AMC Entertainment to Expand Its Business Beyond Theatrical Exhibition and Enter the Multi-Billion Dollar Popcorn Industry

Rhea-AI Summary

AMC Entertainment is expanding its business model to tap into the multi-billion dollar popcorn market. Starting in 2022, AMC will open up to five kiosks and counters in shopping malls, selling its famous AMC Theatres Perfectly Popcorn. Additionally, AMC plans to offer food delivery services for popcorn, takeout 'To Go' packages, and prepackaged microwaveable popcorn available in supermarkets later in the year. This diversification aims to create a new revenue stream while enhancing customer accessibility to their favorite movie snacks.

Positive

• Expansion into the lucrative multi-billion dollar popcorn market.
• Plans to open up to 15 retail locations by the end of 2022.
• Opportunity to create a new revenue stream beyond traditional theatrical exhibition.

Negative

• None.

AMC to operate shopping mall retail stores, counters and kiosks serving freshly prepared AMC Theatres Perfectly Popcorn, starting in 2022

AMC is also preparing to partner with food delivery-to-home services, allowing movie lovers to order from a nearby AMC movie theatre location and enjoy AMC Theatres Perfectly Popcorn in the comfort of their own home

AMC will sell “To Go” packages of freshly popped popcorn at its theatres for takeout and/or pickup

Coming later in 2022, consumers will be able to purchase prepackaged and/or microwaveable ready-to-pop AMC Theatres Perfectly Popcorn at supermarkets and convenience stores around the country

LEAWOOD, Kan.--(BUSINESS WIRE)-- AMC Entertainment (NYSE:AMC), the largest theatrical exhibitor in the United States, in Europe & the Middle East and in the world, today announced that it is expanding its business outside of the traditional theatrical exhibition industry with plans to capture a piece of the growing multi-billion dollar popcorn market. AMC will sell its popular AMC Theatres Perfectly Popcorn, which has been available to consumers in theatres for more than a century continually since the year 1920, through four new platforms.

Photo courtesy of AMC Theatres

• Beginning in 2022, AMC will begin selling freshly made AMC Theatres Perfectly Popcorn at select mall retail locations around the country. Those new kiosks, counters and stores will feature real AMC movie theatre popcorn and other AMC movie theatre treats.
• Additionally, AMC also plans to make its AMC Theatres Perfectly Popcorn, freshly popped in nearby theatres, available through food delivery-to-home services. In this way, consumers will be able to enjoy a slice of the AMC experience when being entertained at home.
• AMC will sell "To Go" packages at its theatres of freshly popped popcorn for takeout and/or pickup.
• Also coming later in 2022, AMC plans to offer prepackaged and ready-to-pop microwaveable AMC Theatres Perfectly Popcorn, which will begin hitting shelves in supermarkets and convenience stores around the country.

The U.S. multi-billion popcorn market is expected to grow significantly over the next several years. With the popularity of AMC Theatres’ Perfectly Popcorn, and given AMC’s current position as the largest freshly popped popcorn provider in the United States, AMC believes that an expansion into the sale of popcorn on a retail basis outside of theatres is a natural extension of AMC’s core business.

AMC initially plans to launch up to five “AMC Theatres Perfectly Popcorn” stores, counters and/or kiosks in shopping malls around the country in the first half of 2022. These initial locations are likely to be in malls without an AMC theatre location. AMC plans to have up to 15 retail stores open by the end of 2022. Significantly more locations are expected to open in 2023 and beyond. The menu will consist of traditional and gourmet-flavored popcorn, candy and other movie theatre treats, Coca-Cola Freestyle options and bottled water. All such AMC Theatres Perfectly Popcorn locations will feature popcorn that is freshly made on site, allowing consumers to enjoy the unbeatable taste and aroma of “real movie theatre popcorn” outside of the theatre.

Also in the plans for 2022, consumers will be able to order AMC Theatres Perfectly Popcorn from nearby theatres, and have it delivered to their homes through the use of existing delivery-to-home mobile services. AMC will also begin selling “To Go” packages of freshly popped popcorn at its theatres for takeout and/or pickup. And AMC is working to offer prepackaged and ready-to-pop microwaveable AMC Theatres Perfectly Popcorn, hitting the shelves in supermarkets and convenience stores around the country later in the year.

Adam Aron, Chairman of the Board and CEO of AMC, commented: “The announcement that AMC will become a competitor in the multi-billion popcorn market is so natural and logical, one wonders why the idea has not been tried before. Needless to say, AMC knows popcorn ever so well. On our busiest days, AMC Theatres currently pops in the range of 50 tons of popcorn per day. But the popularity of popcorn extends well beyond the doors of our movie theatres. With this new AMC initiative, we expect to reach entirely new segments of the U.S. population with our popular AMC Theatres Perfectly Popcorn. For AMC Entertainment, this is an opportunity to diversify our business and to create a new revenue stream for our company, all the while delighting popcorn lovers whether they are in our theatres, are on the go, or find themselves in the comfort of their own homes.”

About AMC Entertainment Holdings, Inc.

AMC is the largest movie exhibition company in the United States, the largest in Europe and the largest throughout the world with approximately 950 theatres and 10,500 screens across the globe. AMC has propelled innovation in the exhibition industry by: deploying its Signature power-recliner seats; delivering enhanced food and beverage choices; generating greater guest engagement through its loyalty and subscription programs, web site and mobile apps; offering premium large format experiences and playing a wide variety of content including the latest Hollywood releases and independent programming. For more information, visit amctheatres.com.

Category: Company Release

View source version on businesswire.com: https://www.businesswire.com/news/home/20211104006280/en/

INVESTOR RELATIONS:

John Merriwether, 866-248-3872

InvestorRelations@amctheatres.com

MEDIA CONTACTS:

Ryan Noonan, (913) 213-2183

rnoonan@amctheatres.com

Source: AMC Entertainment Holdings, Inc.

FAQ

What new business model is AMC Entertainment pursuing?

AMC Entertainment is expanding into the popcorn retail market by opening kiosks and counters to sell its popular AMC Theatres Perfectly Popcorn.

When will AMC start selling popcorn through retail locations?

AMC plans to start selling popcorn at retail locations in 2022, with up to five kiosks expected to open in the first half of the year.

How will AMC enhance customer access to its popcorn products?

AMC will partner with food delivery services, sell takeout packages, and offer prepackaged microwaveable popcorn in supermarkets.

How many retail locations does AMC plan to open by 2022?

AMC aims to open up to 15 retail locations selling popcorn by the end of 2022.

What is AMC Theatres Perfectly Popcorn?

AMC Theatres Perfectly Popcorn is AMC's signature popcorn brand, known for being freshly made and available for over a century.