May
18

Shareholder Question: Refinancing – Audio

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A shareholder asked me today whether I could convey where I thought we really stand in the process, in my own words.  Accordingly I have attached the following Audio response.  The file format  (M4A)  is read best by QuickTime.  That format uses less memory.  WordPress websites, like the CEO Weblog, have a 4MB upload limit.  I’d be interested in knowing whether the majority of our readers can open it on their computers or not.  Please let Jean Wursten-May know whether you’d like us to send you an Mp3 version.  jean@WinningBrands.ca

CEO Answer to Shareholder Question About Financing May 17, 2012

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May
16

Fact Check: International

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In response questions/comments about the company’s priorities regarding markets, the following points may help to clarify why international markets are attractive:

  • The company’s Ambassadors operate on a commission basis, not salary.
  • The importer pays for shipping.
  • The importer pays for advertising in their market.
  • The international markets have not required travel to establish.
  • Samples provided to foreign markets have been proportionately less than for domestic markets.
  • Stores in several countries have freight forwarding arrangements with agencies in Miami (for Caribbean markets) and Long Beach (Pacific) to receive goods by consolidation with other merchandise through shared wholesalers.

In summary, international business development has so far cost the company very little, yet opens the company up to the 95% of the world’s population that lives outside of North America.  Determining whether their response to 1000+ is similar to domestic markets is both easy and helpful for long term planning purposes.  Many companies do not have a legitimate international dimension.   For these practical and cultural reasons, there is no reason to waste naturally occuring opportunities internationally.

 

 

 

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May
15

True Value – When stores have enthusiasm that you can feel…

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This enquiry, received today from a True Value store, opens an important door.  Requesting a sample is one thing.  Making an enquiry of the type below is entirely different.   Winning Brands’  business goal is to be of service to hardware  stores across the country, regardless of their banner affiliation, so that 1000+ Stain Remover can become a household name from coast-to-coast.  We very much appreciate initiative of this type.

Extract to protect confidentiality:

 

….We ordered a few cases of 1000+ Stain Remover from…..and we really need to order more. Can you please let me know how to order, what the minimum order is and about any freight charges that may apply. We are a True Value hardware store located in New York state about 2 hrs north of NYC. Our customers are really loving the product as is our paint dept uses it regularly. What an awesome product!!…

 

 

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May
15

School Days – Testimonial

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This testimonial photo received today from a school teacher.  They were “painting the plow” at their school with resilient paint recently. Teachers and students were finding the paint mess on skin and clothing harder to remove than they had anticipated.   One teacher had a bottle of 1000+ Stain Remover at the school and within moments of starting to use it they made clean-up headway and were completely satisfied with the results.  According to the teacher,  many comments followed by other teachers saying …”how great this “stuff” works and how do they get some for themselves …”    Many thanks to this teacher for her initiative in this situation and for letting us know that we were able to be of service.   Just one bottle, a thousand solutions.

 

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May
11

Why “Safe on Skin” is a Big Deal

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We are particularly proud that 1000+ Stain Remover is so gentle on skin. Enterprising 11-year old Keeley lent a helping hand to her mum the other day by suggesting the use of 1000+ Stain Remover, or more precisely – “…your Stain Stuff”.   The comments below and photos describes how…

 

My 11 year Daughter has recently taken up the hobby of becoming a “Body Artist”, daily she returns home from school to  proudly show off her works of art  in both permanent marker and black ink on her arms.  We tried make-up  and nail polish remover,  and baby oil but it didn’t work.  She said “ Don’t worry Mon your Stain Stuff will get it out!”  I applied the 1000+ directly rubbed it in with my fingers , rinsed her arm  and presto the art work disappeared.  My only problem…now she knows how to get it off, she won’t stop doing it.  Do you have a product that will help me with that?

 

 

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May
11

Certification Coming to 1000+ Label

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Next production run will see the replacement of the generic ecoseal with the formal government certification, as shown below.

 

 

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May
10

Paintball Distributorship Proceeding with 1000+ Stain Remover

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Background:
In September 2009 Winning Colours (now 1000+ Stain Remover) was endorsed by a busy Paintball park, following a year of practical experience with the product for a wide range of uses in the facility.  A video was made of the result.

Link: 
http://www.youtube.com/watch?v=uG19jzHiL70

The plan had been for this endorsement to begin the process of distribution to the sector.  To the uninformed, Paintball may sound like a trivial matter.  It’s an action pursuit sport that has millions of players and a dedicated following.  Although the paintballs themselves are often described as containing water soluble medium, there are actually many types and they all get harder to clean-up the longer that a dried medium has been on a surface.  1000+ Stain Remover has superior performance in this venue.  1000+  versatility spans a wide range of clean-ups associated with facilities and accessories.  Subsequent to September 2009, management changes at the launch facility brought about a change in the willingness/feasibility of undertaking distribution at that time.  

New developments: 
The initiative is being put back on track with today’s decision by a major Paintball distributor to move forward from the point where the first impasse was reached.  PBL Distribution ( http://www.buypbl-paintball.com/ ) is listing the product immediately and  collaborating with us to place 1000+ Stain Remover into an initial 200 facilities  to ramp-up awareness and use within the industry.  The results from the 200 facilities will be applied to a sales plan for the entire industy.   The original YouTube video will be updated and converted to make it clear that Winning Colours has become 1000+ Stain Remover.  Additional appropriate material will be generated.  We welcome aboard PBL Distribution, a first class operation.   We anticipate being able to make up for lost time through renewed cooperation and drive.

There is a lot to clean-up in Paintball venues.  1000+ Stain Remover has unmatched versatility and convenience. The picture below from YouTube  shows how easily (Winning Colours) 1000+ tackles just one of may messy situations in this environment.

 

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May
03

International: 1000+ Stain Remover Arrives in the Dominican Republic

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First delivery of 1000+ Stain Remover has now made to a hardware business in the Caribbean island nation of the Dominican Republic;   Deposito Ferretero, S A Autopista Puerto Plata-Sosua, Puerto Plata.  The Dominican Republic is a popular travel destination for Americans.

 

 

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May
03

Do it Best: Latest Store Testimonial

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What a team approach looks like!  Today we were included in correspondence that was shared by one Do it Best store with other member stores through their social networking portal.  We are deeply grateful for this level of goodwill and interest.  With our goal that 1000+ becomes the favourite product  in the category,   it’s a real joy to be honoured by such unsolicited initiatives.  They are occurring spontaneously in the heartland of America and coast-to-coast.  There is no more down-to-earth and practical community than the tens of thousands of hardware/home improvement stores. Their focus is on “getting the job done”.   Feedback of this high quality from the front line means a great deal to us.

Subject: 1000+ stain remover, good new item

Our store received free samples of the 1000+ Stain Remover #635646.  In just a few weeks we’ve sold about a half dozen 30 OZ bottles. After seeing their video on YouTube and on their web site www.1000Plus.ca I was impressed and took some home to try it.  Under their header “Uses & Tips” they have a long impressive list of stuff that the product will clean. My wife, the perky _____(name), tried it on some kitchen grout that needed cleaning and told me, “WOW I want a gallon of that stuff, look at where I tested it on our grout.”  Trust me here folks, the perky _______ is not impressed by much.When you visit their web site, click on the “Contact Us” button to ask to be listed on their store locator.  To get your employees excited about the product, let them watch the video.  JMHO

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May
02

Shareholder Question: Investing in Winning Brands Stock

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QUESTION

  • Eric, Thank you for your response. I hate to bring this up over and over but I really want to invest in your company.  According to another post on your blog you seem to be more in favor of increasing the A/S count instead of a R/S would you say you still see that way considering that an R/S basically ruins your chances of becoming cleared by the dtcc?  I just want to know my money would be safe in your common stock.

ANSWER

Attached audio file.  (We are testing use of audio files to save time in replies which are in-depth.  The audio file should open in a new QuickTime window, or other media player, in a few moments).

20120502 184548 

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May
01

Shareholder Question: Ace & True Value

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QUESTION

  • Nice jump in Do it Best stores. I wonder why Kansas stores are the leaders? Btw, quick question now that do it best stores are coming on quickly, what needs to be done to get in the true value or ace stores? Now that you have a successful campaign with these stores, it should be relatively easy, no?

ANSWER

The leading stores within any banner will change, as others come on board.  Previously, the leading DIB store was in Ohio.  At the moment, the top two are in Kansas.  Even these good performers have a long way to go before they can be considered maxing out the potential of such outlets.  These particular stores are not at a bottle per day yet – whereas some other banner stores are even higher than that.  Realistically, we will do very nicely if the typical hardware/paint store sells even 2 bottles per week.  That rate would make a Do it Best banner by itself approximately $1.8 million per year at the wholesale level.  What we are seeking is that the performance of better stores within a group becomes the standard for others in the banner to emulate.  That’s hard to achieve because in any group of individuals, there is always a range of performance.  Over time we can create “systematic” conditions in the stores which foster desired outcomes.  That could include use of counter displays, participation in a direct householder mail program, etc.

As far as Ace and True Value are concerned, and what needs to be done – we are now in a few independent outlets of both banners.   The goal is to ensure that these stores do well with the product so that they can speak authentically about their own success.  The national product managers of these banners will become increasingly aware of 1000+ through such internal channels, trade advertising, competitive monitoring and our own product presentations of course.   All these factors eventually  help make the case to them, as professional buyers, that the banner should offer the their own independent members access to 1000+ via the banner’s distribution centers.   Until that point, we have to supply those stores directly, or through another distributor.   Both Ace and True Value are similar in store count, with approximately 4,400 members each.    

I personally would never use the word “easy” to describe the listing process with a national retail organization today. However, it is less arduous if a success is developing for you elsewhere in the industry.   I hope I am accurate in saying that the retailers who are dealing with us now in the U.S. are enjoying the experience.  That’s what they are telling us, anyway.

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May
01

Do it Best: 544 Participating Stores

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During April,  initial orders for 1000+ Stain Remover increased by 62 Do it Best locations, bringing the total count to 544 participating stores carrying 1000+ on the premises.  The two most productive stores are currently in Kansas.

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May
01

First Lowe’s USA Contractors’ Day Invitation

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1000+ Stain Remover was invited to be part of a Contractor’s Day at a Lowe’s outlet in USA for the first time this weekend.   Demonstrations were provided by Amber, below, in Ohio.  We shared space with the Contractor Credit Card application operation, so there was a steady opportunity to meet the local trades.  Thanks Amber for a great start to your association with 1000+!

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Apr
30

Shareholder Question: GSA

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QUESTION

Eric, For many of us shareholders, today 4/30/12 is a tough start to the week. I am referring to the low p.p.s. of wnbd. I was wondering if you were able to share any news on the G.S.A. front. Sincerely…

ANSWER

  • We have come close to obtaining substantial tender awards twice, but were outbid at a lower price by an existing supplier of an older product.  We could have matched that price, but did not know in advance what the others are delivering.  As an active  participant, we are now privy to more of that data, levelling the playing field.
  • Prior to agencies gaining first-hand experience with a product, the GSA cannot vary the specification of tenders to accommodate a new entry whose properties are preferable, but not yet internalized into the specification process.  In other words, a product that does not have some of the older harsher chemicals may lose the bid because of the assumption being made that the absence of the harsher ingredients will not deliver the required result. 
  • To address this Catch-22, we have in the meantime proposed a Blanket Purchase Agreement which would enable the GSA to accept all the metrics of our product on its own merits as something new, and to keep it in-stock in its own warehouses.  This is being considered currently.  This would break the log jam.  Also, the fact that we have recently been awarded the USDA Biopreferred designation turns the tables in our favour.  But this has just happened.
  • As an alternative, the NEXEO launch would serve the same purpose.   Despite this being reported to us in writing as likely to have happened by now, there was a delay on the other end for reasons unrelated to the product.   Naturally we are endeavoring to learn the details of next steps.  We have been pre-qualified in terms of the product itself and our eligibility to do business with NEXEO.
  • In the meantime, we have individual testimonials from persons in appropriate agencies.  Those persons would like their agencies to supply our product, but this has not yet been approved.
  • Today the GSA did approve Winning Brands’ first GSA advertisement.  It’s going into one of their leading publications,  distributed to thousands of GSA personnel.  Each ad needs prior approval. The date of this insertion has not been confirmed by the GSA because there is limited commercial space in each edition of the publication.  The publication serves as a journal of various professional updates within the GSA organization and is widely read. 
  • While on the surface it may look like progress in this matter is slow, people who are familiar with government business know that its appeal comes not from the speed but rather the potential scale of the result.  Eventually, when we are established in this setting and our products are widely known, then we too will benefit from being an “existing” supplier with all that this entails.   This is why our initial vendor contract with the GSA is for 5 years, with several 5-year renewal periods.   The government thinks “long term” in such relationships. The mere fact of having a GSA schedule listing is highly valuable for its potential.  Far more vendors would like to have it than do have it – there is a waiting list for approvals.

