GestureTek Business Model Refreshed – More Rewards for Customers and GestureTek, Both.

A number of Winning Brands shareholders have asked about the business model of our Tech Division, GestureTek. Several of the questions deal with what the GestureTek “subscription model” is, and what I mean by “advertising revenue” when I discuss our plans. It is worth the effort to understand the answer, below, because it reveals why the refreshed GestureTek business model is so attractive.

In the past, GestureTek’s interactive projection equipment was sold to end-users. This included a variety of institutions and retailers. These organizational customers would use GestureTek patented equipment to create interactive engagement with the public in their environments. Typically, this engagement would be to support the organization’s own brand identity. GestureTek equipment was purchased and paid for by the enterprise customers outright. It was then used for the enterprise’s own purposes (with GestureTek’s customization assistance). The revenue in this model is not recurring (i.e., continuous from the same source).

The GestureTek website, link below, shows many successful installations in which GestureTek technology brings new life to plain surfaces for our customers, such as flooring, walls and tables. The site has embedded videos showing GestureTek in operation.

www.GestureTek.com

Now, as part of the Winning Brands group, (OTC:WNBD), GestureTek is updating its business model to include Subscription Placement of some GestureTek equipment.

This means that GestureTek will now also create collaborations with retailers in which GestureTek equipment will be installed as the property of GestureTek and will be paid for via revenue sharing of advertising dollars in suitable settings. The addition of Subscription Placement to GestureTek’s business model has the potential to boost sales revenue to GestureTek considerably on a recurring basis. The recurring nature of this revenue is a key insight in understanding the appeal of GestureTek’s updated business model

In Subscription Placement, the following is the ideal scenario. The ideal setting for Subscription Placement is a retail environment in which competitive consumer brands are sold, such as convenience stores, grocery stores and shopping malls. Most of these environments, today, are increasingly sophisticated. Much money has been spent by consumer packaged goods companies (and stores) to improve the appeal of the products on offer there. Lighting, display stands, shelf-merchandising, and packaging are only four examples of where a great deal of investment is being made at point-of-sale to increase sales turnover. The setting is highly competitive for consumer packaged goods brands. Every advantage matters.

GestureTek’s CUBE technology is well-suited to this environment. GestureTek CUBE is a Plug & Play piece of equipment that sits securely on the floor (or stand), tucked out of the way. The GroundFX/WallFX versions of this device can be ceiling mounted.

The GestureTek CUBE projects a brightly lit interactive range of images with motion and sound, that consumers interact with. The world’s foremost consumer behaviour research organization, Nielson, through one of its research divisions, determined that GestureTek equipment, specifically, impacts consumer behaviour positively. Shoppers gain better recall of participating brands, think more highly of these brands and even stay longer in these retail settings because of the interesting nature of GestureTek interactivity. These effects lead to to higher sales for the merchant and for the consumer product brands. In this way, GestureTek delivers a premium marketing experience to those consumer brands.

GestureTek is now reaching out to retailers to introduce this premium experience to stores in order to share the advertising payments that brands will make for this premium experience.

As we “fine tune” our operating protocols to accommodate Subscription Placement in these settings, we will optimize the supportive mechanisms needed to function smoothly on a growing scale, such as service arrangements, flow of payments, revision of GestureTek system content, etc. This is the work in progress now.

Already, GestureTek systems have been designed to let participating retailers select from a menu of relevant items contained within their systems. This selection is accomplished by activating a displayable control panel. Entirely new image content can also be delivered to the GestureTek CUBE units, by a variety of means, including via internet downloading where appropriate. Some retailers prefer to receive updates off-line to protect their IT systems from outside influence. GestureTek systems are adaptable. The GestureTek system control panel is shown below.

There are hundreds of thousands of suitable commercial settings for GestureTek Subscription Placement. GestureTek’s business model can be highly rewarding with activation of even a small fraction of this total market space, delivering millions in recurring revenue to Winning Brands GestureTek stakeholders.

Winning Brands GestureTek are in the formative stage of this refreshed business model, and are therefore at the highest risk stage. There will be obstacles to overcome. However, the potential is vast to deliver excellent, profitable, service to our retail partners, our consumer product brand collaborators and to the public – whom we all serve in the end. This high-service potential is the reason for our enthusiasm and confidence that the GestureTek Subscription Placement business model is a win-win for everyone it touches. GestureTek will certainly be driving continued innovation in this field, now as part of Winning Brands.

Sincerely,
Eric Lehner, Chairman
Winning Brands GestureTek

Winning Brands Financing Discussion

Winning Brands recently announced completion of its GestureTek acquisition. That news release link is below. In the news release, a preview of the path forward in financing was given. Further context is provided below. The following explanation will help Winning Brands shareholders and creditors see how GestureTek will assist WNBD stakeholders to build a valuable Winning Brands parent company, and how Winning Brands (the parent company) in turn is setting the stage for future GestureTek subsidiary customers and investors to thrive.

NEWS RELEASE LINK:
https://www.accesswire.com/723219/Winning-Brands-Acquisition-of-the-GestureTek-Brand-is-Complete

Pertinent Section: “As a result of this transaction, all previous GestureTek intellectual property and asset ownership held by others in these proceedings is now vested with Winning Brands instead. Winning Brands will be creating a new GestureTek corporate entity for all future commercialization of GestureTek and will utilize a minority portion of that new entity for the purpose of future GestureTek financing, rather than relying on Winning Brands common stock dilution. Therefore, future Winning Brands stock issuances can be utilized to accelerate the retirement of debt faster than would otherwise have been possible. The new GestureTek subsidiary will have a valuation that is significantly higher than Winning Brands’ present market cap. This arises from many factors, including specific existing GestureTek patent rights and goodwill factors that follow from years of tech industry leadership. This will make it possible to raise significant GestureTek growth capital with only modest equity encroachment into the subsidiary, rather than utilizing WNBD common shares for that purpose. The new GestureTek equity investor positions will not enter the OTC market system for the foreseeable future. This approach will benefit current and future WNBD shareholders greatly.”

CONTEXT AND SIGNIFICANCE

GestureTek corporate valuation characteristics can best be understood by not combining them with Winning Brands valuation characteristics. This is because GestureTek’s history, value metrics, customer base, intellectual property elements, industry dynamic and future growth drivers are distinct from the factors that apply to Winning Brands.

A unique valuation basis exists for GestureTek. This is especially so because GestureTek was paid for the purchase of some of its assets in 2011 in an arms-length divestiture transaction, by one of the world’s foremost technology companies. That transaction can be evaluated today and adjusted appropriately in order to be made relevant for today. This is done by taking various factors into account and applying a Present Value to the remaining (substantial) GestureTek portfolio. A link to the news release describing that earlier transaction is provided below.

NEWS RELEASE LINK: https://www.qualcomm.com/news/releases/2011/07/qualcomm-acquires-gesture-recognition-assets-gesturetek

The benefit to Winning Brands shareholders of that 2011 valuation event is that today’s new GestureTek subsidiary, being created now, can be valued for financing purposes with an independent historical reference basis, rather than a subjective and speculative reference basis that has no precedent. The exceptionally high quality of the transaction partner who issued the news release shown above adds credence to the professionalism of the valuation factors that were applied at the time. This is enormously helpful.

A new GestureTek subsidiary can now be created because the court approval for Winning Brands’ acquisition became formal and final in October 2022 with the issuance of the Receiver’s Certificate. The new GestureTek subsidiary will, on the basis of an inevitably substantial valuation, be accepting a large dollar value minority investor infusion in order to stimulate GestureTek’s revitalization and growth. A portion of this infusion will flow through to Winning Brands as advance royalty payments under licensing from Winning Brands, as well as reimbursement to Winning Brands of certain early costs incurred, and will ultimately include profit sharing pari passu with other GestureTek stakeholders. This flow through will benefit Winning Brands creditors and shareholders, both.

The capital infusion to be made by the new GestureTek minority investor group will be received by means of a new Regulation A+ Tier II offering that is specific to the GestureTek subsidiary. Liquidity for GestureTek Regulation A+ subscribers, who will be members of the public solicited by means of a professional online offering sales platform, and social media advertising, will not occur through the OTC Markets setting for the foreseeable future. This is a key benefit and accomplishment for Winning Brands shareholders.

This means that GestureTek will be permitted to raise millions of dollars of operating capital (not debt) without encroaching on the majority holding interests of Winning Brands, and without causing dilution of Winning Brands common stock for GestureTek’s future growth needs.

The potential dollar value of GestureTek operating funds to be raised in this manner is significant, yet will not interfere with trading of Winning Brands common stock. The GestureTek stock will not appear in OTC marketplace following issuance. Understanding this point is at the heart of understanding the acumen of this approach for Winning Brands stakeholder interests.

There are several reasons that a new GestureTek subsidiary is being created, rather than utilizing GestureTek Health (which is an existing related entity) to be Winning Brands’ commercialization vehicle going forward. The first is that the new subsidiary will not hold GestureTek Health legacy debt. GTH minority stakeholders and/or creditors will for the most part be accommodated through negotiated equity arrangements in the new subsidiary instead. Also, the new subsidiary will be audited. There are other technical and legal advantages of the commercialization subsidiary being new.

The new, dedicated, GestureTek Regulation A+ will be coordinated by top experts in the field who have an impressive track record of multi-million online offerings to the public. Further details will be revealed as arrangements advance, as soon as possible.

The existing Winning Brands Regulation A+, which as already been approved by the SEC, will enable Winning Brands to reduce its debt. Winning Brands is committed to addressing and satisfying its creditor arrangements, including investment lenders and commercial lenders. The cooperation of such creditors is immensely appreciated and is a contribution to the aforementioned plans that are so beneficial to WNBD shareholder interests.

There is no obligation by Winning Brands to issue the maximum number of shares allowed under the existing Regulation A+. Furthermore, the pricing of the Regulation A+ offering may be amended through a revised SEC filing. Therefore, a stronger WNBD share price will be possible as the reality of GestureTek’s implementation takes hold and is understood. Cooperation between WNBD stakeholders in all financing matters will yield optimal results. WNBD management is grateful for such cooperation.

SUMMARY

Prior to the acquisition of GestureTek, WNBD relied on its legacy operation in the field of environmental consumer products to drive value. Despite its excellent products in that category, WNBD management pursued a method to dramatically increase the slope of its possible growth in value by embracing entirely new value drivers.

Winning Brands’ VISION 21 set out a bold plan of creating a tech division as the central feature of that strategy. Now, Winning Brands has delivered the key declared objective; a court verified and approved acquisition of a fine, respected and relevant tech portfolio.

This was accomplished by in effect rescuing GestureTek assets, rights and legacy elements from receivership circumstances that were commercially unnecessary. The circumstances did not accurately reflect the business value potential of the GestureTek brand when operating with adequate funding. The consequence is an exciting new phase of potential growth for WNBD.

Winning Brands is respecting its pledge to retire outstanding Winning Brands creditor interests by this plan, while at the same time demonstrating that dilution of Winning Brands common stock has a new premise. Rather than being a method to obtain working capital it will become a method to improve the balance sheet, instead.

In addition to these benefits for Winning Brands shareholders, GestureTek customers, staff and future investors will benefit too. The substantial new cash resources that the GestureTek Regulation A+ will bring by means of its new Tier II offering, will foster renewed excellence in GestureTek operations and reputation.

More information will be supplied as soon as possible regarding the foregoing, and more shareholder questions will be answered.

GestureTek Testimonial

We are honored to have received a testimonial today by our new colleagues in the GestureTek Division.

5 GestureTek Cubes were delivered to the medical organization called The Carle Foundation Hospital in Illinois last year. The customer then allocated the Cubes amongst their several pediatric care locations. Our GestureTek president, Erol Vekil, had a very pleasant chat today with the customer, and asked whether we may have feedback about their experience with the GestureTek systems. The response came in the form of an email, below, with the name of the correspondent redacted for privacy.

https://carle.org/locations/carle-foundation-hospital 


“Good Morning Erol,

I wanted to reach out to you to let you know how wonderful of a product GestureTek has been in our clinics and several clinics in our organization of Carle Health. We have recently implemented several “sensory rooms” that these cubes have gone in, and they have helped our patients with sensory needs so much (and also very fun). 

After so much positive feedback from patients, parents, staff, and providers, we will be applying for a grant to hopefully implement more of these cubes in our waiting rooms in our pediatrics departments over the next several years. Could you send me an updated quote for the GestureTek Cube? 

Thank you so much, and we appreciate your excellent product! 

(Name Redacted), BSN,RN,CMSRN, Title

Curtis Pediatrics

“ Greatness is not where you stand, but the direction you are going.”

Advancing as Planned – New Horizons for Winning Brands

Our news release today describes product upgrades being made now to the GestureTek IREX System. These product improvements reflect forward thinking by the GestureTek team, and customer feedback, both. Our customers for this system are hospitals and other medical professionals who use GestureTek IREX to heal people whose bodies require physical therapy to restore normal function.

The GestureTek IREX System places patients into a “virtual setting” on a screen that patients look at, so that these patients can move their bodies in a prescribed manner and be tracked for performance. The news release contains links to videos in which clinicians kindly share their enthusiasm for IREX and its potential. Dozens of clinical studies have demonstrated improved outcomes for patients treated with GestureTek IREX by their physical therapists.

I am proud of the team at GestureTek not only for their past accomplishments, but also for their commitment to achieve new heights. Winning Brands, as a public company, will bring more opportunities for GestureTek in years to come, to expand GestureTek’s good work and attain even greater recognition.

On a purely business level, GestureTek’s patented technology brings a steep growth curve to Winning Brands that will benefit our stakeholders.

LINK: https://www.accesswire.com/viewarticle.aspx?id=707156&token=x2kmw5mfz5vvoto66gzr

See the video showcase of clinicians discussing what GestureTek’s IREX System does for them, and for their patients: https://vimeo.com/showcase/3880219

Tech Division – Introduction!

ACQUISITION PROCESS ADVANCES TO DISCLOSURE PHASE

Winning Brands has today been granted permission to disclose the identity of the Tech Division acquisition that is underway. This is an important milestone in the acquisition process. From this point forward, Winning Brands will be able to discuss with its shareholders the nature of the technology that will underpin WNBD’s Tech Division that was first described in Vision 21, and to discuss the commercial opportunities that our acquisition target brings to Winning Brands. Today’s official news release link is here: https://www.accesswire.com/viewarticle.aspx?id=697559&token=nkinnafgz31acb980bxb

GestureTek Systems is a leader in the field of gesture control (including touchless control) of an enormous range of electronic devices, computer controlled media and interactive systems. A simple Google search for the name “GestureTek” will identify many search results related to the company, its technology and products, its customers and its personnel. This exceptional search performance reflects years of activity and achievement.



GestureTek’s proprietary technology suite has far reaching applications – now more than ever in the post- COVID era. Experts predict that heightened concern for infection reduction and improved hygiene will be a permanent impact of the COVID experience in a crowded world – anything that reduces touch in public settings is very “today” and will remain so for the foreseeable future. Far beyond hygiene benefits, a vast array of GestureTek touchless technology applications deliver convenience and entertainment benefits to human interactions with devices – an array of uses for which experts see no end in sight, even extending into metaverse applications.

There will be further discussion about the specifics of the acquisition process, however, this immediate CEO weblog post is a summary of key things to consider as you, WNBD shareholders, begin to discover the many internet search results describing GestureTek’s technology and accomplishments.

The addition of GestureTek technology to WNBD as a new operating division will be unprecedented in Winning Brands history for its positive impact upon Winning Brands’ growth prospects. It is transformational to Winning Brands because of the advanced stage of development that GestureTek technology has reached through the years with commercial clients, demonstrating broad acceptance in the marketplace. Thousands of GestureTek technology installations have been made into organizations that are amongst the best in their diverse fields. As a practical matter, through this acquisition, these world-class customers will become Winning Brands’ customers for the purpose of repeat business and growth via Winning Brands’ GestureTek technology division.

KEY TAKEAWAYS

  • The current stage of the acquisition process will be described in a separate post shortly. This immediate post is an introduction of our intended Technology Division by name and background for the first time. Having been granted permission to make this disclosure at this time is an accomplishment.
  • There is abundant commercial history of GestureTek technology discoverable online. Online materials represent various years of creation. Some materials, being older than others, may seem dated if taken out of context. This is in the nature of any organization whose commercial history spans many years. Winning Brands’ Action Group for the GestureTek acquisition will identify which materials can be updated if necessary, however, the respected legacy of commercial adoption of GestureTek technology by many of the world’s best organizations is far more important. Commercial customers for GestureTek technology are discerning. They have been well-served and are satisfied with their GestureTek product investments. They are ready to respond to our new marketing and product development initiatives.
  • The GestureTek technology division with which Winning Brands had initially entered into joint venture relations, GestureTek Health, is a good online information resource to understand GestureTek technology’s history of development and applications in the medical sphere; one sector amongst many. LINK: https://gesturetekhealth.com/about-us
  • An additional benefit to Winning Brands shareholders of the acquisition is the expansion of the Winning Brands management team that will follow. These new colleagues will be introduced in due course.
  • More information regarding all these subjects will be provided shortly.

Summary

As disclosed in prior updates, this acquisition arises from a trusteeship. Many great brands have undergone restructuring that arises from financial stresses or external circumstances that are not a reflection of the merits of a company’s technology, customer relationships or operational personnel.

Winning Brands has earned the opportunity to help chart GestureTek’s course to renewed vitality as part of a public company (for the first time), and to eventually become the new holder of GestureTek rights and assets when approved by the court, through Winning Brands’ vision and determined efforts. This is the value-building approach that is described in Vision 21. The upside to both Winning Brands and GestureTek of this union is enormous. We are ready to do the work to implement the union, pending court approval, that will be discussed separately.

Through today’s disclosure, WNBD shareholders can see for themselves that Winning Brands is putting into place a fascinating new tech infrastructure that can dramatically increase the intrinsic value of WNBD through successful implementation. This is a high-expertise, high-value business sector. This acquisition allows WNBD shareholders to participate in a highly desirable field with the advantage of a running start, rather than unrealistically, “starting from scratch”. The enormous commercial advantage obtained by Winning Brands from the aggregate expertise and continuity of GestureTek is the core insight of this strategy. It’s not just another start-up, because it is not a start-up. There is no “learning period”, and no need to earn the trust of the commercial customer base because GestureTek has become a leader in this field. The early hurdles have already been overcome and internalized as the intangible goodwill of the respected GestureTek brand. These factors are major value drivers that will accrue to the benefit of WNBD shareholders. It is an exciting experience for us all to share.

News Release Link:

Winning Brands Previews Metaverse Capability of Its New Tech Division

https://www.accesswire.com/viewarticle.aspx?id=688727

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Accepting Guidance for Best Results – Cooperating Attorneys

The attorneys representing the vendors and representing Winning Brands have both cooperated to strengthen our acquisition transaction, and they have received recent help in the process from our major patent licensor partner – a respected multinational corporation with billions in sales and tens of thousands of employees – but the court needs an extra 60 days to deal with the suggested enhancement to the vesting order.

Winning Brands acquisition of the Tech Div property (intellectual rights and physical assets) does not require the prior approval of the principal patent rights licensor; only notification in a prescribed manner. However, the attorneys and the licensor itself have cooperated to create an additional assignment agreement that goes beyond the original “implicit” notification approach, in order to make the transfer of these rights to Winning Brands absolute by linking it to the Asset Purchase Agreement. The attorneys felt that this explicit additional approval of the principal licensor will enable the court to make its vesting order with greater confidence and provide certainty to Winning Brands shareholders that the transfer of rights to Winning Brands is final.

Therefore, the vesting order is re-scheduled for action by the court by April 15th, rather than February 15th. I have been given this new court timing only a few minutes ago and am sharing it immediately today with shareholders.

