GenTech Sees Jump in Demand for Specialty Coffee Home Delivery as Coronavirus Risk Drives Stay-at-Home Dynamic
New York, New York--(Newsfile Corp. - March 12, 2020) - GenTech Holdings, Inc. (OTC PINK: GTEH) ("GenTech" or the "Company"), an emerging leader in the high-end CBD food and drinks marketplace, announces that the Company has noticed an uptick in demand for its "Secret Javas" specialty subscription coffee product as fears related to the spread of COVID-19 begin to transform consumer behavior, resulting in a jump in demand for products available for online purchase and home delivery.
According to numerous research pieces, the COVID-19 pandemic is driving a broad "stay-at-home" dynamic that is set to reshape the playing field in many markets over coming months. For the coffee industry, the impact of the spread of novel coronavirus on consumer behavior patterns is widely expected to play out as avoidance of coffee shops in terms of in-store traffic and "hanging out". But that does not necessarily imply that people will be consuming less total gourmet coffee. The Company believes that the upshot is likely to be excess demand showing up in products like Secret Javas that offer a gourmet specialty coffee experience without exposure to high-traffic public places like coffee shops.
"We see a boost from coronavirus for our model, both now during the primary phase of the scare, and afterwards," commented David Lovatt, CEO of GenTech. "Once you show people that they can have the gourmet coffee shop experience in the comfort of their own homes, you can't put the genie back in the bottle. This short-term driver is likely to have long-term consequences because you're penetrating corners of the market that simply hadn't been interested in delivery services in the past. It's a powerful expansion process."
Management notes that, even without this new driver, the subscription market for household goods has been verging on an all-out boom. According to Forbes, this segment grew by 890% between 2014 and 2018. Other credible analysis suggests that growth accelerated in the past two years and may continue to accelerate in the years to come, marking a clear secular trend that represents an evolution of consumer behavior as the logistical and technological factors involved in coordinating and delivering complex goods matures and consumer behavior evolves in response.
A massive further expansion in these trends is possible from here: Only 7% of US households currently subscribe to a food or beverage product online leaving massive growth according to YouGov. Worldwide, the online foodstuff market, according to Statista, is running at 10% engagement by consumers willing to buy food and beverage products online. Revenue in e-Commerce segment' food and beverages alone, in the United States is expected to reach $15bn by 2021, rising from $9bn in 2016.
Lovatt continued, "This is a once-in-a-generation catalyst that will reshape the world in many important ways. Companies built to leverage virtual connectivity, online consumption, and home delivery of goods and services are inevitably going to win out in a world defined by concerns about public places. We are proud to offer some of the best coffee in the world delivered right to your front door to help people weather this process."
About GenTech Holdings, Inc.:
GenTech Holdings, Inc. is a publicly traded company under the symbol GTEH. The company is creating a national chain of Hemp Centric Coffee Shop Retail Spaces where patrons can relax, drink CBD infused Teas and Coffees, try various own-brand products and experience holistic education and classes. The company is also building an extensive outreach program working with medical practitioners across the country in their own locations to educate their patients and increase awareness of the benefits of THC free CBD Products. All of this is offered under the brand 'The Healthy Leaf'.
This press release may contain forward-looking statements, including information about management's view of GenTech, Inc.'s future expectations, plans and prospects. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "plans," "anticipates," or "may," and similar conditional expressions are intended to identify forward-looking statements. Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of GenTech, its subsidiaries and concepts to be materially different than those expressed or implied in such statements. Unknown or unpredictable factors also could have material adverse effects on GenTech's future results. The forward-looking statements included in this press release are made only as of the date hereof. GenTech cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, GenTech undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by GenTech.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/53386