Tootie Pie Appeals to Expanding Luxury Good Market
Tootie Pie Company, Inc. (OTCBB: TOOT)
TOOT: The NEW Consumer and Luxury Items
“Tootie Pie understands the new U.S. consumer! Consumer markets are bifurcating into two fast-growing pools of spending: high end spending and low end spending.
At the high end, consumers are trading up, paying a premium for high-quality, emotionally rich, high-margin products and services. At the low end, consumers are relentlessly trading down, spending as little as possible to buy basic, low-cost goods and services.
What Tootie Pie understands is that dessert is a luxury item and as such consumers are seeking a high end product. Tootie Pie embraces the notion that quality is prevailing in the comfort food – dessert niche and the vast range of mediocre, medium-range pie business is not the growth sector. Tootie Pie’s consumer appreciates a quality product and is willing to pay for this product in order to spend more time where it counts: job, hobbies, and family!
Tootie Pie is protecting and enhancing its quality brands image.
Middle-class consumers are buying products at price premiums in categories like homes, cars, vacations and food. This phenomena is understood as the premium segmentation and presents a very rich opportunity, with more than $600 billion in sales in the U.S. in homes, transportation, dining, travel, food and beverages, personal products and services apparel, and home goods.
Michael J. Silverstein in his new book, Treasure Hunt: Inside the Mind of the New Consumer, notes the top end markets is expanding at 10% to 12% and the bottom is expanding more slowly at 5% or 6%. Volume loss is occurring in the middle. He noted a big company that is facing this death in the middle is Kraft. Fundamentally this is in the cheese category. Consumers are buying private label cheeses that are 20% to 25% less expensive than the Kraft brand, or they are buying expensive romance cheeses, imported from Europe, for which they pay $12 to $15 a pound.
This phenomenon of the middle class is largely in the western world where you have those who have earned their way to higher incomes through education. Education is the primary driver of real income growth and this education creates a population that is savvy and sophisticated about buying products. They are the kind of people who go to the internet and research products before they buy them.
In focusing on the high end market Tootie Pie understands the optimism and sense of success that consumers feel. Tootie Pie embraces the research that indicates there is a very large segment that is really very optimistic about the future. Their pies appeal to that huge consumer segment that makes the budget balance every month. They go on vacations, they buy things they want and not necessarily on impulse, they buy durable goods, and they keep newer cars, they have hobbies and a busy lifestyle. When they splurge on a luxury item they look for quality and value; they view themselves as in the driver’s seat and in charge. This is the luxury good consumer that is attracted to Tootie’s Pies.
They appreciate comfort food. They appreciate quality. They have jobs, careers, families and interests. Buying a high end, quality pie meshes with the consumer values and their lifestyle. Providing a high end pie is where Tootie Pie sees growth!
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Tootie Pie Company, Inc.
129 Industrial Drive
Boerne, TX 78006
Phone: (210) 737-6600
Fax: (210) 237-4750
Website: www.tootiepieco.com
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Forward Looking Statement: This release contains “forward-looking statements” based on current expectations but involving known and unknown risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, whether as a result of new information, future events or otherwise. The Company’s plans and objectives are based on assumptions involving judgments with respect to future economic, competitive and market conditions, its ability to consummate, and the timing of, acquisitions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate. The Company makes no undertaking to update such forward-looking statements. Except for the historical information contained herein, the matters discussed in this release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See filings with the Securities and Exchange Commission, including, without limitation, recently filed Form 10-KSB and 10-QSB.