Bottom line – the Tech Div acquisition is still happening as previously envisioned. I have chosen to accept the attorneys’ advice on how to strengthen the vesting order, rather than turning down their request for “appearance sake” on the timing. It was a difficult decision, because we are all anxious to get on with things, but it is immensely positive to our future and therefore serves our long term interests best that I bite-the-bullet and accept this well-meaning guidance.

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In the meantime, the Tech Div team and I are in continuous close touch and planning our shared future. We are using the interregnum period to prepare a strong re-launch, with publicity and plenty of Tech announcements immediately following the vesting order.

Also in the meantime, you will be hearing more about Winning Brands’ other activities.

Sincerely,
Eric Lehner, CEO
Winning Brands

Tech Division Acquisition Update for Shareholders

On April 23, 2021 Winning Brands management posted its Annual Report for the year ending December 31, 2020. Contained in that April report was a section dealing with subsequent developments, charting a course for future growth.

It was announced therein that negotiations had begun to add a new Tech Division to Winning Brands, by means of the acquisition of pertinent business elements from a trustee. This was the key to providing Winning Brands shareholders with increased intrinsic shareholder value: acquiring something important for WNBD shareholders at a substantial discount to its normal value. This is a formula already used successfully in many business sectors, including real estate and general industry. This method has proven to be a significant source of gain to purchasers able to make such arrangements. The negotiations for this particular transaction, between Winning Brands and the parties involved in the Tech Division, span two years and are now leading to a fruitful conclusion. The technology is perfectly positioned to capitalize on certain major trends in society that are manifesting, and likely to continue, as far as can be reasonably predicted. This longevity and breadth of relevance is a key feature of the value of this technology to the shareholders of Winning Brands now, and into the future.

The background to the purpose and circumstances of this acquisition by Winning Brands was provided to shareholders starting in April 2021, within the limitations of non-disclosure obligations. Further updates have been provided subsequently.

The link to the original Annual Report, is here: https://www.otcmarkets.com/otcapi/company/financial-report/279668/content

A theme running through the subsequent shareholder updates has been the preference by Winning Brands management to have formal court sanctioning of the acquisition that it is now making, by way of a vesting order. This would give Winning Brands’ acquisition legal finality and freedom from legacy claims against the assets that are being purchased by Winning Brands.

Management discipline was required to resist the temptation of announcing completion of the transaction prior to the issuance of a court vesting order. Pressures existed in the relationship between Winning Brands and its shareholders in this regard. In the end, management opted for the protection of shareholders’ long term interests, considering this protection to be more important than a short term spike of publicity, followed by uncertainty. Premature announcement of completion would have created mass confusion amongst the existing client companies of the acquisition target, that target’s creditors and even the court.

I am pleased to report, that the court with special jurisdiction in this matter has added the vesting order hearing to its docket, including a court date. For this reason, Winning Brands will be in a position to finally and formally announce the completion of this transaction prior to February 15th, to be accompanied by a vesting order that will confer ownership to Winning Brands of the Tech Division assets being purchased. The matter has now been formally received into court processing, and this timing is provided by the court itself.

A non-disclosure obligation still exists, both as a legal obligation and as a practical matter. However, the following can be stated:

  • To the best knowledge of WNBD management, and the attorneys representing both sides of the transaction, the transaction is non-contentious and is expected to be completed with the consent of all affected parties.
  • The intellectual property rights include, amongst other things, protection under dozens of patents by license agreement, and will transfer to, and vest into Winning Brands.
  • A subsidiary to Winning Brands will now be created within the coming 6 weeks in readiness to receive these patent rights, physical assets, goodwill, commercial rights, etc (such as are useful to Winning Brands).
  • The subsidiary will be majority owned by Winning Brands. The minority interest in the subsidiary will be used to convey economic opportunity to existing management and staff of the Tech Division, its former lenders, and to provide an additional basis of financing for the Tech Division’s growth going forward that is not dilutional to WNBD stock.
  • The subsidiary will be able to carry on business from inception under Winning Brands ownership because the Tech Division has existing commercial clients. These customers are of significant stature, located in North America, Europe, the Middle East and Japan. For this reason, Q1 2022 Winning Brands reported sales will include new contributions from the Tech Division.
  • Winning Brands shareholders will be given a full briefing as to the business of the Tech Division, its management, its technology, customer profiles, and its Technology Division’s immediate growth opportunities following the vesting order.
  • Contrary to shareholder concerns, the Tech Division will not be inheriting legacy debt. The court vesting order will provide unencumbered ownership of the rights and assets in question to Winning Brands
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WNBD Tech Division Update

Much Progress in a Short Time Frame – What Happens Next?

Winning Brands provides frequent overviews of WNBD business issues for its shareholders because most WNBD shareholders are new – with the exception of a minority of long term holders.

New shareholders, particularly, benefit from these recaps. The recaps provide much needed context for social media comments, including my own, with a factual underpinning.

To illustrate how high the ownership percentage is that new shareholders may represent, the equivalent of the entire outstanding share count of WNBD has revolved twice in the past two months alone – over 9 billion shares in over 24,000 trades.

Some of this stock turnover is “in & out trading” by existing shareholders, and by market makers. However, it is clear to me through shareholder correspondence that the majority of WNBD shareholders are relatively new at any given point in time. I make the effort to provide detailed discussion because it leads to greater satisfaction and success for all, by limiting misinformation that arises from rumor, speculation and inaccuracy.

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Tech Division Recap

On April 28, 2021 Winning Brands described its intention to add substantial intrinsic shareholder value to WNBD by organizing the vend-in (acquisition) of a technology company, to become a new (additional) subsidiary to Winning Brands. This is what we refer to as the “Tech Division”.

The April 28th introduction describes the circumstances of the intended acquisition. We targeted June 30th as the date by which it would be clear whether we have a transaction or not.

By that measure, the process is ahead of schedule because a deposit on the acquisition has already been paid, and accepted, prior to June 30th. The acceptance of this deposit commits the other party to honoring the acquisition price, and commits the other party to collaborate in a process of closing. A link to the April 28th introduction of this intended acquisition is provided below for your convenience.

On June 8th, Winning Brands provided shareholders with a partial list of satisfied customers of our Tech Division acquisition target. A link is given below for your convenience. The purpose of having provided the customer list was to illustrate two things to WNBD shareholders.

The first purpose was to show, with key factual information, that the intended acquisition would be transformational to Winning Brands’ intrinsic value because of the senior nature of the Tech Division’s customer base. These customers are some of the finest corporations and NGO organizations in the world.

The second purpose was to illustrate that because of the high quality of this customer list, it is vital that all aspects of this acquisition be performed professionally and flawlessly.

On June 16th, a further discussion of the process of this acquisition was provided to WNBD shareholders, with link below.

The combination of these three discussions provides extraordinary disclosure for WNBD shareholders. All three discussions should be read by any WNBD shareholder who is seriously interested in this dimension of Winning Brands’ business plan, i.e. the Tech Division acquisition.

Next Steps from June 30, 2021

Today, June 30th, a site visit was successfully conducted to exercise best practices in the completion of the core documents that will be submitted to the court to obtain a Vesting Order.

Winning Brands is conducting this transaction with the assistance of exceptional legal counsel whose subject matter expertise is second to none. The trustee, the legal counsel, and Winning Brands are ensuring that signatories to the Tech Division’s intellectual property agreements are being properly informed, and that any third parties whose cooperation should be respected, are being treated properly. As a reminder, the Tech Division benefits from protection from over 50 patents. The stakes are high to carry out the process properly.

The closing of this transaction has an informal and a formal stage. The informal closing has already now been attained in as much as the negotiation regarding price has been completed and the deposit paid and accepted, causing certain obligations to come into effect, mutually.

The formal closing will arise from the Vesting Order. To quote one published definition of a vesting order, “…Simply put, a vesting order is a court order that passes legal title in lieu of a legal conveyance. 2. It is an equitable remedy, and is, therefore, by its nature, discretionary, and results from a finding by a court that fairness demands that the court act in a way to transfer property from one party to another…”

Winning Brands anticipates that the submission requesting the Vesting Order will be made in approximately 30 days, and that the Vesting Order itself, may be granted within 60 days following the submission.

By this timeline, WNBD will be able to conduct business with the Tech Division’s customer base, as the new owner (parent company to the Tech Division) in Q4 2021, and report this business in WNBD’s 2021 Annual Report, as hoped.

In the meantime, because no insurmountable objections to the intended Vesting Order are foreseen, the target Tech Division and Winning Brands are, effective July 1st, beginning to coordinate their business planning and management. My goal, as Group Chairman, is to help strengthen the Tech Division even in the interim. This will contribute momentum to WNBD Q4 operations, and will already be enhancing WNBD value in the present by strengthening that operation.

The transaction is governed by a non-disclosure agreement regarding key particulars. THIS IS IN WINNING BRANDS’ INTEREST. It is vital that no unnecessary complications are introduced during the final court approval stage arising from errant 3rd party communication, initiatives and unpredictable factors.

The bottom line: Starting July 1st, a new phase begins for WNBD. The CEO of the Tech Division and I can and will now work in tandem to enhance the operations of the Tech Division, immediately. My willingness to invest Winning Brands time and resources into such interim business cooperation, prior to the formal Vesting Order, reflects my confidence that formal closing is just that, a “formality”. Nonetheless, I am also determined to keep the remaining process clean and tidy as it has been to date, taking nothing for granted, honoring our non-disclosure obligations and expecting the same of the other parties.

In addition to the exciting co-management of the Tech Division that begins tomorrow, Winning Brands is advancing well on its other VISION 21 business initiatives, which will be reported shortly.

The net result of all these measures, in total, is a significant strengthening of Winning Brands intrinsic value for the benefit of its shareholders. There is a great deal of solid achievement emerging as Winning Brands continues the dramatic revitalization that began with the launch of our new business plan on Monday November 16, 2020. All people who were WNBD shareholders as at November 16, 2020 have benefited enormously since then.

I anticipate that current WNBD shareholders will also benefit greatly from the implementation of VISION 21, and this Tech Division acquisition in particular, whose acquisition so far has gone flawlessly, with no roadblocks in sight.

Eric Lehner, CEO
Winning Brands

Tech Division Update: Process Discussion

Our Winning Brands 2020 Annual Report introduced the fact that we were undertaking the acquisition of a tech company. This was described under the heading of VISION 21. https://backend.otcmarkets.com/otcapi/company/financial-report/279668/content.

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We provided a further update in the Q1 OTC Markets disclosure report. https://backend.otcmarkets.com/otcapi/company/financial-report/283293/content

Then on June 8, 2021 a post to this blog site added more information. The June 8th post provided the names of some of the many satisfied customers of our future Tech Division. The quality of that customer list speaks for itself. It requires no embellishment. It’s a “who’s who” of corporate excellence. These are organizations that can buy anything they want, from any supplier they prefer. There is no better “vetting” process of a supplier’s quality than to than to look at that supplier’s customer list. So simple, and yet so revealing. At one time or another, all of these companies (and more) have paid for product or service or license from our future Tech Division.

WNBD shareholders have responded favorably to this disclosure. The question amongst Winning Brands shareholders is no longer whether this is likely to be beneficial to the intrinsic value of WNBD. That is now obvious. The question has instead become how likely the acquisition is to actually occur, so that the Tech Division’s customers will in fact become Winning Brands customers, by extension.

Today’s update is a review of the process by which the acquisition is taking place. I describe this acquisition in the present tense. This is not an acquisition that would merely be “nice to have” one day, or an acquisition that we are “trying to obtain, but is iffy”. It is an acquisition which is already occurring.

The transaction deposit is being held in trust and is slated to be released this week – a partial payment. In this fact, and all our dealings to date, Winning Brands has shown itself to our transaction partners to be serious, competent and professional. Winning Brands has done in this transaction all that we said that we would do. WNBD is retaining the initiative in this transaction. Winning Brands is helping to keep things moving forward. We are not passive. We are active participants in a collaborative process, involving a number of parties, and it is going well.

It is in the nature of a multi-party transaction that various interests need to be reconciled. Not all parties are driven by the “time is of the essence” principle. Not all parties to such a transaction start out with the same concept of value. Not all parties are in the same jurisdiction. There are many things to pull together. Winning Brands’ astute handling of this transaction is an indicator of WNBD’s positive potential in future situations that require sound judgment. This may be a comfort to Winning Brands’ shareholders.

Winning Brands is honoring a non-disclosure agreement that prevents describing the company being acquired by name. As a practical matter, the name is irrelevant because it is not a name that you, the reader, would have heard of before. Yet, as you see, many of its customers are names that “everyone” knows.

In the modern economy, there are smart niche companies who are very successful being part of solutions that impact public life, but in the background. Bravo to Intel for the insight of their “Intel Inside” marketing concept. That concept converted Intel’s immense contribution to technology products from being an obscure contribution, i.e. hidden, to being universally known, and ultimately, a selling point. In the “Winning Brands” era of this Tech Division’s operation, more focus will be placed on branding “our” solutions so that not only will we continue to have great customers, but more people will know about that fact. A public company platform is uniquely well-suited to this objective for the benefit of our Tech Division and our shareholders.

Background to Current Process

Winning Brands is acquiring valuable intellectual property, as well as physical assets, personnel and goodwill of a technology company in North America that was put into trusteeship when a bank withdrew a line of credit in a manner that created a domino effect. A crisis ensued. On behalf of Winning Brands in the capacity of consultant, I intervened to organize bridge financing for that entity while the negotiations began with the trustee for Winning Brands to acquire the items in trusteeship within a new WNBD subsidiary, free and clear of the institutional liens that caused the difficulty. I know for a fact that the trusteeship was unnecessary, and not a reflection of the quality of the company. The trusteeship, in essence, arose as a technical consequence of the fact that the company did not meet the bank’s acid test ratio during a periodic review. Ironically, the “excessive” debt to asset ratio arose from friendly, foundational, shareholder loans that would never jeopardize the company. But to the bank, it was all about the ratio. (https://en.wikipedia.org/wiki/Quick_ratio)

Such decisions are often made in the “ivory towers” of bank headquarters without much flexibility. If a company does not fit new profile criteria, the company becomes a square peg for a round hole. Banks don’t like that. No one in bank management gets kudos for being flexible. They get criticism for not following the rules. In this case, the bank’s action precipitated a sequence of events that was too complex to stop simply.

My intervention gave the company a lifeline that, to my reckoning, could be beneficial for all parties concerned, if the rescued operation could join us as part of our public company team. It is beneficial for WNBD because we are obtaining things in the transaction, tangible and intangible, for pennies on the dollar relative to their development costs. Also, the institutional memory of a personnel group who know how to do something well, and have earned the trust of such high level customers does not even appear of the balance sheet. It can cost tens of millions to acquire such goodwill, if it can ever be gained. Our Tech Division has such goodwill. The acquisition is beneficial for the Tech Division team because their operation will be able to carry on without the burden of the bank issue (due to a release that will be provided). They gain additional management perspective and a new public platform to grow the awareness of their work. The acquisition is beneficial for our customers, because the Tech Division managed to stay operational, even on a restricted basis. In fact, the customers are not even disturbed by the impairments that the company needed to overcome because the quality of delivered goods and services was not affected. Soon, everything that the Tech Division will be even better. The company’s name has remained the same. The telephone number the same, etc. All aspects of the identity are intact, and will remain so. In the end, the acquisition will be a finesse that will only have winners. Even the bank is a winner because they get to “close the file” and move on.

Intellectual Property and Timing

There are two aspects to the intellectual property rights that are time consuming to deal with. The first is to establish their provenance. (https://en.wikipedia.org/wiki/Provenance). The second is to ensure their flawless conveyance. I am being unyielding on both.

We are dealing with licensed protection under more than 50 patents. These needed to be researched to establish beyond any doubt under what conditions this protection exists. Which entities to the transaction had rights, in which commercial arrangements were/are in place, how were these arrangements affected by the trusteeship (if at all), what releases and waivers are required for quit claim purposes, etc. Is that a lot of work? Yes, but effort now will ensure that in the future when we arrange for valuations of various aspects of Winning Brands’ interests, it will be enormously helpful that we paid attention to such matters. It also strengthens our enforcement rights in any actions and helps make the case to customers that we have something that gives them value and peace of mind – authentic, provable rights.

The transaction is taking place in two parts – a preparatory phase (the current phase). This phase is characterized by legal due diligence investigations, confirmation and discussion with vendors (of the rights) regarding the transfer of all of the vendors’ right, title and interest in and to the purchased assets, to Winning Brands.

We are hoping that this phase will end around June 30th, with the completion of the Asset Purchase Agreement setting out the detail that emerged from Step 1. We are no longer negotiating. This is purely a procedural collaboration. The Asset Purchase Agreement will formalize the description (for legal purposes) of those assets and the proposed mechanics and final timing for the sale to be consummated in the eyes of the court to whom the trustee is accountable. This affirmation by the court is important to me as CEO of Winning Brands so that representations that I will make publicly as to the ownership of these rights and assets free and clear are protected from any rebuttal. It is easy to be lazy or impatient, and skip this last step. This court affirmation is what I am determined to accomplish however, as it will enhance the value of what we have.

Therefore, within the next 2-3 weeks we target to have the Step 2 documentation ready and signed, and to apply for the court’s blessing. I will have a better sense in a few weeks when that can be expected.

In the meantime, Tech Division management and Winning Brands are already collaborating in the coordination of planning. Budgets are being drawn up. A lengthy Action Plan has been developed, with names of people assigned to specific tasks, for a roll-out sequence over the 6 months ensuing the court’s sign-off.

It is in WNBD shareholder interest that this process is not rushed, and that we do not upset the apple cart by diving into further detail about the company at this time because of the fact that it offers no benefit to do so. The acquisition is transformational for Winning Brands and the lift that it will provide is long lasting. In the larger scheme of things, a few days, or weeks, or even months is absolutely immaterial to the positive impact that will follow, and endure. The confidentiality provision protects our customers, staff, negotiators, the bank and other institutional interests, and even the court, from errant phone calls, e-mails and confusing communications at cross-purposes.

I will have a further update toward the end of June to keep shareholders apprised of developments.

In the meantime, Winning Brands continues to advance in its other initiatives.

Thank you, Winning Brands shareholders, for your interest and kind thoughts, expressed in so many ways.

Eric Lehner, CEO
Winning Brands

Tech Division; Partial Customer List

Our 2020 Annual Report describes a transaction underway, whereby Winning Brands will have an additional subsidiary, to serve as a Tech Division. The technology platform in this division is patented, and in use. The report explains the trusteeship circumstances by which this acquisition has become possible. The transaction, which is passing through normal stages for transactions of this nature, is governed by a Non-Disclosure Agreement.

The price has been agreed and all parties are cooperating to professionally plan the transfer of intellectual property and operating assets to Winning Brands. When these matters are completed by legal counsel, then payment can be made and the transaction will be finalized. For extra care, the transaction will be approved by a court. This will confirm that Winning Brands holds the acquired rights and assets outright.

These assets are in use presently, by way of an operating business. The business has existing qualified management and customers.

There is a widely accepted principle in business and life that “one is known by the company that one keeps“. For a business, this is manifest by the company’s customer list. The customer list is the ultimate “vetting”. A customer list reveals, better than any other form of assessment, whether the products/services that an enterprise delivers are useful, of good quality and meet the scrutiny of discerning purchasers.

Permission has been received from the Tech Division CEO to provide a partial list of customers. This provides WNBD shareholders with helpful perspective to consider whether Winning Brands is likely to benefit from this acquisition. The customers shown below are only some of the organizations that have specified, ordered, received, paid-for and are using the Tech Division’s patented products and services in arm’s length transactions. It is not merely a “prospect list”. Upon completion of the acquisition, future sales will be reported within the Winning Brands financial statements on a combined and consolidated basis. The entirety of the Tech Division customer list will then be Winning Brands’ customer list.