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Apr
30

Shareholder Question: Operations

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QUESTION

Hotels, no names needed just a count would be enough.  Quarter pallet display in Canadian National Account that was approved last year to start this quarter. Is this still on?  Sam Club, it has been almost a month since the last event and only one this year. Is this the pace to expect for the rest of the year or could that excelerate?

ANSWER

  • HOTELS:  For technical reasons, we are still holding at the 30 properties who are either buying, or deciding whether to buy.  Primary consideration is making a policy decision about how we will handle installed pump mechanisms.  These would have to be replaced if contracts are shifted to a new supplier in some cases.  We are assessing whether our current business goal requires this, or whether properties where this is not a requirement should be focused on first.  It’s a trade-off between account size and capital outlay.   Secondary consideration is the advantage of consolidating at this number of accounts and prospects long enough to develop a compelling statistical case study illustrating the savings in money and effort (and better results) that participating hotels are experiencing with our products, prior to approaching more prospects.   Such additional preparation could make the future prospecting process much more  efficient and ultimately increase the pick-up rate better than standard cold calling – particularly if results were shared by way of industry publications. It’s an active matter.

 

  • QUARTER PALLET:  That retailer is keen to proceed but has introduced a costing/pricing aspect which would create problems with our undertakings to others.  In the meantime, a similar opportunity is under consideration with another party  that would not require uncomfortable arrangements.  It’s an active matter.

 

  • SAM’S CLUB: It has become clear that 1000+ Stain Remover sells in this environment, at this price, despite being unknown.  Therefore, the price/value proposition for the package in its current configuration are proven to be viable as far as the consumer is concerned.  We custom made the SKU for the Sam’s Club trial in a low volume production run – which is not efficient.  If we expand the program, it would be necessary to achieve the economy of sale through larger production runs.  Accordingly, we are weighing the advantage of carrying on with the current cost structure for the sake of it, vs the value of approaching it on a larger scale so that profit is realized in this program - but requiring larger up-front commitment by both the retailer and ourselves (and allowing the extra time required for the approval/implementation of the larger commitment).  It’s an active matter.

 

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Apr
30

Shareholder Question: Financing Progress

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QUESTION

Several questions have been received asking whether the financing is still likely to happen, and if so, when.

ANSWER

We now have active prospects and expressions of interest.  The company has a number of attractive characteristics.  It deserves to be funded on this basis.  Helping prospective funders understand these qualities  is a positive experience because the company obviously has much to look forward to.  An objective review of all the facts reveals this easily.  It would not be appreciated by discussion partners, nor wise during negotiations, to provide details about identities, nor the process, publicly until the other parties feel it is appropriate.  I have no reason to believe that our financing will not take place on an acceptable basis.    The top priority is to achieve this shared understanding of the company’s strengths rather than driving to be  funded on a particular day.  The company will only accept a transaction that is appropriate to shareholder interests.   That is the key factor determining when new financing is activated.     The company has made considerable progress in the last two months preparing our “case”, identifying appropriate candidates, making suitable presentations and advancing professionally.

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Apr
27

“We are impressed with the product…”

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Another unsolicited store testimonial today, this time from Florida.  If we have Fort Myers area shareholders looking for a store to purchase their 1000+ Stain Remover from, here’s a store with initiative that would be a pleasure to buy from.

We are a Do it Best Co-Op member.  Do it Best Corp recently added the 1000+ stain remover in the 30 OZ and 4 OZ sizes to their warehouses through your national accounts program. We buy out of Do it Best warehouse of both sizes and have been impressed with the product.  We request we be listed in your web site’s store locator link.  Thank you, Family Hardware Do it Express, 622 SE 47th Terrace, Cape Coral, FL 33904

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Apr
27

Encountering customers in the most unexpected places….

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Deberah Ruddy, Manager Retailer Support, is in Ohio currently meeting candidates who would like to provide live in-store demonstrations for 1000+ during special events and seasonal promotions.   Following a full day in a different city today, she headed to her hotel at night. The following is an extract from her trip report.   It is proof again that you never know who your customers are (but they are out there, and will certainly continue to grow in number….)

“When I checked into the hotel tonight I was registering at the front desk when a gentleman walked up and asked who had the van (with our bottle on the side).    I said that would be me; he said ‘I love that stuff! Got some at Lowe’s and used it at home for laundry stains. It worked so well that I brought it here for housekeeping to use in the hotel laundry as well.’  I am staying at the Best Western. ”

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Apr
25

Welcome, Amber!

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Consumers who have been buying 1000+ Stain Remover at Lowe’s test stores in Ohio are providing positive feedback.  Opportunities are increasing for locally-based 1000+ product demonstrators for special in-store events.  We welcome Amber as our first Ohio-based product associate, effective today.  Amber will provide live demonstrations and share customer feedback. Thank you, Deberah Ruddy, Manager Winning Brands Retailer Support, for your help in building the team. 

 

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Apr
25

Something that money cannot buy…

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Unsolicited correspondence today from a Home Hardware store (the banner featured on Page 42 of the May 2012 issue of Hardware Retailing Magazine):

Good day, I am an employee of a Home Hardware Building Centre.  I am also a very loyal customer of 1000+.  I rescue animals and with anywhere form 14 – 20 animals in the house at one time I use the product continually.  We have 2 bottles in the house at all times.  When a customer comes in the store looking for something to remove stains the staff will call me from the office to talk to them in regards to your product.  I have heard a customer talking about another product and I direct them to yours explaining how I use it.  This product is a life saver for me.  We do use it diluted 10 – 1 at  home in a spray bottle and find that work the very best for us.  I use it on carpets, tile, furniture to remove any stains that an animal might leave us.  I also have switched from laminate floor cleaner to using the spray bottle of your product to clean the laminate floor, it works great and leaves not streaks.  Just spray on the 10-1 mixture and use the mop with the cloth head on it no rinsing and the floors look new again. Just wanted to let you know what a great product this is…

 

 

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Apr
24

1000+ Stain Remover in the U.S. Hardware Sector: Trade Advertising Expands to 32,000 Stores

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The print and online editions of Hardware Retailing Magazine have just been published.  The May edition is the largest of the year.  Our advertisement (Page 159) can be seen in this live link:

http://www.hardwareretailingarchive.com/issue/61691   
(Tip: Fast forwarding to the end and going backwards is faster). 

This publication is known by “everybody” in the sector because it is produced by the North American Hardware Retailers Association.  It is obvious to any reader of the publication that it is put together by people who know the industry inside out.  In addition to reaching approximately 32,000 individual store locations, the publication reaches approximately 1,800 top merchandise managers, buyers and key executives.  We will have a regular presence in the publication going forward.  This will introduce 1000+ to thousands of industry personnel who have not heard of us before.  Our goal is to become a brand that is known and liked throughout the hardware/home improvement sector, on its way to becoming a favourite in its category and ultimately a household name amongst consumers. 

 

 

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Apr
23

Testimonials by Mail Too…

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This note received in the mail today from Ohio is from a consumer who got her hands on 1000+ somehow and is now looking for a place to buy more.  The frequency of such unsolicited contacts from U.S. consumers is increasing.  In this case, it was determined that the customer lives within a convenient drive to the Lowe’s store in Steubenville, Ohio.   That will become her regular place to pick some up.   The store has already set a bottle aside for her, because she is heading right down.   It was interesting for us to learn in a telephone conversation with the customer that she is a person with many years of life experience buying cleaning products and still considers this new find to be “the best” that she has used.  I share such testimonials with Winning Brands shareholders because of our enthusiasm here for what we do.  We receive far more such feedback than I post.  It is a joy to read the call reports!

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Apr
23

Shareholder Correspondence: Shows

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QUESTION

Eric I must say we got excellent coverage in the Mag. especially when you click on to the up coming show May 1-3.  Memory doesn’t serve me well in so far as to whether or not we will be attending the National Hardware show or just advertising. I think this would be a great beneficial promotion just like the Do-it-best show coming up in Mid May. I realize it may be a bit expensive and time consuming. But the back to back shows of this magnitude could be mind boggling. I don’t remember seeing a blog on the up coming National Hardware show recently.

ANSWER

The cost and logistics of a back-to-back participation in these two shows was not yet feasible.  While it may seem that the NHS is the one to attend, there are less obvious but important reasons in favour of following through with Do it Best May Market, thus ensuring that this community of 4,000 members knows us well.   With increasing and regular trade advertising of 1000+ Stain Remover to the industry having started in the May 2012 NHRA publication, and continuing in 2012 through various means, the 2013 Spring Show will be perfect for us.  We will be heard of and recognized by most event participants by then , we will have a maturing Do it Best success story to share of interest to the two other member co-ops and buying groups, and our 2012 major financing will have enabled us to book early for significant  floor presence in terms of substantial size, great design, sufficient personnel and a “total impact” effect.    In the meantime, our principal U.S. distributor, Lancaster, has a presence at the NHS.

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Apr
23

Nice Gesture by Paint Dealer Magazine

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The magazine has chosen the 1000+ Stain Remover icon as their Home Page link to a features section lead item in the May 2012 issue, just published.  Live link:    www.PaintDealer.com   The publishers of this magazine have been demonstrating a desire to help America’s paint retailers discover Winning Brands, through a variety of gestures.  Much appreciated.

 

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Apr
21

Shareholder Correspondence: Norway

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We have permission from a shareholder in Norway to share his testimonial, received today from Europe:

it is good to be able to give feedback on on such a great product. Feel free to use the info and pictures to inform others.  I live in Norway and have tried to get some bottles of 1000+ for a while. When it was announced that Repair Products Ltd (in England) was selling it I bought 3 bottles since they send it world wide. In December last year I have my new windows installed in my apartment and the window installers used insulation foam around the windows. When they used it the have a little accident and some foam landed on the floor. Since this stuff is very sticky they it is very difficult to get off. They had a spray bottle of some stuff they took it away with. They said that this foam is imposible to get off without the stuff they used. It smelled so strong that i could almost feel my braincells disapear.   After they was finish and left i found some footprints on the floor and it was because one of the workers have stepped into the foam they spilled earlier. It was not possible to clean of. I did not do many attempt to get rid of it because i thought to my selves that this must be interesting to use 1000+ on. Since i was not able to get 1000+ until now 3 1/2 months after the spill it must be hard to get it of. I put some 1000+ on all the stains and use both water and a brush on it. It took quite while to get it of. Since it was my first time using 1000 + it probably had something to do with my technique aswell using that long time. I have enclosed before and after picture. I have seen Scupscup used 1000+  in a video removing insulation foam but that was on fresh foam. A great product this is. Regards.

 

 

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Apr
21

1000+ Stain Remover Arrives in U.S. Virgin Islands

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First delivery of 1000+ Stain Remover is made to Caribe Do it Centre in Christiansted, on the Island of St. Croix.   We welcome our new product friends in this region.

 

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Apr
17

Product Experiences Campaign

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It’s interesting how many hardware store personnel are pet owners.  Pet messes of various kinds come up often in our telephone support calls and customer anecdotes.  Our Product Experiences campaign  continues because it seems to be contributing to the growth in the number of outlets carrying 1000+ Stain Remover.  With approximately 150,000 bottles of our products delivered in 2011, the majority of which are 1000+ Stain Remover, a wide range of people have been using it.  We don’t know the exact number of “regular” customers for 1000+, but estimate approximately 50,000 at this time. 

