Home Entertainment Morroco AMC cinemas seeks to shore up finances with retail sales of popcorn

AMC cinemas seeks to shore up finances with retail sales of popcorn

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AMC cinemas seeks to shore up finances with retail sales of popcorn

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LEAWOOD, Kansas: Seeking to find new revenue streams amidst difficult times in the cinema business, AMC Entertainment sauys it will begin selling its well-known popcorn in malls, convenience, and grocery stores in the United States.

Sales would begin in 2022, with both freshly popped and microwave packages on sale.

Other money-making options AMC will pursue include selling fresh popcorn for takeout, pickup, and delivery.

AMC also said it expects to open 15 retail stores to sell its popcorn, separate from its theaters.

The move into the enormous popcorn market in the U.S. “is natural and logical [for AMC], one wonders why the idea has not been tried before,” said Adam Aron, CEO of AMC.

Officials said selling popcorn outside of its theaters will help the theater chain introduce its name to new audiences, as well as diversify its revenue streams.

While AMC reported packed theaters over the September Labor Day weekend, overall ticket sales remain 70 percent lower than in 2019, when the company took in $11.4 billion.

AMC sells up to 52 million bags of popcorn per year.

CNBC reports that food and beverage sales account for one-third of AMC’s annual revenues.

Figures show that in the first quarter of 2021, food and beverage sales per customer increased to $7.37, up from $4.76 in the same period last year.

“What we’ve seen as people are returning to cinemas is more and more people are going to the concession stand,” Aron told investors in August. “They’re buying food and beverage products because they want the whole experience.”

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