The technology is inherently interesting. It has various uses and opportunities for continued intellectual property creation. It is relevant to key trends in the modern world. This is not yesterday’s concept for a by-gone era; it is tomorrow’s technology that was introduced ahead of its time – thus being able to earn patent protection. Because of its suitability for modern social trends, this technology will gain momentum in coming years. Winning Brands’ future business operations associated with this technology will generate continuing natural opportunities for media coverage that is particularly helpful to public companies. This will stimulate awareness of both the technology and the company that is providing it.

The name of the Tech Division company is not a household word, but the names of “our” customers are. This is an example of a category of niche enterprises that “no-one has heard of”, and yet are closer than you realize because the customers are organizations whom “everybody knows”.

The goal of this acquisition is for both parties to the transaction to add value to each other, so that they can together better serve their customers and stakeholders. Thus, the transaction is beneficial for all.

PARTIAL LIST OF SATISFIED CUSTOMERS OF THE TECH DIVISION:

  • NASA
  • CNN
  • Ford
  • Disney
  • Sprint
  • Ripley Entertainment
  • FedEx
  • P&G
  • Hugo Boss
  • Telefonica
  • United Technologies
  • W Hotels
  • Crayola
  • GAP
  • Old Navy
  • NBA
  • Target
  • T-Mobile
  • AT&T
  • Virgin
  • McDonalds
  • Kubota
  • LG
  • Samsung
  • Vodafone
  • Best Buy
  • Pepsi
  • L’Oréal
  • Universal Studios
  • Travelers Insurance
  • Marriott
  • Behr Paints
  • Gillette
  • Hitachi
  • Weather Services International
  • Mayo Clinic Health System
  • Sick Kids Foundation
  • Shriner’s Hospitals for Children
  • Kaiser Permanente
  • Lehigh Valley Health Network
  • Miami Children’s Hospital
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It is important that Winning Brands does not jeopardize the transaction by rushing the arrangements. The processes are coming together at a normal pace for transactions involving sophisticated assets, customers and operations.

The partial customer list above is provided as a courtesy to our shareholders, so that they can discern for themselves whether these possibilities are of interest to them, as they consider their investment options in OTC Markets and elsewhere.

Shareholder/Investor Question: 1000+ and the Market for Concentrates

QUESTION

I’ve read through your website and I have a couple questions that weren’t resolved in my read through.   Many companies have tried the concentrate route and a few with actual shelf space in big box stores and significant media/advertising exposure.  Consumers seem to have rejected the concentrate idea in the past for several reasons but quality of product doesn’t seem to be an issue, convenience and storage are the primary reasons I could find.  With that being said,

1- What makes you believe consumer sentiment has or will change in the near future?   

2- Do you have a significant advertising campaign planned for this year?

ANSWER

Our launch strategy has addressed your questions about concentrates in several ways.

Consumers will choose from what is available based on their perception of the benefits.  In the spray cleaner concentrate segment, national brands have not yet mainstreamed the message of a triple benefit:

  • Huge Savings as sprayer concentrate;
  • Alternative use of the concentrate as a full strength stain remover from original bottle when a spray cleaner application is not sufficient;
  • Massive reduction in empty bottle and trigger spray mechanism waste.
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Most of the options offered in the spray cleaner concentrate segment are actually only refills.  This is a subtle but important difference. The financial incentive to consumers of “mere” refills is not compelling.  The benefits that 1000+ offers are not marketed by mainstream brands in the manner that we are positioning with 1000+.  Our approach to concentration reduces the per-bottle cost to much less than a dollar and reduces the garbage by 95%.  This is superior to the current propositions by any mainstream brand in this category, regardless of their excellence as companies, which I acknowledge.

Also, the 1000+ brand will form alliances with people and organizations who are forward-leaning on the subject of single-use plastic reduction.  We will do this to engage a critical mass of like-minded consumers.  In Winning Brands’ estimation, there are approximately 10 million households whose lifestyle drivers are so well-aligned with 1000+ product characteristics that these consumers might even purchase 1000+ right  now, “tonight”, if they knew about it.  This represents approximately 8% of U.S. households.  One helpful characteristic of this 8% of households (but not the only helpful characteristic) is that these households tend to be early adopters of home improvement, cleaning and hygiene aids.

Our plan is to identify a sufficiently strong medium-size retail partner who possesses credibility within an existing customer base for a “deep launch”.  A deep launch is even more significant than merely having 1000+ “available”, passively.  Such a deep launch retailer will have a sufficient number of consumers to be impactful.  Also, that retailer will have communications channels with their customers that enable our deep launch of 1000+ to create top-of-mind awareness within this consumer cohort. This will be done in collaboration with the retailer.   We cannot ask of our online partners, Home Depot and Walmart, to be the deep-launch collaborators.  They are vast organizations and we are still emergent.  They are not an incubator to aspiring brands.  We are honored to have a place amongst their offerings, but it is our job to increase awareness of the brand and project 1000+ more deeply into America’s homes.

This combination of qualities required of a deep-launch partner can be found in a number of medium sized retailers.  We are reaching out to several presently.  The question is which one will step forward in a leadership role first.  Our eventual partnership with that organization, whoever that will be,  will include supportive social media initiatives that reward that retailer for their partnership.  We will be good partners and add-value to the relationship.  If such a relationship is regional, rather than national, then more than one such collaboration can occur simultaneously in due course.

The unfoldment of this strategy by Winning Brands is something that we are working on with enthusiasm.  Our premise is sound, our spirit is strong and our values are appropriate. Most importantly, we have a terrific product and have demonstrated that we can make and deliver the product to professional standards.   As a brand, 1000+ Stain Remover has the leading indicators of a successful deep launch, now including the new Spray Cleaner Concentrate function.

A final note about concentrates.  The reluctance of some consumers toward concentrates was famously experienced by the mainstream laundry detergent brands.  However, the benefits of concentration are so practical that concentration has actually become the new norm in that sector.  Of course non-concentrates are still available, but their proportion is steadily declining.  It is likely that legislation regarding packaging will create further incentives for concentration in due course, accelerating this trend.

The bottom line is that a critical mass size of consumer community will emerge for 1000+ Stain Remover / Spray Cleaner concentrate through various means.  Once established, our consumer community will exert influence by virtue of its buying power.  This will only grow over time.  1000+ is only one facet of Winning Brands’ business.  The company will benefit from the growth of 1000+, but does not rely on it exclusively to define the appeal of Winning Brands for the future.

Thank you for your interest!

Welcome to New Shareholders. Orientation, Future Plans and Company Valuation.

Getting the facts and understanding the mission.

In the 6 months since November 2020, Winning Brands stock has been actively traded. This CEO weblog entry is an overview of key facts for our many new shareholders.

The following presentation is extensive. Shareholders who take time to review it will be well-informed if they participate in social media discussions, and will have the satisfaction of knowing where they stand for the purpose of their own investment strategy.

Over 25,000 buy/sell transactions occurred since November 2020, and over 16 billion shares have changed hands as a result. WNBD common stock has a maximum authorized issuance limit of 5 billion shares, and the number outstanding has been slightly lower. This means that the equivalent of the entire shareholder equity position has been replaced more than 2 times over, by existing and new investors during this period. Most WNBD shareholders today have been with Winning Brands for less than 6 months.

During this 6 month period, the value of WNBD shares traded exceeded $22 Million. Most of the shareholders to whom we have been saying goodbye (because of the sale of their holdings during that time) are leaving with capital gains. We are happy for them, and we thank them for their courage and patience. Prior to November 2020, our stock had typically been trading in the .0001 – .0002 range. There were periods with no bid. Our reporting had not yet earned the Pink Current tier, and our future prospects were less well-defined than they are now.

By comparison, the average adjusted cost-base for most shareholders now is in the low .00 range (i.e. .001 – .004). In this weblog post I will explain what I am doing to secure your future capital gains, too.

By treating WNBD’s current price level as the new price floor, rather than as a spike, I am targeting $0.01 valuation and beyond. I explain below why this is a reasonable ambition, and what I ask of shareholders in return to reach this goal.

The official OTC Markets trading summary above
is the source of the trading statistics referenced in this weblog post.
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The Importance of Perspective

Shareholders in the OTC setting today are living their investment differently than a few years ago due to the abundant information resources at their fingertips. Also, powerful communication platforms that have emerged. The result is a more interactive experience for OTC shareholders. Compounding this change is the fact that OTC enterprises are highly entrepreneurial. Communication between OTC shareholders and company management is unprecedented by historical standards, depending upon the communication culture of the individual company.

I advise shareholders to balance hearsay, rumor and speculation with the context that is provided by official company statements and materials. If in doubt, “ask the company”. The CEO address for Winning Brands is eric@winningbrands.ca

Each question will be answered as soon as is practical. Your question may be posted publicly, without your name, if the answer to the question is of a material nature, or if the answer provides perspective of interest to WNBD shareholders in general.

Share Price

WNBD trading has not been “promoted” by Winning Brands. The market for WNBD shares finds its own level by the influence of many factors, such as the state of the OTC Market in general (and other markets), tax filing considerations, discussion activity on social media platforms by interested parties, enthusiasm or disappointment with any aspect of the company’s operations or performance, the prevailing attitude of institutional market makers toward the company (and their own trading behavior) in addition to many other factors.

As Winning Brands CEO, my policy is to believe in the “wisdom of the crowd” to find a collective perceived value for our stock price. My job is to create value and then to explain my perception of that value as a target, based on fundamentals and comparatives, but not to interfere with what price Winning Brand does actually earn on a daily basis in this evaluation.

In order for the “wisdom of the crowd” to function properly, mutual trust is required. Shareholders expect the company to provide honest answers and the company asks shareholders in turn to avoid knowingly misrepresenting the company’s positions on issues and to be reasonable in expectations. Simple for us all to understand, and to apply.

Let’s consider the next target valuation of WNBD stock that Winning Brands aspires to earn in this market, $0.01. A key factor is market cap. This is the market’s valuation of a company’s total worth. It is established by multiplying the outstanding share count by the price per share. However, the authorized share count must be considered, as its full utilization affects the determination of target share price. Most OTC companies migrate their sharecount upward over time to the authorized limit, for financing reasons. This is why I base all my WNBD share price aspirations on full utilization of the authorized treasury. I have repeatedly disclosed that share issuance will be necessary to help accomplish “VISION 21”, the company’s business plan, described in the Annual Report for the period ending December 31, 2020. Unlike many OTC CEOs, I do not conceal this fact.

The important question is this: what would the intrinsic value of the company need to be if we want WNBD shares to be worth $0.01 within 3 months, even if all shares were issued? The answer is $50 Million. What is the current market cap? The answer is approximately $17 Million. Does Winning Brands have a plausible plan to attain this? The answer is yes, particularly when considering the business fundamentals in OTC companies with higher market caps. In fact, by this approach, even WNBD’s next-stage targeted market cap of $50 million is conservative.

The table below provides a cross section of several high-volume OTC stocks this week. Therefore, the chart is current and relevant for this exercise.

You will see a number of companies whose overall valuation (market cap) is significantly higher than WNBD, despite the fact that they have significant operating losses, and/or no sales revenue, and/or significantly higher authorized share structure leading to significantly higher potential dilution than is even possible with WNBD.

The point is not that there is anything “wrong” with these firms. This table would change on a daily basis, but the lesson that it holds is constant. I carry out such analysis regularly. There are many companies in the OTC environment that deliver less in performance, or have higher risk, than WNBD. In fact, that is the norm. By OTC environment conditions, a market cap of $50 Million is not even close to excessive for WNBD, given its circumstances.

Comparison of WNBD Fundamentals to cross section of other high volume symbols
in OTC Environment as at April 28, 2021

A Positive Basis for Valuation

The 2020 Annual Report for Winning Brands sets out a plan named VISION 21. It discusses a new approach for Winning Brands to stimulate sales by more than mere effort within our existing operations. VISION 21 also describes a specific initiative to introduce a new Tech Division to Winning Brands this year. For the reader’s convenience, an extract of VISION 21 is posted below. Under that extract, additional detail is provided.

.

With regard to the Tech Division, confidentiality considerations prevent disclosure of the name and certain particulars, yet. This will be done as soon as possible. Regardless of the outcome of the negotiations, details will be provided eventually as a form of disclosure to WNBD shareholders, i.e. verification of the the nature of the present negotiations and their outcome.

The present status is positive, and Winning Brands management is certifying that as of this date there are no known obstacles to the finalization of an agreement and implementation. But, the risk of this not being completed is not zero. There is risk, regardless of how small, and it is my responsibility to point this out.

The following are additional specifics, to supplement the VISION 21 disclosure, that explain why Winning Brands management considers the successful implementation of this project to be the basis of a significantly higher sustained valuation of Winning Brands than current levels, and even higher than $0.01 with full utilization of our present share structure, of 5B authorized common shares:

  • The business of the target operation (planned WNBD subsidiary) was founded a number of years ago and has accumulated significant technical experience in its field by being the creator of that technology. It is not a start-up.
  • The new WNBD subsidiary will enjoy protection of more than 50 granted patents for its products. The target operation was the originator of those patents and sold them for a significant sum to a multi-national corporation several years ago for use in a specific niche application, but retained exclusive right for the use of the technology in all other sectors. All these details will be disclosed with the implemented transaction.
  • The price paid by that multi-national for those sector-specific rights was more than U.S. $40 million, cash. That money was paid out to the original investors of that operation at the time, not reinvested into the operation. Therefore, the first generation of investors in that operation exited profitably, and established an objective value for the technology by carrying out their exit. This is extremely significant for WNBD shareholders. Assertion that this technology has value is not subjective and does not rely on theory. A reference transaction exists.
  • The nature of the customer-base of this technology is such that they are not generally opposed to being publicly identified as commercial clients. This means, as a practical matter, that WNBD shareholders, and the industry at large, and the investment community in general, can all be informed by way of news releases on a continuing basis, of commercial progress with relatively little constraint of commercial confidentiality. This is because the delivered goods and services are not controversial politically, socially or commercially. On the contrary, most customers of the technology, will be pleased for the public to know that their operation is availing itself of this technology.
  • The technology is not a “flash in the pan”. It is not trendy in the sense of being short term in relevance. Major trends in the world do support continued adoption of this technology, and even its expansion.
  • The target enterprise is not “pre-revenue”. Despite the complications and inconvenience of the special situation that is described in the VISION 21 document, the enterprise is still generating sales under the most adverse conditions. These sales are higher in dollar value than Winning Brands sales.
  • The acquisition funding that is enabling Winning Brands to assume majority control of the enterprise has been identified as to source, and is standing by. Therefore, the conditionality of “arranging financing” is not an imponderable for WNBD shareholders to worry about.
  • The enterprise, though compact, is larger than Winning Brands, and encompasses a human resource component. When put in place, that operation will have its own CEO who will be available for public meetings to describe the technology’s past, present and future. The CEO has experience in the field as founder of the original enterprise, and is well-suited to respect stakeholder interests, both by his nature, and by his demonstrated track record. Therefore, as a practical matter, WNBD shareholders will enjoy having access to a second executive contact at Winning Brands to discuss progress of this division, within reasonable limits. This represents an expansion of the human resource base at Winning Brands and maturing of the company’s corporate profile.
  • Past accomplishments are not the end of the story. The new division will be as future oriented as it has been adroit in the past in applying this technology. There are more opportunities than ever for its applications in contemporary settings. In fact, other trendlines in technology and society converge upon this expertise silo in a manner that makes our contemplated Tech Division able to benefit from advances in allied fields.

The Bottom Line

Our recent strengthening share price is not a spike created through promotion. It is not excessive by the two measures that matter – fundamentals and peer context.

Within our OTC peer group, Winning Brands is advancing on all fronts. We are Current Information again. We are DWAC/DRS approved. We have some revenue, not “zero” like so many perpetually “pre-revenue” entities. Winning Brands is exceptionally responsive to stakeholder interests. These stakeholders include both shareholders and creditors.

In the case of shareholders, Winning Brands has delivered considerable capital gains to many of its earlier shareholders, and has the reasonable prospect of continuing to do so, well beyond current price levels.

In the case of creditors, Winning Brands must catch-up with a recognition of their interests and develop plans for their retirement. Winning Brands creditors, who have always been disclosed as to the aggregate sum of their entitlements, have demonstrated balance in the consideration of their interests vis a vis shareholders. They have continued to fund Winning Brands for several years, enabling Winning Brands to not exceed its 5 Billion authorized share limit through increases thereto, unlike most of the companies in the chart above, who have existing or potential share issuances that are much higher than Winning Brands. No creditor of Winning Brands, no matter how severe their desire for retirement of their position is insensitive to the issue of our stock performance. Intelligent cooperation to respect common shareholder interests is the guiding principle in all our creditor relationships, even those which have a legal dimension. Everyone recognizes that the healthiest future for Winning Brands is one in which the company itself is sound, conducting business, adding assets, earning the respect of its business associates and to be respected within the OTC community of shareholders.

For these many reasons, I thank the newest shareholders arriving, and assure you that I am prepared to justify a valuation of Winning Brands at current or higher levels, calculated on the basis of the full utilization of our authorized share maximum. Your responsibility, in order to achieve the capital gain that Winning Brands management is working for on your behalf, is to read and view corporate material to gain nuanced understanding of the risks and opportunities, and to engage in constructive communication with the company, if you choose to. The result will be a realistic sense of timing and processes, as Winning Brands works toward its goals for you.

I am focusing my energies on continuing improvements at WNBD in the short and long term. I am proud of what we have accomplished so far, and am confident in my head, my heart, and in my gut, that the best is yet to come – by a country mile.

With appreciation,
Eric Lehner, CEO
Winning Brands

News Release

Winning Brands Approved for DWAC/DRS

NEWS PROVIDED BYWinning BrandsMarch 26, 2021, 11:11 GMT

https://www.einpresswire.com/article/537545654/winning-brands-approved-for-dwac-drs?r=pazfC6wiUksZZPLrIm

Improved Service Level for Shareholders of Winning Brands Corporation

Winning Brands Corporation (OTCMKTS:WNBD)NEW YORK, NEW YORK, USA, March 26, 2021 /EINPresswire.com/ — Winning Brands Corporation www.WinningBrands.com reports that it has been approved for DWAC/DRS service. Winning Brands was not previously eligible for this preferred stock transfer system in all cases, and the development is significant for the company.

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Winning Brands is gaining visibility in consumer product and waste management circles as the manufacturer of a spray cleaner concentrate for consumer use that reduces empty plastic bottle garbage by 95% amongst users, and dramatically reduces consumer costs. www.1000Plus.ca The company is also focusing on improving its investor experience through enhanced shareholder services and considers the DWAC/DRS approval as a major step forward toward this goal.

DWAC, also known as Deposit/Withdrawal at Custodian, enables electronic transfer of paper share certificates to and from the Depository Trust Company. The DWAC system is one to the two preferred methods used to transfer stock between the DTC and broker dealers; DRS (Direct Registry System) is the other. These systems allow broker dealers to hold the securities in electronic form with the transfer agent rather than requiring paper certificates.

The approval is one element of a larger plan by Winning Brands to improve the investor experience for Winning Brands stakeholders. Another is the recently announced intention by the company to provide updated disclosure under OTC Markets Alternative Reporting Guidelines, in order to regain the Pink Current Information Tier designation. Progress is being made in this regard as well. Winning Brands CEO, Eric Lehner comments: “I am pleased to report that OTC Markets, despite an especially heavy workload this year, has yesterday approved Winning Brands’ application for permission to upload via OTC Market’s “OTCIQ” platform, and all fees have been paid. Winning Brands will sign the OTC Markets agreement today. Log-in information will be provided to Winning Brands next week. The updated disclosure material may be visible to the public at OTC Markets by the evening of April 2nd. When these uploads are in place, then an attorney with standing before the OTC Markets group will be permitted to submit a legal opinion letter as to their suitability under the Alternative Reporting Guidelines. OTC Markets will then process the updated disclosure in accordance to their workload with the goal of awarding the Pink Current Information tier to Winning Brands.