 

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Apr
15

India

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Reach is growing of video demonstrations.  This enquiry just received:

“…I saw some online demo’s of your product, I am excited about the results that I saw….I want to purchase 1000+ stain remover….Can you guide me where can I buy it here in India?”

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Apr
15

First Testimonial from England

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Received today:

I am happy to say that the bottle arrived yesterday, and I’ve already got rid of a couple of stubborn stains that were deemed irremovable!

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Apr
13

Walmart

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A shareholder was in Walmart (Canada) today. He sent this photo because he was glad to see 1000+ on the shelves with such a hefty presence.  We thank Walmart deeply for letting their shoppers discover how useful 1000+ Stain Remover is.

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Apr
12

Shareholder Question: Financing

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QUESTION

  • Eric, In a February 22nd blog you wrote: On the subject of refinancing, we are confident that we have identified advisors whose track record, ability to understand our objectives and proven contacts are of sufficient quality to proceed with preparation of a formal proposal to appropriate candidates that are already known.  Over the next 90 days there will be a great deal of work going on to complete this. We are now 50 days into the 90 days.  Are you confident that you will be able to complete this task in the next 40 days?  Any elaboration you can make on this would be greatly appreciated. Thanks.

ANSWER

The advisors referred to above are experts in the field.  I have now witnessed it first-hand through collaboration. With the assistance of these experts,  presentation and due diligence materials have been prepared.   We are making good progress within the target window.  It would be inappropriate for me to speak for anyone else as to their ability and willingness to meet the time lines, however the company itself has been focused and efficient in pursing this outcome.   The company has much to be proud of and this is understood by all persons involved in the process.  This is a positive experience because it enables the firm to achieve two important things: continue building and to discontinue 504 financing.   It is also a positive experience for the investors because Winning Brands has a strong foundation for success.

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Apr
12

Correspondence Tip

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Thank you to shareholders for their correspondence.  Here are a few tips to help us serve you best: 

  • If you have corresponded by e-mail to me and have not received a reply, please forward the e-mail to my Assistant Jean Wursten-May: jean@winningbrands.ca
  • We are still a small firm, and there is much to do that is time consuming for those of us on the team, myself included.  I receive a high volume of daily operational communication and do my best to prioritize.   Some correspondence does not lend itself to a rapid reply because of open-ended questions, such as “…what would you do if…”  or ” …..how would you compare X to Y in the case of this or that….”     While I don’t object to any sincere question, a proper answer is more time consuming than may be apparent.  There may also be reasons of confidentiality, legal constraints, required research and other factors determining the nature of the response.  So bear in mind, the more succint the question, the more succinct I can be in my reply.
  • Priority is given to correspondence with persons who identify themselves.  E-mails or letters from people who conceal their identities through the use of handles cannot be distinguished from junk mail.  To respect the interests of persons who are known to be shareholders, a verifiable name in the correspondence goes a long way in generating a timely response.  The company has no moral obligation to respond to anonymous correspondents.
  • It is not practical or desirable to post every item of correspondence in the CEO Weblog.  In order for the CEO Weblog to remain user friendly to the majority of its readers, the operational updates are important.  They help to provide the interested shareholder with a nuanced understanding of the firm.  This environment would become too dry if consisting primarily of clarifications of  interest to an individual correspondent, particularly because of the repetitive nature of many of the questions received.  Our correspondents range in their investment experience and knowledge of Winning Brands.  The second reason that not all correspondence is suitable for the CEO Weblog is because it would blur the distinction of this environment and the investor discussion forums.  The tone of forum discussions vary. Some of it is intelligent and authentic, some of it is not.  It is not the purpose of the CEO Weblog to respond to every sarcastic or misinformed comment appearing on a forum.  There is unfortunately no mechanism available to a company to respond within the forum equitably, due to Terms of Use which do not accord the same rights to a discussed company as other posters. This means that some misinformation in those settings can only be responded to by others within that setting. 
  • Lastly, the filters necessary for my e-mail address to weed out spam inevitably captures the occasional legitimate item, holding it in quarantine until eventually uncovered by periodic mannual review of the filters.  There can easily be 100 actual spam items per day quarantined.

In summary, if you have corresponded on a matter that is important to you and have not received a reply in a time frame that you consider appropriate to the issue, I invite you to forward the item to Jean to ensure that it has reached me.  With this extra measure, I am confident that every item of legitimate shareholder correspondence can be responded to.

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Apr
11

Do it Best

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  • Report just in: Do it Best Store sign-ups continue, with 64 new outlets bringing 1000+ Stain Remover in for the first time during March 2012.  This raises the total participating Do it Best store count to end of Q1 2012 to 482.

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Apr
07

Shareholder Question: Q1 Sales

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QUESTION

  • Good  Morning Eric: Just wondering if we are still progressing a nice pace with sales in the first quarter. I was wondering if you could give a blog on the predicted sales for the first quarter if you have any indication of that situation. 

ANSWER

Sales in Q1 are higher than the comparable period in 2011 by a healthy percentage, but not in fantasy territory.  Sensible improvement.  Excellent  containment of expenses as well. 

As for the development of increasing demand for the balance of the year, we are connecting with more stores in our core sector. The magazine advertisement below represents the first time that we will appear in the North American Hardware Retailers Association publication, “Hardware Retailer”.  This publication has unsurpassed reach to our target market, with a circulation over 36,000.  Ace, True Value, Orgill, Home Depot, Lowe’s, Menards, Do it Best members and management all receive it.  With a regular presence in this publication and other means to become better known in our core market, 2012 will continue to see deeper penetration into our primary sector. 

While it is true in a general sense that consumer advertising/marketing is required to achieve household name stature, obtaining widespread store availability is the foundation for such marketing.    There are plenty of successful brands in the hardware sector that you don’t see advertised on television. As far as I am concerned, 1000+ Stain Remover should be/deserves to become available in the majority of these stores in due course.   We can become a significant brand with good earnings well before that point is reached. 

 

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Apr
07

Trading Recap: Week Ending April 5, 2012

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Volume:
56,540,201

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Apr
07

Shareholder Question: Walmart Endcap

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QUESTION

  • Was wondering if you could clear something up regarding your blog about 1000+ being stocked in a Walmart end cap. Is this currently only happening at one store, or is it going to be a number of stores or possibly all there stores?  Lots of speculation going on regarding this blog and would just like some clarification

ANSWER

It is currently in two.  This is apparently being considered for the entire banner, but we have insufficient information to make a responsible comment about the likelihood of this occurring, or timing.

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Apr
07

Shareholder Question: Share Buy Back

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QUESTION

  • … if the stock remains this low or doesn’t rise on favorable news. Will you be able to repurchase shares? I know you said in the past if your able to get financing, that it would be attractive to set some aside to do buybacks if the stock remains at these levels. Is this still being considered?

ANSWER

The most natural and legitimate stock buy back comes from operating revenues.   Since that is not realistic at the moment, as an alternative  it would be possible to set aside some portion of the new financing for this purpose.  However,  this may be less attractive to the company than stopping the 504 financing.  The cessation of 504′s would by itself be the most important contribution toward rebalancing of stock supply & demand, without any cost to the company.  That’s because the supply of shares would dry up and natural demand would have to move toward the ask.   Any financing has some cost attached to it.  That cost has to be added to the cost of the share re-purchasing to assess the merits of a buy-back using financing proceeds.   The situation is fluid and we are considering many such ramifications of the financing options.

 

 

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Mar
31

Shareholder Question: Profit Margin

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QUESTION

  • Eric, I noticed that the Gross contribution is low in the forth quarter compared to the forth quarter of 2010. The cost of goods for the forth quarter of 2011 are so high. Can you explain that?  Thanks.

ANSWER

Two things: one easy, and the other a bit more involved.

The easy one is that there was a unique supplier recovery (claw back)  of certain cost elements in Q4 2010 that would not be repeatable on a regular basis (and placed the 2010 Q4 cost-of-goods-sold (COGS) below the 2010 annual average).  But there is also an additional factor.

In 2011 we introduced quality improvements that have not yet been deployed on a large scale, that are being amortized on more frequent small production runs (rather than fewer large production runs). 

Two examples of the quality improvements are a special effects label for better shelf presence and a special technical treatment of the bottle to diminish/eliminate “panelling” (denting) of bottles that is a partial vaccum created through the effect of the product on the recyclable plastic.  As we have been reducing our 504 capital draw from the markets, we have been making smaller individual production runs.   Also, in 2011 vs 2010, we had more production related freight costs of moving around manufacturing inputs and outputs (parts and finished product) pending completion of additional warehouse space attached to the production facility.   That specific factor is being diminished in 2012 as the production facility holds more at hand, rather than receiving “as needed”.

When we carry out our new re-financing, one of the ”use of funds” elements is to return to larger production runs and holding more inventory on hand so that all production elements are more efficient.  Also, we will then proceed with a new resin for the bottle that requires no special treatment but does need completion of a production mold associated with minimum volumes.   There is quite a saving when ordering labels 200,000 at a time instead of 5,000 per run, for example.   The cost efficiencies that I am describing can easily account for 10 percentage points of margin, or more.

Bottom line:  We benefited in Q4 2010 from a special opportunity on costing, and subsequently we increased our packaging quality in 2011 over 2010, but have not been able to amortize the improved items over large runs yet.   A high-res picture of one version of the new special effects label effect is shown here.  The earlier version was a flat paper effect.   The label can be thought of as one of the most important aspects of advertising.  With the substantial reduction in conventional marketing spend in 2011, there was a savings available to put back into the product itself.  However, according to generally accepted accounting principles,  that investment in the upgraded label as an ad appears in the production COGS, rather than in advertising/marketing. 

Click image twice for largest view (…will fill screen) :

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Mar
31

This is what “organic growth” looks like for a brand…

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E-mail was received at the Winning Brands office this morning:

Dear Eric,

I have been a dedicated user of your  Winning Colours® Stain Remover  for more than a year since seeing it demonstrated at a Home Show in Sydney, Australia. I am currently in the UK for a few weeks with my elderly father and have been trying to find a source to purchase it here, but so far without success. When do you expect to market the product in the UK? If you’d like to send me a bottle or two, I would happily speak about its virtues to anyone and everyone who would listen!  I use it neat, and I also use it as my household cleaner and spot and stain removal in its diluted form (1 pt cleaner to 9 parts water) and have found it to be brilliant whenever I use it.I trust you will regard my request favourably.

Kind regards,
Wendy, Devon, England 

 

It’s fun to see the winds of life “spread the seeds”, so to speak.     1000+ Stain Remover can develop roots in communities anywhere.    It’s also fun to make new product friends.  Each one has a spirit to appreciate; their experiences matter.  Within our office,  we love to share  (the many) positive experiences that we hear about from customer support calls and other sources.   After several years of early development, the ”blood, sweat and tears” stage,  I can’t wait to see the future of this wonderful brand take shape.  For a number of early team members, including our backers and friends of various kinds, it will be heartening to see us succeed, really succeed.  IMHO – it’s going to happen!

Picture:  The countryside of Devon, England. 
1000+ Stain Remover is newly available here and across the British Isles
through our new retailer in the U.K.

 

 

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Mar
30

Way to go, Paint Dealer Magazine!

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The people at “The Paint Dealer” magazine asked us whether 1000+ Stain Remover had relevant material for readers pertaining to deck cleaning.  They are writing a story and thought that the World’s Most Versatile Cleaning Solution may have a contribution to make to the story.  I love that initiative.  As it turns out, 1000+ is terrific for cleaning pressure treated wood decks and landscaping ties when pressure washer use is not feasible or desirable. (Pressure washers can create wood fibre splitting and pressure streaks if the wand is too close, or moves up and down during each sweep, or between sweeps, changing pressure along the soft surface).  The pictures below show the ease of using 1000+ in that application.  The result shows that the wood surface is left in perfect condition.  No harm to plants.  No harm to hands. Good time to clean the hot tub cover, while we’re  at it.  These high-res photos were submitted.

 

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Mar
30

Annual Report 2011

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A summary of our results for the year 2011 is now available at OTC Markets via this live link. 
Kindly allow time for the PDF document to load.  It is a large file.

http://www.otcmarkets.com/financialReportViewer?symbol=WNBD&id=76629

The general trends in the annual results have carried on into Q1, 2012, namely,
year-over-year improvement for comparable periods, and cost reductions.

