Tofutti Dessert Sales Slip in 2015, but Pizza has Pizzaz
Tofutti Brands Inc. has reported that sales of approximately $13.76 million for fiscal year 2015 fell $589,000, or 4%, compared with net receipts in 2014. The slide was primarily due to a decline in frozen dessert sales, which was offset in part by increased demand for frozen food entrée products, primarily Pizza Pizzaz.
The Cranford, New Jersey, USA-headquartered company's frozen dessert business continues to be negatively impacted a general downturn in the ice cream category. In addition, sales of its soy-cheese product line decreased.
The company's gross profit in the year that ended on January 2, 2016, fell by $652,000 to $3,598,000, and the gross profit percentage decreased to 26% from 30% for the year ending on December 27, 2014. The percentage was negatively impacted by a $482,000 increase in sales allowance in the 2015 fiscal year. A net loss of $643,000 ($0.12 per share) was recorded, compared to a net loss of $163,000 ($0.03 per share) in fiscal 2014.
"In 2015, our sales continued to be negatively impacted by industry-wide sluggishness in the ice cream/frozen dessert category,” said David Mintz, chairman and chief executive officer. “We continue to see strong demand and new opportunities for our soy-cheese product line, which is a category leader. During fiscal year 2016 we intend to introduce several new frozen desserts and soy-cheese products.”
Mintz added that the new product rollouts, coupled with price increases instituted in 2015, “are expected to improve our profitability margins in 2016."
Founded in 1981, Tofutti Brands develops and distributes a wide line of dairy-free products. The company offers more than 80 milk-free foods including frozen desserts, cheese products and prepared frozen dishes throughout the United States and in more than 30 other countries. The range includes dairy-free ice cream pints, Tofutti Cutie sandwiches and novelty bars. Its growing array of prepared foods includes Pizza Pizzaz and Mintz's Blintzes, all made with milk-free cheeses.