ABOUT WINNING BRANDS CORPORATION: Winning Brands is the manufacturer of record of a variety of environmentally oriented cleaning solutions. Winning Brands has indicated in its public communications that it seeks to enhance shareholder value through innovation of its existing 1000+ Stain Remover brand and also by curating additional business ventures, with broader scope, in due course. www.1000Plus.ca The company maintains a CEO Weblog for the benefit of stakeholders at www.WinningBrandsCorporation.com/blog and a corporate Twitter platform www.Twitter.com/WinningCEO.

Safe Harbor: Statements contained in this news release, other than those identifying historical facts, constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company’s future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements. 1000+ ™ Stain Remover is a trademark of Niagara Mist Marketing Ltd.

Great Feeling to Get Product Out on Time!

VIDEO: GLIMPSE OF PALLET PREP FOR SHIPPING

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Excellence should be the norm. Sometimes life gets in the way, including little things like pandemics.

Disruptions were enormous for us too. Winning Brands survived and is building back after a difficult year. We are grateful to all people of goodwill who helped in that process.

The video shows a glimpse of preparation of a shipment today to one of our retail partners, Home Hardware.
New neck tags were installed, and will be featured on all production henceforth.

Discussion of Float

A BALANCED APPROACH IS LESS DRAMATIC BUT MORE EFFECTIVE

I kept my promise today to be the type of CEO that shareholders can trust by providing advance notice that I am authorizing a 10% expansion of the float. The usual approach amongst penny stocks is to increase the sharecount secretly, and leave people guessing as to what is driving the market dynamic at any point in time.

One reason that honesty is so rare, is that it carries a heavy price – derision by those who don’t like the message. On the other hand, if decisions are wise on balance, then even the derision can become more nuanced.

That is why I have always said that I would rather level with shareholders (and market makers) at every step of the journey, and let people make their own informed choices.

Below are the screen shots of two Tweets today. I am going to explain in more detail what they mean. Twitter is not conducive to thorough explanations.



The first thing to bear in mind is context. Winning Brands had a market cap for the past several years of approximately $380,000. Since November of last year, our market cap has risen to approximately $4 Million. Therefore, in terms of shareholder value, Winning Brands shareholders who were with us at that time, and accumulated WNBD during our slow-down as stock price was falling or low, have made enormous gains as a reward. Revitalization of our business plan is becoming real – the repositioning of our lead product for a broader consumer segment, and new retailer outreach. They have received the much coveted “10 bagger”. I am happy for them. I did not receive any of this gain because I have sold no shares. I am therefore well aware of the issue of shareholder value, and the impact it can have on investor well-being.

My special responsibility is to ensure that a basis exists to sustain such gains by means of additional intrinsic value. If the price gains of a stock are not supported by business grounds for the higher valuation, then they will evaporate. This is what happens after paid stock promotion. People who buy the stock on the way-up are left stranded because there is no substance on the other side.

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In Winning Brands’ case, the increase in our market cap by 1000% since November is justified because of the fact that our lead product will be returning to life in 2021 and the fact that we will be Pink Current Information tier again.

Therefore, what I am working on now is laying the foundation for the next sustainable increase in intrinsic value, so that a higher price than our current price will be the logical new floor, rather than the ceiling. THAT is what our new shareholders need from me, namely, all those who have acquired shares at more than .001. They need me to plan for how the appropriate price can be .005 or even a penny, relative to our current trading range.

What I have been working on in the background is the lateral growth of Winning Brands into activities that are not confined to cleaning. This arises from the fact that I have been assisting certain currently private companies to prepare themselves for emergence into some publico presence. Rather than receiving consulting fees in a personal capacity, the consulting has been carried out in my capacity as CEO of Winning Brands for deferred payment, subject to confidentiality agreements. I did this so that the compensation when it comes, will come to Winning Brands, not me personally. Also, rather than receiving cash for the most intriguing of these assignments, I have been positioning Winning Brands to be entitled to receive an equity position in those private entities that will become publicly traded in due course. This means that Winning Brands will have an entirely new way to benefit its shareholders, namely, through a net accretive asset addition that can grow in value on its own accord AND the possibility of Winning Brands being awarded a joint venture for commercialization of some aspect of those operations. This is still being negotiated.

In the meantime, we have foundational lenders who have waited patiently for some return on their substantial loans over the past 10 years. These are people who assist Winning Brands to deal with cashflow shortages, even in the present, and assist in providing access to professional service providers and so forth. Therefore, it is in the interest of our shareholders that a modest expansion of our float allows such backers to share in even a small part of our greatly increased liquidity and market cap – thus also encouraging their openness to future reinvestment, if, when and where permitted. Such relationships are as important and valid as the shareholder relationships. They exist in balance. Balance is less dramatic but often more effective in life than stark positions. The point is that our lenders have helped Winning Brands to get through our difficulties AND TO MAKE PROGRESS WITH OUR VALUE BUILDING OBJECTIVES, both.

In my opinion, the value to Winning Brands of what such cooperation brings in enhanced intrinsic value is far, far more than a 10% float expansion. At such time when I am no longer bound by confidentiality undertakings with the client firms that I have mentioned, it will become more clear why that is the case.

Furthermore, shareholders will be interested to know that a 10% float expansion has a negligible impact on our overall trading pattern. From November to the present, our entire float of 3.8B revolved almost 300%, i.e. 11 Billion. This means that Winning Brands enjoys much greater liquidity than would be interfered with by a marginal float adjustment. There is not a doubling or tripling of the float. We are talking about 10%. And importantly, it is being disclosed in advance. This lets the market find its own reaction. Context matters. I hope this helps.

A special word of thanks to the kind messages of support that have been Tweeted and otherwise communicated. I cherish the opportunity of building the company together.

Respectfully,
Eric Lehner, CEO
Winning Brands

The Role of the Social Media at Winning Brands

WHAT IS WINNING BRANDS’ GOAL IN SOCIAL MEDIA?

A number of shareholders have expressed interest in understanding our social media plan. The following is a summary of our objectives. They fall within two categories – product oriented and investor oriented.

Our product oriented social media focus is to increase awareness of our lead product, 1000+ Stain Remover / Spray Cleaner Concentrate in order for 1000+ to become a consumer product success. A rising stock price will be our reward for doing things in the proper order – focusing on the business, and achieving this goal.

The investor oriented purpose of Winning Brands social media activity is to cut through the noise of rumour and confusion that accompanies dynamic situations. We do this by offering clear position statements that can be attributed to an official source. With such clarifications as a matter of record, investors can decide for themselves what their appetite for risk is.

With regard to our investor communications, I am conservative amongst my peers. In characterizing Winning Brands, I emphasize that our lead product is a micro-brand. I disclose that although we have some sales revenue, the volume is trivial by comparison to what it needs to be in order for the firm to be self-sustaining and lucrative. Our OTC Markets disclosure page has for several years set out our debt and operational challenges, not only our opportunities. There is no shame in being in the aspirational mode. THAT IS WHY OTC MARKETS EXISTS – TO FOSTER THE EMERGENCE OF ENTREPRENEURIAL SUCCESS THROUGH EARLY STAGE DEDICATION BY COMPANY MANAGEMENT WITH THE SUPPORT OF INVESTORS. Every CEO of a company that is quoted by the OTC Markets organization should be grateful for this venue and do his/her personal best to foster a good reputation for OTC Markets, and its issuers, within the public at large.

Therefore, I am proud of the fact that Winning Brands has always been forthright about its challenges and the enormity of its battle against the odds. Nonetheless, the “penny stock” investor community has immense collective ambition and intelligence. Social media platforms provide tools for investors to carry out up-to-the-minute due diligence and to communicate with other investors like never before. Winning Brands has responded to this rich information environment by participating and fostering discussion, not avoiding it.

Winning Brands has a lead consumer product that is particularly well-suited to awareness building in social media. Our 1000+ brand is proven to be a genuinely good product in terms of quality, is proven to be useful in a wide range of settings and is now even proven to be “bigger than itself” – i.e. 1000+ delivers additional societal benefit. 1000+ Stain Remover / Spray Cleaner Concentrate slashes plastic garbage by 95% in our product category and has the potential to save America’s consumers many millions of dollars by ending needless waste.

A relatively new aspect of our social media marketing plan deals with the phenomenon of the “social media influencer”. These are individuals who have an exceptionally large social media following. They could be the key to our progress, if we establish suitable connections. Their content creation, combined with an active fan base, creates a fusion of capabilities that has never existed before in TV advertising or other conventional media. With the help of suitable social media influencers, our current “micro-brand” could become widely known, fast. Precedents exist for such sudden breakthroughs. Consumer awareness that is achieved by social media engagement will increase the appeal of our 1000+ brand to retailers. Much good can come from entering into appropriate social media influencer arrangements.

The largest social media personalities are the hardest to reach. They are bombarded with propositions. Many use intermediaries to process the barrage of outreach coming their way. For this reason, Winning Brands is in discussion with specialists who can make warm introductions and manage such relationships. The “searching” described above, is one approach. An alternative, is to foster a bidding process. In this alternative approach, Winning Brands describes its objectives to the community of social media content creators and solicits their proposals to us for sponsored arrangements. Each of these two approaches has its merits.

For the interest of our shareholders, I have cut and pasted below some recent correspondence. It describes the basic premise of Winning Brands’ desired social media influencer relationship, in a recent email. My correspondent’s identity has been redacted for privacy. I share this communication so that our stakeholders know what we are actually after. If you have ties to a major social media influencer personally, please drop me a line. Our destiny could change positively, rapidly, and enormously with the right social media influencer relationships. It does not matter how we made the right connections. We have exciting work to do!

EXTRACT:

“Hello ____________ (Intermediary to Social Media Influencer)

We are a cleaning product micro-brand that can dramatically reduce empty plastic bottle garbage in America.  A single bottle of our 1000+ Stain Remover / Spray Cleaner Concentrate makes 20 (!) bottles of spray cleaner re-fill.  Just add a bit of 1000+ to water in any re-usable sprayer.  It’s that simple. This delivers a 95% reduction in plastic bottle (and trigger sprayer) plastic waste to land fill sites. 

There are over 125 Million households in America.  As you know from personal experience, most of these homes have many spray cleaner bottles.  Each one of those gets thrown away every time it is empty.  You can see how this adds up to hundreds of millions of such bottles every year.

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My goal is to find a social media influencer with whom we can encourage followers to discover the satisfaction (and savings) of going re-usable.  The social media influencer, in our relationship, is an authentically noble figure because the purpose of the exercise goes beyond just promoting a brand.  The influencer is actually making the world a better place.  By framing our promotion as an encouragement to “go-reusable”, the net effect of our promotion is favorable for all participants in the re-usable category.  Our willingness to emphasize this general message as much as our own brand identity is our own noble contribution by means of a generosity of spirit.  This approach is therefore about seriously slashing needless waste.

I am fully aware that our success in this social media initiative will foster more competition for ourselves.  BUT THAT’S OK!  The reason we don’t mind is that a greater good is achieved.  My colleagues and I on the 1000+ brand team will just keep thinking harder about how 1000+ can remain a brand of choice on its own merits.  We will just keep getting better.

Bottom line – I am after BOLD MOVES AND BOLD PROGRESS for 1000+.  The right social media influencer can deliver an inflexion point in the history of our brand, and make a genuine contribution to the wellness of our planet.  What’s not to love in that proposition?!

I look forward to hearing more from you about finding the best way for the HUNDREDS OF MILLIONS of people who are going to use social media today, i.e. this very day, and every day, to engage with our terrific brand.  I can do my part, if you can do yours.  Are you up to it?

Website: www.1000Plus.ca
Eric Lehner, CEO
Winning Brands Group”


Two Practical Questions about TrackMoist Answered

Here is a response to a question that comes up from time-to-time in shareholder correspondence with our office about TrackMoist, as well as a new question.

The first question is why we don’t market TrackMoist as a dust suppressant in agriculture? The second is why we provide TrackMoist in 1 Gallon bottles rather than 250 Gallon totes? The combined answer appears below for shareholder interest.

Agriculture

TrackMoist is a specialty product for the dirt surfaces used in entertainment venues.  These are surfaces that experience deposition of various chemicals and substances.  Examples include engine exhaust, oil, rubber from tires – to name only a few.  In these settings, the soil can be thought of as a “man-made” surface to the extent that it is continually “worked” to achieve characteristics that would not occur in nature.  Examples of such deliberate characteristics are the texture of the dirt and its resistance to water evaporation.

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Conditions in agriculture are different in important ways.  Vineyards, orchards and other agricultural crops are part of a natural cycle within their settings in which all physical elements literally combine and manifest within the crop itself, to a certain extent “becoming” part of the crop.  Everything that the soil encounters has a bearing on the health, safety and taste of the crop.

It is our view that the widespread use of any additives to agricultural soil of any kind should be minimized wherever possible, notwithstanding that the use of at least some herbicide and pesticide is considered by many experts to be unavoidable in order to prevent catastrophic loss of yield in crops that are existentially important to society.  Even so, the principle of the least possible intervention is the prevailing concept, embraced by all.

In summary, on a purely commercial basis, Winning Brands’ distribution of TrackMoist to our initially targeted market of entertainment venues that use dirt as a “floor” for its competitors/athletes to pummel through extensive use is still barely tapped by us.  Therefore, operationally, it has been our thinking that we should strengthen our competence in this sector first, where our intervention is non-controversial, saves customers money, delivers a better experience to the participants and reduces the frequency of watering by tank trucks.  We have much work to do even in this sector in order to make the most of the substantial opportunity of this application.

Container Size

The reason that we provide TrackMoist in a 1 Gallon concentrate is both practical and financial.  On the practical side, the product is quite viscous.  A tote (with which we are also familiar) makes it difficult to work with the product in bulk. Since a single gallon of TrackMoist makes 45,000 gallons of finished mix, that size is much easier to handle.

Also, the price to our customer of a 250-gallon tote of TrackMoist would be approximately $25,000.  That is too much for our customers in a single transaction, for a maintenance supply product.

.

Welcome New Shareholders – Meet TrackMoist. A Star Making a Comeback.

OUT OF PRODUCTION FOR OVER A YEAR, BACK BY POPULAR DEMAND

In the Summer of 2021, Winning Brands will resume production of TrackMoist Dust Suppressant and Track Enhancer. This clip will give you a mental picture of how it goes on. Our gallon of TrackMoist mixes with water in the trucks that facilities use to spray their tracks and dirt surfaces. That single gallon makes 45,000 gallons of improved watering for long lasting moistness. Even subtle improvements matter for spectators and performers in these entertainment venues.

The TrackMoist brand is currently sharing the video channel of Winning Brands sister product, 1000+ Stain Remover. A new TrackMoist channel is coming too, in due course. In the meantime, check out some of the 1000+ Stain Remover videos too.

Winning Brands has got you covered. If you want dirt, we’ll make it nicer. If you want to get rid of dirt, we’re there for you too!

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Which Plastic Pollution Reduction Alliance Will Be Our First?

WHO WILL BE THE LEADER IN THEIR FIELD?

A GLIMPSE BEHIND THE SCENES AT WINNING BRANDS

I have previously mentioned that Winning Brands is now reaching out to select organizations that have a stated mission to reduce plastic garbage. The purpose of the outreach is to discuss an alliance with Winning Brands, based on our contribution to plastic waste abatement. It is not Winning Brands’ goal to join just “any” organization, but rather to find a good fit, contribute good work and earn awareness within that organization’s membership base of our positive solution to needless plastic bottle waste.

Some Winning Brands shareholders appreciate granular operational detail to understand how their investment is targeted to the world. These shareholders will find it helpful to see our answers to specific questions that arise during such outreach.

The Questions and Answers below are extracted from one particular application form of a significant organization in this field.

As a courtesy to them, I have redacted their name and replaced it with the term “Organization“. This enables our shareholders to understand, and protects that organization’s privacy.

It is not yet clear whether our corporate membership in this particular organization or a similar one will be accepted. Regardless, you will see for yourself the approach that Winning Brands is taking in specific responses to specific questions. I am confident that we will find the right alliance.

I invite any shareholder who would like to recommend to Winning Brands an organization with which the shareholder has first-hand positive experience, to let us know, for further research.

Q – COMPANY DESCRIPTION

Manufacturer of record of cleaning solutions.  The lead product is 1000+ Stain Remover / Spray Cleaner Concentrate

Q – HOW DO YOU WORK TO REDUCE PLASTIC POLLUTION?

We had been making two separate products, a stain remover and a pre-mixed spray cleaner.  We have modified our stain remover to be able to do double-duty as both a full service stain remover AND a spray cleaner concentrate, in one. 

Now, as a spray cleaner concentrate, there is a 95% reduction in plastic use by our customers in this application.  That is because a single bottle of the our concentrate produces the equivalent of 20 bottles of conventional spray cleaner, with the consumer using any re-usable spray bottle. 

The reduction goes beyond the wasted empty bottles themselves (that no longer need to be manufactured, sold and disposed of), but also the reduction in the waste of trigger sprayer mechanisms, the reduction in trucking traffic congestion, fuel consumption and carbon emissions, cardboard packaging, warehousing space use and heating and lighting those spaces, etc.

Q – WHICH OF THE FOLLOWING BEST DESCRIBES THE FOCUS OF YOUR COMPANY? (SELECT ALL THAT APPLY)

Animals
Arts & Culture
Beach Clean Ups
Bioplastics
Clothing/Fashion
Education
Environmental Justice
Food/Restaurants
Healthy Living
Hotels/Resorts/Lodging
Islands
Media/Entertainment
Oceans
Plastic-Free/Zero Waste Consulting Service
Plastic-Free Alternatives
Policy/Advocacy
Refill/Zero Waste Store
Science/Research
Student Organization
Travel/Tourism
Youth Programs
Waterways
OTHER FOCUS
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If you selected OTHER FOCUS, please share below:

We are a small consumer products company that has taken a meaningful step to reduce plastic consumption by creating and offering consumers a simple alternative that saves them money while at the same time generating much less waste. 

Importantly to the Organization, our potential contribution to the mission of the Organization is scalable, and possibly immense, if the paradigm of going re-usable in this product category can be achieved. 

This concept is not brand new, and some small entities are attempting to introduce alternatives.  However, we have not even scratched the surface of making the “re-usable” paradigm the “norm” in North America. 

The downstream impact can manifest as billions of plastic bottles averted from production and waste disposal. Winning Brands can make a significant, positive impact.

Q – WHERE DOES YOUR COMPANY WORK?

Present manufacturing in Ontario, Canada.  Our lead product is available primarily in North America but our product does have fans now internationally. 

We have also manufactured in the United States and intend to do so again at a time when our volume turnover is sufficiently high that logistics and supply chain management considerations genuinely justifies multi-location manufacturing.

Q – WHAT DO YOU HOPE TO GAIN FROM JOINING THE ORGANIZATION?

It is pointless for our small company to have gone to these considerable lengths of creating a truly simple and affordable option for consumers to slash their spray bottle consumption if people don’t know about it. 

We are a micro-brand.  Our hope is that membership here will provide an organized means to become known by people who value such options.  This creates a positive feedback loop.  If our brand becomes successful, it will attract competition.  This will give consumers even more choice.  In this process, for my company to remain competitive, we will need to find a way to do something even better.  This is a cycle of virtue, multiplied. 

However, it begins with awareness.  I suspect that there are 1 Million households that would try our option today, right now, if they knew about it, and probably 20 Million households that would adopt readily if they heard about it from friends and family with reasonable affirmation from good results. 

This would translate to 400 million fewer wasted spray cleaner bottles in the waste management cycle annually arising from our work, as well as the other mentioned societal benefits.

Q – WHAT RESOURCES OR INFORMATION DO YOU PLAN TO SHARE WITH THE ORGANIZATION?