 

 

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Mar
29

Thank you, New York!

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We are delighted to have received our first replenishment order today from Duane Reade, equal to the entire amount originally delivered.   Although we cannot reveal our retailer’s exact numbers, it would appear that a few thousand New Yorkers are now using the 1000+ Stain Remover 4 oz ”Handy Size”.

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Mar
27

Sam’s Club

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As a follow-through from our debut at Sam’s Club Road Show in Q4 2011, our first 2012 event concluded this weekend in Houston.  The end-of-aisle demonstration station is now called an Event Showcase, rather than Road Show.   As a marketing test, we chose a single 11-day stretch rather than several sequential 4-day events.  Our finding is that the days at the beginning of the week are less efficient than the end of the week.  Therefore, multiple shorter events, timed strategically, seems better for us.  We will bear this in mind in reviewing the Q2 dates offered.  We have already received partial payment for the earliest part the March event and continue to appreciate the interest shown by Sam’s Club in 1000+ Stain Remover.

 

 

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Mar
23

Shareholder Question: Financial Statements and Miscellaneous

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QUESTION:

Do you know the exact date that we will receive the year end and the 1st quarter results?  Is the year end going to show some solid year over year growth?  You have told me before that a PPS of  .0001 would not hold as you feel this puts the company at a very undervalued market cap, but at the same time, you never ever told me that dilution would never get us to that point neither.  The stock is barely even noticed anymore and blogs and PRs seem to do nothing to elevate the stock price any longer.  In my opinion, if the 504s start hitting the .0003s hard and we start trading the .0002s, my investment here is toast.  You can say what you want about, and blog what you want, but verifiable growth and accountability on your behalf to right this ship is a must now.  I am not sure whether the market will ever look kindly on WNBD ever again.  So much money has been eaten up already and the A/S count is nearing the maximum, and all anyone can talk about is that friendly financing is just a dream and the company has no collateral to offer up to get a deal done.  The only way I see friendly financing happening is with a R/S or a large increase in the A/S and neither one of those solutions will be any good for the many long believers/shareholders here.  The noise of discontent on the boards is proving that even at a PPS of .0004, there is little to no interest left here.  We need something very big and very verifiable to get this dog out of the mud.  Let me know what you feel about my thoughts.

ANSWER

  • The financial statements for the period ending December 31, 2011 will be posted within the required time frame, i.e. by March 31
  • The financial statements for period January 1 – March 31, 2012 will be posted within the required time frame, i.e.  by May 15
  • It would appear that on a YOY basis, the firm’s sales continue to trend up and expenses continue to trend down, both with regard to 2011 and Q1, 2012
  • Conversation on iHub is currently dominated by a few determined non-shareholders, who do not want the company to succeed because it would undermine their predictions of our failure.  They seek a negative aspect in every development.  There is an obsessive nature to their presence that exagerates their actual number.  They routinely make statements which are false, exagerated or distorted.  There is reason enough for actual shareholders to be unhappy about the share price.  Those actual shareholders are more than capable of voicing their concerns, and do so in practical terms.  Unfortunately for the quality of discussion, legitimate discussion is drowned out by the noise made by those few, and one in particular, whose fascination in us is peculiar.  Hiding behind their anonymity, they simply spin things to suit their bent.  It’s obvious to everyone that there is a deeper motivation in this obsession.  Plenty of (actual) shareholders have told me that they have simply tuned out of that channel of communication for the time being because of this boring, negative noise from those few.  It’s like having to listen to a buzz saw outside.  Eventually you just close the window.  Naturally, shareholders and the company suffer as a result, but that’s fine as far as those few are concerned. Plenty of previously good discussion boards get infected this way – it’s what happens when identity is hidden.
  • The CEO Weblog is a helpful resource for shareholders to gain operational insights.  It is not intended to substitute for “PR’s” or stock promotion.  Most companies do not provide a resource of this quality to their shareholders.  I receive much correspondence from shareholders who appreciate it.
  • My experience in life is that critics abound when times are tough, and suddenly everyone is a friend when times are good.  That’s just reality.  When the company works its way through this situation and comes through the other side, then a more positive atmosphere will be possible (and inevitable) with new momentum. It would be easy to make a long list of individuals, and companies, that have “come back” from difficult straights. 

I am focused on bringing about the required financing on terms that are appropriate for the interests of our stakeholders and continuing a task that I set for myself as a deep rooted goal – creating a consumer product success for and with our stakeholders.  There is no shame in the fact that it is a challenging process, and therefore does not proceed smoothly.  Ultimately, those few success stories that emerge from such attempts end up being highly rewarding for those who could tough it out.    The extraordinary lengths that Winning Brands goes to on its Investors Page at www.WinningBrands.com to ensure that we are up-front about these risks is something that I am proud of.  It has also had the desired effect of ensuring that our shareholders are more realistic and better informed about the process if they decide to share that risk.    Our shareholders, by and large, “get it”.  They understand that the odds are stacked against such an enterprise by its very nature – and they see that there is a determined effort here to reach our goals, despite the obstacles.   Building something worthwhile is hard, but rewarding in the end if you succeed.  That’s what it all boils down to.   The market capitalization of the company (share price X float) can increase significantly, affected by a number of factors, and in my personal opinion, will rise again.

 

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Mar
22

UK Retailer Developing E-Commerce Platform for 1000+

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Work has started on having the first e-commerce platform for 1000+ Stain Remover in the European Union.  We appreciate the initiative of our first retailer in England getting this underway.  The website is still being worked on with a number elements to be completed, clarification made about the new name in videos,  optimizing photo visuals, etc.  That’s all a work in progress.  The point is that it’s already being built and we are grateful for the initiative and advancement in this market.  http://www.multistainremover.co.uk/

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Mar
16

Important Step Forward

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The logo above represents the USDA certification of Bio-based products, which are considered Eco-preferable to deploy, where possible.  It has been our goal in two years of R&D to obtain this certification for the bio-enhancements that we have been working on for 1000+ Stain Remover.  

We are proud to have received today formal notification from the U.S. government appointed testing facility that our bio-based formulation meets and exceeds the requirements to qualify under this program, in conformity with testing protocol ASTM-D6866-11. 

ASTM will submit the information the the United States Department of Agriculture for their final approval.  At that time we will be given the legal right to utilize the USDA Certification logo on our package and to issue a formal announcement.  Our production will then also  transition to the new formulation.

A key feature of our R&D  during this period was to retain all the performance properties that we like about 1000+ Stain Remover while still raising the eco bar.  This certification is of particular interest to the General Services Administration, which knows that we have been waiting for it.  This technical accomplishment also demonstrates Winning Brands’ commitment, and ability, to remain relevant in a continually evolving business and technical landscape. 

We do not have to fear progress, we can remain at the leading edge of it in our product category.

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Mar
14

Feedback Loop Emerging

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Do you remember the terrific testimonial from Annapolis Paints on January 31st?  It’s the latest subject of our Testimonial Presentation Series and on its way into the next monthly collaborative distribution to 4,000 Do it Best stores, 1,000 Home Hardware stores and eventually Lancaster, Florida Hardware and others. 

Now that we have this expanded U.S. reach, for the first time ever having a practical way of communicating with thousands of stores on a regular basis with the cooperation of a trusted central buying office, even a single testimonial can be seen by thousands of store personnel.  Unlike an external mailing, this internal program is understood to be an approved product, “in the system” and easy to order.  

We have so many great testimonial experiences to share,  the only challenge is picking them!  Stores are starting to tell us that they are noticing these presentations.  We have even been told that some are taking the initiative to laminate the presentations for their staff and customers.

Now that stores understand that their own product experiences have a forum in this series, we will see an increase in the testimonial flow from the stores to share, constituting a feedback loop.  

 

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Mar
13

Second Grocery Store Demo

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Spartan’s Family Fare supermarket in Michigan invited 1000+ Stain Remover back for another in-store demo session on Saturday.  The Department Manager had reported that sales  increased after the previous visit referred to in the post February 12th.

Our team was encouraged again to see the interest and response, with approximately 48 new customers gained through this second visit.   It’s clear that consumers are receptive to the 1000+ message, and also that consumers who have the product tend to like it.  Naturally, the business challenge is to become well enough known by consumers to drive good unaided shelf turnover on its own, without needing live demos.    At least we know now, for sure, that the 4oz Handy Size  has a place in this setting under the right circumstances.   It may be a way in which to grow beyond the hardware sector in due course, as momentum accelerates over time within the hardware sector.    Focus on our natural home in the hardware sector remains important, despite the information value of such test marketing in grocery.  It benefits Winning Brands’ relationships with retailers when they see first hand that we can execute joint programs effectively.  Building a brand has as much to do with execution as motivation.  “Getting it done”  consistently, on time, on budget, collaboratively – matters.

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Mar
12

Florida Hardware

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We welcome this long established Florida-based distributor to the team.   

As in all other categories of business, distributors are not identical.  They vary in many ways, including in their willingness to apply the positive energy that an enthusiastic brand can bring to bear.  Winning Brands is getting better at two important tasks; A)  Developing  merchandising tools to assist distributors  B) Engaging distributors to make use of our enthusiasm and support. 

Top management at Florida Hardware is keenly interested in the orientation/training of their sales force about 1000+.  They want  to understand 1000+ Stain Remover well so that it can sell a lot by providing their store accounts with something really useful.  That’s the sort of drive that we used to merely “look for”, but now insist on, before agreeing to appoint a distributor.  It’s a two way street. 

We are fortunate that a distributor of Florida Hardware’s stature  has seen fit to join us in the mission to make 1000+ a household name.  Getting the product on as many shelves as possible in the 40,000 store hardware sector is a core goal of Winning Brands.  This appointment  a good step toward the goal in the important state of Florida (and the other states that Florida Hardware serves).

 

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Mar
10

First 1000+ Stain Remover 4L’s on Home Hardware Shelves

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I saw my first 1000+ Stain Remover 4L size on a retailer’s shelf today; Home Hardware. 
This is the chain that is putting the 4L SKU into their Professional Products catalogue this summer (Reference: post January 31, 2012). 

 

The 909 mL bottles are available on the next shelf.
Additional pictures show other places in this store where 1000+ is available:
Sidewinder Prototype display, Paint counter and cashier Check-out Lane.
Based on direct feedback and  requests, over 1,000 retail outlets are prepared to
install 1000+ Stain Remover custom display racks immediately upon availability
This waiting list  will be addressed through the new financing. 

 

 

 

 

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Mar
09

Winning Brands U.S. Government Portal Live

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This landing page presents our Government visitors with a single convenient place to be introduced to our three currently approved brands, through the GSA.  When Department of Defense EMALL provides permission, we will activate the full website to integrate with them and provide more information.

www.WinningBrandsGOV.com

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Mar
09

Thank you, Lancaster.

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The report is in today – our associates at Lancaster added 21 new stores in February, by means of first orders of 1000+ Stain Remover to be drawn from Lancaster inventory.  We thank these new stores for joining the 1000+ retailer community.  Winning Brands is determined that 1000+ Stain Remover become much better known to the hardware / home improvement / paint sector in 2012.  Lancaster is one of the distributors who will help us deepen our reach into this sector for 2012.  

We are preparing due diligence materials for the financing initiative discussed in recent posts.  Part of the due diligence process is to detail the use of proceeds in cash-flow and budget planning documents.   As progress is made in identifying the source of financing, so too the associated materials can become more detailed and based on increasingly relevant assumptions.   We have much work to do, but at least we can now work with increasingly practical assumptions.  In the picture below our Manager, Retailer Support, Deberah Ruddy and the Canadian Sales Manager, Tammy Ritchie, are discussing best use of such resources, in specific terms.  A number of retailer and distributor co-marketing programs will become available to us in concert with the release of such financing.   

The photo was taken on Monday at the (monthly) March 2012 Sales Operations Meeting, in which team members analyze results to-date and adjust operations in practical terms to keep advancing toward goals.   There are many “nuts and bolts” details to operations with large retailers who have a variety of internal protocols.  Winning Brands takes the initiative to be helpful and effective in these retailer and distributor relationships.  A number of our partners have remarked upon this quality in our working relationships.  It’s clear to people who work with us that we have a promising future and they are pleased to be part of it.

