Bioharvest Sciences Inc. Delivers a 380% Increase in monthly E-Commerce Revenue with its 2020 Launch of Vinia® B2c On-Line Business in Israel

Vancouver, BC / November 18, 2020, / BioHarvest Sciences Inc. (“BioHarvest” or the “Company”) (CSE: BHSC)delivers results significantly ahead of expectations for its 2020 launch of the VINIA® B2C E-Commerce Business in Israel. Total October 2020 E-Commerce sales (US$ 40,000) were up 3.8X from average sales per month for YTD September 2020 and November 2020 Month to Date Sales (US$ 55,000) is on track to have a 7X increase from the Year-to-Date September 2020 average sales per month. 

Along with the revenue increase, there has been a 3X increase in customer count in October 2020 which is expected to increase to 7X in November 2020 compared to the YTD August 2020 monthly average. This increase is attributed to the acquisition of new customers which constitute 75% of the total customer base during the month of November 2020 to date. Further analysis of the results indicates strong purchase fundamentals of the VINIA® brand. The average revenue per transaction has increased by 29% and is now at US$189, with new customers having an initial purchase value of US$174. These results are being achieved at a Cost of Acquisition (media spending) at less than 25% of the First Time Order Value of each customer. This translates into a significant gross profit margin and positive “unit economics” on the B2C E-Commerce sales of VINIA®.

The results described above are significant when using them as a predictor of the performance we expect to achieve in the US with the launch of VINIA® at the end of Q1 2021. With the US population close to 40X the size of Israel’s and with a higher percentage of the US population above the age of 45, our core target, the Company is looking forward to entering the US market by debuting its B2C Sales, which will play an important role in supporting its B2B efforts with its distribution and sales partner, Batory Foods. 

These results underly the efforts made over the past 6 months to build best in class, scalable E-commerce, and marketing capabilities. To support its sales efforts in Israel and the US, the Company is hiring additional key personnel, including a Head of Marketing and Business Development in the US, and is preparing to enter the market with its VINIA® proposition. Major progress has also been achieved on the North American B2B approach. The Company has been working closely with Batory Foods since the announcement of its partnership 8 weeks ago. It has finalized a Top 30 list of Major Food, Beverage, and Nutraceutical customers of Batory Foods that it will now begin targeting for VINIA® to be included as a functional ingredient in their products. 

I am really proud of the work of the team and best in class capabilities we are building in marketing VINIA® to consumers. I am elated today to share details of the early results which further reflect our ability to operationalize our Company Growth Strategy” said Ilan Sobel the CEO of the Company. “The approach we have taken in testing our sales and marketing strategies in Israel, to be followed by our entry into the US market, should prove to be effective. We are continuously learning from our experience in Israel and improving upon it. This would, we believe, allow us to build a sizeable and profitable business in Israel and most importantly, optimize our efforts and costs in the US in 2021, where we believe we can achieve significant revenues. Furthermore, we are confident we can bring the Superfruit Nutraceuticals vertical of our business into positive cash flow territory relatively quickly. I look forward to discussing the results in more detail for those attending the Webinar on Thursday at 2:00 pm Eastern Time” 

BioHarvest Sciences Inc.
Ilan Sobel, Chief Executive Officer

For further information, please contact:

Dave Ryan, VP Investor Relations & Director
Phone: 1 (604) 622-1186


Forward-Looking Statements 

Information set forth in this news release includes forward-looking statements that are based on management’s current estimates, beliefs, intentions, and expectations, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. There is no assurance that strong sales metrics experienced to date will result in future demand or that proposed additional marketing expenditures will result in increased sales. Markets for nutraceuticals are unpredictable and subject to changes in consumer tastes and trends as well as economic factors beyond our control.  Delays and cost overruns may result in delays achieving our objectives obtaining market acceptance, and regulatory approvals for geographic expansion is subject to risk and cannot be guaranteed. There is no assurance that the Company sales revenue for 2022 will reach USD 5 to 7 million and there is no assurance that the Company cash flow breaking point will be achieved in 2023. There is no assurance of commercial availability of our Cannabis product in 2022 or that the Company achieves the conversion of the two tons VINIA® facility to Cannabis production in 2022. These things are subject to construction and approval delays and uncertainties that may be beyond the control of BioHarvest. Projected sales of Cannabis will require the Company to obtain production and/or export licensing which cannot be assured.

All forward-looking statements are inherently uncertain and actual results may be affected by a number of material factors beyond our control. Readers should not place undue reliance on forward-looking statements. BHSC does not intend to update forward-looking statement disclosures other than through our regular management discussion and analysis disclosures. 

Readers are cautioned that revenue alone do not give an accurate picture of the financial position of the Company and should be read in the context of the Company’s annual and quarterly financial statements.

Neither the Canadian Securities Exchange nor its Regulation Services Provider accept responsibility for the adequacy or accuracy of this release.