Innovative Food Holdings Stock

Innovative Food Holdings, Inc. engages in the distribution of specialty food and food related products ranging from specialty foodservice products to consumer-packaged goods (CPG) products.

The company distributes its products through a variety of sales channels ranging from national partnership based and regionally based foodservice related sales channels to e-commerce sales channels offering products both direct to consumers (D2C) and direct to business (B2B). In its business model, the company receives orders from its customers and then works closely with its suppliers and its warehouse facilities to have the orders fulfilled.

The company’s business is conducted by its wholly owned subsidiaries, some of which are non-operating, Artisan Specialty Foods, Inc. (Artisan); Food Innovations, Inc. (FII); Food New Media Group, Inc. (FNM); Organic Food Brokers, LLC (OFB); Gourmet Foodservice Group, Inc. (GFG); Gourmet Foodservice Group Warehouse, Inc. (GFW); Gourmeting, Inc. (Gourmeting); Haley Food Group, Inc. (Haley); Oasis Sales Corp. (Oasis); 4 The Gourmet, Inc. (doing business as For The Gourmet, Inc.) (Gourmet); Innovative Food Properties LLC (IFP); Innovative Gourmet, LLC (Innovative Gourmet or igourmet); Food Funding, LLC (Food Funding); Logistics Innovations, LLC (L Innovations); M Innovations, LLC (M Innovations or Mouth); P Innovations, LLC (P Innovations); MI Foods, LLC (MIF); M Foods Innovations, LLC (M Foods); PlantBelly, LLC (PlantBelly); Innovative Foods, Inc. (IFI); Innovative Gourmet Partnerships, LLC (IGP); and Plant Innovations, Inc. (Plant Innovations).

FII, through its relationship with the producers, growers, and makers of thousands of unique specialty foodservice products and through its relationship with US Foods, Inc. (U.S. Foods or USF), has been in the business of providing premium restaurants, within 24 – 72 hours, with the freshest origin-specific perishable, and healthcare products shipped directly from its network of vendors and from its warehouses. The company’s customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals and catering houses.

For The Gourmet has been in the business of providing specialty food via e-commerce through its own website at www.forthegourmet.com and through other ecommerce channels, with unique specialty gourmet food products shipped directly from its network of vendors and from its warehouses within 24 – 72 hours. GFG is focused on expanding the company’s program offerings to additional customers.

Artisan is a supplier of over 1,500 unique specialty foodservice products to over 500 customers such as chefs, restaurants, etc. in the Greater Chicago area and serves as a national fulfillment center for certain of the company’s other subsidiaries.

IFP was formed to hold the company’s real estate holdings including the recently acquired facility in Pennsylvania (PA).

P Innovations’ focus is to leverage acquired assets to expand the company’s subscription-based e-commerce business activities.

Plant Innovations is focused on plant-based D2C brands and online retail within the e-commerce space.

L Innovations provides 3rd party warehouse and fulfillment services, out of its first location at the company’s Mountaintop, Pennsylvania facility.

Haley is a dedicated foodservice consulting and advisory firm that works closely with companies to access private label and manufacturers’ private label food service opportunities with the intent of helping them launch and commercialize new products in the broadline foodservice industry and assists in the enabling of the distribution of products via national broadline food distributors.

OFB and Oasis function as outsourced national sales and brand management teams for emerging organic and specialty food CPG companies of a variety of sizes and business stages and provides emerging and unique CPG specialty food brands with distribution and shelf placement access in all of the major metro markets in the food retail industry.

igourmet has been in the business of providing D2C specialty food via e-commerce through its own website at www.igourmet.com and through other channels including www.amazon.com, and www.walmart.com. In addition, igourmet.com offers a line of B2B specialty foodservice items. Products are primarily shipped directly from igourmet.com’s approximately 100,000 square feet warehouse in Pennsylvania via igourmet.com owned trucks and via third party carrier directly to thousands of customers nationwide.

Mouth (www.mouth.com) is an online retailer of specialty foods, monthly subscription boxes and curated gift boxes to thousands of consumers and corporate customers nationwide. Mouth sources high quality specialty foods mainly crafted in the U.S. by independent and small batch makers, and expertly curates them into standout food gifts for both consumers and corporate customers. Mouth also has launched a private label brand, including several award-winning products.

Products

The company distributes over 7,000 perishable and specialty food and food related products, including origin-specific seafood, domestic and imported meats, exotic game and poultry, artisanal cheeses, freshly prepared meals, caviar, wild and cultivated mushrooms, micro-greens, organic farmed and manufactured food products, estate-bottled olive oils and aged vinegars and expertly curated food gift baskets, gift boxes and a full of line of food subscription based offerings. Products are sold under the brand of the respective vendor and are also offered under a variety of Company owned brands. In addition, the company offers a line of niche specialty healthcare related products. On a regular basis the company adds additional products, including new products from small batch makers and other unique specialty food products. The company offers its nationwide customers access to the best food products available from around the world, quickly, most direct, and cost-effectively.

Some of the items the company sells include:

Seafood - Alaskan wild king salmon, Hawaiian sashimi-grade ahi tuna, Gulf of Mexico day-boat snapper, Chesapeake Bay soft shell crabs, New England live lobsters, Japanese Hamachi.

Meat and Game - Prime rib of American kurobuta pork, dry-aged buffalo tenderloin, domestic lamb, Cervena venison, elk tenderloin.

Produce - White asparagus, baby carrot tri-color mix, Oregon wild ramps, heirloom tomatoes.

Poultry - Grade A foie gras, Hudson Valley quail, free range and organic chicken, airline breast of pheasant.

Specialty - Truffle oils, fennel pollen, prosciutto di Parma, wild boar sausage.

Mushrooms - Fresh morels, Trumpet Royale, porcini powder, wild golden chanterelles.

Cheese - Maytag blue, buffalo mozzarella, Spanish manchego, Italian gorgonzola dolce.

Growth Strategy

To drive growth within the specialty food space, the company intends to focus its efforts in demand driven active sales channels and leverage its ability to offer its products across multiple selling channels, including to professional chefs within the restaurant channel, as well as directly to consumers at home via ecommerce.

The company anticipates attempting to grow its business through introduction of new products, suppliers, and food trends to customers across all of its sales channels; increased ecommerce conversion rates by improving the shopping experience on its website; growth in the number of unique visitors to its various ecommerce sites; maximize sales of current product catalog to its existing customers and potential new customers; expansion of availability of branded products and new brands which are consistent with the changing demands of customers in the U.S.; leveraging igourmet.com and mouth.com toward further expansion of its sales and distribution channels either organically or through acquisition; and leveraging its platforms to partner, build and/or acquire both foodservice brands and other consumer oriented entities and consumer brands, such as D2C digitally native brands, including stand alone brands and online retailer brands.

Government Regulation

The company requires specialty foodservice third-party vendors to certify that they maintain at least $3,000,000 liability insurance coverage in aggregate and compliance with Hazard Analysis and Critical Control Point (HACCP), an FDA- and USDA-mandated food safety program, or a similar standard.