The Biscotti brand has gone through a rebrand with an official relaunch in early October of 2021.
Biscotti's new look maintains similar color tones with an elevated feel and look. The brand is now more appealing to the heavy cannabis consumer who is usually attracted to "hype" higher potency products.
Rebranding Biscotti has opened up new collaboration opportunities with Pistil Point, Jelly Wizard, Critical Concentrates and Valley Grove - all of which are leading legacy brands in the space.
Biscotti's strain selection has been slimmed down to 9 staple flavors: Dolcetti, Banana Sundae, Orange Punch, California Limes, Sorbetto, Mango Smoothie, Tiramisu, Cherry Cheesecake, and Pink Grapefruit. These flavors will translate across the following SKUs: Singolo, Quattro and Fiore. We believe that this reduction in strains will allow us to scale our sourcing and manufacturing with ease as it let's our Company purchase packaging in bulk rather than constantly purchasing custom labels per new strain.
Lastly, we placed extra attention on our Singolo SKU given that the infused-preroll category has exploded over the last two years. All Biscotti Singolos are now testing between 35% and 48% THC whilst maintaining that same $12.00 MSRP.
Tutti's concentrate selection remains a retailer favorite with it's classic assortment of Bubble Hash, Sugar Diamonds, Live Sauce and Shatter. The concentrates have been our bread and butter, and as we continue to see demand for Tutti's Bubble Hash grow, we decided to pair the hash with an assortment of flower.
In late November '21 we launched Tutti Flower at a $23.00 MSRP per 1/8th ounce. The first three batches of flower did tremendously well at retail and it triggered us to begin taking this category very seriously. We launched flower during one of the most difficult times for the sector and have yet to hear any complaints from both retail, and consumers. The responses have been phenomenal since launch and we expect this category to surpass our hash sales within a quarter.
Tutti Flower originally launched in blank packaging with custom stickers adhered to the front and will soon shift to custom printed mylar bags (renders are below).
Tutti concentrates have steadily maintained pole position on Eaze's menu for the past 6 months. We have been working diligently to make sure that our concentrates remain competitive both in pricing and quality.
Tutti's Bubble Hash and Sugar Diamonds constantly take the #1 and #2 spots on Eaze's performance metrics.
We terminated our relationship with New Tropic in early 2021 after noticing that there were going to be serious internal complications at their facilities.
Biscotti and Tutti products are no longer produced at New Tropic and we learned our lesson - never rely entirely on one manufacturer.
A licensing agreement was signed with Natura (https://www.natura.io) in early Q3 '21. Natura's vast cultivation and manufacturing scale has proven to be quite complex and it will take some time for them to be able to efficiently produce all of our SKUs. Nonetheless, Natura has made an investment in us by providing us with products that do not require any down-payments or raw goods purchases - Natura is fronting 100% of the capital needed to get our SKUs to market.
Our legal agreement remains in trial stage and is set to renew on June 2nd '22.
Our smallest manufacturer, HHCo, has proven that size does not matter. Their small facility with limited personnel has been able to output the most out of all of our manufacturing partners. HHCo started off by solely producing Tutti Bubble Hash and is now also manufacturing Biscotti Singolos and Tutti Flower.
We are thankful for HHCo's constant efforts and intend on supporting their team throughout the year.
We brought on The Plant in Q2 '21 to produce Tutti's solvent-based concentrates. The Plant is currently manufacturing Tutti's Shatter, Live Sauce and Sugar Diamonds. They have had a few hiccups but remain efficient and transparent partners.
Our newest manufacturer is Utopia. Utopia was added as a manufacturing partner in Q3 '21 to help output more solvent based concentrates. We will need more time to determine the effectiveness of this relationship.
Biscotti Brands onboarded Aster Farms in mid-October '21 with the mission to help Aster grow their sales.
Our team opened +25 accounts within <30 days for Aster and increased their sales by 2X in <60 days. Our two sales superstars, Elena & Josiah, are the only two Company representatives selling Aster's SKUs.
Our Company receives a monthly minimum payment which covers a large portion of our full time team members' payroll, along with a percentage of Aster related sales.
These efforts would not have been possible without our distribution partner Nabis who created a new online CRM & Distribution platform which let's our Company place orders for all three brands.
To strengthen our presence and to get into more retail doors in the Southern California market area, we have added new full time sale representative Charlie Weiss. Charlie joined our Company in October '21 after having been with Pure Vape for 5 years.
Charlie's performance has been getting better and he is currently tasked with achieving no less than $75,000 in GMV. We expect Charlie to hit this goal no later than 03/01/2022.
COVID-19 has affected everyone on our team. Some of us lost loved-ones and some of us suffered after catching the virus. Nonetheless, we are all still healthy and cautious throughout our day-to-day activities.
Biscotti & Tutti have been sold in +320 accounts throughout the calendar year.
Our Top 3 accounts and average order sizes are as follows:
#1 - Patients Care First - 82 Orders - Average Order $2,500
#2 - The Green Cross - 30 Orders - Average Order $4,000
#3 - Flor X - 20 Orders - Average Order $7,000
* these figures exclude Eaze.com
Our Top 3 locations are the following:
#1 - San Francisco - 250 orders
#2 - Los Angeles - 125 orders
#3 - Tied between Modesto and Oakland with +100 orders each
We maintain a strong position with our payment terms and most of our accounts that were paying COD are still paying COD. However, our Net-7 to Net-14 accounts have mostly been pushing for Net-30 to Net-60 terms.
The pandemic caused a lot of problems for our retail partners and we noticed many asking for prolonged terms in order to remain in business.
Both brands' SKUs have been growing in demand with the following being our Top 3:
#1 - Tutti Bubble Hash - +120k units sold
#2 - Tutti Sugar Diamonds - +85k units sold
#3 - Biscotti Singolo - 10% of total GMV
Company has successfully reduced it's monthly burn rate by more than $35,000. *
Company burn averaged <$15,000 per month* with November '21 being a thousand dollars away from breaking even. We intend on being cashflow positive no later than Q2 2022.
Reduced 2021 Annual Net Loss by more than $400,000* equaling more than a 65%+ reduction vs. 2020.*
Total Net Income for 2021 equaled $212,491. *
We successfully raised $500,000 in the form of a SAFE from a San Francisco based investor. The investment was received in mid September '21.
Since then, three additional investors have joined the conversation and we plan on closing at least one more $500,000 SAFE within the next quarter. The holidays halted investment conversations and they resumed after the New Year.
* These numbers are based on preliminary financial results.