For the three month period ended August 31, 2010, the Company reported revenues of $930,908, representing a 2.5% increase over sales in the prior three month period ending August 31, 2009. Additionally, the Company reported a 35% decrease in its operating losses to $395,243 on a cash flow basis, excluding non-cash charges for depreciation and amortization. In the same period of 2009, operating loss was $605,081 on a cash flow basis.
Daniel W. Dowe, President and Chief Executive Officer of Artisanal commented, “While we recognize that there is significant room for improvement in our financial results we are seeing indications that our new retail program is gaining traction and helping to move the company toward its original five year plan. Notably, our web business increased over 25% in our first fiscal quarter and in September our web business increased 56% compared to September 2009. Overall, we are seeing further revenue growth in the immediate quarter ending November 30, 2010 compared to the same period of last year as well as to the first quarter.
Our goal is to eliminate operating losses through the continued expansion of our retail business with Costco and we have started the process in two new Costco divisions that should come on board in the current fiscal quarter. Our new retail distributor is helping us add to our store count and we have also gained more momentum with our new foodservice programs that are geared toward larger scale events. We expect to announce a new foodservice distributor shortly and we anticipate this partnership will help us gain entry into the hosting properties that they currently supply with non-cheese specialty foods.
Mr. Dowe continued, “In addition to hiring a new Director of Sales we added five new sales professionals to strengthen our foodservice and retail sales teams. The added sales support is expected to directly impact sales, allowing us to better service existing accounts and more rapidly open new accounts alongside our distributors. The recent expansion of our sales force provides the support necessary to maximize the opportunities presented by our aggressive branding and marketing of our retail trademark CheeseClock by Artisanal(TM) and enhances our execution of the programs we developed to expand sales in our other two business units – foodservice and e-commerce.”
In August 2007 Artisanal Brands, Inc. acquired 100% of the ownership interests in Artisanal Premium Cheese. The Company operates in the specialty cheese market in the United States. The company markets and distributes a line of specialty, artisanal and farmstead cheese products, as well as other related specialty food products under its own brand to food wholesalers and retailers, as well as directly to consumers through its catalogue and Web site, artisanalcheese.com. Artisanal Brands, Inc. is based in New York, New York.