Sugarmade Inc (OTCMKTS:SGMD) has finalized a long term distribution contract with Wagner Bartosch for its advertising supported screens for both desserts as well as frozen yogurt. Under the contract terms, the company will take manufacturing, supply and marketing rights for its product along with revenue addition period. This contract brings notable revenue prospects in terms of direct revenues from sales and even in form of advertising prospects to the specific demographic of the connected marketplace.
Sugarmade CEO Jimmy Chan reported said that marketing and supply of the product is natural for them as they have numerous consumers within the same marketplace. The product fits into existing product line, supply channels and manufacturing setup. Moreover, they find notable opportunities to give free dividers to their customers while driving high margin sales through advertising support.
Over the preceding 10 years, the frozen yogurt outlet that is self-served has noted remarkable growth and success. A prime element to this success is the choice and control the consumer has to make a new treat. But there is a chance of an unappetizing combination when a customer chooses more toppings and flavors than selected in normal course.
The Dividers offers separation of distinct portions of the products and gives a targeted marketing note to the client by ad placement of the product. Sugarmade reported that the advertising placement will permit company to supply Dividers to yogurt shops for free. It should be noted that these yogurt shops are self-served. This contract gives the advertiser an access to a high-value audience that is in age group of pre-teen to early twenties
On Monday, the shares price of Sugarmade declined more than 1% to close the day at $0.0900. The drop came at a share volume of 146,398 as against average share volume of 520,838. After the recent drop, the market cap of firm stands at $19.01 million.