developed the BFYW Growth Initiative to grow shareholder value by generating revenue and building profitability via BFYW's Stephen James Curated Coffee Collection. The initiative focuses our energies on the SJCCC premium coffee brand, as coffee is the second most consumed beverage in the world, leverages its retail relationship with Kroger, prepares our creative/marketing teams to grow brand awareness, and our manufacturing and distribution team to ensure we can continue to scale commercially at reduced costs for increasing online and in-store coast-to-coast sales. The next step is to secure the growth capital for full implementation.

 

I hope the information above helps you understand our thinking and why I am enthusiastic about championing and raising the capital to implement this initiative.

 


 


I appreciate your being a shareholder and your continued interest in our growth. I look forward to sharing a captivating lineup of products to launch soon and informing you as we progress on this exciting journey.

 

If you have any questions, please visit our Contact Page on BFYW.com and use our contact form. Our Team will forward your email to me for review.

 

All the best.




Ian James

Chairman and CEO

Better For You Wellness, Inc.


Read the Series of Open Letters on BFYW's Growth Initiative

Letter #1: December 18, 2023
Unlocking Growth and Profitability: An Open Letter to Our Valued Shareholders from BFYW's Chairman and CEO

Letter #2: January 23, 2024
Progress Update and Strategic Outlook - A Letter to Shareholders
Letter #3: January 30, 2024
Our Premium Coffee Forecast Deep Dive