It is not yet clear to me what contribution of resources or information is relevant to the operation of the Organization.  By learning more about the Organization, such contribution can evolve to become increasingly helpful, and also to affect us in reverse.  Every contact leaves a trace.  Our company will no doubt become more effective too, as a result of information sharing.

Q – PLEASE SHARE ANY RELEVANT LINKS FOR PROGRAMS, ACTIVITIES, COMMUNICATIONS, ETC THAT DEMONSTRATE YOUR WORK.

I have narrated a 4-minute video that illustrates the premise of our product 1000+ Stain Remover, and the fact that it can now be used as a method to reduce plastic consumption.  The emphasis given to this point in the video already supports the mission of the Organization..  This is because the video goes beyond merely describing the product itself, but also encourages consumers to “go re-usable”, in principle. 

Therefore, whether viewers of that video, or visitors to our website, buy our product or not, they are still being introduced/reinforced in this concept.    It can be seen here: www.1000PlusStainRemover.com

Q – HOW DID YOU HEAR ABOUT THE ORGANIZATION?

I have been looking for an organization whose mission is as practical as it is visionary. 

I have been disappointed, frankly, by the abundance of organizations who project a mission of concern but are strangely closed to relationships with business, and in particular emergent micro-business.  When I approach such organizations, a response that I have heard more than once is to confirm that they do not “endorse” brands, but wish us the best. 

I understand that “endorsement” may not be possible, however, making our existence known to the community is more efficient if it can be done with an initial focus on consumers who already care about plastic reduction, rather than advertising to the unsegmented (general) consumer marketplace, for starters. 

A focused approach will help momentum to emerge faster for better results and greater practical impact – meaning massively less empty plastic garbage, sooner.



Q – ARE YOU INTERESTED IN HOSTING AN EVENT IN YOUR COMMUNITY?

Yes

Q – IF APPLICABLE, WHICH OF THESE SINGLE-USE PLASTIC ALTERNATIVES DO YOU PROVIDE? (SELECT ALL THAT APPLY).

Bags
Beauty
Children & Infant Products
Clothing
Drinkware
Feminine Hygiene
Food Storage
Home Goods
Jewelry
Medical Supplies
Multiple Products Offered
N/A
Other
Packaging
Straws
Utensils


Q – IF YOU SELECTED OTHER ALTERNATIVES, PLEASE SHARE BELOW.

Other Alternative: We provide a way for people to stop wasting plastic spray cleaner bottles, effective immediately, in a way that saves them money.  It is easy to do and can be done anywhere.  This is a huge sector of plastic waste creation.


Q – WHAT TYPE OF MATERIALS DO YOU USE? (SELECT ALL THAT APPLY)

Aluminum
Bamboo
Glass
N/A
Ocean Plastic
Recycled Plastic
Silicone
Stainless Steel
Other Material(s) See Below.

Other Material: The first step that we have taken is to reduce plastic consumption by 95%, rather than having ended the use of plastic. 

The further step that we want to take as soon as we gain momentum as a brand, is to then find a solution for the remaining 5% of our plastic that the consumer will accept.  This could include lined recycled material, or plant-based polymers, etc.  We are taking things one step at a time. 

Establishing the viability of the existing premise will generate the cashflow for the next generation of research and development to keep improving.


Q – AFFILIATIONS (SELECT ALL THAT APPLY)

1% for the Planet
B Corp
N/A
Other

Other Affiliations I am not sufficiently versed in the available affiliations yet to know which is the most relevant.  Winning Brands needs to learn more about where we can do the most good.  Being a self-motivated member of your Organization, Winning Brands would seek guidance in this matter.

Q – CERTIFICATIONS (SELECT ALL THAT APPLY)

EWG VERIFIED™
Fair Trade Certified™
Green Business Certification
MADE SAFE®
Rainforest Alliance Certified™
USDA Organic
N/A
Other   USDA BioBased 62%  



Q – PLEASE PROVIDE ANY ADDITIONAL INFORMATION YOU WOULD
LIKE TO SHARE WITH THE ORGANIZATION.

Thank you for the design of this introduction process.  It is a practical way to begin a conversation.  Much appreciated.

Q – IS YOUR COMPANY INTERESTED IN EXPLORING PARTNERSHIP OPPORTUNITIES?

Yes

Eric Lehner, CEO
Winning Brands
eric@winningbrands.ca
(705) 737-4062, Option 8

Shareholder Question: Home Depot

QUESTION FROM SHAREHOLDER AND RESPONSE

Question (Name Redacted for Privacy)

“Good Afternoon, I am a current investor from USA. I love Winning Brands products as well as your open and engaging interaction with investors. I feel this company as a whole, has such huge potential. While I was doing my due diligence, I ran into some issues on the Home Depot website trying to locate and acquire 1000+. I believe it is wrongly or too narrowly categorized in the search options. Hopefully that could be an easy fix through Home Depot. Customers can not locate the product. I was also wondering why I can not purchase these products in store at our local Home Depot? Thank you for your time and I am excited to be a part of Winning Brands journey. Thank you”

RESPONSE

Hello Mr. X. Thank you for introducing yourself.  Your kind thoughts are appreciated, truly.

QUESTION 1:  HOME DEPOT SEARCH FOR 1000+ STAIN REMOVER

In response to your e-mail and as a trial exercise, below, I have recreated a Home Depot search experience. 

The steps that I took were:

  1. I selected the URL  www.HomeDepot.com  This generated the first screen shot below.
  2. I entered the product name into the Home Depot search bar as 1000+ Stain Remover.  This is shown in the 2nd screen shot below.
  3. When I pressed the Home Depot search bar magnifying glass (i.e. search activation icon), the 3rd screen shot below appeared.This is the correct Home Depot order page for 1000+.

What method did you use?  Your answer presents an opportunity for us to improve the search experience for consumers at HomeDepot.com for 1000+ Stain Remover.

Caption: 1000+ Stain Remover is available from HomeDepot.com online. The product can be delivered to the customer’s home, or picked-up at any Home Depot outlet that is specified in the online order, to waive the delivery charge.
Caption: The name 1000+ Stain Remover is actually a short form for 1000+ Stain Remover / Spray Cleaner Concentrate because of the product’s ability to create 20 bottles of spray cleaner from a single concentrated bottle of full strength stain remover.
Caption: A growing number of consumers hope that Home Depot will carry 1000+ Stain Remover on the shelf in the physical stores.

QUESTION 2: AVAILABILITY OF 1000+ STAIN REMOVER IN HOME DEPOT PHYSICAL STORES

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I have been to the headquarters of Home Depot in Atlanta to discuss Home Depot carrying 1000+ Stain Remover in the physical stores.  This is an honor. I appreciated the opportunity. It is not easy to obtain face-to-face meetings at headquarters. My impression is that Home Depot will carry anything in their physical stores for which there is sufficient demonstrated consumer demand.  Home Depot is selective in this regard because of limited shelf space, vs a much larger selection that is possible to offer online.  Home Depot has an excellent reputation as one of the world’s best retailers.  Assuming that consumer product quality characteristics and vendor suitability characteristics are satisfied, then Home Depot would like to provide its customers with what their customers want, as a point of principle.

This means that 1000+ Stain Remover being available at HomeDepot.com online is an opportunity for us to demonstrate consumer demand. 

Winning Brands’ goal is to earn sufficient growth of online purchasing of 1000+ Stain Remover via Home Depot’s online portal to make a decision by the Home Depot national buying team to carry 1000+ in their physical stores logical from Home Depot’s point of view.  It has to make sense for Home Depot vis a vis their own brand management (i.e. the Home Depot banner), their operational goals, their existing plan-o-gram commitments, etc.  However, gaining additional spontaneous purchases that would happen in Home Depot physical stores if 1000+ Stain Remover were present on the shelf, would be a win-win situation for Home Depot and Home Depot customers.   I really do feel this.

Toward that end, Winning Brands is embarking on a program of enhanced social media presence for the 1000+ Stain Remover brand.  New steps are being planned, as we speak (i.e. right now) to achieve this.  Winning Brands would like to foster more awareness and conversation amongst America’s householders about 1000+ as a versatile cleaning helpmate.  Since the introduction of 1000+’s new environmental focus of reducing empty plastic bottle waste by 95% in the spray cleaner category there is even more reason for such consumer conversation to go viral.   Enormous reduction of needless empty spray cleaner bottle waste can be achieved by using 1000+ as a spray cleaner concentrate, as illustrated below.  Why NOT save a lot of money AND help the planet at the same time?  It just makes so much sense.

To the extent that you are now, literally, a partner in Winning Brands through your shareholding, I invite you to think about how your perspective, life experiences and contacts can be deployed to accelerate WNBD progress toward our goal.  That goal is for 1000+ Stain Remover / Spray Cleaner Concentrate to become America’s “Reach for it First” clean-up solution when messes happen.  Our team is always ready to consider suggestions from our “citizen army” of shareholders.  We are in this together!

It would be terrific if Home Depot would take a leadership role by providing us with a national store footprint, and we will seek this.  However, America’s retail dynamism is second to none.  A national retailer physical store footprint for 1000+ Stain Remover / Spray Cleaner Concentrate will emerge in due course, somehow, with a leadership oriented retailer.  The big question is WHO will take that step?  Then, we must reward that retailer with a tremendous marketing effort to support that decision.

Cheers,
Eric Lehner, CEO

Winning Brands Group
www.1000Plus.ca

Common Sense is a Powerful Ally

ONE PICTURE SAYS 1000+ WORDS

Image Credit: GetDrawings.com

Anyone who pursues a goal that is visionary encounters skeptics. Any shareholder group whose instincts support a business mission encounters naysayers. Sometimes it helps to take a step back and just see the whole picture. If our goal can be explained easily and is supported by common sense, both, then we have a winner on our hands. Sometimes, it’s that basic!

The calculations that resulted in the rendering above compares the proportion of garbage THAT IS NEVER CREATED compared to the amount of 1000+ used as a spray cleaner concentrate, when consumers go re-usable with us.

The Empire State Building is a symbol of great vision, but also of great design and construction. It is an appropriate backdrop for me to share, in one single picture, showing why I am convinced that 1000+ Stain Remover / Spray Cleaner Concentrate is a brand that will gain traction with consumers. IT MAKES TOO MUCH SENSE TO FAIL! How can a terrific product that addresses stain messes that occur by the millions every day in North America and also delivers huge savings in money and environmental positives of this magnitude through plastic waste reduction, not get its day in the sunshine?

Remember – moving toward any goal also presents obstacles. Stores probably have mixed feelings about our accomplishment. We have to admit this to ourselves. Are stores thrilled that our consumers will need 20 fewer bottles of ordinary spray cleaner? Of course not. Are stores thrilled that our consumers will save 95% in pricing by going re-usable with our concentrate? Of course not. On the other hand, the railroad companies had to accept the reality of automobiles and trucks and airplanes when they arrived. This is life! Things evolve. People are making more responsible choices now in all sorts of ways around the environment. If people save a lot of money and do good in the process – why on earth would they not do so? The answer is, they will. It’s inevitable. Re-usable shopping bags sounded like a crazy idea not so long ago.

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In my opinion, the ONLY thing holding us back from major success with this exceptionally useful consumer product is consumer awareness. Almost no one in America even knows about 1000+ yet. We’ve been around for several years but easy to miss because we spent most of our time asking for retailers to give us exposure. It’s easy to stay off the radar of consumer imagination when consumers don’t know you exist.

We are going to change that. We are going to make much better use of social media in 2021 and going forward, to create that awareness. When consumers tell their favorite retailers that they at least want this CHOICE offered to them, then things will turn for us.

Our re-engineering of 1000+ from being “only” a stain remover to now also being a Spray Cleaner Concentrate is new for us. The time and money that we have invested laying our foundation has proven our determination. Now we must leverage these powerful new factors in our favor. You will be hearing more about new social media initiatives shortly.

Thank you for your own vision in supporting Winning Brands with your trust, enthusiasm and goodwill.

Cheers,
Eric Lehner, CEO
Winning Brands

On the Road – Keeping in Contact with Customers

NOT ALWAYS BEHIND THE DESK…

I delivered some of our Brilliant Wet Cleaning Finishing Agent to a social service agency today, called Youthdale Treatment Centres. They are similar to the Regent Park Community Health Centre that was referred to recently in an other post to this CEO Weblog.

Both institutions deal with challenged people in an urban environment through a variety of interventions – all of which strive to foster functional independence. In the case of Youthdale, the deliberate focus is on the younger portion of the client population. The Brilliant Finishing Agent, from Winning Brands, is used in Youthdale’s high quality commercial laundry equipment. Our Finishing Agent softens the processed fabrics to be exceptionally cozy, thereby making the fabrics more soothing for anyone who touches, handles or is covered with them after they are treated with the Brilliant product line. That’s a nice thing to be providing!

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I could have shipped the containers by courier, but it’s good to retain human contact during a time when social distancing and organizational isolation drives people apart.

At Winning Brands we are proud to serve such community organizations. The physical volume is still small, but the trust involved is significant, which we appreciate. Good things grow over time. The website address for this Winning Brands product range is: http://www.BrilliantWetCleaning.com

Youthdale’s website is: https://www.youthdale.ca

WNBD Stock Price has a Real Foundation

WHY OUR SHARE PRICE GAINS ARE APPROPRIATE, AND A VIEW OF OUR FUTURE

Since November 2020, WNBD’s share price and trading volume has improved spectacularly. The gains have been impressive. Many people have enjoyed substantial capital gains from pre-October 2020 holdings, and even more recently.

In view of the magnitude of these improvements, my comments as CEO are called for. Is this a bubble? Is this a result of stock promotion? Is there insider trading? These are only some of the considerations for market analysts, traders and regulators wherever extraordinary stock price increases occur.

In remarks below, I’d like to address such considerations proactively, and to think aloud with you about why I consider the improved valuation of Winning Brands appropriate, sustainable and predictive of a new phase in the company’s life.

Despite my confidence, I continue to advise prudence, common sense and responsibility. By taking a few minutes now to understand the full context of this strengthening share price, I believe you will be realistic in your approach, and can look forward to things ahead.

Our Stock Chart

There are extraordinarily talented chart analysts today in the penny stock world. My comments here are not intended to compete with their expertise. Instead, it is the opposite. I’d like to focus on the basics. These are revealing.

The first thing is that throughout the history of WNBD trading in the low triple zero price range, there have been no artificial spikes and valleys associated with penny stock pump and dump operations. The first WNBD price chart, shown below, is for a six month period. The second chart, under it, is for 4 years. It is clear and obvious from these that WNBD has never “played games” with its stock pricing and trading. I am proud of this. This track record cannot be faked. It shows that WNBD has not been used as an ATM for undue benefit of insiders. Despite the poor historical stock performance, at least it was authentic.

Now, our improved stock performance is equally authentic. The high cumulative trading volume in the past 3 months was not driven by stock issuance. The number of shares that are issued and outstanding in the public float has not changed since the beginning of our stock price increases. This is significant. There are expert traders today, as we know. Market makers also have honed their skills over the years. Professionals have learned how to organize the release of shares into the market so that selling looks like buying. In the case of WNBD, the transfer agent is not gagged. OTC Markets has WNBD’s authorization to check with our transfer agent continuously, and does so, and posts the findings on its website. Therefore, it is impossible for the increase in WNBD trading volume since November to be the result of stock issuance.

Furthermore, I’d like to draw your attention to something easily overlooked. The November and December 2020 price rises were accompanied by huge volume turnover, in order to accomplish those new highs. Billions of shares changed hands. In theoretical terms, the entire float needed to turn over in order to achieve the November and December gains. However, by comparison, consider the improvements in share price/buying efficiency over the past few weeks.

Our recent gradual return to the November/December highs, and now surpassing them, has been accomplished with lower share volume. The total trading volume during the past few weeks is still impressive, and has provided shareholders with excellent liquidity, but the amount of share purchasing needed to accomplish our newest highs has been much lower than November/December. This increasing efficiency is meaningful.

This fact reveals organic, natural and sincere interest in WNBD. Instead of investor exposure to WNBD becoming less effective for price support, it means the opposite. Discerning new shareholders are evaluating WNBD as the gamble that it is, and are liking the odds, all things considered, on our own merits. There has been no company induced stock promotional campaign. There have been no news releases. There has just been a steady grind of work – real work. Hard work. Relevant work. Future-oriented work. This is being noticed, amongst other things. So, let’s consider what this work means in practical terms, for you, the WNBD shareholder.

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The Foundation of WNBD Work

Winning Brands work by itself has limited value to shareholders. If WNBD personnel were to spend all day devotedly trying to hammer nails into a 2X4 with a feather, we would not get very far. So what are examples of effective work elements that are relevant to WNBD shareholder interests? Here are just two examples, to illustrate. There are many more.

  1. Learning from Mistakes. Yes, that is work too! It takes a conscious effort to uncover causes of unsatisfactory outcomes. In our case, trivial sales volume of a great lead product is one example. Yes, we have had sales. Unlike many penny stocks, we are not stuck in the perpetual “pre-revenue rut”, with a hundred excuses of why the first dollar hasn’t arrived. However, WNBD’s sales have been trivial, relative to our potential. We should not have been recording sales of merely thousands of dollars per month, but rather hundreds of thousands and ultimately more.

    The key lesson that we are applying for WNBD to address inadequate sales volume is to do things differently going forward, not merely trying harder to apply previous methods better.

    So, for example, we have adjusted and re-positioned our lead product 1000+ Stain Remover from being “merely” a stain remover to being a stain remover and SPRAY CLEANER CONCENTRATE. To the uninitiated, this distinction may seem minor. No, it’s huge.

    For one thing, this allows Winning Brands to enter an additional consumer product category, without sacrificing our legacy of investments. The spray cleaner category is much bigger than stain removing. Spray cleaners are used daily in most homes. The turnover of this SKU (stock keeping unit) in the home is much faster. Winning Brands can now participate in this important category too, with a revamped 1000+.

    Furthermore, beyond the interesting brand distinction of being a dual purpose item, we deliver TERRIFIC VALUE to the consumer. Previously, the value proposition for 1000+ Stain Remover had been that the quality of our product was worth the purchase price.

    However our new value proposition is more compelling, and better engages the self-interest of the consumer. By being able to deliver 20 bottles (!) of spray cleaner from a single bottle of 1000+, Winning Brands is dramatically reducing the price-per-refilled spray cleaner bottle for consumers who go “re-usable” with us.

    Now, with Winning Brands, the average household can have an average spray cleaner bottle cost of only 65 cents per bottle, rather than almost $3 per bottle for the most affordable national brand in America’s largest national retailer, shown below.

    Q: There’s something additionally interesting about this example, that’s easy to miss. I wonder if you’ll notice?.

A: The Windex bottle above is 23 fl. oz. Our bottle is nearly 32 fl.oz. Therefore, not only is the cost per re-fill bottle of 1000+ only approximately 65 cents per bottle, our bottle is more than 50% larger than this national standard! That is known as a compound benefit to the consumer.

These dollars and cents figures may seem unimportant, but I assure you that they are not. The Windex bottle above comes from one of the world’s best CPG manufacturers. That brand is also one of America’s best. Everything about that company and its brand is admirable. They are a national icon – respected, appreciated and at the very heart of what it means to be a consumer product success in America today.

And yet, our 1000+ product delivers to consumers an experience that is demonstrably comparable for a fraction of the cost – literally a fraction – AND does double duty as a full service stain remover too. That’s called being competitive! It is not common, and not easy, to be competitive with the world’s best – but Winning Brands is, now. That’s a nice starting point for our lesson of “learning from mistakes”.

1000+ may be a “nobody” brand in some people’s eyes at the moment, but most consumers have NOT YET HEARD OF US. Don’t believe me? Try it yourself. Ask any stranger anywhere in your town whether they know the brand 1000+ Stain Remover. It would be shocking if, on average, even 1% of America’s consumers have heard of us. The actual percentage is likely to be 0.00001%. And 1 in 10,000 is a generous estimate. (Let’s ignore the “false positives”. 1000+ Stain Remover sounds like a brand name that a person would recognize. The name has a suitable personality for its purpose. Some people will say they have heard of it only because it sounds familiar, even at first encounter. By the way, that’s a good thing).

