Weak Frozen Food Sales Hurt Tofutti’s Quarterly Results
Tofutti Brands reported net sales of $3,292,000 for the 13-week period that ended on September 27, 2014, a decrease of $150,000, or 4%, compared to net sales of $3,442,000 for the 13 weeks that ended on ended September 28, 2013.
David Mintz, chairman and ceo of the Cranford, New Jersey, USA-headquartered company, said the downturn was mainly due to a fall in frozen food product sales, primarily desserts. Net sales for the 39-week period that ended on September 27 amounted to $10,647,000.
The result was a decrease of $496,000, or 4%, compared to net sales of $11,143,000 for the same timeframe the year before. The slump was primarily attributed to weak sales during the second and third quarters, again mainly in the frozen dessert and frozen food categories. In addition, during the 13- and 39-week periods in 2014 the company increased promotional and allowance spending by over $100,000 and $192,000, respectively, which negatively affected bottom line results.
Tofutti’s gross profit and gross profit percentage for the 13-week period ending on September 27 were approximately $841,000 and 26%, respectively, compared to $1,037,000 and 30%, the year before.
Looking ahead, CEO Mintz said, “We are focused on reducing expenses while expanding the markets for our frozen food and non-dairy cheese products. Price increases instituted earlier in 2014 should provide improved gross margins during the remainder of the year."
Founded in 1981, Tofutti Brands Inc. distributes more than 80 milk-free products throughout the United States and in more than 30 other countries. Its line includes dairy-free ice cream pints, Tofutti Cutie sandwiches and novelty bars as well as Pizza Pizzaz, Mintz's Blintzes, and a Cheese Ravioli range. All are made with milk-free cheeses such as Better Than Cream Cheese, Sour Supreme and Veggie Cheese Slices.