DayDayCook Acquires Beloved Asian Food Brand, Omsom
DayDayCook (NYSEAM: DDC) has acquired Omsom, an Asian food brand known for its Cooking Sauces and Saucy Noodles. The acquisition involves a mix of cash and stock over four years, aiming to accelerate product innovations and streamline operations. DDC's growing U.S. brand portfolio now includes Omsom, Nona Lim, and Yai's Thai. The integration of these brands is expected to enhance synergies and profitability. Omsom, founded in 2020 by Vanessa and Kim Pham, has seen a 324% year-over-year revenue increase in Q1 2024 and expanded its retail presence to over 2000 stores. Additionally, 160,000 DDC shares have been granted to five new non-executive employees from Omsom as part of their employment packages.
- DDC's acquisition of Omsom enhances its U.S. presence and brand portfolio.
- The acquisition aims to accelerate product innovation, reducing R&D time by 50%.
- Operational synergies are expected to streamline processes and improve financial metrics.
- Omsom's grocery channel revenue increased by 324% year-over-year in Q1 2024.
- Omsom products are now available in over 2000 stores nationwide, including major retailers.
- Omsom has attracted a devoted following for its bold Asian flavors and cultural commentary.
- 160,000 DDC shares granted to former Omsom employees strengthen employee retention.
- The acquisition payment structure includes stock, potentially leading to shareholder dilution.
- Integration risks exist that could affect operational synergies and financial metrics.
- The acquisition's success relies on the continuity and performance of former Omsom employees.
Insights
The acquisition of Omsom by DayDayCook (DDC) presents a substantial strategic move with potential financial synergies. Firstly, the acquisition will be financed through a mix of cash and stock over four years, spreading the financial burden and minimizing immediate cash outflow. This structure shows confidence in long-term value creation. Further, Omsom's impressive
From a market dynamics perspective, this acquisition significantly strengthens DDC's positioning in the U.S. Asian food market. Omsom's brand equity, built on cultural authenticity and bold flavors, aligns well with DDC's mission. This synergy is vital in a market where consumer preference is increasingly leaning towards authentic and specialty foods. The acquisition aligns with the trend of growing demand for ethnic foods, particularly among younger demographics who seek diverse and convenient culinary experiences. Furthermore, Omsom's established retail relationships with major chains like Whole Foods and Target provide a ready-made distribution network, facilitating quick market expansion for DDC's other products. However, the challenge will lie in maintaining Omsom's brand identity and consumer loyalty post-acquisition, which is important for continued success in this niche market.
Strategic acquisition expands DDC’s U.S. presence and accelerates Omsom's mission to deliver proud, loud Asian flavors to American homes
NEW YORK, June 12, 2024 (GLOBE NEWSWIRE) -- DDC Enterprise, Ltd., (NYSEAM: DDC) (“DayDayCook,” “DDC,” or the “Company”), a leading multi-brand Asian consumer food company, today announces it has acquired Omsom, the proud and loud Asian food brand that has quickly garnered a devoted following for its Cooking Sauces, Saucy Noodles, and bold cultural commentary.
The acquisition, which consists of a combination of DDC’s cash and stock paid out over four years, is expected to accelerate new product innovation for Omsom, with R&D anticipated to take half the time from idea to aisle. Operational synergies between the two companies will also streamline processes and improve financial metrics. Further, the two companies share a mission and vision, and together with DDC's expanding portfolio, are poised to become a leading force in the Asian food industry.
“We are delighted to welcome Omsom to DayDayCook. Founders Vanessa and Kim are passionate about Asian cuisine and have created a bold brand that brings genuine flavors right into the homes of consumers. Our presence in the U.S. is rapidly growing with the addition of Omsom to our U.S. family of brands, joining Nona Lim and Yai’s Thai, which we acquired within the past year. Having three notable Asian food brands in our portfolio will create enhanced synergies and resource integration, and make our operations more efficient and profitable. We look forward to collaboration across the three brands and to ensuring even more Asian-inspired and developed products reach more U.S. kitchens in the future,” said DDC founder Norma Chu.
“Omsom has always stood for something much bigger than the two of us. When we launched the company in May 2020, it was with a mission of honoring and celebrating Asian Americana. In the last couple years, our rowdy branding, damn delicious flavors, and unapologetic perspective have illuminated the way – and now, those same values are showing us to our next chapter. They say, ‘If you want to go fast, go alone, but if you want to go far, go with others,’ and that’s what we’re excited to do with DayDayCook,” said Omsom co-founder Kim Pham.
“It all started with a LinkedIn message to Norma, when we first read about DayDayCook’s vision and mission, we knew we had to get in touch immediately. We are thrilled that Omsom, which has been built brick-by-brick with heart and intention, will continue to thrive in partnership with DayDayCook. Omsom has relentlessly centered the multitudes within Asian America – so it’s only fitting that we accelerate our next chapter with another Asian woman-founded and -led business,” said Omsom CEO and co-founder Vanessa Pham.
DayDayCook was founded in 2012 by Chu, who is on a mission to share the joy of Asian cooking culture with the world. Omsom was founded in 2020 by first-generation Vietnamese-American sisters Vanessa and Kim Pham with the goal of bringing restaurant-quality Asian cuisine to American home kitchens.
Originally launched as a direct-to-consumer business, Omsom expanded into retail nationally just two years later. By the end of Q1 2024, grocery channel revenue was up
On June 4, 2024, the Compensation Committee of DDC’s Board of Directors granted option awards covering a total of 160,000 shares of DDC’s Class A Ordinary Shares to five new non-executive employees who were formerly employed by Omsom as a part of their employment packages with a wholly-owned subsidiary of DDC. Each award was granted under the terms of DDC’s 2023 Employee Share Option Plan and vests over a four-year period, subject to continued service through each vesting date. Each award was granted as a material inducement to employment in accordance with the NYSE Listed Company Manual Rule 303A.08.
DayDayCook (NYSEAM: DDC) is on a mission to share the joy of Asian cooking culture with the world, offering a suite of accessible and healthy ready-to-eat, ready-to-cook, and ready-to-heat products that cater to the global palate. DayDayCook has evolved from a culinary content authority to a multi-brand powerhouse, curating a broad range of products that champion authenticity, nutrition, and convenience.’ The company's growing portfolio includes DayDayCook, Nona Lim, Yai’s Thai, MengWei, and Yujia Weng. Visit us.daydaycook.com for more information, or follow the Company on LinkedIn.
Omsom was founded in 2020 by first-generation Vietnamese-American sisters Vanessa and Kim Pham with the goal of reclaiming Asian flavors that have been diluted for far too long. Omsom partners with iconic Asian chefs to craft their cultworthy product lines— Omsom Sauces and Saucy Noodles— bringing restaurant-quality Asian flavors into any home kitchen easily. Its Saucy Noodles – premium instant noodles alongside flavorful, luscious sauces – deliver real-deal Asian flavors in just four minutes. Omsom's products, thought leadership, and partnerships have had a significant cultural impact, including influencing Whole30's stance on MSG. The company has also received numerous awards and recognition from CNN, Food & Wine, The Kitchn, Fast Company, NOSH, The New York Times, Vogue, and The Wall Street Journal. For more information, visit www.omsom.com.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, for example, statements about completing the acquisition, anticipated revenues, growth and expansion. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements are also based on assumptions regarding the Company’s present and future business strategies and the environment in which the Company will operate in the future. Investors can find many (but not all) of these statements by the use of words such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
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