00:42:14 · Pete Maldonado
[00:42:14] S0: They will eventually look for a liquidity event of some some sort, but I would say they are incredibly patient. Even like... So we have, like, a contract, obviously, when they bought the thing, but at some point, we're supposed to have to deliver equity back to them, and they are, like, verb... Verbalizing that, like, they have no interest in even... They'd rather... They'll stay in for the next ten years if they if they can. I would say that for all of us, we need to be thinking about what is the exit strategy because you should have something at some point. And at and at our scale right now, we're realizing the buyer pool from, like, a... For a strategic to be able to come and buy us. It's dwindling. There's only so many people that could actually acquire us at this stage. So now it's like, okay. And and we are we are always about having that optionality. I think optionality is... Has so much value. Right? Like, because you could do anything with the business. We could do another private equity raise. We can do a dividend recap because we're profitable. We can, you know, again, exit to a strategic or IPO. And so that... The IPO discussions becoming more and more real, the bigger that we get. And I think that... I think there's a massive opportunity for someone to come into the public markets with a better for you CPG company that's focused on food and beverage that... That's all they do. Right? And so you've got all of these... The the stand... You know, the the typical big CPGs that you have right now. Their stocks are suffering right now because they're being pulled down by these portfolios that are made up of products that nobody wants anymore. It's ultra processed foods. It's just a bunch of crap loaded with sugar and preservatives and all that. And and it's like, quite honestly, that's gone. That's not coming back. That's not... There's no cycle for that. Right? Like, this is like a cultural shift. People are too smart. They know what they're eating. And so we see that as a huge opportunity for Summit to build a portfolio of products that are only delivering on modern day, you know, dieting and food for the future. And so that's where, you know, I think we could I think we could accomplish that and starting with Chomps. Right? And with these meat sticks.
00:44:27 · Pete Maldonado, Guillaume Moubeche
And I'm not sure yet if it would look like Chomps is now extending into other categories and it's building off of that brand, or is it a portfolio of brands? Not sure yet. I have no idea. All I know is that the vision's there and kind of refining it. So [00:44:42] S1: What what would you say is is missing right now for Chomps to to do an IPO?
00:44:42 · Guillaume Moubeche, Pete Maldonado
[00:44:42] S1: What what would you say is is missing right now for Chomps to to do an IPO? [00:44:49] S0: A few things. I think, you know, I would like to have more scale. From a profitability standpoint, we're we're in a... At a period of time right now where beef has never been more expensive. We're at an all time high. You know? So it's very commodity driven. I think there's things within, like, the... From, like, a supply chain perspective that we need to be able to fix and button up. I would say, like, just for instance, we went from one to seven facilities. We're actually greenfielding another from from building it from ground up. That'll be our eighth. We need to be able to consolidate and simplify those things a bit. But what happens is from a continuous improvement standpoint, there's a lot of low hanging fruit. Yields are suffering, which means margins are suffering. So we need this... It's margin improvement over time. So we need to be able to do that. And then I think also having, like, a second and third leg of the stool would be nice. I mean, we're very... It's it's simple, which I think public markets reward in a way, but I also think it's risky because if somebody... People were suddenly like, we're not eating meat sticks anymore, what happens? And so there's inherent risk there. So we need to be able to diversify and have, you know, just something else in the in the portfolio. So...
00:44:49 · Pete Maldonado, Guillaume Moubeche
[00:44:49] S0: A few things. I think, you know, I would like to have more scale. From a profitability standpoint, we're we're in a... At a period of time right now where beef has never been more expensive. We're at an all time high. You know? So it's very commodity driven. I think there's things within, like, the... From, like, a supply chain perspective that we need to be able to fix and button up. I would say, like, just for instance, we went from one to seven facilities. We're actually greenfielding another from from building it from ground up. That'll be our eighth. We need to be able to consolidate and simplify those things a bit. But what happens is from a continuous improvement standpoint, there's a lot of low hanging fruit. Yields are suffering, which means margins are suffering. So we need this... It's margin improvement over time. So we need to be able to do that. And then I think also having, like, a second and third leg of the stool would be nice. I mean, we're very... It's it's simple, which I think public markets reward in a way, but I also think it's risky because if somebody... People were suddenly like, we're not eating meat sticks anymore, what happens? And so there's inherent risk there. So we need to be able to diversify and have, you know, just something else in the in the portfolio. So... [00:46:01] S1: And and more personal question, because I know we're almost like running out of time. Like, as a as a CEO, like, how do you level up and scale a bit faster than your business?
00:46:15 · Pete Maldonado
[00:46:15] S0: You're saying so so I can keep up with the business? Well, I I I... I'm not. I bowed out actually. So I bowed out a little over a year ago as CEO. So I was so I was CEO for ten years. Rashid was COO. After our private equity raise, we finally built a board. We never had a board before that. Our board board decisions were made via text between the two of us. You know? It was just like the two... Us two dudes. But then we brought in... Her name's Liz Carter. She's amazing. She started off as a board member, and then she's moved over. We hire her full time, brought her in as president and COO. When she came in as COO, me and Rashid Ali just became co CEOs. Did that for about three years. And then I decided I was... I needed to take a step back from the CEO role. One, because, like, it was just naturally happening, honestly. Like, Rashid is a a natural leader, but also in the the point in time where the business was, we were very... We were inventory constrained. So it was all based on supply chain and operations. We needed to fix that side of the business. We needed the whole entire business from sales. Every function needed to understand where we were, and having him deliver that message was super important. So what I was realizing is, like, doing a Gracie model. What decisions do I need to be involved with? Which ones do I own? What do I need to be informed of? And, like, our team is so stacked right now. We have so many experts that are better than not only me, but even Rashid. The two of us are just much less important... Well, it's less important to the business than we ever were. Right? And so I decided I'm gonna bow out because there's... Everyone else is better at making these decisions, and I'm moving to a chairman role. So I'm able to still do, like, the setting the vision, you know, maintaining that vision or or, you know, more high level strategic work and get out of the day to day.
00:48:07 · Guillaume Moubeche
[00:48:07] S1: Nice. How how do you feel about it? I did that a year ago, so I'm curious to know that. Yeah. Yeah.