So why is it a terrific that almost nobody in America has heard of us or 1000+ Stain Remover yet? That is not a problem – THAT IS OUR OPPORTUNITY.

So, I ask, with WNBD having a current market cap (today, February 10, 2021) of $6,664,492, are we over-priced? Would we be over-priced at even a much higher valuation? What is the proper comparison in light of the fact that Windex, a spray cleaner that is a comparable product on the basis of technical merit, has immense brand value. That is a serious question. How does one measure these things?

I understand that we are not Windex. They did not achieve their stature overnight, but there is an important insight in this comparison. Consider the description that over 1,500 YouGov poll respondents gave for the reason that Windex is one of the most popular household and personal care brands in America: “Good quality. Useful. Good value for money. Necessary and Reliable”.

Sound familiar? These virtues are bang on, word-for-word, as description of 1000+ virtues. As a practical matter, it strikes me as highly likely that our sales of 1000+ Stain Remover / Spray Cleaner Concentrate will grow, because of these virtues, with more exposure to consumers.

KEY POINT: If Winning Brands had not made the strategic decision to enter the spray cleaning category, this brand comparison would not even have been possible. That’s called learning from your mistakes!

Winning Brands, maker of 1000+ Stain Remover / Spray Cleaner Concentrate is described by its CEO, Eric Lehner, as having a modest market cap of $6.6 Million, relative to its lead product’s consumer market potential, if the immense brand value of directly comparable products is considered. Winning Brand’s lead product is 1000+ Stain Remover / Spray Cleaner Concentrate.

Brand Bonus: Not only does 1000+ Stain Remover / Spray Cleaner Concentrate deliver extraordinary savings value to the consumer, 1000+ also facilitates the going reusable lifestyle.

Millions of consumers have indicated to polling organizations (and news organizations) their interest in re-usable lifestyle options.

Winning Brands is right there, at the leading edge of this trend, that appears to be manifesting significantly over the next few years. Many millions fewer empty plastic bottles and sprayers will be thrown away as 1000+ gains traction in the market. The 1000+ Stain Remover / Spray Cleaner Concentrate brand also slashes carbon pollution by means of an aggregate reduction in packaging manufacturing, shipping, warehousing and other inputs compared to standard brands – up to a 95% reduction compared to ordinary pre-mixed spray cleaners.

For a community of 250,000 consumers using the 1000+ brand as a spray cleaner concentrate, an estimated 5 Million fewer empty plastic bottles and trigger sprayers will go to garbage dumps, and a minimum of $15 Million will be saved by those consumers. On a national scale, this contribution by 1000+ Stain Remover / Spray Cleaner Concentrate could be in the hundreds of millions, by both metrics, if the brand gains national stature.

2. Second Example of Learning from Mistakes: Sales Prospecting

Winning Brands has in the past relied on traditional prospecting for retailer accounts. This means having a broker, who looks for a distributor, who in turn has sales people that “call on” accounts. The theory is that the established relationship chain removes barriers. The people involved know each other, they understand each other’s systems, and represent a vested-interest chain.

That’s not “wrong”, but its no longer sufficiently “right” to persist with this approach.

The product margins get squeezed so that nobody is really making enough. Also, the communications daisy chain is lengthened. This makes it difficult to accomplish little things that can have a big impact. It took Winning Brands 1 1/2 years to get a photo changed on a major retailer’s website because of the protocol restrictions of whom we could speak to. In the end, we lost that particular retail account because (in my opinion) Winning Brands was too distant from the corporate buyer’s mindset – we were never allowed to meet that buyer face-to-face (because of the barriers put into place by intermediaries). When the category line review for stain removers took place, Winning Brands was relegated to being a remote spectator, rather than an effective advocate and creative partner.

So, what should Winning Brands do? Here is one example: RangeMe, an initiative of ECRM.

Winning Brands, for the first time ever, has registered with a brand/buyer introduction service, called RangeMe. It’s the equivalent of online matchmaking for dating, or even hopefully, marriage – in branding terms.

We belong to the upgraded version of this platform, the Premium Verified tier. This lets retailer buying teams know that Winning Brands has done the work (sound familiar again?) to do business, now. From insurance issues, to disclosure of operational details, the retailer prospect knows that Winning Brands is not just hanging around casually. They know that we are serious.

Everyone in the online dating scene knows that it’s a swipe fest. A lot of first impressions, diminishing attention spans and higher expectations are the drawbacks of instant access in dating, and of retail buying teams having many supplier aspirants at their fingertips. However, importantly, Winning Brands is now a part of this reality, not apart from it. That can only mean more opportunity.

It also means that we can offer retailers direct pricing that allows sufficient margin for Winning Brands to reinvest for growth, rather than just scrimping by, if we gain accounts, and if our sales volume is sufficient. This initiative is not to replace distributors – but rather to reduce our dependence upon them for our success. A more nuanced approach is now being taken. That’s new for us.

A crucial companion activity to retailer direct recruitment is to also reach out to retail consumers themselves more effectively, through social media communication. So far, Winning Brands has been an amateur, at best. Nothing about our social media activity for consumers has been adequate. Our Facebook page has around 500 followers, where it should have 500,000. Our online advertising on Facebook and other platforms has been almost non-existant, and where it does exist, it’s ad hoc. This is a vital element in being recognized by the major retailers as a contender. You can be at the dance, but being a wallflower will only get you so far.

For this reason, Winning Brands is soon entering into an entrepreneurial experiment with a USA-based group of business people who pride themselves on their social media savvy, and their networking abilities for community organization. If a sufficient number of 1000+ Stain Remover / Spray Cleaner Concentrate product fans in the social media space begin asking their favorite retailers to carry 1000+, it will make a difference. We will no longer be a wallflower. We’ll be proving to the retailers that we know the right moves. That’s what they want – suppliers who are not just enthusiastic but also EFFECTIVE in moving product off the shelf. I will be speaking more about this new social media partnership of effort in the coming week.

SUMMARY

I have given you just 2 basic examples of why Winning Brands’ unimpressive historical performance is not an accurate predictor of our future. The trend of our stock price since November has been moving from the rear view mirror approach to looking forward, instead. That’s why current pricing of WNBD is more realistic than before.

We are shaking things up on this end, within reason. We don’t want to waste anything from our past that is good and effective – of which there is plenty. This includes our honorable principles. We are imperfect, like every other person and organization – but we have a good attitude toward our shareholders (appreciation), regulators (respect), consumers (enthusiasm and engagement) and suppliers (partnership).

But we are not satisfied with that. We are determined to accomplish the most basic thing of all, no matter how rare that is amongst penny stocks, make money through operations, not just recapitalizations.

Recapitalizations must happen. Without capital infusion, meaningful initiatives are diminished. However, if the company does genuinely have a significant upside and is adding value to its brands, and to its reputation, then such capitalizations will follow naturally and be mutually beneficial to energize the company’s potential.

In conclusion, as far as our current share price is concerned, I am comfortable with it. We are not overvalued in view of the foregoing. But it is better for us all if our share price escalation occurs moderately, at a pace that permits earlier shareholders to be rewarded with a capital gain AND THE NEW SHAREHOLDERS HAVE A REASONABLE PROSPECT OF A CAPITAL GAIN AS WELL.

I emphasize this because some retail shareholders want a meteoric rise in the share price; “from here to the moon” in no time. That is never sustainable. All that causes is a pool of new shareholders who don’t have a reasonable prospect of their own gain.

The most important characteristic that our share trading activity can have for the next while, as our new valuation solidifies under our feet, is excellent liquidity – i.e. volume. We need to provide people who want to sell their shares with a proper exit opportunity for by purchasing the shares that they want to sell, but without chasing-up the ask unreasonably, either. In my opinion, this will deliver the greatest satisfaction to current and future shareholders.

Ultimately, that is why I am here – to figure out how the REAL value of our company can grow, and how YOU can benefit from it.

Cheers,
Eric Lehner, CEO
Winning Brands

P.S. When I am not hounding retailers directly to ask them to break the mold and list us, I am making videos asking them to break the mold and list us. Overview, below



Aloha 1000+

Beautiful customer feedback from Hawaii!

With her (38 year old) parrot talking in the background, a super nice customer telephoned the Winning Brands office from Hawaii today! She wanted us to know how much she liked 1000+ Stain Remover, and that she would be ordering more from Home Depot to replenish her supply.

Our customer shared an anecdote of having visited her mother in Idaho (where she also picked up some 1000+) and cleaned her mother’s kitchen counter which had a textured surface. Apparently, there was such a difference now that her mother was (only half) mad that she needed to do the rest of the place afterward to match the refreshed kitchen counter.

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Our Hawaii customer has horses, and also uses 1000+ to clean the riding accessories, such as the saddle pad AND THE HORSES THEMSELVES. She uses it as a horse shampoo. She rubs on the 1000+, lets it sit for a spell, and then uses the garden hose to rinse the horses off. Our customer appreciates the fact that 1000+ Stain Remover is gentle on skin, and that it leaves the horse’s coat feeling nice to the touch.

The Hawaii promotional photo of horses above reminds us of the splendor of Hawaii, and the magnificence of horses, both.

Cheers.

Additional Example: HanSan Market Test Placement

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Experiment: Hand Sanitizer as Impulse Item

Winning Brands has made arrangements to receive a truckload of hand sanitizer on a consignment basis to carry out a marketing experiment.

THE PROPOSITION: Is hand sanitizer an impulse item? If so, is it only appropriate to offer hand sanitizer in the usual settings of grocery/pharmacy/convenience store? Or would consumers in the “COVID era” respond to the availability of well-priced hand sanitizer in other places that they happen to be?

While Winning Brands focuses on its lead product, 1000+ Stain Remover, we are also market testing other opportunities for hand sanitizer on the side. There are already big players in the field, and their supply lines seem to be operating well, delivering adequate product at good prices. We are therefore not naïvely optimistic about our market test. It’s just a way to probe where the edges are of our opportunities. There are market niches in business – sometimes these can be lucrative. I thought that you might like to see the first installation to illustrate – this is a specialty meat store. More settings to come soon, such as fast-food restaurant take-out, for example.

This test is being done in partnership with a sales agent, so it is not deterring us from accomplishing other things that we need to do.

Cheers.

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Shareholder Questions: Understanding Product Plans

Question:

“Good Evening! Eric, I know you’re busy but I would like to ask a few questions.”

1.) Can 1000+ be manufactured with different fragrances? Or, will that have a negative effect on the product?

Answer

Despite the fact that 1000+ has a strong scent in concentrated form, this comes from its source materials; no scent is added. We have experimented with adding fragrance over the years. We found that it ended up being too strange because we needed to create an excessively strong counter-effect to the existing natural elements. That interfered with performance (as you anticipated) and became excessive in impact. The existing scent does not linger when rinsed, unlike many solvents. Also, when a bit of 1000+ is added to water in a spray bottle to create a general purpose cleaner, the scent is diminished so much that it becomes a positive “cleaner scent” that is similar (and found acceptable) in national spray cleaner brands. Although there is a narrow market for spray cleaners with absolutely no scent, market research shows that most of us like a subtle scent to know that cleaning has been performed. Therefore, for us, the decision was to leave it alone because a full-strength stain remover is “allowed” to have a stronger scent (that is rinsed away), and the diluted spray strikes the right subtle cord when mixed 1:20 with water. At that ratio, spray scent would remind you of a glass cleaner. By the way, at 1:20 with water, 1000+ IS a terrific glass cleaner!

2.) Are you planning to introduce the Brilliant brand to major retailers through RangeMe?

Answer

RangeMe specializes in retail consumer products, whereas the BRILLIANT Laundry Products brand of professional laundry solutions are provided directly to institutions.

Our most recent customer delivery was yesterday to the organization shown in the photo (and link) below. Our current delivered quantities of BRILLIANT are small, but our pride in being honoured with this specialized, professional clientele, is huge.

http://www.regentparkchc.org/about-us

3.) Do you see a market for 1000+ as an Industrial floor cleaner?

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Answer

There are terrific existing industrial floor cleaners supplied by a sophisticated sanitation and janitorial supplies sector. Such products are typically purchased by institutions who have supply contracts with large Jan/San companies. However, 1000+ Stain Remover is still capable of making a contribution in those settings, as an element in a larger “took kit” so to speak.

Our first objective is to earn a place in North American homes and businesses as a versatile “reach for it first” solution when messes happen. We would like this growing body of customers to determine which of 1000+ Stain Remover’s many uses suit each individual consumer best according to their individual circumstances.

A narrowly specialized cleaning product will usually outperform a general cleaning product like ours in that narrow situation if the “problem” is severe. 1000+’s claim to fame is that it will solve the customer’s problem, most of the time, in a vast range of applications, because most cleaning “problems” are not severe – but they ARE numerous and diverse. Coping with the multiplicity of situations our best feature. I have not encountered a more versatile clean-up solution than 1000+.

As an analogy from our everyday lives, we know that most of our physical headaches don’t require a brain surgeon. A competent family doctor in general practice will often be able to help. However, if the problem is truly exceptional, then a brain surgeon may be necessary. In North America’s more than 100 million homes, most general stain and mess clean-ups can be handled by the exceptional multi-tasking of 1000+ Stain Remover / Spray Cleaner Concentrate.

4.) Are you thinking about 1000+ full size cleaning wipes? I look forward to hearing back from you. Thanks for your time!

Answer

It is an active subject of discussion internally, how to apply precious resources, and applying ourselves strategically according to a set of priorities. I have to be careful when answering questions such as yours, to not be glib and simply say “Yes”. That creates an expectation that may not be met, either due to the resource issue, or shifting priorities regardless of resources. The “take away” from my reply is that wipes are certainly on our radar, but would only be viable if a number of other elements came into alignment. Growing the brand in a way that creates reinforcement within the consumer’s mind is the goal. Line extensions are a proven and popular way to achieve this and we know that wipes are popular.

One final but important point in answering your question. As our sales management becomes increasingly professional, such decisions will become shared by sales management colleagues. We may be able to add the energy and track record of proven sales management soon in order to help convert our sales ambitions into deals that are actually made. I am setting out to make 2021 a transformational year for Winning Brands in this respect.

In my own words. In my own voice. 1000+ Stain Remover. Why it’s special.

We characterize 1000+ as an artisan brand. That means that our product is provided by people who care, not by a “faceless” corporation and impersonal systems.

When customers call our office to thank Winning Brands for making a product that helps them in their everyday life – it’s a thrill. I am impressed with people who have such verve – reaching out and connecting with us in that positive way.

It is in this spirit, that I have introduced myself to the public with the video below, and by extension to the buyers in retail groups at RangeMe and beyond. In my I own words, I explain what sets 1000+ Stain Remover apart and why 1000+ is worth discovering. Even more than that, I explain why 1000+ is making a contribution to society by encouraging the “going re-usable” mindset.

We human beings are, after all, social creatures. Thank goodness. This means that we can be stronger together in pursuing worthwhile goals, and we take pleasure in sharing accomplishments too. Ideally in life, this also means that we help each other to overcome obstacles.

Whatever challenges 1000+ Stain Remover may encounter as an emergent brand, you now have a more personal perspective from me about why it matters that we succeed..

Cheers!
Eric Lehner, CEO
Winning Brands

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The Gritty Reality of Industrial Settings; The Genuine Usefulness of 1000+

Clean work environments work better! Safety, dignity, asset preservation, reduced liability – there are tons of reasons to prevent grime accumulation. 1000+ Stain Remover can be used full strength, or mixed with water as a spray cleaner concentrate. Reduce your empty plastic bottle waste by 95% and save money. It’s the smart choice. It’s the “reach for it first” solution in work settings with grime. Here is an “all too common” real-world example of neglect, before and after video:

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Reduced Consumer Waste is Just the Beginning of Our Opportunity – Reduced Carbon Anyone?

Not only does a consumer of 1000+ Spray Cleaner Concentrate send 20 fewer plastic bottles and trigger sprayers to garbage for every single bottle of our brand, and not only does that consumer spend 95% less on spray cleaning (by not wasting money on other brands needlessly), there are HUGE additional environmental benefits to society that come from 1000+ Stain Remover used as a spray cleaner concentrate.

The picture below puts into stark comparison the savings in trucking waste alone. There is also 20 times more gasoline consumption, traffic congestion, warehousing, electricity and heating, cardboard and pallet use, bottle blow molding and injection molding for sprayers, moving all those parts around prior to use from those factories to filling plants and shelving space to consider. That is what happens when ordinary spray cleaners are purchased, rather than super-efficient 1000+ spray cleaner concentrate. Just consider the carbon footprint reduction opportunity.

Get ready for the irony – this efficiency makes it hard to get allies. That’s right, the only ones who benefit from this fact are the consumers themselves and Winning Brands. That is because stores sell more if spray bottle cleaners are pre-mixed, trucking companies get more business, warehousing companies get more space rented, gasoline companies sell more fuel, etc.

Common sense to the rescue! Despite the incentives of waste that are built into the system, there is always a market for greater efficiency. The dollars could add up fast for Winning Brands if we gained even marginal awareness and traction amongst even a small percentage of America’s 100 Million plus households and millions of businesses where cleaning is performed. Who will be the retailer partners that take a leadership role by opening the doors to us?

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In the meantime, the major spray cleaner brands are not in a hurry to go the 20X concentrate route. They have so much to gain from continued waste. They are not being evil – it’s just a fact of life. They have more to lose than gain by switching to high efficiency concentrate. That hesitancy is good for us. It’s a terrific (and substantial) niche. It’s all about creating awareness amongst consumers and letting stores know that whether they like it or not, 80% of America’s consumers are reported to want responsible alternatives.

The Basic Proposition to Retailers

As WNBD creates new communications to prospective retailers via online portals, PowerPoints, etc – it boils down to a “basic proposition”. In other words, why should retailers (stores) be interested in 1000+? The description below, extracted from our retailer-facing materials, summarizes our approach, conceptually, oriented to the interests of the retailer. This is merely an extract of a more comprehensive package that discusses pricing and many other trade details.

This orientation may help WNBD shareholders understand where we are headed.

Caption: The RangeMe Header for 1000+ Stain Remover from Winning Brands

.PRODUCT PROFILE DESCRIPTION FOR RETAILERS (i.e. Corporate Buyers)

1000+ is an artisan brand that suits the appreciation that today’s consumers have for passionate brand stories!

To be effective, real brand managers with genuine zeal are required. Our brand team for 1000+ is independent in its origin and vision. We have the creative drive required to generate fresh enthusiasm within your cleaning products mix to enhance your customers’ shopping experience and lifestyle.

The 1000+ Stain Remover brand fosters engagement with consumers through their discovery of the product’s many uses and their appreciation of the results. 1000+™ STAIN REMOVER – World’s Most Versatile Clean-up Solution™- now delivers a double duty benefit to your consumers’ experience.

On our foundation of being a terrific stain remover, 1000+ now builds the added convenience, savings and environmental responsibility of also being a spray cleaner concentrate that dramatically reduces the flow of empty spray cleaner bottles and trigger sprayers to garbage – by a factor of 20!

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This immediate and effective reduction in single-use plastic waste by 1000+ brand customers is achieved by going re-usable. This is exactly the sort of innovation that U.S. consumers are looking for. Surveys show that given a choice, 80% of U.S. consumers would select environmentally responsible alternatives if the other desired product characteristics are retained. 1000+ accomplishes this and more.

Now, with 1000+ Stain Remover, your consumer receives both a highly effective full-strength stain remover AND a “reach for it first” all-purpose spray cleaner that can be used in any re-usable spray bottle (or pail) when added to water across a remarkable range of applications. More uses. More convenience. More value.