 

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Mar
07

Shareholder Question: Canadian Government

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QUESTION

  • Eric, Hi.  Anything you can say about Canada GSA or similar?  Canada Military?

ANSWER

Since obtaining the GSA listing, we had been seeking permission for trial of our products at Canadian Forces Base Borden, across a wide range of uses in order to develop practical experience, evidence and recommendations to buyers responsible for Canadian military facilities.  Although GSA is a U.S. designation, the military of the two countries are closely connected through various working relationships, shared NORAD management, etc.  Permission has now been obtained to obtain practical feedback on the base  from real use of our products in that setting.  This will help us to document the case about real benefits, rather than merely claiming presumed benefits.  There’s no substitute for first-hand experience.  ABOUT CFB BORDEN:   http://www.borden.forces.gc.ca/998/2-eng.asp   It’s a good step forward, and will be relevant to our discussions with U.S. military as well.

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Mar
06

Sam’s Club: Approval for March Event Showcase

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Thank you, Sam’s!  Winning Brands invited back for more Houston, Texas Event Showcase activity. 
Next event is approved for this month.  More details to follow.

 

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Mar
03

Do it Best: Store Count Grows for 1000+ Stain Remover

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90 additional Do it Best stores started to carry 1000+ Stain Remover in February 2012, bringing the total number since activation of the account in October 2011 to 418.  In December, January and February, the number of individual stores replenishing their supply from earlier orders also grew each month.  These are still early days, but a positive trend has been established.

Do it Best stores do not have to order the 30.7 oz (full sized)  bottles of  1000+ Stain Remover  in cases of 12; instead their regional warehouses can deliver as little as a single bottle, twice per week.   The little guys (4oz “Handy Size) are ordered in compact Display Packs. This is convenient for the stores by letting them start with a small order and gain familiarity with the product.   We call the new stores systematically in order to answer questions and offer assistance.   A pattern is emerging; authentic rapport, appreciation of suggestions, sharing of success stories from the field, growing interest and involvement. It is encouraging to see a broadening national footprint.  Most states now have at least one participating Do it Best store carrying 1000+ in the store.  Only 6 states remain to get the first Do it Best retailer for 1000+.

The monthly Testimonial Presentation Program is operating smoothly.  Each month, all stores are reminded about an additional user benefit of 1000+.  The March 2012 presentation discusses the remarkable skin friendliness of 1000+ Stain Remover.   Kindness to skin is a good product quality for people whose hands get covered with various kinds of grime regularly.  1000+ does not cause the dryness and redness that conventional pumice based “industrial” hand cleaners do.

Below:
New Product Introduction of 1000+ Stain Remover
at the Do it Best Fall Market October 2011, Indianapolis

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Mar
02

Website Portal

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We would like to integrate the Department of Defense EMALL functionality into the government website, along with the GSA functionality.  DoD EMALL  is merely awaiting signature from the GSA on contract confirmation for EMALL activation. It is a new policy procedure that has affected all new vendors who are similarly pending.   We have been waiting for 3 weeks. EMALL permission is required for deployment of an integrated website.  In the interim, we will proceed with activation of the GSA landing page portion of the website, making it possible for government personnel to gain information for all three Winning brands in one GSA overview (1000+, KIND and CLEAN) in one place, with direct links to the appropriate listings GSA pages without requiring a “search”.   As soon as DOD EMALL does their part, we can activate the full site.  Modified coding for the special landing page will be finished next week, for uploading to our new URL, which is already in place.   This would permit our Managers, Government Procurement to direct correspondents to a URL specific to their interests for the first time.

Winning Brands GSA Portal

 

 

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Mar
01

First Delivery to Hospital

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First order today for delivery of Winning Brands laundry product to a hospital.  Small order, big step.
North York General Hospital

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Feb
29

European Union: 1000+ Stain Remover Dispatched Today

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Earlier this month a News Release referred to 1000+ Stain Removere heading to England within a few weeks constituting our official European Union launch.   This shipment consists of our Bio-Based formulation, that will eventually be introduced to all markets. We have completed preparation of these goods today for the customer’s Canadian freight forwarder, so the shipment is officially “en route”.

The Winning Brands German Ambassador has been reviewing the proposed German label.  The purpose of having country-specific 1000+ labels is to provide the information about the  importer and territory contacts for local consumers and retailers in their own languages.    All other aspects of the packaging and product are identical, so it’s an easy thing to do.

It has taken several years to be ready to introduce 1000+ to the European Union on a commercial basis (ie product on the shelf for sale, not testing).  However, we are far more comfortable now that we have the regulatory issues, product technology and business elements properly developed for Europe –  resulting in advances on several fronts now.  We will be hearing a great deal about 1000+ from Europe in 2012 and in years to come.  

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Feb
29

Shareholder Question: Walmart

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QUESTION

Hi Eric.  Are things goin OK with Wal-Mart?  Thanks if you can answer.

ANSWER

Over 10,000 bottles (909 mL) have been delivered to Walmart Canada since re-launch  in Oct 2011, by means of an initial shipment followed by several  re-orders. 

 

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Feb
28

New York: New Marketing Cooperation Approved

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Approval has been received from Duane Reade for deployment of new USPS mailer introducing 1000+ Stain Remover to New York City.  (Below). A number of 1000+ marketing programs with our retailers will be implemented following completion of strategic financing.  The specific form of marketing cooperation with each retailer will vary, adjusted to their situation.  These programs have already been devised and are awaiting activation. The common theme will be to to increase awareness of 1000+ amongst shoppers that are already regular to these retailers and thereby build on Winning Brands’ foundation of these existing listings.  This will increase efficiency of turnover and increase the appeal of 1000+ for retailers who are watching but undecided.  This is exactly the sort of positive purpose to which strategic funding is geared and available;  aiding the growth of a promising business.   The Duane Reade mail piece will be life sized (hand and bottle).

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Feb
24

Shareholder Question: Sam’s Club

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QUESTION

Hello Eric, Winning Brands has so many things going on that we (I) forget about some of the activities after some time goes by.  I was wondering about the Sam’s Club Road Shows?  Are they continuing or getting scheduled for more in the future?  Are they expanding outside of the Houston area?  I live in the St. Louis area.  It would be great to see how 1000+ would do here!

ANSWER

Thank you for your interest.  We are awaiting approval by Sam’s Club  of our next Event Showcase dates.  We have selected our preferred dates and locations and just need operational confirmation from Sam’s Club.  We’d like our follow-through to be as soon as possible  in Houston, again.  We have pre-positioned adequate inventory in Texas for such a follow-through and are ready from a “team” perspective also.  There is more than meets the eye in holding the Event Showcase (formerly called Road Show).  The personnel and logistics are every bit as important as the product itself for it to all come together.   If we get the elements right in Houston, additional locations will follow in due course.  We seek business relationships that will last many years. We have been accepted as a Walmart USA vendor because that organization sees the same long term potential in us.  (Sam’s Club is a division of Walmart).

As you say that you are from St. Louis, you may be interested to know that you are in the same town as the headquarters of two magazines The Paint Dealer and The Paint Contractor that are fans of 1000+ Stain Remover.  We appreciate the interest that these publications have  in 1000+ Stain Remover.   They seem to feel that we are destined for success with this product – based on their own use of it.  Such support is something we appreciate coming from Missouri, the “Show Me” state:    Related Post: October 13, 2011 http://winningbrandscorporation.com/blog/2011/10/13/thank-you-kenneth-kozak-contractor-of-the-the-year/

 

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Feb
22

Shareholder Question: Please Clarify

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QUESTION

It seems the detractors are already stating that the company will spend the next 90 days preparing the formal proposal, and the financing could come sometime in the future afterwards. Please clarify.

ANSWER

We would like financing arrangements to be ready for implementation in 3 months, but this cannot be promised.   Designing the specific investment suitable to the chosen participants, negotiating the final details, satisfying lengthy due diligence associated with large amounts, preparing, exchanging, amending, finalizing legals – that’s the reality.  

In today’s environment, refinancing is never “easy”.  It’s more challenging still if the company has a high risk profile, as we do.  It’s particularly daunting when the company refuses to take the bait of deals that benefit the newcomers at the expense of the early stakeholders.  Add to this the trading chills sweeping across an entire sector of the investment market and you have a cocktail requiring special tastes.  But just as some individuals  prefer their martinis shaken and not stirred, there are investors who are less ordinary in their thinking than run of the mill ”detractors”.   If the world relied on detractors for progress, there would be no progress.    For the rest of us who do constructive things, there is much to look forward to at Winning Brands.

We are proud of the company and are confident that high calibre refinancing participants are now known to us.  They have a right to trust their experience in identifying opportunities.   These are persons of quality who feel they  will benefit, appropriately, from their involvement with Winning Brands, as will the company and its stakeholders benefit.   Having had patience to do things well will be revealed to be the right approach.  

 

 

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Feb
22

Shareholder Question: Website

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QUESTION

Good Morning Eric, In a February 9th blog about the Government Portal you wrote: It was targeted to be live in six weeks.   I am scheduled to review the latest draft on Friday, and if approved it will go live in a few days thereafter.  If any further adjustments are required, then a few days more.    We are nearing completion now. Has it gone live yet?   Thanks

ANSWER

We are ready on this end (in the office) and have been awaiting the disc for uploading from the 3rd party developer.  So, it’s quite close.   The site will also be a work in progress, because we want to add information that we don’t quite have the right to yet.  So that portal will be revised often.   The URL will be www.WinningBrandsGOV.com

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Feb
22

Shareholder Question: Investor Relations / Market Awareness

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QUESTION

You stated at the beginning of the year that you felt you have now accomplished enough to warrant a stock awareness initiative. We are going into March and have not heard any more about this, and the stock is sitting at .0003!  When are we going to hear and see more about this???

ANSWER

Yes, we are proud of Winning Brands in many ways, and there is a positive message to be shared with new and prospective retail investors.   The logical time to ramp up such outreach is when we are clear as to the nature of our refinancing, because it affects the scope of business projects that we can undertake, going forward.   The core message to the prospective retail investors (i.e. prospective shareholders purchasing shares on own account) should be authentic, not the usual “stock promoter hype”. This requires clarity about the basis on which the company will fund the next 2 years of its business plan.  Also, we do not want to compensate investor relations/awareness associates in shares (for a number of reasons). That is a second reason that the ramping up of IR/IA should follow the refinancing.   

On the subject of refinancing, we are confident that we have identified advisors whose track record, ability to understand our objectives and proven contacts are of sufficient quality to proceed with preparation of a formal proposal to appropriate candidates that are already known.  Over the next 90 days there will be a great deal of work going on to complete this.  The most important vetting condition on our end was to prevent a reverse split as a condition of the funding, and that the funding be sufficient in scope to enable an end to 504 funding.  An ability to end 504 funding will no doubt bode well for the removal of the partial chill in due course.

Complete refinancing will provide a tremendous shot in the arm to the company because management will be able to focus more on business development, the product costs will decline, marketing commitments can be planned further in advance, etc.  It had not been possible in the past to raise 7 digit financing amounts due to rolling 12-month funding limit constraints inherent in Regulation D, Rule 504 (that we have always honoured).   We will not have to rely on Reg D, 504 for the contemplated refinancing.

In summary:

  • It seems likely that we will be able to raise a sufficient sum this year without R/S to enable an end to 504 financing
  • This is a positive factor in the plan to end the partial chill
  • IR/IA will be undertaken to diseminate important information about completed refinancing and to acquaint prospective shareholders with operational developments
  • The supply/demand equation for our shares will be restored by ending the downward price pressure that 504 supply creates.
  • Elevation in Winning Brands trading tier will be facilitated by normalized conditions

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Feb
21

Australia

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Our Australian Ambassador, Kori Walsh, and her family are returning home to Canada, where our collaboration will continue.  

