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Junior Restaurant Services Company Rises on Distribution Agreement
By: AllPennyStocks.com News
February 9, 2012
In 2011, the National Restaurant Association (NRA) estimated that the growth rate of the quick-service restaurant industry would outpace the full-service restaurant industry, continuing to close the gap in overall industry size between the two. Quick serves were expected to reach $168 billion in 2011, a 3.3% growth from the year prior, while the full-service industry would grow 3.1 percent to $195 billion. Overall, restaurant industry sales were expected to rise by 3.6 percent to $604 billion, which now represents 49 percent of the total food dollar in the United States. That’s an increase of 25 percent in about a half of a century. It seems that a couple recessions haven’t slowed people from eating out a whole lot more since the 1950’s. The restaurant industry is still expanding rapidly, in fact.
One type of food that has particularly gained in popularity in the last couple decades is the “wrap”. Virtually every restaurant, whether it’s fast food or full-service, has wrap-style foods on their menu today. Tapping into the growing industry is New Jersey-based Cono Italiano, Inc. (OTCBB:CNOZ), the exclusive license holder for the North American Distribution and Manufacturing rights for "pizza cono," a one-of-a-kind, drip-free, cone-shaped pizza made from proprietary dough and manufacturer of frozen foods. Outside of its more ergonomic and functional shape, the Cono Italiano cone is similar to a traditional wrap, but its calorie count is equal to or less than a traditional style with 40 percent less sodium in addition to the benefit of being spill-proof.
Cono Italiano licenses the rights for “pizza cono” from Spuntibreak Srl, the Italy-based owner of the designs, recipes and technology of the pizza cone. Spuntibreak brands the unique cone as “Hands Pizza,” with several locations across the world, according to its website.
Building its own brand over the last couple years, Cono Italiano has established relationships with some big names in the industry, including TurboChef, the pioneer and manufacturer of commercial and residential ovens using cutting-edge technologies to expedite the cooking process without sacrificing quality. In 2010, Cono Italiano worked with TurboChef to develop a variety of cooking apparatus and settings for the Tornado Oven and all High Speed Ovens used in Dunkin Donuts, Starbucks, Subway, Convenience Stores and Supermarkets.
The two companies tested and perfected the ovens to rapidly cook the “pizza cones” (the cones were only for pizza fillings when they originated in Europe) with a variety of ingredients, such as cheese steak, tacos, chicken parmigiana and egg and cheese, as well as traditional pizza filling. In addition to those flavors, there are many different types other than the original “Pizza Cone” today, including cones filled with Caesar salad, vegetables, gyro-style, meatballs, pasta, ham and cheese, and deserts. Basically, anything that can be wrapped can go in the easy-to-hold cone.
Today, Cono Italiano announced that it has inked a distribution agreement with Spuntibreak and Ashcroft Management Ltd. for Ashcroft, a United Kingdom company, to become an official distributor of Spuntibreak Srl products-Cono Italiano Inc. For its part, Spuntibreak-Cono Italiano Inc. agrees to produce private label pizza cone product for Ashcroft to be sold throughout the U.K. Amongst other terms of the agreement – including Spuntibreak-Cono not selling to current Ashcroft customers - Ashcroft agrees to purchase a minimum of one pallet of "pizza cone" products monthly.
In a phone conversation with AllPennyStocks.com, Cono Italiano CEO Mitchell Brown explained that the pizza cones would be made by Cono Italiano in New Jersey with TurboChef ovens and then shipped to the UK for Ashcroft to distribute. One pallet contains about 7,000 cones, according to Brown.
On the technical front, the CNOZ chart made a solid climb since touching 3.5 cents in the beginning of December to nearly triple in value in the last part of January before retracing back to the area of 6 cents recently. Today, the stock got a nice bounce with the news right off the 200 day moving average (dma) and push back above the 50 dma in closing ahead by 11.61% at $0.0625. Both of those key averages are trending upward, a sign of strength in a chart. This new agreement, coupled with the technicals, could be a bellwether for good things to come for Cono Italiano and its shareholders. Proper due diligence is encouraged.
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