Rocky Mountain Chocolate Factory, Inc.
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Underwhelming stock and operational performance.
- Long-term underperformance.
- Defensive and haphazard approach to governance.
- Refusal to allow shareholders a say on the longstanding poison pill.
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
Climate Goals & Targets
Medium-term Goals:
- 30% factory gross margin by FY2028.
- System-wide AUV of $800,000 by FY2028.
Short-term Goals:
- $1.2MM in annual operating cost improvements by mid-FY2025.
Environmental Challenges
- Higher raw material, labor, and freight costs due to macroeconomic inflationary trends and global supply chain disruptions.
- Labor and logistics challenges contributing to lower factory, retail, and e-commerce sales.
- Potential lost sales due to supply chain disruptions (ingredients, packaging, labor).
Mitigation Strategies
- Added experienced manufacturing and supply chain talent to improve operating efficiencies.
- Investing in new and more efficient factory equipment.
- Rationalizing product portfolio and streamlining production lines to reduce labor needs and improve product quality.
Supply Chain Management
Responsible Procurement
- Products sold at stores and ingredients used must be purchased from RMCF or approved suppliers.