A feature of the new arrangement includes a deepening relationship with a leading Australian manufacturer of cleaning solutions, Rubbedin (http://www.rubbedin.com.au/), with whom earlier cooperation was already beneficial.   This positive relationship with Rubbedin has been developing gradually.  Rubbedin provided assistance in obtaining key distribution in Australia for Winning Brands.  Rubbedin is uniquely qualified to accelerate our progress in Australia and New Zealand as its specialized products already have shelf space in virtually all the stores that Winning Brands would target.  Furthermore, as a manufacturer, Rubbedin is uniquely qualified to convert bulk to local packaging and provide other collaborative strategies to optimize the logistics/distribution equation. 

What Winning Brands brings to the table is a unique product(s) whose international profile is growing and likely to accelerate on its own in years to come.  There are many examples in industry of joint ventures amongst peers, rather than competition, in order to achieve distribution and other operational advantages for mutual gain.  This is why Rubbedin Managing Director, Ian Smits, reiterated to me again in a note this morning “I am enthusiastic about the opportunity that exists for both Winning Brands Group and ourselves.”    We are still developing operating plans and documentation and will issue a more formal news release in due course when more details are concrete.

Winning Brands respects and appreciates this emerging collaboration with Rubbenin and looks forward to having Kori and family in Canada again.

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Feb
20

Tipping Points and Time Frames

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For shareholders who wonder how to assess an appropriate amount of time for a new entry level publico to “make it” – there are many opinions available.  In general, our shareholders are investors, not flippers.  Are they sensible?  There are many examples of why 5 – 10 years should not be considered unusual for a firm or brand to go from being inconsequential to being a success.  I have given a number of relevant examples in interviews.  I came across another one today, in the work of authors Tojo Thatchenkery and Carol Metzker, in their book  entitled Appreciative Intelligence; Seeing the Mighty Oak in the Acorn.  The following is a quotation which our shareholders will be able to appreciate.

The history of Glide Floss is a remarkable example of persistence in individuals and a corporation.  More than 30 years passed between the day in 1971 when Bill Gore first flossed his teeth with a strand of Gore-Tex and September 2003, when consumer products company Procter & Gamble bought Gore’s Glide Floss business.  Gore associates tried unsuccessfully five times over 20 years to sell their idea of nonshred dental floss to various health care product companies.  In 1991, an associate name John Spencer (re)framed the dental floss as a medical technology product rather than as another type of consumer good….Within two years Glide Floss had achieved enormous consumer popularity.  When the company sold Glide Floss to Procter & Gamble, it was the top floss used in dental offices and the number two retail brand in the United States.  Without persistence in keeping the idea in company associates’ minds and persistence in talking to consumers, dentists, drugstore personnel and corporations, the product would not have survived, not to mention earning annual sales of more than $45 million.

 

Winning Brands’ lead product, 1000+ Stain Remover, has unique qualities in a category that is relevant to the daily needs of hundreds of millions of consumers.  The extent to which we have gotten our “frames” right between consumer perceptions and the retail partners who are starting to carry our product has yet to be seen.  However, we are still well within the time frame for success to occur, whether through tipping points, breakthroughs or by good old fashioned “determined effort”.  Success rarely comes easily, but where it is deserved, it usually does come.

It’s also interesting to note that the terms of sale of the floss brand, which has been re-named ORAL-B Glide by P&G, called for the originators to continue to manufacture and develop the product.

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Feb
15

Shareholder Question: Financing

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QUESTION

There have been several questions asking for an update on the status of the new financing.  It is more time-efficient for me to reply to them as a generalized “What’s the latest?” question.

ANSWER

We have been in discussion with various financing candidates over the past few months about what terms and conditions would be attached to a private placement of a size necessary to permit the cessation of 504 funding.   Winning Brands has been just as selective as the candidates.   Winning Brands has declined financing proposals in the past that had provisions which were unattractive to the common shareholders and we continue to be interested in the common shareholder perspective to any financing structure.  There is no reason to accept an unattractive arrangement.  Winning Brands has much to be proud of and is well positioned to benefit from its several years of focused efforts.  Winning Brands is certainly far above average in its level of disclosure, validity of its business premise and plausibility of success than many of our “peers” in the entry level public markets.

Through the process of such discussions, it has become clear that finding the right financing partners, with long term thinking, sophisticated and benevolent both,  is likely to succeed.   It has had more to do with being introduced to the right parties.  We have been meeting a higher calibre of candidates recently than ever before.  I am confident that our objective will be met.

Naturally, I understand that time is of the essence.  On the other hand, a poorly conceived deal or working with the wrong parties will merely create problems.  Therefore, the most important consideration of all is the quality of the finished result.    Our common shareholders can be confident that good people are working on the situation in a principled manner.  The people involved, and I in particular, will only proceed with arrangments that are beneficial for the company’s future; a future that we are excited about.

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Feb
12

Home Depot USA

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We thank Home Depot USA for their collaboration in the transition of Winning Colours to 1000+ Stain Remover at www.HomeDepot.com.  

The new bottle pictures went up a few weeks ago but the text portion has just been updated.  This means that 1000+ Stain Remover is now recognized in the www.HomeDepot.com Search Bar.  All reviews have been retained.  This means that Home Depot/1000+ Stain Remover SEO can now begin in earnest. 

The fact that Home Depot has chosen to stay with us through the name change and website adjustments  is an affirmation by America’s largest home improvement retailer.  Winning Brands has survived its initial test period here and can now build for the future.   It is also becoming easier to obtain 1000+ Stain Remover at the store level by picking up orders there.

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Feb
12

First Grocery Store Demo for 1000+ Stain Remover

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Many thanks to the behind-the-scenes team who coordinated our first ever grocery demo for 1000+ Stain Remover yesterday.  The setting was a Family Fare store of the Spartan chain in Holland,  Michigan. 

The store manager said that the weather reduced shopper traffic by 40% from a normal Saturday, yet our Grocery Ambassador still sold 36 bottles in her first ever experience with 1000+.  The store was very satisfied.  

 The purpose of in-store demonstrations, beyond the sales themselves, is to foster awareness amongst store staff,  build a working relationship with the retailer’s category managers based on shared experiences, gain feedback from shoppers in different settings and assess which channels of distribution/retail are viable for 1000+ Stain Remover.   You don’t really know until you try.  Bear in mind that each channel of distribution has different issues and its own mix of  “peer” products in our category. Even the retailers themselves are not equally collaborative.  Some will not let you do anything to support the brand, while others appreciate it a great deal.  It is in the nature of brand development that more things are tried than actually work.  It seems that things came together well for us in this instance. 

On a personal note to our shareholders, I’ll say this.  It’s interesting that even in the noble pursuit of the creation of a business, there are always a few non-shareholding critics  on the sidelines who want to pull you down.  They hijack discussion boards, or sell short, or spread false rumours, lingering with strange obsession in order to find some flaw (real or imagined) that they can exploit.  Their anonymity on such boards lets them get away with outright distortion.   But in the end, obstacles and setbacks can be overcome with determination.  When  accomplishment occurs, critics are disappointed, but the pride grows of those who have contributed.   People who build things, and the people who are with them, are the winners in life.  Thank you to all who contributed to this, our first ever grocery sector 1000+ consumer work.  I reserve the greatest thanks of all to the MANY shareholders who communicate with Winning Brands directly and share their messages of enthusiasm about the company that we are building together.

 

 

 

 

 

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Feb
10

First Walmart Endcap

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First time for Winning Brands to be given an endcap position at Walmart.  This location was just installed. Much appreciated.

 

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Feb
10

Testimonial Video: Artist Supply Clean-up

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We are grateful to Gisele Grenier for sharing one of the many uses for 1000+ Stain Remover in a video that she has uploaded, cleaning artist supplies.  1000+ Stain Remover is made in the USA for American consumers and in Canada for Canadian and international consumers.

Video Link: http://vimeo.com/36511083

 

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Feb
09

So many great niches for 1000+ Stain Remover

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A recurring experience in our trade shows is the pleasant surprise by hardware store owners when they learn that 1000+ Stain Remover is perfect for getting rid of skunk spray from dogs.  This was the big surprise for us at the Do it Best Fall Market.  Success of 1000+ as a skunk spray eliminator was much appreciated. There is a larger occurence of this problem than one might think.  One key feature of using 1000+ compared to traditional remedies is how easy 1000+ is to use.  Gudrun, our Key Account Manager for Home Hardware, shared this confirmation today.  Thanks to our new Testimonial Distribution program with Do it Best and Home Hardware stores,  we can share actual experiences with 5,000 stores per month now.

On one of my calls I talked with one staff member at a HH store and she de-skunked her dog with 1000+ last week. I asked her how she used it and she said: “Like a shampoo.” I really like that quote, it makes it so easy to visualize….

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Feb
09

Winning Brands Government Portal Update

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On December 30th,  we announced that we would be designing a website portal for government visitors.  Its purpose is to introduce the 3 Winning Brands products that are connected to the General Services Administration,  in terms that are relevant to the U.S. government sector.  This is more appropriate than having government buyers arrive at a corporate site that is oriented to the information needs of shareholders or features domestic products. 

A simple, clean, relevant government portal as the landing place for a Winning Brands government presence – that is the goal.  Then, as our operating relationships within the GSA/DOD grow, the site can be expanded in ways that are relevant to those specific relationships.  The advantage of this new portal is that all communications with the U.S. government and all marketing to the U.S. government can feature it, for consistency. 

It was targeted to be live in six weeks.   I am scheduled to review the latest draft on Friday, and if approved it will go live in a few days thereafter.  If any further adjustments are required, then a few days more.    We are nearing completion now.

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Feb
07

Shareholder Question: Lorne Kelly

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QUESTION

Eric. Happy New Year.  Great news about UK, etc. Is Lorne still with the Company?, If Not can you elaborate?

ANSWER

Lorne is an early shareholder.  His role has varied depending upon what needed to be done combined with what his interests/talents were.  Through time we saw that Lorne’s primary interests were in demonstration/training and motor sports.  Lorne had been hoping to combine these and has been exploring a closer tie to motor sports again, but in the U.S.  He has been free to pursue this or any other related opportunity that would enable him to live in the U.S.  We have not been blogging every little development in this regard because it would overly publicize a personal career planning process.  Lorne continues to be a stakeholder, continues to direct opportunities our way as he finds them, continues to appear in videos (most recently Canadian Tire) and is still in transition as to his final destiny.  He would like to live in the U.S. – that much is for sure.  That will be the most important determinant of his future career. he can be thought of as a “free agent” with ties of goodwill and service as needed for the well being of the firm.

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Feb
07

Shareholder Question: Hotels

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QUESTION

Hello Eric,  I just read your most recent blog about the Ramada Inn in Palm Springs being added to your list of new Hotel clients which is good news however I am concerned if that is the only new account added since the last update in December. In a previous blog you mentioned that the goal for 2012 was to get to 100 hotels and by my calculations we should be adding 8 or 9 a month to get there. Please tell me that there are others but you are not allowed to list the names yet. I was very encouraged when this initiative was announced but if the progress so far after a few months is that we only added two or three accounts then I have to wonder what that guy out is CA is doing all day and hope that he is only being paid on a comission basis. I work in the insurance business and if I do not sell, my family does not eat. Thats how it should work, but it appears that in your organization pay may not be tied to performance/sales like is should be. I have watched many new initiatives that are announced and then just fizzle out and never result in the goals stated at the beginning. Is this hotel plan going to end the same way or is there a clear plan on how that 100 client number is going to achieved?  Thanks.

ANSWER

  • I do not yet have formal permission to speak about the hotel that you mention, so strictly speaking, I will revert to describing that property as a prospect.
  • There are two groups of hotels.  The first consists of those that have formally incorporated our products into their routine.  We call these committed. The second consists of those who are using our products on a provisional basis (ie experimenting, trying, comparing). We call these transitional.  There are approximately 10 in the first group and 20 now in the second group.
  • The rate of growth through the year is not likely to be linear, because of this vetting period.  It will tend to come in batches.  The second group of new prospects were all approached relatively recently based on the proven results in the first group.  That second group now needs its evaluation period
  • We supply this sector through a distributorship arrangement.  Therefore, Winning Brands does not carry the overhead associated with the business development, but instead shares a portion of the end-user price to provide adequate margin to the distributor.  There are significant associated technical costs for the distributor, including pumps associated with dispensing, training and customer service, etc.  Also, the distributor has been determining what personnel to recruit and train for the implementation of Project 100.  Bear in mind that the initial stage of the project was testing oriented.  Operationalization is getting underway now.  It required planning because our goal is to grow far beyond 100 hotels in years to come.  California alone has approximately 26,000.   100 properties  is only the next stage threshold.  A sophisticated distribution concept needs to accommodate the nuts and bolts issues of growth beyond the territory where the activity is occuring currently.

