Confectionery manufacturer Yowie Group Ltd (ASX: YOW) could pleasantly surprise shareholders when the company reports its full-year results later this year. Now might be the time to get set in this company.
Yowie today announced that after a successful trial of its Yowie confectionery product in Walmart's Texas stores in 2014, the company's product range will be distributed to 1,507 stores across the US.
Products will be located at prime store locations for impulse buys on check-out stands, with 10 points of distribution per store. Yowie has already begun distributing 4,000 cases of product to the first 20 Walmart stores.
And the distribution deal could get even bigger. Walmart has more than 4,300 stores and 645 club stores across the US.
Yowie shares have gained 4% in trading by late morning at 66 cents per share, but that might be nothing compared to the gains investors could see when the increase in sales in 2015 is reported later this year.
Not content with just its confectionary products, Yowie is also focused on Yowie World, which aims to teach children more about endangered animals, and introduce them to the Yowie collectables through games, quizzes, stickers and books. The company has also launched an app, which appears to be growing in popularity.
Further expansion of the company's product into Australia, New Zealand and Asia is planned while a second stage is focused on Europe and the Middle East. If the company can gain similar exposure in Australia and New Zealand through the likes of Woolworths Limited (ASX: WOW) and Coles – owned by Wesfarmers Ltd (ASX: WES) supermarkets that it has in the US with Walmart, the company could be onto something big.
While highly speculative and totally reliant on its main confectionary product, Yowie could be an interesting stock to add to your watchlist.
