UNLOCKD Inc. (OTCID: BFCH), doing business as UNLOCKD, announced that its Ancient Extracts USA subsidiary has completed the initial production run of Morning Magic functional mushroom coffee in a K-Cup-compatible single-serve format. The company is now preparing Morning Magic K-Cups for launch on Amazon and its direct-to-consumer website, AncientExtracts.com, while sending samples to prospective retail category buyers as it pursues broader brick-and-mortar distribution opportunities.
For UNLOCKD, the significance extends beyond another product launch. Morning Magic K-Cups demonstrate the company's broader strategy in action: identify consumer demand, rapidly develop differentiated products, and pursue distribution into large established categories where successful commercialization can have a meaningful impact on growth. John P. Gorst, Chief Executive Officer of UNLOCKD, stated, "This is exactly the kind of opportunity we want to pursue at UNLOCKD. We have a differentiated product, a massive established category and multiple potential paths to market. With production complete, our focus now turns to commercialization - Amazon, AncientExtracts.com, retail outreach and getting Morning Magic in front of more consumers."
Morning Magic combines Lion's Mane, Cordyceps, Chaga and Reishi in a decaffeinated, coffee-inspired formulation. The single-serve format removes the measuring and mixing associated with many functional mushroom products and brings Morning Magic into a brewing format already familiar to millions of consumers. Dr. Jordan P. Balencic, Chairman and Chief Science Officer of UNLOCKD, noted, "We listen to our customers. Many love the ritual of preparing Morning Magic. But there is another consumer who wants functional ingredients with maximum convenience. They want to push a button and get on with their day. We believe K-Cups allow us to meet both consumers where they are."
The U.S. coffee pod and capsule market represents a multibillion-dollar annual category with single-serve brewing deeply embedded in American consumer behavior. Morning Magic gives Ancient Extracts USA an opportunity to bring a differentiated functional wellness product into that established purchasing ecosystem across direct-to-consumer, Amazon and potentially national retail channels. For UNLOCKD, the potential impact is significant. The company does not need to capture a large percentage of the overall single-serve coffee market for Morning Magic to become a meaningful revenue contributor. At a planned retail price of approximately $26 per 22-count box, 100,000 boxes represents approximately $2.6 million in gross retail sales value; 500,000 boxes represents approximately $13 million; and one million boxes represents approximately $26 million. These figures illustrate potential gross retail sales value and are not projections of company revenue, which will vary based on sales channel and other factors.
Gorst added, "This is where we believe the opportunity becomes particularly compelling for our shareholders. We are taking differentiated products into established consumer categories where successful execution can materially change the scale of our business. Morning Magic K-Cups don’t need to become the biggest coffee product in America to matter enormously to UNLOCKD. Amazon is one channel. Retail is another. Our objective is to build distribution, prove demand and scale what works." The company has contacts within large-format brick-and-mortar retail channels and is putting samples directly in front of prospective category buyers. No retail placement or purchase order should be inferred unless subsequently announced by the company.
Morning Magic K-Cups join an Ancient Extracts USA portfolio that has expanded to 72 SKUs, including individual products and bundles, as UNLOCKD continues building its functional wellness platform around product innovation and expanded distribution. Balencic emphasized, "Our advantage is that we can move. We can listen to customers, recognize an opportunity, develop a product and bring it to market quickly. Morning Magic K-Cups are a perfect example. We identified a consumer need, created a differentiated format and are now moving into commercialization. That is the model we intend to repeat across the UNLOCKD portfolio."
As part of the launch, UNLOCKD is giving BFCH shareholders and supporters an opportunity to experience the new product directly. For the next 30 days, customers can receive 15% off Morning Magic K-Cups using promotional code KCUPS15 at checkout at AncientExtracts.com. The company expects to provide additional updates regarding availability on Amazon and AncientExtracts.com, as well as broader retail commercialization, as milestones are achieved.