Even when we gain new hotel customers, there is reluctance by most of them for us to use their name publicly because of several factors:

  1. Some might have ties to other suppliers which they feel would be compromised
  2. The local hotel may be prohibited from providing public endorsements by contract with the franchisor
  3.  The hotel is corporately owned and local management does not have the authority
  4. A new customer may not want to burn their bridges with a former supplier until that have more history with us, etc.
  • If you have concerns about initiatives which you feel have “fizzled out”, feel free to bring them to my attention and I will be pleased to provide associated details if possible (ie in view of confidentiality undertakings that sometimes exist).  As a general comment, I would say that we are always trying a number of things to find openings and move forward.  There is no question that some things don’t work out, but we are resourceful and keep at it regardless in order to find the mix of factors that work well.

 

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Feb
06

Do it Best – Up to 330 by end of January

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We are encouraged to see re-ordering from a number of Do it Best stores that have started with us.  Also, the number of participating outlets is climbing, having reached 330 stores by January 31st.  A case in point is a retailer in Ohio who took delivery of 2 cases of large bottles  at the Fall Market in October and has placed replenishment orders totalling an additional 36 large and 36 small bottles since then.  This is better than average performance, yet the store is in a small community.   The operational goal is to achieve this as normal turnover across the account base in general.  Bear in mind, we have never had an account with 4,000 stores to work with before.  That’s what makes this such an important and positive year for Winning Brands.  We simply have not previously had access to the scale of operations that exist now.  If this one store, in a small town, were typical across the Do it Best organization, then our sales would exceed $5 Million per year for this account alone.   Since Do it Best accounts for approximately 12% of the store doors in this sector, even that performance would leave 88% of this sector to go.  Then there other sectors.  And all of this is just the USA, and only for one product.  Winning Brands has plenty of room to grow.

Stores in small towns can perform well too.  Independents are highly motivated.

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Feb
03

Better Homes and Gardens Show for Winning Colours Australia

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For anyone planning a trip down under in February, a quick note from Brand Ambassador Kori Walsh in Australia:

I will be heading to Melbourne to do the Better Homes and Gardens LIVE Home Show Feb 24-26.  Hopefully it is as successful as the Sydney show.  This is the first one for Melbourne so I’m sure it will be a big hit as well!  Will send some photos after the show. Cheers, Kori

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Feb
01

Weblog – One Day Visitor Snapshot

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This is a map of the regions in which you, our readers, were in the world, yesterday, January 31, 2012.  During the month of January, there were 1,301 unique visitors making 7,576 visits to read 12,238 pages.  Readers in 177 cities spent sufficient time on the weblog to read at least one post.  

This is a map of the regions within the USA where our readers were yesterday:

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Jan
31

Why we love our work at Winning Brands: New Testimonial

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Hi Deb, Was nice meeting you yesterday at the Lancaster Show.  Attached are the pics I shared with you at the show on my phone.  This is a Concentrated Dye Stain that is used in the woodworking industry. All over our tile floor. We tried EVERYTHING in the store to clean it up. Nothing worked. We resolved ourselves to replacing the tile - a well over $2000.00 job. Then remembered a sample bottle of 1000+ in the back of store. Used it and it worked!!!!!  LOVE THIS STUFF Feel free to use the pics in any way. Annapolis Paint, Easton, Maryland.

 

 

 

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Jan
31

First Commercial, Industrial & Maintenance Catalogue for 1000+ Stain Remover

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1000+ Stain Remover has been approved for the first time for a Commercial, Industrial & Maintenance Catalogue.  The Home Hardware Professional Supply Catalogue Printed and Online Edition, issued by Alliance International’s Home Hardware group, will feature the 4L size of 1000+ in the 2012 edition.  The annual catalogue will be issued in the summer.  We are grateful and excited about the enhanced visibility that this will give to 1000+ Stain Remover in the Com/Ind/Maintenance segment of the market. This catalogue is widely distributed amongst professionals in the sector.

 

 

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Jan
31

Shareholder Question: Form D

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QUESTION

Eric, An IHUB user posted this link this morning:  http://ih.advfn.com/p.php?pid=nmona&article=50963614  t is the “Small Company Offering and Sale of Securities Without Registration (D)” Near the bottom it states:

13. Offering and Sales Amounts
 

Total Offering Amount $   1000000    o Indefinite
Total Amount Sold $   145300   USD  
Total Remaining to be Sold $   854700   USD o Indefinite

It is a little disconcerting to see this numbers and I know this doesn’t contradict your post from January 24th: “An ideal solution would be a substantial paid-in capital tranche, perhaps $2 Million, through a Preferred Share mechanism, in order to end the subscription-based growth of supply of common shares.  This concept is being discussed with select parties who have connections to accredited investors, and with accredited investors themselves…. We have an excellent business plan and sound use-of-proceeds proposals.  As a practical matter, a great deal of due diligence is required on the other side and can take months.  Potential participants are not limited to the United States and may be based in Canada. Although we have accepted 504 financing as a part of the solution in the past and present, it is no longer a solution for the long term, or even medium term, future.   Retail share buying demand must have a chance to catch-up with supply of common shares by means of ending 504 and debt conversion generated supply as soon as practical.”  In light of this recent filing should we anticipate that “as soon as practical” still may be many months away?

ANSWER

Regulation D, Rule 504 permits qualified exempt issuers to raise $1 Million per year, or on average, approximately $83,000 per month.  Our filing reports that Winning Brands has sought substantially LESS than the permitted amount in the last several months; only $48,433.33.   This decline in the amount sought by Winning Brands through this mechanism, and its end, will continue by replacing same with other sources that are being developed currently.  It is not possible to predict exactly how soon this will be completed, and the CEO Weblog post of January 24th post remains accurate.  It is being worked on. I have no reason to believe that the company will not achieve the stated goal.

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Jan
30

Shareholder Question: CLEAN1

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QUESTION

Eric, what’s the difference between CLEAN1 and 1000+?

ANSWER

The two products were created from a different starting point and have their own personality.  As a general statement, CLEAN1 (formerly “AA5″) is more suited to situations where low-foaming or scrubbing is required, typically on a hard surface, with a power washer, brush, scrubbing pad, etc.  It is often used in the trigger sprayer format, but not exclusively.  In order to clarify this for our customers, we are phasing in the use of the descriptor “Hard Surface Cleaner” into packaging and reducing the references to all-purpose (but not eliminating them).

1000+ Stain Remover, is gentler on skin and particularly suitable when working with hands or delicate surfaces, but can also be used on hard surfaces.  1000+ is more versatile.  CLEAN1 is more focused on the hard surface uses and has very little scent.

These are not firm “rules”, and consumers have crossed over into a variety of uses for both, however the concept of World’s Most Versatile Cleaning Solution more properly belongs to 1000+ Stain Remover.   

There are four reasons that 1000+ Stain Remover is not sold with a trigger sprayer.   The first is that, historically, the viscosity was not suitable for conventional trigger sprayers, although we are experimenting with viscosity.  Secondly, conventional trigger sprayers have certain plastic parts that would eventually be weakened by 1000+ under constant  contact with the undiluted concentrate.   Thirdly, the pull top bottle encourages delivery of a more substantial “hit” on top of the stain, rather than the thin film of dispersed liquid that a trigger sprayer delivers on its standard setting.  (Consumers do not typically toggle between mist and stream). The forth reason is that we encourage consumers to add 1000+ into a pail of water by simply squirting from the bottle.  A spray top makes that a nuisance, even in the stream setting.

Parents will understand that it’s like having children – you love them equally yet recognize that their personalities and talents are not identical.   They eventually just go out into the world and end up gaining their following amongst people who value them most for what they have to offer.

 

 

 

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Jan
29

Update: U.S. Government – Winning Brands Given Green Light to Proceed with DOD EMALL Registration

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Our GSA registration enabled us, in theory, to be registered with the U.S. Depart of Defense, Defense Logistics Agency’s “EMALL”, however a separate application is required.   We have received written permission to begin the application process now. We are making arrangements this coming week with ORC Certificate Support Staff to complete our PKI security access, in order to submit the various required schedules to the EMALL Supply Account Manager who has now been assigned to us.   The DOD EMALL strives to be an alternative online resource to the GSA Advantage platform.  Attached is a PowerPoint backgrounder document for your interest.  http://www.landandmaritime.dla.mil/downloads/emall/2010SupplierInformation.pdf

In 2012, we will embark on an ambitious product sample distribution program (through official channels) to expose personnel in the many suitable agencies to our product(s), such as FBI for finger print dust clean-up, Veteran’s hospitals for stains & laundry, prisons, etc.  The list of where Winning Brands products are useful is (almost) endless .  Our plan is to provide easy widespread exposure in order to generate authentic first-hand experiences so that our product(s) can be searched by name.

In this vein, it was tremendous to receive our first written testimonial this week from a U.S. government agency that found 1000+ Stain Remover performing better for them than expected in their facilities maintenance.  We do not yet have permission to quote the testimonial or provide further details.

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Jan
29

Lancaster Update: Orders, Renewed Relationships

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Orders are being placed, contacts expanded and acquaintanceships renewed today via face-to-face contact with some of Lancaster’s Northeast District account base.  The map below, of Lancaster distribution facilities, shows the area of concentration for the Harford, Connecticut show. 

This is the first time that our Retail Support Manager, Deberah Ruddy has met Scup and Dirty Dave, in person.  It’s probably like meeting “celebrities” because their enthusiasm for the product, for Winning Brands in general and the destiny of 1000+ as a national brand  is well known in the Winning Brands community. 

The best single  order today was for 480 bottles, mixed size – but that is the exception, not the norm.

 

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Jan
28

Spartan Store Demo Preparations

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Here is a photo taken at a grocery store in Michigan today, in the Spartan group, where preparations are being made for in-store demonstration.  More inventory is being brought in, and shelf facing increased from one to three at this location.  We appreciate the interest of this chain to discover, with us, what combination of factors (price, positioning, promotion) work best for mutual benefit.  We will provide photo of the first demonstration on the day it occurs. (i.e. not today)

 

 

 

 

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Jan
27

Distributor / Dealer Show: 1000+ with Lancaster in Connecticut

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Today was set-up day at the Hartford Convention Center in Connecticut.  We are joining a cross section of Lancaster’s vendor partners to support Lancaster’s outreach to their store accounts in the North East.  It also provides an opportunity for vendors to meet face to face with some of the Lancaster sales force (who spend most of their time on the road).  Since the acquisition of Five Star Distributing by Lancaster, the two organizations have been combining personnel, resources, accounts and procedures.  This is the first time that we have the chance to get to know the North East team after the merger.   This is not a “large” event by trade show standards, but it is a quality event in terms of the opportunity for one-on-one time with our account representatives and customers in this region.  We are represented here tomorrow and Sunday by Deberah Ruddy, Manager Retailer Support for Winning Brands, and the popular stakeholder product fans, Scup and Dirty Dave.  Accompanying Scup is his wife, Kristen, known affectionately as “The Director” because of her experience and interest in video.

This is a pre-show set up snap shot of the demonstration table.  We should have more photos and thoughts to share during the weekend.

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Jan
26

Store Scenes: Walmart

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A shareholder was carrying out some due diligence as to whether our product really was in their local Walmart (in Canada).  He found our product and discovered that it had an excellent shelf presence with 3 facings in this outlet.  He counted the number of bottles (including those pushed to the very back of the shelf out of view, or up beyond reach etc) 15 days ago at 35 compared with today’s count at 18.  I cannot verify the information, but am sharing it believing it to be reliable.  This excellent result of more than a bottle per day is not typical across stores, but is a statistic that is showing up more often than before.  To be able to see a return to these shelves is an important affirmation of the firm’s accomplishing three key things:

  • Obtaining and retaining a business relationship with one of the world’s most important retailers
  • Delivering a manufactured product on a consistent quality basis
  • Having a brand which consumers are choosing to try and/or repurchase- demonstrating relevance to the market

 

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Jan
25

Shareholder Question: Mailing

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QUESTION

Hi Eric.  Are you sending out letters every day or all at once and why.  Thanks.

