Financial Data and Key Metrics Changes - Revenue for Q4 2025 was approximately $4.1 million, up from $3.9 million in the prior year, indicating strong performance across the business [11] - Full year revenue was approximately $12.8 million, down from $13.9 million in 2024, primarily due to the strategic exit from low-margin floral and lettuce segments [15] - Gross profit for Q4 was approximately a $1.2 million loss compared to flat in 2024, reflecting elevated costs from onboarding new retail customers [13] - Full year gross profit was approximately a loss of $0.2 million compared to a gain of $2.3 million in 2024, with a focus on recovering gross margins in 2026 [15] Business Line Data and Key Metrics Changes - Strong performance in cut herbs and vitamins/supplements, with double-digit growth driven by new accounts and existing relationships [7] - Significant growth in the condiment platform, supported by new customer wins such as Wakefern and Safeway [7] - Incremental distribution of over 700 additional retail locations, expanding reach across key markets [7] Market Data and Key Metrics Changes - The global ready-to-drink (RTD) category is estimated at approximately $842.5 billion in 2025 and projected to reach roughly $1.26 trillion by 2033, indicating a significant market opportunity [9] - The company is expanding its portfolio into higher margin, shelf-stable, and ready-to-drink categories, leveraging existing retail relationships [10] Company Strategy and Development Direction - The company is evolving from a core controlled environment agricultural platform to a broader innovation-driven consumer packaged goods business [6] - Focus on expanding into the RTD category, which is a fast-growing market with high demand for clean label, shelf-stable nutrition [8] - The strategy includes leveraging existing infrastructure and retail relationships to support long-term growth and scalability [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue gaining market share and expanding distribution, with a focus on maintaining strong relationships with major retailers [39] - The company is optimistic about the growth trajectory, particularly in the RTD segment, which is expected to provide robust margins and significant revenue opportunities [23] - Management emphasized the importance of operational excellence and customer satisfaction in driving future growth [20] Other Important Information - The company ended the year with improved stockholders' equity and reduced total debt, indicating a stronger balance sheet position [16] - The investment in new accounts during Q4 is seen as necessary for securing shelf space and building fulfillment capabilities for major retailers [13] Q&A Session Summary Question: How should we view the margins from fresh to CPG products? - Management expects more robust margins from the RTD and consumer packaged goods due to their shelf-stable nature, reducing shrink issues associated with fresh products [19] Question: Where specifically do you expect to put out your RTD products? - The RTD products will primarily be in the protein segment, with plans to develop private label products for major retailers [25] Question: What can we expect regarding CapEx requirements for the Midwest facility? - The facility will require significant CapEx for machines and retrofitting, with plans to be in the marketplace by the tail end of 2027 [33] Question: How sustainable is the level of growth and distribution gains? - Management is confident in sustaining growth and expanding distribution, driven by increased consumer demand for fresh goods and the company's operational improvements [38]

Core Insights - Edible Garden AG Incorporated has begun shipping fresh potted and cut herbs to Kroger, marking a significant expansion in its distribution network and commitment to sustainable growth [2][4]. Company Overview - Edible Garden is a leader in controlled environment agriculture (CEA), focusing on locally grown, organic, and sustainable produce [5]. - The company operates advanced vertically integrated greenhouses and processing facilities in multiple locations, including New Jersey, Michigan, and Iowa [5]. - Edible Garden's products are available in over 5,000 retail locations across the U.S., Caribbean, and South America [5]. Strategic Initiatives - The partnership with Kroger aligns with Edible Garden's Zero-Waste Inspired® mission and Kroger's Zero Hunger | Zero Waste initiative, emphasizing a shared commitment to sustainability and community-focused food systems [4]. - The company utilizes proprietary technologies, such as the GreenThumb 2.0 software and patented Self-Watering displays, to enhance product freshness and reduce environmental impact [6]. Product Offerings - Edible Garden offers a variety of fresh herbs, nutrition products, and specialty food items, including plant and whey protein powders, gourmet sauces, and fermented products [7]. - The company is recognized as a FoodTech 500 firm and is involved in Walmart's Project Gigaton sustainability initiative [7].