NEW YORK, December 5, 2019 — — GenTech Holdings, Inc. (OTC Pinks: GTEH) (“GenTech” or the “Company”), an emerging leader in the high-end CBD food and drinks marketplace, is pleased to provide current and prospective shareholders with an update and strategic analysis of the market context as the Company prepares to launch its new CBD Specialty Coffee Subscription product. Company analysis suggests this is an extremely compelling market opportunity that has been underexploited in both the CBD and specialty coffee markets.
“This product is positioned right at the heart of powerful intersecting trends,” commented David Lovatt, CEO of GenTech. “In both cases, we are seeing a transition where a niche market is exploding toward mainstream adoption. The structural trend toward consumer adoption of online deliverable consumables is likely to fully mature over coming years, as more and more consumers adopt the convenience and efficiency model. As that process matures, markets like the specialty coffee subscription market will blossom in scale.”
Management believes the upside potential for this market opportunity is enormous as this transition unfolds. According to YouGov statistics, only 7% of US households currently subscribe to a food or beverage product. Globally, according to Statista data, the online foodstuff market is running at just 10% engagement in terms of consumers willing to buy food stuffs online.
Lovatt continued, “Subscription services are a massive growth area from everything from full meals through shaving products right down to makeup and hair care. Even smaller offerings such as FabFitFun have millions of active and unique visitors per month, while larger players like Blue Apron triple that level of traffic and user activity. But this is still the early innings of a trend destined to become truly mainstream.”
In fact, management believes there are already clear signs of this blossoming trend. Revenue in e-Commerce segment‚ food and beverages alone, in the United States is expected to reach $15bn by 2021, rising from $9bn in 2016. But, inside of that, Payments News reports that the approximate revenue from those who subscribe to products using the Amazon platform, rose from $2.9bn in 2014 to 11bn in 2018 with a significant proportion of these purchases in the grocery and gourmet food section. That’s a 260% increase over this period.
In coffee specifically, data from a consumer survey conducted by National Coffee Association of America implies that nearly half of all cups of coffee consumed are “specialty” in terms of consumer perceptions. That’s important given that the total retail value of the U.S. coffee market is estimated to be $48 billion dollars with specialty comprising approximately 55% value share. In other words, the “Specialty” category in coffee is becoming dominant in both volume and sales. Coffee is also becoming increasingly popular with younger consumers, who are more likely to adopt an online subscription consumer pattern, with the number of 18-24 year-olds who drink specialty coffee rising from 28% to 35% since 2013.
“SecretJavas from GenTech is unique in this space as we are not only building a platform that offers the versatility to choose the type of coffee you receive each month, but also offers something special from our curated selection, something that you won’t find anywhere else – something selected exclusively for our customers,” concluded Lovatt. “For example, our first customers to subscribe will not only be able to select from our standard and premium coffees to include in their subscription, but they will be among the first in the US to enjoy ‘SONATA – Laurina Red Honey’ coffee, which we offer in our Secret Javas line as an exclusive product for the US market. It has an intense body and sweetness with an incredible caramel and vanilla flavor. We are artisans and we choose only the very best coffees to bring to our customers.”
The website is live at www.secretjavas.com.
About GenTech Holdings, Inc.
GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The company is creating a national chain of Hemp Centric Coffee Shop Retail Spaces where patrons can relax, drink CBD infused Teas and Coffees, try various own-brand products and experience holistic education and classes. The company is also building an extensive outreach program working with medical practitioners across the country in their own locations to educate their patients and increase awareness of the benefits of THC free CBD Products. All of this is offered under the brand ‘The Healthy Leaf’.
This press release may contain forward-looking statements, including information about management’s view of GenTech, Inc.’s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech’s future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.
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