1000+™ STAIN REMOVER  is a breakthrough in cleaning, convenience and simplicity.  1000+ returns to basics by delivering a thousand cleaning uses in a single solution making it a terrific “grab-and-go” cleaner for home, work, and play, indoor and out. 1000+ STAIN REMOVER cleans-up stains, messes and goo of all kinds from traditional soft and hard surfaces and newer ones.  Sure, 1000+ can be used on carpets & upholstery, food & beverage stains, laundry, pet messes, vehicle detailing, floors, walls, RVs, campers and boats – inside and out. It’s even great for use on contractor materials like roof sealant, pipe dope, grease and adhesives too. But how about today’s computer tablet slime from touching? Got you covered! 1000+ is unsurpassed in its thorough clean-up of those yucky tablet surfaces, cell phones, smart TV large screen displays and even auto infotainment and vehicle monitoring screens. We are absolutely up-to-date with today’s materials and uses – including some that are so basic, but widespread, that they are easily overlooked.

Did you know that 160 million Americans wear eye glasses? 1000+ new spray application is the best possible cleaner available for this purpose! Not only will the glass itself sparkle (whether glass or plastic lenses), and be cleaned beautifully, but so will the frame, nose bridge, hinges, ear loops and carrying case, without drying out the plastic or affecting the metal and rubber components! What a great feeling to have eye glasses that have gone through their own little car wash!

Despite being concentrated for super value, 1000+ is still gentle on skin. This is a huge plus for consumers. No gloves required. It’s absolutely unique how nice 1000+ feels on normal skin without sacrificing any of its clean-up prowess. 1000+ can even be used as a liquid soap from the bottle or from the spray. 1000+ cleans so much that your consumer will never run out of uses! 

Originally developed in Canada, 1000+ Stain Remover is becoming a North American brand. Manufacturing has been carried out both in Canada and the USA depending upon volume requirements.

The brand managers of 1000+ Stain Remover will create custom digital marketing programs to support retailer listings. We will think aloud with you about how to create a positive feedback loop between 1000+ consumers and your retail organization. If you give us a chance to explore how to grow the enthusiasm of your consumers for cleaning, we will dive into the opportunity with a self-motivated spirit that makes a marketing partnership truly dynamic.

Here’s to the joy of clean!
Eric Lehner, CEO
WINNING BRANDS

1000+ Stain Remover Joins RangeMe for Retail Account Development

Purpose? Showcasing our brand to thousands of corporate buyers! (i.e. Retail Organizations)

Winning Brands has dived into its RANGEme membership in earnest now. RANGEme is a product/buyer introduction service. That organization uses the following pitch-points to describe itself:

  • Brand Profile
    Build visibility with leading retailers by highlighting key brand information that buyers look for.
  • Product Pages
    Customize product pages to show buyers essential product and company details like MSRP, price margins, packaging dimensions, and more.
  • Profile Sharing
    Share your brand profile with buyers on and off of RangeMe and track engagement.
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This is being activated behind the scenes for the first time. In previous years, Winning Brands did not have the benefit of such an awareness building tools to reach retailer organizations. It’s today’s answer to “account reps” who used to make appointments with buyers and schmooze. It’s all much more refined now in terms of scale, efficiency and objectivity. This approach makes it a little bit less important “who you know” and more important how the brand presents itself on stage.

I will be discussing this more later. For now I am just confirming that this is now in place. We are now a Verified member, not merely a “free” member. Verified members have 7 times more visibility to buyers than free members.

Sneak Preview: In-Store Merchandising

Prototype development is underway of new in-store merchandising for 1000+ Stain Remover. With Winning Brands’ expanded market to now include spray cleaner consumers for 1000+ Stain Remover, the brand is positioning itself as the easy, immediate and money-saving way for spray cleaner users to go re-usable.

The prototype design shown below is being prepared for use in a participating retailer, as a trial to measure the impact of offering store customers a simple way to reduce their empty spray bottle (and trigger sprayer) waste by 95%.

Through the use of custom prototype merchandising displays, Winning Brands can determine which combination of elements best conveys the message to shoppers.

Reduction of single-use plastics is a hot topic amongst government policy makers, and environmental advocacy groups. A recent survey revealed that up to 80% of U.S. consumers would choose a more sustainable option deliberately if it were readily available. It has been estimated that over 1 Billion empty spray bottles and trigger sprayers go to landfill sites annually in America alone. This is immense, needless, waste – and costs consumers more.

What sets 1000+ Stain Remover apart from ordinary re-fills is that 1000+ does double duty as a full-strength stain remover when used in its original concentrated form. This effectively makes 1000+ Stain Remover two products in one. Additionally, 1000+ has other product qualities that set it apart competitively.

Prototype 1000+ Stain Remover merchandising display being prepared for participating retailer in trial location.
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Close-up of Header Card on Winning Brands’ prototype merchandising display for 1000+ Stain Remover, Going Re-usable.

No Greater Compliment: Use by Professionals Behind-the-Scenes

Something that Winning Brands loves to hear from stores that carry 1000+ Stain Remover is store staff saying that THEY use 1000+ behind the scenes to clean-up their store.

Quick practical example. Paint store mixing equipment gets splashed a lot in daily use. It’s a hassle to keep the equipment clean, but you have to keep it up or the mess gets out of control.

When a professional chooses your clean-up product as an assistant to their task, it’s the ultimate compliment. The store can choose anything. Store staff know what is available and what they like. The photo below shows a paint store associate putting 1000+ into a re-usable sprayer at the end of the business day to start cleaning things up. After applying 1000+ Stain Remover on the right-hand side of the equipment below, for example, you can see order being restored, compared to the left hand side, not yet cleaned.

Winning Brands’ strives to attain professional and consumer awareness about the versatile convenience of 1000+ Stain Remover, and to form new product friendships. This is the work that we do on a daily basis. Success will be attained by gaining household name stature for our lead product. That is our goal. This is our intended foundation of our success.

Winning Brands’ store visits often reveal that staff in participating retailers use 1000+ Stain Remover themselves at work (and even at home) to help with clean-ups. In the example shown above, a re-usable sprayer with water is being given a shot of 1000+ to create an all-purpose cleaner. For stronger needs, 1000+ can also be used full-strength, as shown in the paint mixing machine picture below.
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Moments after beginning to use 1000+ Stain Remover for end-of-day clean-up of the paint mixing machine, order is being restored. Starting on the right, and moving to the left, it is obvious which patch has been treated. Unlike harsher chemicals, 1000+ is pleasant on normal skin, and can be worked with in a number of ways that do not require unreasonable restrictions or precautions.
Bonus Points: You just need basic common sense. No gloves required.

1000+ Stain Remover Store Scene: Benjamin Moore Retailer Irvine Carpet One

It is indicative of the potential for growth of the 1000+ Stain Remover brand that it can stand beside other national brands and hold its own. The only difference is in the limited access our brand has to growth capital. By all other metrics, we are a contender for national stature. Greater access to capital for WNBD will level the playing field.

Comparing 1000+ to the national brand yellow product on its right in terms of price for volume, eco-friendliness and versatility, 1000+ Stain Remover has a lot to offer consumers.

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Shareholder Question: Brilliant Wet Cleaning Products

Question today via Twitter Private Message:

“Hi, I know your very busy so I’ll keep it short. Does WNBD still own http://brilliantwetcleaning.com? Is the Brilliant product still available and/ or being marketed, or a dead project? I look forward to hearing from you hopefully soon. Thank you.”

Answer:

Yes, the product is still active. Tomorrow’s shipment (Monday Dec 14th) consists of the three jugs below, to two destinations. The customer websites are provided in the photo captions beneath each picture.

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Customer: https://www.reidsdairy.com/

Winning Brands Store Scene: Dulux

1000+ Stain Remover is available in some participating Dulux Paint stores.

Below is a photograph of 1000+ on the store shelf, and another photo of a store associate, Reece, mentioning that he and his colleagues use 1000+ Stain Remover in a re-usable sprayer for general purpose clean-ups around the store, also including wiping their window covering point-of-sale displays. A description of Dulux stores appears below the photos.

1000+ is not listed corporately with all Dulux stores yet, but individual store operators are asking for it.

Also shown below is a video link to a Dulux customer – one of Niagara Region’s largest commercial painters, who is kind enough to speak into the camera unrehearsed for 20 minutes about his uses for 1000+ Stain Remover. 20 minutes is far too long for a consumer video, however it would be particularly interesting for shareholders of Winning Brands in expanding their familiarity with the 1000+ Stain Remover brand’s growth prospects.

Franchise location of international paint manufacturer and retailer Dulux, with 1000+ Stain Remover on the shelf.
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Store associate, Reece, mentions that store staff mix 1000+ with water in a sprayer for general cleaning around the store to use themselves. This includes keeping the window coverings display section of the store dust free. Mixed with water in any re-usable sprayer 1000+ is effective on Venetian blinds and Plantation Shutters.
One of the Niagara Region’s largest commercial painters describes his organization’s use of 1000+ Stain Remover in a 20-minute off-the-cuff video discussion with Winning Brands. He is a Dulux customer: https://vimeo.com/193430562

Digital Implementation Partner

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https://getmintent.com

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Digital Team Now Active in New Winning Brands Product Sales Program

The digital team that Winning Brands has engaged to upgrade all its behind-the-scenes website programing, Facebook site coding, QR tagging, etc met with us today to report on progress.

Substantial Google integration was carried out in detail this week. This level of professionalism has never been deployed before by Winning Brands for its digital marketing assets. All kinds of strategies have been deployed to make the main product site, www.1000PlusStainRemover.com easier to find by Google’s own search procedures, as well as easier for Google to understand our product itself and our website goals for the purpose of recommending our website for organic searches for stain remover, cleaning products and other natural search terms.

The next step is to audit the site programming to find ways to speed loading time of www.1000PlusStainRemover.com. It can take as long as 7 seconds presently. We are trying to get that down to 1/2 second.

Also, we are integrating our brochure postal delivery program to coincide with a new Facebook advertising campaign. It will initially be concentrated on zip codes that will be receiving our product brochures delivered to their homes. Each brochure is printed in-house with the name and address of 1000+ retailer that is closest to that particular householder. The brochure also has as a QR code leading to a 2-minute video product introduction of 1000+ Stain Remover.

These measures are early steps in a renewed sales push for our lead product. It amounts to a re-launch with an expanded product mission, that reaches into North American spray cleaner market for the first time.

Our niche within this segment is to help householders make a dramatic reduction in their empty cleaning bottle waste by going “re-usable”. 1000+ Stain Remover has interesting technical attributes. It can perform double duty as full strength stain remover or be added to water in a re-usable sprayer to become an all-purpose spray for general wipe-ups. 1000+ in the spray cleaner application is every bit as good as the popular national brands found in millions of homes. But we go a step further. Winning Brands delivers incredible value to the consumer by comparison. 1000+ Stain Remover brings the cost per bottle of spray cleaner to much less than a dollar – literally less than the dollar store.

We know that there are other concentrates in the market of course. However, they do not have the full strength utility that we do for stains, nor our wide range of uses. Our product is exceptionally flexible.

A sales increase is the healthiest source of working capital for Winning Brands. This approach is friendlier to shareholder interests than issuing more stock. The increased working capital we plan to obtain from increased sales will contribute in part to cost of the completion of our going PINK Current Information Tier.

The latest version of our 1000+ brochure, shown below, has been modified to include imagery and concepts from our upcoming Facebook advertising.

Any astute person will grasp that our expanded market projection of 1000+ (with such a powerful environmental benefit of slashing single-use plastic waste by 95%) combined with more sophisticated use of digital marketing mechanisms, could be a game changer for us. This is not “more of the same”. It’s a new lease on life, but with an upside that is, objectively speaking, more exciting even than our most optimistic previous expectations for 1000+ Stain Remover. 1000+ Stain Remover has renewed potential to generate positive cashflow, in real terms, on a substantial scale.

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No Dilution

OTC Markets verifies that there has been no dilution (share issuance) at WNBD, as per stock transfer agent verified numbers shown below, during entire recent increase in share transactions, up to and including December 7th.

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More Goods on the Move

Winning Brands has been catching-up to back orders.

For the past several months COVID-19 had been affecting supply lines for some production materials. COVID had also affected our retailer operations. Store hours were reduced in some cases, and government limitations were placed on the number of customers who could be in the store at once. We have been overcoming these issues, as described below.

As far as manufacturing inputs are concerned (such as primary raw material feed stock, finished bottles and finished closures for example) the largest organizations have priority access to any materials that happen to be in short supply. Smaller organizations scramble to compete for whatever is not tied-up by industry giants under contract. Nonetheless, Winning Brands has been able to normalize its supply chain elements gradually. That is why we have been able to begin catching-up to backorders and pick-up the pace of deliveries.

It would be unwise for competitive reasons, and impractical, for me to post here every time a shipment is made. However, doing so occasionally to illustrate that things are moving, and to give you a mental picture, is fine. In this post I am providing more detail about Friday Dec 4th, for example, including some photos and a brief clip of goods being loaded into transport.

The primary task of the day was to stage 5 special skids of mixed SKUs for Do it Best, a hardware store cooperative that operates slightly over 3,000 locations in the USA. They also have affiliates in some countries internationally.

It was encouraging to get these 5 skids ready on Friday because this is part of our pledge to Do it Best to supply 6 distribution centers with product under a new Flooring Department initiative on a timely basis. The 6 centers are in Lexington, South Carolina; Montgomery, New York; Medina, Ohio; Mesquite, Nevada; Sikeston, Missouri and Woodburn, Oregon. The Oregon shipment left the previous day.

In addition to the 5 shipments to Do it Best, we also succeeded in completing a sixth shipment on Friday to top-up our distributor to Lowe’s Canada, making 6 dispatches in total for the day, Friday.

Partial skids of 1000+ Stain Remover shipping to six Do it Best regional USA distribution centers Dec 3rd and 4th, 2020 as part of new floor care plan-o-gram initiative with participating outlets, to include 1000+.
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Background

Winning Brands is participating in a Do it Best USA category solutions program in the floor care section. Its purpose is to make new Do it Best corporate planogram proposals to participating Do it Best stores and thereby offer an updated “complete solution” to those stores. Typically this involves various stock-keeping-units (SKU). These proposed offerings are accompanied by initial discounts (by the supplier) to the organization in order to compensate participating stores for having to reset their plan-o-gram section with the new items selected. 1000+ Stain Remover has won the opportunity to be one of those products. Winning Brands won approval on the merits of 1000+ Stain Remover as a floor care solution, even though 1000+ is capable of being in several sections. It’s that versatile. This floor care program will run for about a year. Hopefully, by expiration, we will have gained a permanent presence in an expanded number of Do it Best affiliated stores in America.

Winning Brands sought this opportunity for several reasons. Floor care is a high value section, where participating products are more than just ordinary generic cleaners by nature. Also, floors receive more spills and messes than any surface, long term. Furthermore, this program is an opportunity for joint initiative with Do it Best corporate category planners. Working together is more fruitful than a basic “buy/sell” relationship.

The in-store placement categorizations are not rigid. A participating store still has the freedom to a place 1000+ in additional sections within the store.

The graphics below illustrate Winning Brands’ positioning of 1000+ Stain Remover in flooring applications.

The exciting thing for Winning Brands in the shipments to Do it Best is not the size of each shipment – these skids were minimum order quantities of slightly over $1,000 each. It is the fact that these orders were received for multiple distribution centers at once. This is proof to me that participation in the floor care initiative is gaining traction across America, not just in a single region. The orders prepared on Friday reflect store requests. These are not goods merely being ordered by Do it Best corporately to hold long term. The minimum orders constitute a Do it Best “just in time” calculation of what they need right now. If the program gains momentum, the average order size will increase.

All outgoing 1000+ bottles in the 30oz size now have the new neck tag encouraging consumers to discover using 1000+ as a re-usable spray refill too. This is a new policy. We are micro-targeting neck tags to be relevant to the circumstances of our retailers. We have the flexibility of applying differing messages as required.

Brief video of Dec 4th 2020 shipping of 1000+ Stain Remover at Twitter. The video has sound, so remember to un-mute the player when you get there: https://twitter.com/WinningCEO/status/1335786752838144002

New Facebook Header Expands 1000+ Stain Remover Positioning

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Winning Brands is launching into 2021 with a bold plan to achieve higher consumer awareness for its legacy brand, 1000+ Stain Remover.

Long known as a versatile stain fighter, 1000+ actually has a dual personality that is getting a boost in forward moving marketing. 1000+ does double duty!

Not only does 1000+ tackle spots and stains full strength, but 1000+ is also an extraordinarily efficient refill system for re-usable sprayers in general purpose cleaning. This delivers remarkable value and convenience to consumers, and helps our planet. Consumers achieve a 95% reduction of personal waste of empty plastic bottles and trigger sprayers into the garbage stream when they use 1000+ in this way, helping to diminish a serious problem in waste management.

Further benefit to consumers; the cost per 1000+ spray cleaner recharge for general purpose spray is less than a dollar. That is competitive with pricing of any pre-filled spray cleaner, anywhere in North America.

On the bottle shown below, the green line illustrates the small amount of 1000+ used to create a full bottle of spray cleaner by energizing the water that is filled in on top. A quick shake and you have an excellent general purpose spray cleaner – with sudsing action if desired, ready immediately.

This re-usable version of 1000+ spray cleaner is designed to deliver versatility of applications throughout the home and beyond. Use it on windows, countertops, venetian blinds, new generation “piano black” infotainment displays on car dashboards, tablet computer and smart phone surfaces and so much more. Literally, a 1000 kinds of clean.

Winning Brands is passionate about its artisan brand, 1000+ Stain Remover and its mission to become a household choice for North American consumers. There are other refill systems, but there is no other 1000+ Stain Remover. 1000+ is as convenient as it gets.

More information is coming soon about WNBD initiatives in this roll-out.

Experienced users of the 1000+ reusable general purpose spray leave a headspace in the bottle to shake for suds. There is a lot that can be done with 1000+ Stain Remover in your arsenal. Reusable spray bottle use of 1000+ as a general purpose cleaner dramatically reduces the personal waste of empty spray bottles and trigger spray mechanisms going to landfills annually – estimated over a billion in aggregate across society. This approach lowers the average cost per spray bottle to less than a dollar – a fraction of conventional sprays.

Shipping Photos

Photos today, Dec 3, 2020, from the production facility.

For shareholder orientation purposes, each skid in such a shipment represents approximately $3,000 revenue for Winning Brands at the wholesale price level into the distribution network, depending upon configuration, size and product mix.

To achieve $1 Million in sales, we need approximately 16 standard 53ft trucks that you typically see on the inter-state. I can’t shake the feeling that we can achieve serious numbers with a few lucky breaks coming our way, such as more retailer listings, making the right contacts, etc. There are 50 states in America. If we delivered even a single truck to each state, to last that state for an entire year, that would represent $3 Million in sales. If we could generate sufficient 1000+ Stain Remover consumer demand so that each U.S. state would only need 1 truck per month to satisfy, that represents $36 Million in revenue. I don’t think that 1 truck load per state per month is unreasonably ambitious, do you??? This is the sort of goal that we should be reaching for, in this renewed business plan for starters.

It boils down to creating consumer awareness, and having retailer presence. The rest is just a systematic mechanism to keep the product flowing.

That is why our strategy adjustment to now encourage consumers to use 1000+ as a spray cleaner too, the way consumers use other spray cleaners, is so significant. It really opens up the market to us across a larger demographic and broader spectrum of retailers.

This strategy has never been our focus before. THAT is why our 1000+ Stain Remover sales could grow considerably in 2021.

LINKS TO THE USA AND CANADA RETAILERS TO WHOM THESE SHIPMENTS ARE HEADED, ARE PROVIDED IN THE CAPTIONS OF TWO PHOTOS BELOW.

