Children's confectionary retailer Yowie Group Ltd (ASX: YOW) has climbed 8% or 4.5 cents to 60 cents today after providing a positive update to the market on its sales and distribution progress in the US market.
The group has grand global ambitions to expand its brand strength outside Australia into the US and eventually Europe the Middle East and Asia.
For now the US is the key growth target and today's news that the group has signed up more accounts from several high-profile retailers including Walmart, Safeway, 7/11 and Unified Grocers is clearly inspiring investor confidence in the business.
The new sales and distribution accounts mean the Yowie chocolate products can be distributed in an additional 3,099 outlets in the first instance, with potential for rollout into over 19,000 stores. The group says the total potential market is 31,419 stores, with follow up announcements made to the market as purchase orders are received.
Notably, Yowie shares are up today, but down 32% over the past year as investor excitement over the group's potential to kick-start a Yowie craze amongst American children begins to soften.
However, today's news is positive and those buying into the group's potential to succeed may see an opportunity at today's prices.
Yowie has a similar challenge to wine-maker and retailer Treasury Wine Estates Ltd (ASX: TWE) in trying to tempt North American consumers into discretionary spending on its products, but the US consumer can be a demanding customer in a competitive market.
That's why investors may want to look at some Aussie companies moving into a growth sweet spot with an in-demand product the whole world needs – LNG.