ANSWER

Our introductory letter to beneficial shareholders is an opportunity to put practical information about the company and its lead product into shareholders’ hands, physically, and for me to invite shareholder questions.  Many shareholders do not visit discussion boards, were not aware of the CEO Weblog, nor aware of the fact that their local Do it Best affiliated hardware store has 1000+ Stain Remover already on the shelf,  or can order 1000+ in for a person simply by asking.

We send out these introductions at the rate of approximately 25 per day in order to be able to respond to questions, comments or feedback professionally.  Even with the modest rate of mailing 25 per day, it is common to have several responses per day.  We do not have the infrastructure to respond personally and efficiently to the projected number of responses that a mailing of all 4,400 at once would generate.   There is no “time sensitive” material contained in the letter. The steady approach still provides all shareholders with the same operational information, but in a manner that lets us handle responses properly.

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Jan
24

Shareholder Question: Financing

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QUESTION

Eric; can you say anything about where your at with financing? Thanks in advance.

ANSWER

An ideal solution would be a substantial paid-in capital tranche, perhaps $2 Million, through a Preferred Share mechanism, in order to end the subscription-based growth of supply of common shares.  This concept is being discussed with select parties who have connections to accredited investors, and with accredited investors themselves.

 We have an excellent business plan and sound use-of-proceeds proposals.  As a practical matter, a great deal of due dilligence is required on the other side and can take months.  Potential participants are not limited to the United States and may be based in Canada.

Although we have accepted 504 financing as a part of the solution in the past and present, it is no longer a solution for the long term, or even medium term, future.   Retail share buying demand must have a chance to catch-up with supply of common shares by means of ending 504 and debt conversion generated supply as soon as practical.  There is no dispute about that with anyone, including myself.   It is clear from the performance of the stock that when supply subsides, the price can rise easily.  The increase in supply of shares for financing purposes (including debt conversion) has been the principal cause of the falling share price, not a lack of interest or supporters.  That financing enabled our operations to become established and now includes commercial relationships with some of Canada’s best national retailers - important new openings in the United States and repeat business internationally.  We did not have any of this a few years ago. 

Winning Brands has much more going for it than in the past and we can make the case for a sizable private placement with a party who is capable of understanding we have accomplished and what all this can mean going forward. 

Whether Preferred shares will be the mechanism utilized or not,  the company will ensure an alignment of the investment objectives of the new investor with the common shareholders, as mine are. 

Winning Brands is perfectly capable of completing the job it has set out to do.  Legitimate commercial success has a way of curing all manner of problems associated with formative struggle.   Speaking personally, I have no doubt whatsoever, none, that Winning Brands can and will continue to improve as a company and be a source of pride for its owners.

 

 

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Jan
22

Home Hardware Joins Winning BrandsTestimonial Education Program

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Approval received from Home Hardware, with 1,000 stores, to begin monthly distribution to all outlets of our monthly Testimonial Information Presentation in standardized format, suitable for the building up of a resource binder for consumers and staff alike.  Home Hardware is a partner organization of Do it Best, under the umbrella of Alliance International. 

This brings to 5,000 the number of stores that will receiving monthly testimonial updates of consumer/store successes with 1,000+ Stain Remover.  

Distribution of the Do it Best pieces began last Thursday.  Distribution of the Home Hardware piece begins next week.  Winning Brands has never before had official access to 5,000 stores for a marketing and information campaign of any type, let alone on a monthly basis.

The photo below shows the front and back of the first item to Home Hardware (which carries a 4L size in addition to the 909 mL and 125 mL).  The additional photo shows a completed Testimonial Binder with a year’s worth of information.

 

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Jan
22

Brand Equity – A Practical Example

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I wanted to share the note below, received today, because it illustrates the commercial opportunities for 1000+ Stain Remover in industry.  I don’t discuss the industrial market as much as the consumer market, but the industrial sector is large.   Today’s note is from a warehouse operation that likes our product, but forgot where our product was first purchased.  Now the customer would like our help connecting them with a retailer that carries it in their preferred size.   It reveals valuable “brand equity” when a customer seeks out a store that sells our product specifically, rather than the customer merely picking up “whatever” cleaning product their local store happens to carry.   This commercial warehouse could obviously use anything that is currently available.  Why do they make the effort of sourcing our product, specifically?  They answer this question for us in their own words; it is “superior”. Brand equity is an important measure of a company’s enduring potential because a ”destination” product is worth more than a ”me too” (generic) product. 1000+ Stain Remover is a destination product.  This is brand equity.

 

Dear Winning Brands;    Our company is located in Mississauga and purchased in the past 4 ltr containers of Winning Colours (1000+).  We use this for our warehouse upkeep, for example removing tape residue from melamine, or overspray from spray paint.  It is a superior product. I have been instructed to place another order for 4 – 4 ltr jugs but can’t remember the company name that sells in 4 ltr containers.  Would you kindly direct me to this company so that I can place and order. Thanks in advance.

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Jan
21

Increased Online Collaboration

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Thank you, Browne’s Home Center!  http://www.browneshomecenter.com/

As we focus in 2012 on increasing the success of our existing retailers with 1000+ Stain Remover, we are seeking collaboration with these stores to boost the presence of 1000+ in their websites. 

Browne’s Home Center just added us today, as an example.  When we achieve effective partnership with thousands of stores, we will also be closer to a presence on thousands of websites.  Such is the profile of a national brand, category favourite and household name.  To dream is one thing, but practical action is how you get there!

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Jan
21

Positive Experiences Being Shared by New Do it Best Team

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We are in touch with our new Do it Best retailers on a regular basis to learn more about their experience with us as a supplier and with our product.  Together we can “make the case”  to consumers for 1000+ to become the favourite in its category.  For that to be teamwork, it requires mutual enthusiasm. 

Our Customer Service outreach program, connecting with stores by telephone to understand their experiences, is generating a new supply of  first-hand product impressions shared by Do it Best store personnel.  Here too we see that amongst store staff who discover 1000+ uses for themselves,  enthusiasm is developing and the basis of a solid brand relationship is forming.   The Do it Best organization has approximately 4,000 stores.  We estimate that approximately 8% have 1000+ since its formal introduction in October.

The following is an extract from a Customer Service call report that I read today.  It concerns a person working at a Do it Best store.  It is typical of what we are hearing.  Staff who think of reaching for 1000+ Stain Remover when a mess happens, solve a problem.  These are ”moments of truth” that money can’t buy.  Store personnel who have rescued a possession or accomplish something that was personally important to them with 1000+, can speak about the product with far more interest and conviction when answering consumer needs.  There are many reasons to like 1000+.  In this case, it was the fact that a treasured football sweatshirt was left intact despite the removal of a tough stain. 

There is a never ending supply of new messes that we can help with, uniquely.  With Do it Best, thousands of store associates can eventually help spread the word, from first hand experience, to millions of consumers, coast to coast.

I was transferred to K____ who told me she was the one who ordered the product and as it happens she had the opportunity to use it because she was mixing some stain for a customer and accidentally spilled some on her favorite “Vikings” sweatshirt! She immediately tried the 1000+ and did say it took some effort and several applications but she successfully removed the stain and was thrilled that it did not harm the fabric or discolor it in anyway. 

 

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Jan
19

Outdoor Advertising Conversion Complete

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The conversion of our outdoor ads which began in December, to a new design format, is complete.  Sample locations illustrated below.  This design stands out even in the middle of a winter blizzard.  Well situated outdoor advertising can support local stores effectively and affordably, if carefully chosen.

 

 

 

 

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Jan
18

First 1000+ Banner to Ace Hardware Location

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The new exterior 1000+ banner design, below, has been approved for use at the Ace affiliate, Lumberword, in Victoria.  It is the first time that Winning Brands signage has been approved for use at an Ace Hardware affiliate.  Tracy Hutton, our Accounting Manager, is holding the other end up in this photo.  The unit was delivered to us today and will be dispatched to the Ace store immediately. 

 

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Jan
17

Benjamin Moore Coming to Canadian Tire

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Benjamin Moore Canada announced their new alliance with Canadian Tire launching in the spring of 2012. Canadian Tire is a very large retailer selling general merchandise across the country. They have created a paint specifically for them: Origins by Benjamin Moore. It will be available in both interior and exterior finishes and have about 500 colours to be tinted with the colorants already used by Canadian Tire.   This is likely to generate more traffic to the Paint Department in these stores (where 1000+ is sold).

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Jan
17

Well done, Lancaster!

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Seem to be picking up some steam in our work with Lancaster.  An additional 32 independent paint/hardware store locations since last report in Alabama, California,Florida, Massachusetts, Maryland. Michigan, Mississippi, New Hampshire, New York, Pennsylvania, Texas and Virginia.

Winning Brands looks forward to spending more time in person with the Lancaster Team at the end of January Dealer Show at the Hartford Convention Center (below).

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Jan
16

Home Depot – Brochure Holder Installations Underway

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In an earlier post, I mentioned how fortunate we were to be approved for installation of fixed-in-place brochure holders across the chain in Canada.  These are starting to be put in place now.  The design features a laminated back panel which depicts the front of the brochure but has a toll-free telephone number.  This makes it easy for store personnel or the MET Team to order re-fill packets and enables the re-fill process to become standard operating procedure.  The brochure holder is shown in operation in the two photos below, and empty in the 3rd picture, to illustrate the refill process.  

When the brochure holders are all in place, consumers will have an important additional decision making resource.  The more a prospective shopper knows about the remarkable versatility and value of 1000+ Stain Remover, the better.  We have nothing to fear from comparison shopping. We are deeply grateful for this opportunity to provide shoppers with more convenient information.  Various in-store efforts in retailers with whom we are already working are being deployed in 2012 to accelerate product turnover and efficiency.   It has taken time to earn such privileges.

 

 

 

 

 

 

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Jan
11

Shareholder Question: DTC

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QUESTION

Eric, what happened to this  (DTC) Sponsor? There are people on the OTCBB message board, ripping this stock apart. thanks

ANSWER

We are still working on the DTC matter.  The DTC does not have a legal grievance, or in fact any grievance, with us in particular.  There is a desire by DTC to have confidence in the validity of shares of unregistered companies.   Providing this confidence is a matter to be dealt with on a case by case basis between companies and the DTC, because the circumstances of each company are unique.  As a practical matter, there is quite a backlog in such reviews due to the large number being made across the entire category.

As to the “ripping apart” that you refer to, it is par for the course in an anonymous posting environment.  People can hide behind their anonymity and say anything.  Fortunately, in real life people cannot walk amongst us with identities concealed.  It is well known that when identity is concealed, behaviour deteriorates dramatically, because the concealed person escapes the consequences for their (often misleading or outright false) statements.   Even simple tracking of posters by history reveals obvious patterns along these lines, across various boards.  Furthermore, it is common for the worst offenders to change their handles from time to time.  The worst are usually not shareholders and simply obsessed.   The typical calling card of such obsession is that the poster will claim to be looking out for the interests of shareholders, altruistically, despite not being one.

The majority of our shareholders do not post and prefer direct, unconcealed, communication for best results.   Shareholders who do post can usually be recognized by the discussion of their legitimate interests, rather than exclusively looking for fault, real or imagined,  The message boards are not reflective of the tone and calibre of our shareholders as a whole.

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Jan
09

1000+ Stain Remover – Industrial Use; More than a stain remover.

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Received today:  Before / After 
This is from an on-going evaluation in a facility that services equipment used in the oil exploration industry.   The point is not only how well 1000+ worked, but how many ADDITIONAL uses the SAME product can be put to in the SAME facility, without gloves, for convenience.  The “reach for it first” solution.  There are many settings in the Oil, Automotive, Military, Waste Disposal, and other industries where this convenience will be appreciated.

 

 

 

 

 

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