This skid is headed to the Do it Best hardware organization’s Oregon distribution center.
https://www.doitbest.com/search/?Keywords=1000%2B%20Stain%20Remover
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These skids are going to a sister organization of Do it Best, called Home Hardware.
https://www.homehardware.ca/en/909ml-1000-stain-remover/p/4580812
1000+ Stain Remover consumers will be seeing new neck tags on all bottles that encourage discovery of the value of adding the product to water in a spray bottle to create incredible value. Future neck tag design will have supportive QR codes linked to an explanatory welcome page and video for in-store explanation.

Positives Quietly in the Background; Small Medical Sale

A small Purchase Order was received today from a medical procurement organization for an SKU within in our Brilliant branded product line. Screen shot of the P.O. header with name of institution is provided below for context, but details have been omitted for financial confidentiality to the customer.

I have been asked why I don’t emphasize this aspect of our business more. The medical sector operates differently to our consumer product side. It is not possible to stimulate medical institutional business in the short term through marketing in the same manner as our consumer side, particularly as a small entity. The medical side is tied to supply chain protocols and exhaustive approvals. Nonetheless, the arrival of even a small P.O. to Winning Brands as an approved vendor now to Plexxus may offer comfort to our new shareholders that Winning Brands does have a number of ways to succeed. We at least “have our foot in the door in this sector”. That would be a fair characterization.

The accomplishment of this purchase order arises from Winning Brands being qualified to do business with this medical procurement organization. That is the significance, for the long term. That is what can be built on over time. Earning the right to continue to serve Plexxus supply management is the goal. This requires service, professionalism and high standards.

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Timing of Going PINK Current

Some people have been speculating about the completion date of our PINK Current Information compliance. This has happened on Twitter and elsewhere. Please see my Twitter post below.

I appreciate the enthusiasm and goodwill toward WNBD. We have positive developments occurring and I am confident that 2021 will be a good year for us.

It’s my job to ensure that expectations are accurate. This lets us all focus on meeting milestones. Our new share price level more accurately reflects our value corporately than before, and even this level is conservative in light of our potential. There has been no dilution into this price increase, and none is planned. The company has not paid for any stock promotion and is doing nothing to undermine the new valuation floor. That by itself should be of great comfort to all persons who have become shareholders recently, for which I thank you.

No one wants the PINK Current Status more than I do. It will be done as soon as possible, but we must be careful to avoid unrealistic statements. It is good for shareholders that I care about accuracy.

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Shareholder Suggestions

From time to time I receive suggestions from shareholders. Sometimes they are about products and at other times about the stock.

Common themes occasionally emerge. I am responding here to some recent suggestions received because I believe that these ideas are on other people’s minds too. It’s therefore more efficient to address them openly. This ensures that our shareholders as a whole benefit from the discussion.

The suggestions below are shared in the format of shareholder suggestion first, and my response immediately thereafter..

SHAREHOLDER SUGGESTION

“…a few suggestions to show shareholders you care about them to keep the stock moving forward and morale otherwise it will probably drift back to .0001 range….And I dont want that to happen.  WNBD needs to create news…substantial news to create shareholder value in the form of a PR preferred by blog I guess would work.”  

Company Response

.0001 is the default price for a stock that is perceived as being at the end of the road or having problems that are intractable.  I don’t think that the share price needs to return to .0001 unless the company takes steps that violate the trust of shareholders, such as lying about any facts or trying to manipulate market dynamics.  My most important task is to ensure that our operations generate tangible business progress that justifies our new higher valuation.  I am very cautious about “creating news” to use your phrase.  This behaviour is so common in the OTC environment that news releases rarely have the impact that proponents are looking for.  Substantial news is not created – it emerges from real developments.  I agree completely that news would be helpful, but only if it arises authentically.

SHAREHOLDER SUGGESTION

“Share buyback or retirement – The OS and float are large and if there is block or common shares or preferred that can be retired or bought back that would go a long way…EVEN for you to announce a plan to retire or buyback based on a % of revenue anticipated from sales would be very important…Ive see companies do this and the stock goes up significantly cause it shows your creating shareholder value”

Company Response

Yes, it would be welcomed that I announce a stock repurchase plan by the company or shares being retired.  However, it would not be authentic presently because the surplus funds are not yet available to conduct a share buy-back.  To announce this intention without the means to carry it out is more characteristic of OTC companies that try to manage their public market trades through hype.  Shareholders who cannot trust what I say are left with nothing because they cannot count on anything with certainty.  The most important characteristic of the relationship between shareholders and their company management is trust.

SHAREHOLDER SUGGESTION

“Talk about the other products as well and plans for them…NOT just 1000+ stain remover”

Company Response

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Yes, I agree that this is appropriate, as circumstances warrant.  At the moment, we are in a ramp-up phase for 1000+.  It has the lion’s share of attention because that is where the action is for the next few weeks/months.  Also, 1000+ is the product in our portfolio which has the greatest contribution to make in cashflow, proportionately.  I do understand that it may seem desirable to emphasize a broad portfolio in order to project broad corporate potential, however, in order for this to be effective it must be real.  The scale and speed with which 1000+ has a contribution to make to WNBD financial strength is greater than the other products at the moment.  I should not emphasize things which may fail to advance our cause in real terms or with the speed and impact required

SHAREHOLDER SUGGESTION

“Start the filings process immediately to go CURRENT”

Company Response.

This is purely a financial question, and ties into my response to your points 1 and 2.  I agree that it is important.  It will happen.

SHAREHOLDER SUGGESTION

“Partnership or Endorsement with a bigger company, entity or even person to endorse product(s).” 

Company Response

The ultimate endorsement that you speak of is the calibre of retailers who are now associated with us.  They would not jeopardize their reputations with products that cause them problems with consumers. If we can reward these retailers with increased sales, then our association with them will be even more visible, such as participating in their own consumer marketing (like flyers) or being brought in-house to be on the store shelf, rather than being only online.  If you have suggestions of additional companies or persons that you have in mind, I will certainly look into the idea further.

SHAREHOLDER SUGGESTION

“Give some sort of guidance on revenue if substantial”

Company Response

I can assure you that when revenue becomes substantial, shareholders will be alerted to this coming down the pipeline.  I need to ensure that such guidance is real.  Puffed-up expectations are a cliché in the OTC environment because most CEOs use them as a way to stimulate excitement without substance.  My goal is to keep improving the operation and to ensure that shareholders can rely on any announcements that I make.

Summary

I do believe in wisdom of the crowd.  I know that WNBD shareholders, as a whole, have insights across a range of issues in stock market dynamics, business issues and life generally. Penny stock investors are more creative, ambitious and courageous than the average bear. Even if I can’t always implement suggestions made by shareholders about some issues, I respect these qualities and will always listen with interest.

Best regards,
Eric Lehner, CEO

Winning Brands 1000+ Neighbourhood Mail: Practical Example of Retailer Support in Action

In an earlier post, I gave an example of our new Neighbourhood Mail brochure, designed to support retailers of 1000+ Stain Remover who are coming on board. Let’s examine the Vancouver example, to illustrate.

The store in our example is Lowe’s Home Improvement at 2727 E 12th Avenue in Vancouver. Below is a picture of the store. It is one of 6 Lowe’s locations in the greater Vancouver area.

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Lowes in Canada has made 1000+ Stain Remover available for consumers to check online for in-store availability at participating stores. Below is a picture of what that customer screen looks like. All 6 participating Lowe’s stores within 60 miles of Vancouver now have 1000+ in stock and on the shelf. Our example store is called Vancouver-Grandview. It is in the heart of the city. They have 15 bottles of our product on the shelf at the time of this report.

Winning Brands, equipped with this online confirmation for these Vancouver stores, can swing into action to support them by precision targeting distribution of our customized brochure via the letter carrier walks in the neighbourhoods immediately surrounding those stores. In our example, the brochure refers to Vancouver on the front and shows this particular retailer on the back, together with the 2727 E 12th Ave address and a QR code for an introductory video.

In this case, for the Vancouver-Grandview store at 2727 E 12th Ave, there are 24,000 households (houses, townhouses, apartments and condominiums) in a 1.25 mile radius (2 KM) around the store shown in the target zone shown below. The cost of delivering our introductory brochure, also shown in this post, is $4K, plus our internal printing cost. This would saturate the target zone and deliver maximum impact for the retailer.

Here’s the beautiful thing about our approach. It is not necessary to deliver to all these households at once. With our Precision Targeter strategy, we can narrow this down to suit available budget and other considerations.

So, beneath the first saturation zone map with all routes chosen, we also illustrate a single route, closest to the store. It has 713 households for only $120. That’s not as impactful as 24,000 households, but it permits neighbouring streets to be done on an “as possible” basis, systematically until saturation is ultimately achieved in the target zone. We keep careful records to catalogue which routes have been serviced, and advance methodically across the zone. Our Neighbourhood Mail campaign will be deployed in a number of communities. There are multiple variables to coordinate, financially and otherwise. Our program is well-organized.

There are advantages to performing multiple-location support on a slow and steady basis across our group of participating retailers simultaneously, rather than one huge spike that creates a short spurt of craziness in one location, followed by a lull. A measured, steady approach will suit the stores better in their inventory management at the store level. Also, by spreading this over time, but keeping it steady, the 1000+ brand develops a reputation at store level of continuous engagement, rather than “here today, gone tomorrow” marketing.

The B.C. lower mainland (Vancouver area) has millions of residents who are highly appreciative of positive environmental initiatives, including plastic waste reduction. Our new strategy to ramp-up use of 1000+ Stain Remover as a 20-bottle refill canister for a re-usable sprayer and general purpose cleaning is a good fit. This way of using 1000+ Stain Remover will be appealing to consumers in many cities in North America who would like to reduce their empty spray bottle waste by 95% AND save money in the process.

DEEP DIVE ANALYSIS for Shareholders of 1000+ Stain Remover Website! Part 1 of 5: The Home Page

This weblog post is extremely detailed. It is Part 1 of a 5 Part series.

The series provides a deep understanding of the company’s thinking about the brand positioning of 1000+ Stain Remover. The series is for those amongst our shareholders who are fundamentalists. You appreciate knowing not only what we are doing with our brand, but why. This series deals with the product website of our lead product.

The format of this deep dive series will be to focus on the product website in its sections, according to the website Navigation Bar. This first installment is about the Home Page. I provide a screen shot of every aspect of the 1000+ website and explain why it’s there, and how it relates to our success. By the time we are finished the series, you will clearly understand the mission.

1000+ Stain Remover can make a clean-up contribution to every household in North America. Rich or poor, rural or urban, young family or retired persons, speaking any language, practicing any religion, having any political belief, etc. Give me a household, and I will find uses for 1000+ Stain Remover. No exceptions. You can’t say that about many products.

Our 1000+ brand mission is to achieve “household name” brand recognition and distribution in North America, with product sales volume to match.

We are already off to a good start because most people who use 1000+ give us positive feedback. You can’t please everyone, but you can go a long way toward our goal with 1000+ Stain Remover. There are over a hundred million households in North America. A few percentage points penetration translates to many millions in annual sales, sustainably, because 1000+ is consumable. If success is managed prudently, our shareholders will benefit.

Website Address: www.1000PlusStainRemover.com and www.1000Plus.ca Same site.

ANALYSIS – HOME PAGE HEADER SECTION

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This header picture came from a real incident. It took place in a logistics warehouse. The dispatcher was grumpy that day and was complaining about things in general. That included a negative comment about his facilities. I was there and pointed out that all normal people are affected by the environment that they are in. It’s a morale booster to have a pleasant setting to work in, so I pointed out that we all have a hand in creating that setting.

I had an extra bottle of 1000+ with me and showed how easily his “tired” warehouse office could be refreshed. The linoleum floor had not been cleaned in a long time. Grime accumulated from forklift tire skid marks creating oily rubber dust, office chairs grinding old bits of lunch food on the floor, spilled coffee, machine dust grime, dirt from shoes, etc. You name it, it was there.

The resulting photo is the actual before/after picture of the first tile that was cleaned with 1000+ Stain Remover in that setting. Keeping it real.

SKUNKS – NOT A BIG DEAL UNLESS YOU ARE A DOG. IT HAPPENS MORE THAN YOU THINK.

Winning Brands gets feedback from customers, and stores too.

One place to meet store representatives is at industry tradeshows. It is interesting how many hardware stores share stories with us about 1000+ rescuing a dog from “shunning” by the family.

Advice started spreading on the grapevine that you can add 1000+ to water in the bathtub to clean the dog, or use 1000+ as a shampoo for the dog. Its so easy. This is only the starting point of the “versatility story” about 1000+ Stain Remover.

What sets 1000+ apart is not its “strength” per se – there are definitely stronger removers. Instead, it is the balance that 1000+ strikes between efficacy and safety for easy experimentation without worrying about harming things. It’s versatile – a real multi-tasker. That’s why we characterize 1000+ as the “reach for it first solution” when messes happen. This balance between safety and effectiveness is what leads to the use of 1000+ in all corners of the household, and beyond (i.e. work and by tradespeople).

In the meantime, we make a point of keeping our de-skunking message to stretch the envelope of convention. That’s why we have a fun little video there too, to add a bit of life.

THE THEME OF WINNING SECTION

What’s in a name? A lot. We all know that major companies spend money on experts to find good names. Small companies do this at the kitchen table. Everybody knows that it matters.

The theme of winning begins with our own company name, Winning Brands. It’s a terrific name. It’s easy to say, spell, remember and understand. It’s even a two-word story of sorts. Any normal person grasps that the company has “brands” of some sort, and that these brands have positive qualities – they are “winning brands”. It is easy to imagine that with success in our consumer markets over time, the name Winning Brands will seem just right to describe an astute and valuable company. I think it sounds big without being pretentious. Probably better than “Amalgamated Global Surface Transformation Industries”. That’s just my opinion of course.

It is our intention to eventually display our WNBD stock trading symbol on all our consumer product packaging. Many people invest in products that they like. Displaying our trading symbol is a natural way to foster growth of investomers – “Investor/Customers”. We are not doing this yet because our stock and trading status at OTC Markets is not stable enough. However, in due course, we will be taking that step. As you can see, the “Pick a Winner” concept is a message with many meanings. They will all emerge in the fullness of time.

In the meanwhile, even in its basic purpose, as presented on this website home page in connection to our product, “Pick a Winner” clearly means that the consumer makes a choice with every purchase. We encourage them to pick 1000+ Stain Remover, which is a winner of a product as well!

MONTAGE SECTION

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It has been said that our modern attention span is declining. I think that we all sense that this is true. The implication for consumer messaging is that pictures are better than words, where possible. Where words are necessary, the fewer the better. (This weblog is not consumer-facing material. That’s my excuse).

We have been introducing more small montage arrangements with phrases that are just one or two sentences short as descriptors for people who just won’t take the time that we wish that they would. At first glance, the soiled dress, grimy floor, greasy hands and household pets don’t seem to have anything in common. However, the multi-cleaning flexibility of 1000+ Stain Remover across this range of applications, and so many more, is our point. That’s what the captions start to deal with.

We have an endless supply of montage components. Our accumulated library of digital assets depicting 1000+ Stain Remover uses is enormous. It has been gathered over several years of contact with consumers and retailers.

Fortunately, a product as versatile as 1000+ Stain Remover is relevant to so many situations in life that we could generate “Situational Moments” around the 1000+ product for the rest of our lives. Life is messy. Millions of stain events happen every day. Our marketplace is never obsolete, or at least until every single surface is coated with nano-particle stain repellant. That will take a very long time, and will not affect existing surfaces. However, I mention nano-particle stain repellant without fear. It is not our competitor; that may be one of our future products!

STATEMENTS OF PRINCIPLE

Our brand’s profitable destiny and wide reach requires a foundation of principles. These are concepts, or truths, that stand alone, as relevant facts. In keeping with the need to be brief in consumer facing communication, we’ve tried hard to boil down our product principles to bite-sized items, for consumption according to appetite. In the first collection of these principles on the Home Page, we state certain truths, and let them make their point plainly.

Versatility at its best – 90%
The first one is that most daily spills do not require fancy specialized cleaning solutions to deal with. There is a consumer phenomenon today called “the stress of choice”. The original version of many popular cleaning products have since been cloned by their creators into slight variations that project those brands into more physical shelf space. That’s good for the consumer goods company at first glance, and good for the retailer by being able to charge more for that shelf space. However, it has an unintended consequence. Firstly, it cannibalizes sales from that brand’s original SKU (Stock Keeping Unit). At the start there was the original, then there is an orange fragrance, then there is an Oxi version, followed by the anti-bacterial, and so on. The consumer will not purchase all versions. The second unintended effect is subliminal resentment by the consumer that the brand is forcing so much decision making on her/him. Remember, this issue is compounded across many products. This is why the cleaning section is so crowded now.

Conventional wisdom would say, “Well Eric, if it is so crowded, why do we want to go there?” A crowded section is also a busy section, supported by substantial category demand by consumers in aggregate. It can be more cost efficient to hitch-hike into a strong demand category rather than asking customers to become interested in something completely new. Also, our premise is one of simplification. We are the stress relief product in this category. Not only because we can do a good job, but because we reduce the clutter. More about that later.

Be bold – Discover More

Discovery, as a principle, is very interesting in our case. 1000+ invites consumers to explore, discover satisfactory uses, and share. That is not typical for technical products that have a defined use.

A notable exception where this is done exquisitely well is with the brand WD-40, the water displacement product that is typically used as a lubricant by householders. That brand has done a brilliant job of engaging its consumers in discovery. That brand also illustrates how financially significant a consumable household product can become with that kind of imagination. WD-40 is a respected brand, a major company and an example of perseverance. It took them 40 tries until they came up with their successful iteration. (That is why they are called WD-40). That company’s sales are now in the hundreds of millions annually. Of course the core business has been added to with acquisitions. However, WD-40 is still at the heart of things. – a household brand in the best sense of the concept. Luckily for us, most people would not like adding WD-40 to the laundry as a booster, or shampooing their dog to de-skunk it, or clean-up carpet messes, and more. WD-40 is not a competitor, it is a mentor. It is an example of excellent brand management of what used to be a single-SKU which for many years was a “stand alone” item, not a range of products.

Love that Clean

The world needs more joy. Clean delivers joy. This is no small point.

What normal person doesn’t love the feeling of walking into a hotel room that is ready and waiting, prepared to today’s best standards of cleanliness. That’s a real treat. Of course we have to admit that most of us don’t maintain that standard in our own homes! Does that make us hypocrites? Not really – it’s a matter of time, mostly. There is never enough of it.

But it’s still true that most of us feel accomplishment when we convert something from a soiled or disorganized state to fresh, well organized and well cared-for. To a segment of the population, any form of cleaning is drudgery. For most people, cleaning in small doses is a morale booster. Our statement of principle is that cleaning is inherently good, human and nurturing of a better existence. We only say “1000 kinds of clean” – In reality, there’s no limit!


HEALTH OF PLANET SECTION

This section is only the beginning of our ramped-up focus on an expanded use of 1000+ Stain Remover. It may be a game changer for us.

Some Background

Winning Brands previously had a tentative joint venture with the inventor of a cleaning tablet system called DAZZ. He’s a terrific person. We both wanted to approach the growing global concern about single use plastics. The news has been full of this over the past couple of years until COVID-19 and politics crowded it out for a while. Still, people everywhere are becoming aware that millions of tons of discarded plastic is accumulating in landfill sites, road side, beaches, forests, the ocean itself and more. In fact, micro-plastic is everywhere, including in most fish species now.

The DAZZ approach of tablets has its advantages, however, from a business point of view, there are negatives to that approach. The bottom line is that during the tentative joint venture it became clear that two spirited cooks should not both try to cook the same lasagna. There were too many (friendly) divergent strategic decisions and options. Also, Winning Brands did not have the available financing to take a leadership role in the performance of its part of such a commercialization. That was part of what Winning Brands was to contribute. We did not yet have the resources. