Edible Garden AG Inc (EDBL) 2023 Q3 法說會逐字稿

Greetings, and welcome to the Edible Garden Third Quarter 2023 Business Update Conference Call. (Operator Instruction) Please note, this conference is being recorded.

您好，歡迎參加 Edible Garden 2023 年第三季業務更新電話會議。 （操作員指示）請注意，本次會議正在錄製中。

I will now turn the conference over to your host today, Ted Ayvas, Investor Relations. Ted, you may begin.

我現在將會議交給今天的東道主，投資者關係部門的泰德·艾瓦斯 (Ted Ayvas)。泰德，你可以開始了。

Thanks, Tom. Good morning and thank you for joining Edible Garden's quarter ended June 30, 2023, conference call and business update. On the call with us today are Jim Kras, Chief Executive Officer of Edible Garden; and Mike James, Chief Financial Officer of Edible Garden.

謝謝，湯姆。早安，感謝您參加 Edible Garden 截至 2023 年 6 月 30 日的季度電話會議和業務更新。今天與我們通話的是 Edible Garden 執行長 Jim Kras；麥克詹姆斯 (Mike James)，Edible Garden 財務長。

Earlier this is morning, the company announced its operating results for the three months ended September 30, 2023 -- on June 30, 2023, excuse me. The press release is posted on the company's website, www.ediblegardenag.com. In addition, the company will file its quarterly report on Form 10-Q with the US Security company's website as well at www.sec.gov. If you have any questions after the call and would like any additional information about the company, please contact Crescendo Communications at (212) 671-1020.

今天早些時候，該公司公佈了截至 2023 年 9 月 30 日的三個月的經營業績——對不起，是 2023 年 6 月 30 日。新聞稿發佈在該公司網站 www.ediblegardenag.com 上。此外，該公司還將透過美國安全公司的網站以及 www.sec.gov 提交 10-Q 表格的季度報告。如果您在通話後有任何疑問，並想了解有關該公司的更多信息，請聯繫 Crescendo Communications，電話：(212) 671-1020。

Before Mr. Kras reviews the company's operating results for the quarter ended June 30, 2023, and provide a business update, we would like to remind everyone that this conference call may contain forward looking statements. All statements other than statements of historical facts contained in this conference call, including statements regarding our future results of operations and financial position, strategy and plans and our expectations for future operations are forward-looking statements. The words expect, project, plan, believe, may, will, would, should, could, mission, strategy, potential, seek, strive and the negative of such terms and other words and terms of similar expressions are intended to identify forward-looking statements. These forward-looking statements are based largely on the company's current expectations and projections about future events and trends that it believes may affect its financial condition, results of operation, strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to several risks, uncertainties and assumptions as described in the company's most recent quarterly report on Form 10-Q filed with the US Securities and Exchange Commission. Because of these risks, uncertainties and assumptions, the forward-looking statements and circumstances discussed in this conference call may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Although the company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, level of activity, performance or achievements.

在 Kras 先生回顧公司截至 2023 年 6 月 30 日的季度營運業績並提供業務更新之前，我們想提醒大家，本次電話會議可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的所有陳述，包括有關我們未來經營業績和財務狀況、戰略和計劃以及我們對未來經營的預期的陳述，均為前瞻性陳述。期望、項目、計劃、相信、可能、將、將、應該、能夠、使命、策略、潛力、尋求、努力等詞語以及這些術語的否定以及類似表達的其他詞語和術語旨在識別前瞻性聲明。這些前瞻性陳述主要基於公司目前對其認為可能影響其財務狀況、營運績效、策略、短期和長期業務營運以及目標和財務需求的未來事件和趨勢的預期和預測。這些前瞻性陳述受到公司向美國證券交易委員會提交的最新 10-Q 表格季度報告中所述的多項風險、不確定性和假設的影響。由於這些風險、不確定性和假設，本次電話會議中討論的前瞻性陳述和情況可能不會發生，實際結果可能與前瞻性陳述中預期或暗示的結果有重大和不利的差異。您不應依賴前瞻性陳述作為未來事件的預測。儘管公司認為前瞻性陳述中反映的預期是合理的，但它不能保證未來的結果、活動水準、績效或成就。

In addition, neither the company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The company disclaims any duty to update these forward-looking statements, except as required by law. All forward-looking statements attributable to the company are expressly qualified in their entirety by these cautionary statements as well as others made in this conference call. You should evaluate all forward-looking statements made by the company in the context of these risks and uncertainties.

此外，本公司或任何其他人均不對任何這些前瞻性陳述的準確性和完整性承擔責任。除法律要求外，該公司不承擔更新這些前瞻性聲明的任何義務。所有歸屬於該公司的前瞻性陳述均完全受到這些警告性陳述以及本次電話會議中所做的其他陳述的明確限制。您應該在這些風險和不確定性的背景下評估公司所做的所有前瞻性陳述。

With that, I would now like to turn the call over to Jim Kras. Jim?

現在，我想將電話轉給吉姆·克拉斯 (Jim Kras)。吉姆？

Thanks, Ted. Good morning and thank you to everyone for joining us today. We continue to execute on our growth strategy as evidenced by the 19.4% increase in revenue for the third quarter of 2023. This growth reflects the expansion of our distribution channels as well as our growing brand recognition. We continue to be a leader in our industry setting the standard and the terms -- in terms of both service, excellence, and dependability. As a result, an increasing number of retailers are choosing Edible Garden to fulfill their requirements for organic and sustainable produce.

謝謝，泰德。早安，感謝大家今天加入我們。我們繼續執行我們的成長策略，2023 年第三季營收成長 19.4% 就證明了這一點。這種成長反映了我們分銷管道的擴張以及我們不斷成長的品牌認知度。我們繼續成為業界的領導者，在服務、卓越和可靠性方面製定標準和條款。因此，越來越多的零售商選擇 Edible Garden 來滿足他們對有機和永續產品的要求。

Company is growing our distribution network by strengthening ties upon retailers as well as welcoming new retailers, so thereby enhancing our reach. For instance, a collaboration with Woodman's Market has resulted in introducing Edible Garden produce and products across their 19 stores in Wisconsin and Illinois. Woodman's addition to our retail distribution network, boosted our presence in the Midwest and allows us to leverage our Edible Garden Heartland Facility in Grand Rapids, Michigan, which we launched in April of 2023.

公司正在透過加強與零售商的聯繫以及歡迎新零售商來擴大我們的分銷網絡，從而擴大我們的影響力。例如，與 Woodman's Market 合作，在威斯康辛州和伊利諾伊州的 19 家商店中引入了 Edible Garden 農產品和產品。 Woodman 加入我們的零售分銷網絡，增強了我們在中西部的影響力，並使我們能夠利用我們於 2023 年 4 月推出的位於密西根州大急流城的 Edible Garden Heartland 設施。

Additionally, we're pleased to welcome Tops Friendly Markets as the latest major retailer to join our distribution network and carry the Edible Garden brand, offering our range of sustainably grown high quality herbs. The addition of Tops Friendly Markets is significant as our products will now be available at all of their 149 stores across New York, Pennsylvania, and Vermont. In July as previously reported, the company expanded its relationship with Walmart to provide additional skews at Edible Garden's sustainably grown produce in locations across the Northeast, as well as broadening our reach within Walmart's retail locations in the East South-Central region of the United States.

此外，我們很高興歡迎 TopsFriendly Markets 成為最新的主要零售商加入我們的分銷網絡並攜帶 Edible Garden 品牌，提供我們一系列可持續種植的優質草藥。 Tops Friendship Markets 的加入意義重大，因為我們的產品現在將在其位於紐約、賓夕法尼亞州和佛蒙特州的所有 149 家商店出售。正如之前報導的那樣，該公司於 7 月擴大了與沃爾瑪的關係，為 Edible Garden 在東北部各地的可持續種植農產品提供額外的傾斜，並擴大了我們在美國中東南部地區沃爾瑪零售點的覆蓋範圍。

We've also continued with the rollout of our own -- our new Pulp line's sustainable gourmet sauces. All 16 Morton Williams retail locations across New York Metropolitan area have introduced the Pulp line, representing the brand's initial venture into the substantial and influential New York City marketplace. Morton Williams serves as an excellent partner for our Pulp line, aligning with their customers' demand for flavorful, sustainable, and organic fermented products, the content best expressed in the Pulp tagline, Bland to Bold. Building on this momentum, the company also brought Dierbergs Markets into its distribution network, introducing Pulp gourmet sauce selection to all 26 of its outlets in the greater St. Louis Metropolitan area, as well as our location at Missouri's Lake of the Ozarks.

我們也繼續推出我們自己的——我們新的紙漿生產線的可持續美食醬料。紐約大都會區的所有 16 個 Morton Williams 零售店均推出了 Pulp 系列，這是該品牌首次進軍龐大且有影響力的紐約市市場。莫頓·威廉斯(Morton Williams) 是我們紙漿系列的優秀合作夥伴，滿足客戶對美味、可持續和有機發酵產品的需求，紙漿標語“從平淡到大膽”中最好地表達了這一內容。在此勢頭的基礎上，該公司還將 Dierbergs Markets 納入其分銷網絡，向其位於大聖路易斯都會區的所有 26 家門店以及我們位於密蘇裡州奧沙克湖的門店推出紙漿美食醬選擇。

In the third quarter, Edible Garden launched EG Direct, a new division specifically focused on sourcing produce from partners and supplying these products to the company's retail distribution network. The company has consistently outperformed our competitors as evidenced by order fulfillment rates which routinely exceed industry averages. We view EG Direct as a strategic move to capitalize on in the company's existing distribution network partners and its expansive network of over 5,000 retail locations, potentially opening up additional revenue streams by distributing essential high-volume produce such as broccoli, carrots, and potatoes, among others. We believe that EG Direct could have a substantial effect on both revenue and profits of Edible Garden, by leveraging our established infrastructure.

第三季度，Edible Garden 推出了 EG Direct，這是一個新部門，專門專注於從合作夥伴那裡採購產品，並將這些產品供應給公司的零售分銷網絡。該公司的表現一直優於我們的競爭對手，訂單履行率經常超過行業平均就證明了這一點。我們認為EG Direct 是一項策略性舉措，旨在利用該公司現有的分銷網絡合作​​夥伴及其超過5,000 個零售點的廣闊網絡，透過分銷西蘭花、胡蘿蔔和馬鈴薯等重要的大批量農產品，有可能開闢額外的收入來源，除其他外。我們相信，透過利用我們現有的基礎設施，EG Direct 可以對 Edible Garden 的收入和利潤產生重大影響。

Edible Garden began shipping fall ornamentals from our new Edible Garden Heartland's facility in Grand Rapids, Michigan, just in time for the fall gardening season. These plants are now being shipped to committed big-box retailers across the company's distribution network. Following the acquisition of Edible Garden's Heartland last year, the company integrated cutting-edge technologies, like our proprietary and patented GreenThumb greenhouse management system, to boost our supply chain's efficiency. In addition to implementing our advanced growing techniques, these steps were in line with Edible Garden's philosophy of maximizing all available assets at our disposal.

Edible Garden 開始從我們位於密西根州大急流城的新 Edible Garden Heartland 工廠運送秋季觀賞植物，正好趕上秋季園藝季。這些植物現在正被運送到公司分銷網絡中的大型零售商處。繼去年收購 Edible Garden 的 Heartland 後，該公司整合了尖端技術，例如我們專有的 GreenThumb 溫室管理系統，以提高我們的供應鏈效率。除了實施我們先進的種植技術之外，這些步驟也符合 Edible Garden 最大限度地利用我們所掌握的所有可用資產的理念。

The company received a Notice of Allowance from US Patent and Trademark Office for our innovative Self-Watering Display, underscoring our dedication to innovation. The Self-Watering Display has proven to be a game-changer, revolutionizing the way plant life is extended, maintaining optimal freshness, and greatly reduced and spoilage in retail settings. The implementation of this cutting-edge technology allows retailers to showcase plants at their freshest, minimizing waste, and delivers superior products to the consumer. Initially introduced at all Meijer locations, the success of these displays has led to a broader national deployment.

該公司的創新自動澆水顯示器獲得了美國專利商標局的許可通知，突顯了我們對創新的奉獻精神。事實證明，自動澆水展示是一個遊戲規則的改變者，它徹底改變了延長植物壽命的方式，保持了最佳的新鮮度，並大大減少了零售環境中的腐敗現象。這項尖端技術的實施使零售商能夠展示最新鮮的植物，最大限度地減少浪費，並向消費者提供優質的產品。這些顯示器最初在所有 Meijer 地點推出，並取得了成功，並在全國範圍內進行了更廣泛的部署。

The company also started distributing two new flavors, our Vitamin Whey product line to Meijer stores across the Midwest. These innovative additions, Ice Cream Cake and Orange Creamsicle enhance our flavor-focus Vitamin Whey line, known for its advanced high-performance formula that supports muscle recovery and overall well-being while also offering great taste. The product features our proprietary multi-vitamin whey protein, and amino acid complex formulas. Vitamin Whey stands out for its exceptional value, providing superior supplementation and recovery benefits at an affordable price.

該公司也開始向中西部的 Meijer 商店分銷兩種新口味，即我們的維生素乳清產品系列。這些創新的添加物，冰淇淋蛋糕和橙子冰棒，增強了我們注重風味的維生素乳清系列，該系列以其先進的高性能配方而聞名，支持肌肉恢復和整體健康，同時還提供美味。本產品採用我們專有的多種維生素乳清蛋白和胺基酸複合配方。維生素乳清因其卓越的價值而脫穎而出，以實惠的價格提供卓越的補充和恢復功效。

We believe these new flavors will reinforce Edible Garden's image as a flavor maker, as we continue to develop innovative cutting-edge flavors in collaboration with our partner, Nutracom. Given Vitamin Whey's successful history at Meijer, we're optimistic that these new flavors will further enhance the brand's appeal our aim is to create the highest quality, most flavorful whey protein on the market, and we plan to launch in a -- nationwide the rollout of the product in the near future.

我們相信，隨著我們繼續與合作夥伴 Nutracom 合作開發創新的尖端口味，這些新口味將鞏固 Edible Garden 作為口味製造商的形象。鑑於維生素乳清在 Meijer 的成功歷史，我們樂觀地認為這些新口味將進一步增強該品牌的吸引力，我們的目標是創造市場上最高品質、最美味的乳清蛋白，我們計劃在全國範圍內推出該產品將在不久的將來推出。

Originally, the company was awarded a grant from the USDA organic certification program managed by the Farm Service Agency to cover various expenses related to organic crop certification that Belvidere, New Jersey facility. This support is valuable and appreciated because we continue to lead the controlled environment, agriculture industry and prioritized local organic and sustainable produce. Additionally, following grants from West Michigan Works! and its specialty Crop Block Program of the Michigan Department of Agriculture and Rural Development, our employees at Edible Garden Heartlands facility will undergo additional leadership and food safety training. These grants not only demonstrate our dedication to food safety, but also complement our ongoing research collaborations.

最初，該公司獲得了由農業服務機構管理的美國農業部有機認證計劃的撥款，用於支付新澤西州貝爾維代爾工廠與有機作物認證相關的各種費用。這種支持是有價值和值得讚賞的，因為我們繼續引領受控環境、農業產業並優先考慮當地有機和永續產品。此外，在西密西根工廠的資助下！及其密西根農業和農村發展部的專業作物塊計劃，我們在 Edible Garden Heartlands 工廠的員工將接受額外的領導力和食品安全培訓。這些贈款不僅體現了我們對食品安全的奉獻精神，而且補充了我們正在進行的研究合作。

We are currently working with the New York Institute of Technology, the USDA, and the EPA, on how nanobubble technology impacts food safety and processing of fresh produce. Moreover, our partnership with Auburn University's Department of Horticulture is focused on addressing food safety issues related to food produce -- fresh produce, such as -- related to fresh produce such as contamination from listeria. These combined efforts reflect our commitment to maintaining the highest standards of food safety and quality in our products.

我們目前正在與紐約理工學院、美國農業部和美國環保署合作，研究奈米氣泡技術如何影響食品安全和新鮮農產品的加工。此外，我們與奧本大學園藝系的合作重點是解決與食品相關的食品安全問題（例如李斯特菌污染等新鮮農產品）。這些共同努力體現了我們對維持產品食品安全和品質最高標準的承諾。

In July, Edible Garden unveiled GreenThumb 2.0, the latest iteration of our sophisticated greenhouse management system, representing a major leap forward in automation technology. This upgraded system enhances our dynamic forecasting abilities, utilizing real-time data more efficiently. Our goal is sort of more accurately predict the requirements for our distribution partners and adapt our growing strategy accordingly. Overall, I'm encouraged by the outlook of the business, given the growth in our retail network, expansion of our product offering, and careful management of our expenses. As a result, we expect to maintain strong organic revenue growth and remain laser-focused on achieving our target of positive cash flow before year-end.

七月，Edible Garden 推出了 GreenThumb 2.0，這是我們先進的溫室管理系統的最新版本，代表著自動化技術的重大飛躍。升級後的系統增強了我們的動態預測能力，更有效地利用即時數據。我們的目標是更準確地預測我們的分銷合作夥伴的需求，並相應地調整我們的成長策略。總體而言，鑑於我們零售網路的成長、產品供應的擴大以及對費用的精心管理，我對業務前景感到鼓舞。因此，我們預計將保持強勁的有機收入成長，並繼續專注於在年底前實現正現金流的目標。

I would like now to turn the call over to Mike James, Chief Financial Officer of Edible Garden, who will review the financial results for the three-month period ending September 30, 2023. Mike?

我現在想將電話轉給 Edible Garden 財務長 Mike James)，他將審查截至 2023 年 9 月 30 日的三個月期間的財務業績。麥克？

Thanks, Jim, and good morning. The company reported year-over-year revenue growth of 19.4% to $3.3 million in the quarter ended September 30, 2023, compared to $2.8 million reported in the third quarter of 2022. The herbs, produce, and floral business saw a 22.8% increase, primarily due to a net increase in orders received from our existing customer base and a slight increase in orders from -- for herbs received from new distribution partners.

謝謝，吉姆，早安。該公司報告稱，截至 2023 年 9 月 30 日的季度收入同比增長 19.4%，達到 330 萬美元，而 2022 年第三季度報告的收入為 280 萬美元。香草、農產品和花卉業務增長了 22.8% ，主要是由於從我們現有客戶群收到的訂單淨增加，以及從新分銷合作夥伴收到的草藥訂單略有增加。

Cost of goods sold was $3.3 million for the three months ended September 30, 2023, compared to $2.6 million for the three months ended September 30, 2022. We continue to use contract growers to grow herbs for our customers as we ramped up production in Edible Garden Heartland, which resulted in higher cost of goods sold. Additional labor and material costs required to grow the products sold into the retail channel also contributed to the increase.

截至2023 年9 月30 日止三個月的銷售成本為330 萬美元，而截至2022 年9 月30 日止三個月的銷售成本為260 萬美元。隨著我們提高Edible 的產量，我們繼續使用合約種植者為客戶種植藥草。花園中心地帶，導致銷售商品成本更高。銷售到零售通路的產品所需的額外勞動力和材料成本也導致了這一增長。

Selling, general and administrative expenses were $2.4 million for the three months ended September 30, 2023, an increase of $459,000 compared to $1.9 million for the three months ended September 30, 2022. The increase was primarily driven by an increase in costs incurred as it relates to the ramping up of operations of Edible Garden Heartland facility, which was acquired in August of 2022, as well an increase in depreciations costs due to the acquisition of the facility. We also increased production of Cut Herbs of Edible Garden, Heartland and our Belvidere, New Jersey facility for which we purchased equipment intended to increase our efficiency. Net loss was $2.4 million or $0.69 per share for the three months ended September 30, 2023, compared to a net loss of $2.1 million or $7.13 per share for the three months ended September 30, 2022.

截至2023 年9 月30 日止三個月的銷售、一般及管理費用為240 萬美元，較截至2022 年9 月30 日止三個月的190 萬美元增加了459,000 美元。這一增長主要是由於因涉及 2022 年 8 月收購的 Edible Garden Heartland 設施的營運增加，以及因收購該設施而導致的折舊成本增加。我們還增加了 Heartland 食用花園和新澤西州 Belvidere 工廠的新鮮切藥草產量，我們為這些工廠購買了旨在提高效率的設備。截至2023年9月30日止三個月的淨虧損為240萬美元，即每股0.69美元，而截至2022年9月30日止三個月的淨虧損為210萬美元，即每股7.13美元。

Before turning back the call over to the operator for questions, I would like to take a moment to discuss the successful public offering we completed in September, which generated roughly $3 million in gross proceeds. The capital raise was an important step that enabled us to obtain the essential financing required to expedite the company's growth strategy.

在將電話轉回接線員詢問問題之前，我想花點時間討論一下我們在 9 月成功完成的公開發行，該發行產生了大約 300 萬美元的總收益。此次融資是重要的一步，使我們能夠獲得加快公司成長策略所需的必要融資。

I would now like to open up the call for questions. Operator, could you please assist us with that?

我現在想開始提問。接線員，您能協助我們嗎？

(Operator Instructions) Anthony Vendetti, Maxim Group.

（操作員說明）Anthony Vendetti，Maxim Group。

Thank you. I was just wondering, could just give us a little more color. You've signed up lots of new partners. Any highlights from the Walmart partnership or any of the other recent partnerships that you signed up? What do you think is giving you that -- the ability to get these new contracts? And then in terms of margins, as you roll out some of the higher margin products, should we start to see that materialize and a higher gross margins in the following quarters? Thanks.

謝謝。我只是想知道能否給我們多一點色彩。您已經簽了很多新合作夥伴。與沃爾瑪的合作夥伴關係或您最近簽署的任何其他合作夥伴關係有什麼亮點嗎？您認為是什麼讓您有能力獲得這些新合約？然後就利潤率而言，當您推出一些利潤率較高的產品時，我們是否應該開始看到這一點在接下來的幾季實現並實現更高的毛利率？謝謝。

Thanks, Anthony, and good morning. In regards the new distribution, the company has continued to build the momentum of its success at key partners like Meijer. Obviously, the syndicated data out there that show the market share that we continue to help drive for our partner. Walmart, I think has seen that as well our performance as a top-flight shipper -- quicker, packer, shipper with great in stock rates and fill rates, which is a lot of them, obviously they gain share themselves in this category.

謝謝，安東尼，早安。在新的分銷方面，該公司繼續在 Meijer 等關鍵合作夥伴身上建立成功的勢頭。顯然，聯合數據顯示了我們繼續幫助我們的合作夥伴推動的市場份額。沃爾瑪，我認為我們也看到了我們作為頂級托運商的表現——更快、包裝、庫存率和填充率都很高的托運商，其中很多，顯然他們在這一類別中獲得了份額。

So we were awarded additional business, as I noted in the script today at -- by bringing in more distribution centers, I think hopefully we'll continue to see that type of commitment from Walmart as they look at us as a trusted partner. Considering our performance, word gets out in this industry and people turn to us to supply their herb needs, I think you see that, that's evident with Tops.

因此，正如我今天在腳本中指出的那樣，我們獲得了額外的業務——通過引入更多的配送中心，我認為希望我們能夠繼續看到沃爾瑪的這種承諾，因為他們將我們視為值得信賴的合作夥伴。考慮到我們的表現，這個行業的消息傳開，人們轉向我們來滿足他們的草藥需求，我想您已經看到了，這在 Tops 中很明顯。

There's always the challenge of someone having their existing supplier and long-standing relationship. So they -- when you're talking about the size of business that they are looking to move to, let's say to an edible garden. That process is well thought out and evaluated before they do sell. So it's a real credit to the company.

擁有現有供應商和長期關係的人總是面臨挑戰。所以他們——當你談論他們想要遷移到的企業規模時，比如說一個可食用的花園。在出售之前，這個過程是經過深思熟慮和評估的。所以這對公司來說是真正的榮譽。

While we do pick up new accounts because usually, you're dislodging a competitor and the buyers do not make moves that quickly. So I think just performance in stock rates, fill rates commitment, support, customer service, and we continue to fire on all cylinders and executing. I think that's why you see that growth that you see in the additional partnerships that we're bringing in from the retailers, I think. And I think that will continue.

雖然我們確實會獲得新客戶，因為通常情況下，您會趕走競爭對手，而買家不會那麼快採取行動。因此，我認為只是庫存率、填充率承諾、支援、客戶服務的表現，我們將繼續全力以赴並執行。我認為這就是為什麼我們從零售商引入的額外合作夥伴關係中看到了增長。我認為這種情況將會持續下去。

As far as the higher margin Pulp sustainable products, sustainable sauces, and products like that, you'll continue to see more offerings, new products always the lifeblood of consumer-packaged goods company. I think you can see this evolution of Edible Garden go from grower -- picker, packer, shipper, grower to more of a integrated provider of not only living products, but more shelf-stable products that we can help grow some of the ingredients and have high quality, all with an eye on sustainability.

就利潤率較高的紙漿可持續產品、可持續醬料和類似產品而言，您將繼續看到更多產品，新產品始終是消費品公司的命脈。我想你可以看到Edible Garden 從種植者——採摘者、包裝者、運輸者、種植者到更多的綜合供應商，不僅提供生活產品，而且提供更耐儲存的產品，我們可以幫助種植一些原料和產品。擁有高品質，並著眼於永續性。

So this idea or notion of just this CEA informed next-generation CPG company, which I think is a big vision for the company moving forward. And we're already making strides towards that.

因此，CEA 的這個想法或概念為下一代 CPG 公司提供了訊息，我認為這是公司前進的一個宏偉願景。我們已經在朝著這個方向邁進了。

Okay, great. And then, so Jim, just on the hot sauce. You mentioned that when you're selling that into your customer base, is that a different shelf-space than your produce and herbs? How does the negotiation go when you're dealing with hot sauce versus some of the fresh produce?

好的，太好了。然後，吉姆，就吃辣醬。您提到，當您將其銷售給客戶群時，這是否與您的農產品和草藥不同的貨架空間？當您處理辣醬和一些新鮮農產品時，談判進展如何？

Sure. Great question. The strategy here was continue to -- we always focus, Mike and I really focus on leveraging the existing assets where we have to get the most out of that.

當然。很好的問題。這裡的策略是繼續——我們始終關注，麥克和我真正專注於利用現有資產，我們必須充分利用現有資產。

And this is a great example that where we develop this line of sauces, scaled it up. We made that investment this last quarter and inventory and sales call. But that product and the buyer that we call on is the same buyer that buys produce. And so the strategy with this is to have this in the refrigerated salad dressings part of the produce section, and the buyer is usually the same buyer that's already buying our herb.

這是一個很好的例子，我們開發了這個系列醬汁，並擴大了規模。我們在上個季度進行了這項投資以及庫存和銷售電話。但該產品和我們呼籲的買家是購買農產品的同一買家。因此，策略是將其放在農產品部分的冷藏沙拉醬部分，而買家通常是已經購買我們藥草的同一買家。

So it's a new product that's an extension from where we're at. Obviously, peppers are sold in produce, so it's a natural fit. And so for us to -- the barriers of entry to that buyer are kind of wiped away because we're already shipping in.

所以這是一個新產品，也是我們現有產品的延伸。顯然，辣椒是作為農產品出售的，所以這是很自然的搭配。因此，對我們來說，買家的進入障礙已經被消除了，因為我們已經發貨了。

So not only we picked up -- only that proven to be a door opener with the likes of Dierbergs and some of these other areas or the country where it's totally new and they may not necessarily be taking our produce in. But with Metro New York and New and Eastern Mississippi, where we're a powerhouse. We're able to go in there and present it.

因此，我們不僅接受了——事實證明，這對迪爾伯格斯和其他一些地區或國家來說是一個全新的機會，他們可能不一定會接受我們的產品。但紐約都會區以及新密西西比州和東密西西比州，我們是那裡的強國。我們能夠進去並展示它。

And like I said the barriers of entry are pretty much eliminated. And it's a unique new item that's gotten some pretty good traction. So we're pretty excited about the future. And we're already making some pretty great strides on some new activity.

正如我所說，進入障礙幾乎已消除。這是一款獨特的新產品，受到了相當大的關注。所以我們對未來感到非常興奮。我們已經在一些新活動上取得了相當大的進展。

Okay, great. Thanks. And lastly, Jim or Mike, feel free to answer this question. So in terms of pricing, a number of other companies have taken price increases in this inflationary environment, have you been able to do that at this point?

好的，太好了。謝謝。最後，吉姆或麥克，請隨意回答這個問題。那麼在定價方面，很多其他公司在這種通膨環境下都採取了漲價的做法，你們現在能做到嗎？

Are you planning on doing that? Or do you have to sort of wait until the reset? How does that work for you in terms of taking price increase?

你打算這樣做嗎？還是必須等到重置？就價格上漲而言，這對您有何作用？

Do you want me to answer that, or do you want Mike? I can answer that, and Mike feel free to chime in.

你想要我回答還是你想要麥克回答？我可以回答這個問題，麥克也可以插話。

Sure.

當然。

Look, I think we've worked hard this past year to take price increases. We've held our prices, if you go back and you look at some of our releases, we've worked hard to hold prices through the pandemic prior to the IPO. And then we held prices through kind of the integration of being a public company as well as providing that value to our retailers.

聽著，我認為我們在過去的一年裡努力應對價格上漲。我們一直保持價格不變，如果你回去看看我們發布的一些產品，你會發現我們在 IPO 之前努力在疫情期間保持價格不變。然後，我們透過上市公司的整合以及向零售商提供價值來控制價格。

We started to take price increases really this year, and that was accepted because I know we were a great partner to our retailers. So they were obviously going to help us out and put us in a position to continue to grow. I think that could still looks -- still suffers a little bit from inflation, has come down quite a bit. But I think strategically we're warranted, and I think as we become more prominent with the brand.

今年我們確實開始接受漲價，這一點被接受了，因為我知道我們是零售商的優秀合作夥伴。因此，他們顯然會幫助我們，並使我們能夠繼續發展。我認為，看起來仍然會受到通貨膨脹的影響，而且已經下降了很多。但我認為從戰略上講，我們是有道理的，而且我認為隨著我們的品牌變得更加突出。

We'll look to try to do what we can on the price increase part. I know we provide exceptional service and that should -- I think the profits for what we do to help the retailers sell our product, we should share in some of that. So I think on an account-by-account basis where we know that we can -- certain items can get in a little bit more pricing power. Obviously, we have volume discounts in place for the bigger players, but we continue to push to China, you know get our fair share based on our performance relationship and what the market can shoulder.

我們將盡力在價格上漲方面盡我們所能。我知道我們提供卓越的服務，這應該——我認為我們幫助零售商銷售我們的產品所獲得的利潤，我們應該分享其中的一部分。因此，我認為，在逐個帳戶的基礎上，我們知道我們可以——某些商品可以獲得更多的定價能力。顯然，我們為較大的參與者提供了批量折扣，但我們繼續向中國推進，你知道根據我們的業績關係和市場的承受能力獲得我們的公平份額。

Mike, do you want to add anything to that?

麥克，你想補充什麼嗎？

No, I think that's kind of sums it up. I mean, some of the price increases started to go into effect in Q2 and continued to Q3. So where the grocery chain will accept it and pass it onto the consumer. Obviously, we want to see it.

不，我認為這就是總結。我的意思是，一些價格上漲從第二季開始生效，並持續到第三季。因此雜貨連鎖店會接受它並將其傳遞給消費者。顯然，我們想看到它。

I mean, we've had increases in plastic, in corrugated, in fuel, and health insurance wages. So we've suffered as well as everybody else out in the industry. And the retailers does realize that they have to give us a price increase. So it's a --

我的意思是，我們的塑膠、瓦楞紙、燃料和健康保險工資都增加了。所以我們和這個行業的其他人一樣都遭受了痛苦。零售商確實意識到他們必須給我們漲價。所以這是一個——

It's an ongoing negotiation.

這是一個持續的談判。

Yeah, it's an ongoing negotiation.

是的，這是一個持續的談判。

And I think what's nice is -- look, I think, Mike is pretty good on the company, staying focused on making sure that we're driving towards profitability. And it's important for us to once again, get what I think we've earned as a partner. It's an ongoing negotiation. We have said half of our relationships with our -- even our key retailers, probably unlike, competitors in the industry.

我認為好的一點是——看，我認為，麥克對公司非常滿意，他一直專注於確保我們獲利。對我們來說，再次獲得我認為我們作為合作夥伴應得的東西非常重要。這是一個持續的談判。我們已經說過了我們與我們的關係的一半——甚至是我們的主要零售商，可能與行業中的競爭對手不同。

And so those conversations continue to go on and that's a constant negotiation, but we push to get what should be fair. And I think the retailers understands that, but obviously they always want to be best priced, and it's a competitive environment for them. Once again, I think it we have a good open dialogue, is kind of rare.

因此，這些對話仍在繼續，這是一場持續的談判，但我們努力爭取公平的結果。我認為零售商明白這一點，但顯然他們總是希望獲得最優惠的價格，這對他們來說是一個競爭環境。再說一遍，我認為我們進行良好的公開對話是很罕見的。

Okay, great. Thanks very much. I'll hop back in the queue. Appreciate it.

好的，太好了。非常感謝。我會跳回到隊列中。欣賞它。

Thank you, Anthony.

謝謝你，安東尼。

(Operator Instructions) [Nick Pincus], Forest Capital.

（操作員說明）[Nick Pincus]，森林之都。

Thanks for taking my call, congrats on another very strong quarter.

感謝您接聽我的電話，祝賀又一個強勁的季度。

I know you've touched on this, but you've clearly built a very robust distribution network and now you've start introducing Pulp, which appears to be very high margin shelf-stable product.

我知道您已經談到了這一點，但您顯然已經建立了一個非常強大的分銷網絡，現在您開始推出紙漿，這似乎是利潤率非常高、貨架穩定的產品。

Are you planning to introduce any other new products, either your own or third-party products through the distribution channel?

您是否計劃透過分銷管道推出其他新產品，無論是您自己的產品還是第三方產品？

Thank you for the question, Nick. Yes. So right now, it's really -- we've used the produce business to continue to drive the distribution platform. We continue to increase our door account, our store account over 5,000 currently growing. Not only have we been opening new accounts. We've been expanding within the good thing, accounts that we have. So what you'll see is you'll see an introduction of new products.

謝謝你的提問，尼克。是的。所以現在，我們確實利用農產品業務來繼續推動分銷平台。我們不斷增加我們的門帳戶，目前我們的商店帳戶已超過 5,000 個。我們不僅開設了新帳戶。我們一直在擴大我們擁有的帳戶。因此，您將看到的是新產品的介紹。

We have a pipeline -- a very compelling pipeline, all which is sort of tie back to who we are as a company, whether it's a living good or something that is sustainably grown or packaged. We are really focused on being this leader in this kind of next gen space of better products for you with an eye on the environment. And there's really no one else better to do this in my humble opinion, of course I'm biased, than Edible Garden, since we are a grower, pickup, packer, shipper, we are USDA organic certified. We are leader in the CEA space.

我們有一條管道——一條非常引人注目的管道，所有這些都與我們作為一家公司的身份息息相關，無論是生活用品還是可持續種植或包裝的東西。我們真正致力於成為下一代領域的領導者，為您提供更好的產品，同時專注於環境。在我看來，確實沒有人比 Edible Garden 更能做到這一點，當然我有偏見，因為我們是種植者、採摘者、包裝者、托運者，我們是美國農業部有機認證的。我們是 CEA 領域的領導者。

So again, you're going to see an interesting slate leveraging not only the current relationships. With new relationships we've also set up something called EG Direct, which is going to be sourcing commodity items. So when you're a company like Edible Garden and you've continued to deploy resources or developed patented software and you have an eye on your fill rates and you achieve some of the industry's highest grow rates in a very tough perishable industry; you leverage those relationships to work with the buyers, to supply them with some of these commodities. Since I have field of growers and other type of growers who come to us all the time, who may not have the relationship that want to work with us, that help bring in some of these commodity products. So it's really based on trust and performance to move some of this product.

