Confectionary business Candy Club (ASX: CLB) has expanded its product line in the United States, now selling its specialty candy in 12 additional airports and casino resorts.
The Los Angeles-based start-up, which floated on the ASX in February, announced its products are now being sold by specialty retailer Lick in LA, New York La Guardia, Dallas and Charlotte airports, as well as in several high-profile resorts and casinos across the country.
Candy Club chief executive officer Keith Cohn said this latest deal with Lick offers “great potential” for the company.
“Our partnership with Lick, a dynamic candy retailer with outlets in high-profile locations in airports and high traffic destination resorts throughout the US, opens this market up for us,” he said.
Credit facility secured
The company also announced it has secured a revolving credit facility of up to US$1 million (A$1.4 million) from San Francisco-based CircleUp Credit Advisors.
This new financing line is expected to support Candy Club’s current and future growth initiatives.
Mr Cohn said the new facility is a strong testament to the business, brand and team.
“The business is performing well, and it clearly shows that others are taking notice and are willing to back us,” he said.
Wholesale business growth
Candy Club started with a confectionary subscription service, delivering a curated box of sweet treat varieties directly to customers each month.
Last July, the company rolled out its wholesale/business-to-business (B2B) arm to bulk sell its branded candy to specialty market retailers in the US.
In a business update in March, Candy Club reported rapid growth from the wholesale division with products being shipped to 750 independent retailers and new retail customers being added at a run-rate of five per day.
In addition, customers that received shipments during 2018 had a re-order rate exceeding 50%.
Mr Cohn said these independent retailers are in addition to bigger national accounts with clients including Hallmark Stores, gift and merchandise retailer Box Lunch and clothing boutique Francesca’s.
“When you consider the size of the addressable market in the US alone, our high close rate and the reorder patterns we are experiencing due to strong product sell-through, these independent retailers should be a massive growth segment for Candy Club in the years to come,” he said.