Yowie Group (ASX:YOW) should trade higher after receipt of purchase orders from a large national convenience chain, Valero Corner Store, multiple smaller candy specialist distributors, St Louis Zoo, and Summerwinds Resort, all in North America.
Yowie's commercial pipeline continues to increase, and deal terms have been agreed and purchase orders imminent from two Tier 1 national retailers following completion of new customer accreditation.
The company expects to be able to make further announcements in the coming weeks as additional purchase orders are received.
Valero is a fuel and convenience chain with a substantial 1,100 store distribution network nationally, increasing to 1,900 stores including Canada.
This compares to Coles 741 stores, and Woolworths 872 stores in Australia.
Yowie will initially roll-out in 235 stores across Texas, Colorado and Southern California, commencing in August, marketed via a 48-count Yowie display unit located in the high foot traffic pathway leading to the cash register.
The company anticipates a successful launch would result in a national roll-out encompassing the majority, if not all, of the 1,100 convenience stores across the US.
Yowie holds a license to re-introduce 'Kinder Surprise' style chocolates into North America.
In February, Yowie placed an order for a second high speed confectionery foil wrapping machine from Germany, which provides the option to double production output - and therefore delivering a potential major increase in revenue and cash flows.
The machine has been design specified to include additional functioning to accommodate the robotic components of the Yowie confectionery manufacturing process.
To highlight the size of the toy-in-chocolate product market, Kinder Surprise worldwide sales are 2 billion units.
Yowie has exclusive rights to U.S. Patents #5,925,321 & #6,099,872 valid until 2019, which allow FDA approved production of non-imbedded chocolate toy product.
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