再說一次，你將看到一個有趣的石板，不僅利用當前的關係。透過新的合作關係，我們還建立了一個名為 EG Direct 的機構，該機構將負責採購商品。因此，當您是像 Edible Garden 這樣的公司，並且您不斷部署資源或開發專利軟體，並且關注您的填充率，並且在一個非常艱難的易腐行業中實現了行業最高的增長率時；您利用這些關係與買家合作，向他們提供其中一些商品。由於我的領域有種植者和其他類型的種植者，他們一直來找我們，他們可能沒有想要與我們合作的關係，這有助於引進一些商品產品。因此，移動某些產品實際上是基於信任和性能。

And so we've been working on our 20,000 square foot pack house in Belvidere, New Jersey. We just sort of laying down asphalt and finishing -- somewhat putting the finishing touches on that part of the facility. Having that type of storage, processing, and cross dock, will allow us to leverage that facility to its fullest. And so I'm thrilled about that because I think we can really take on quite a bit of business and we have the relationships and the appetite from our customers in order to do so.

因此，我們一直在新澤西州貝爾維代爾建造 20,000 平方英尺的包裝房。我們只是鋪設瀝青並進行收尾工作——對設施的那部分進行最後的收尾工作。擁有這種類型的儲存、處理和交叉轉運，將使我們能夠充分利用該設施。所以我對此感到很興奮，因為我認為我們確實可以承擔相當多的業務，並且我們擁有客戶的關係和興趣來做到這一點。

So you'll see a whole -- just to recap, a whole new slate of products. I'm not going to say the full spectrum. I think there, we'll be focused on what we're good at. As well as in this commodity items that we know that we can move pretty quickly through the distribution platform.

所以你會看到一個整體——回顧一下，一個全新的產品系列。我不會說完整的頻譜。我認為在那裡，我們將專注於我們擅長的事情。我們知道，在這種商品中，我們可以透過分銷平台快速移動。

But the big asset at Edible Garden is the distribution platform, and the name, and the relationships. And I think we're going to -- you're going to see a lot coming from us moving forward, as it relates to leveraging that. Sticking with the strategy that Mike and I've always deployed, which is really what we have.

但食用花園的最大資產是分銷平台、名稱和關係。我認為我們將會——你會看到我們向前邁進，因為這與利用這一點有關。堅持麥克和我一直部署的策略，這確實是我們所擁有的。

No, thanks that's definitely helpful. And to follow up on that. Can you elaborate specifically on the Walmart relationship and how you intend expand on that.

不，謝謝，這絕對有幫助。並跟進此事。您能否具體詳細說明與沃爾瑪的關係以及您打算如何擴展這種關係。

Yes, thank you. The Walmart relationship continues to grow quite nicely. We put a significant investment in both facilities this past quarter in order to increase our capacity for processing. And we started in -- I believe that was in July, we started to ship additional Cut Herbs into more DC based on an award that we got from them. With a very active relationship with the buyer there, they continue to turn to us for more -- they've already started to increase some of their orders over the holidays from their forecast.

是的，謝謝。沃爾瑪的關係繼續發展得很好。上個季度我們對這兩個設施進行了大量投資，以提高我們的處理能力。我們開始——我相信是在七月，我們開始根據我們從他們那裡獲得的獎勵，將額外的切好的草藥運送到更多的華盛頓特區。由於與那裡的買家有著非常活躍的關係，他們繼續向我們尋求更多——他們已經開始在假期期間增加一些訂單。

And it's a nice relationship, and we work hard to hit their target. I mean, you're talking about a 98% fill rate in a perishable multi-skew business that could -- that always has its challenges. Just considering how fickle produce can be at times, but we continue to drive forward. The company's been laser focused on servicing Walmart, knowing that they're a potential game changer account for further business, and we treat them as such.

這是一種良好的關係，我們努力實現他們的目標。我的意思是，您談論的是一個易腐爛的多重傾斜業務中 98% 的填充率，這可能始終面臨挑戰。只是考慮到產品有時是多麼變化無常，但我們繼續前進。該公司一直專注於為沃爾瑪提供服務，因為知道他們是進一步業務的潛在遊戲規則改變者，我們也這樣對待他們。

And they've been a good partner, frankly. And so onward and upward. We're excited about what we're doing with them. I only expect if we continue to execute, that they will return the favor as they always have, because they work on numbers and performance. And that's what we're focused on. So once again, a nice relationship and fingers crossed.

坦白說，他們一直是很好的合作夥伴。如此向前和向上。我們對與他們一起所做的事情感到興奮。我只希望如果我們繼續執行，他們會一如既往地回報我們，因為他們致力於數位和績效。這就是我們關注的重點。因此，再次建立良好的關係並祈禱。

And we're in the heat of the battle right now with our peak season, but we should come out in pretty good shape.

我們現在正處於旺季的激烈戰鬥中，但我們應該會以良好的狀態出現。

Thanks, keep up the good work.

謝謝，繼續努力。

Appreciate it, Nick.

很感激，尼克。

Thank you. And there are no further questions in queue. At this time, I would now like to turn the floor back to management for closing remarks.

謝謝。並且隊列中沒有其他問題。現在，我想請管理階層發表結束語。

Thank you again for joining us today. We are encouraged by the progress we have made at Edible Garden and are enthusiastic about the prospects for the business. We remain committed to maintaining and accelerating organic revenue growth as well as turning the corner to positive cash flow. We look forward to providing updates on our progress in the coming months.

再次感謝您今天加入我們。我們對 Edible Garden 所取得的進展感到鼓舞，並對這項業務的前景充滿熱情。我們仍然致力於維持和加速有機收入成長，並扭轉正現金流。我們期待在未來幾個月提供有關我們進展的最新資訊。

Thank you and have a great day.

謝謝您，祝您有美好的一天。

Thank you. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開電話線並度過美好的一天。感謝您的參與。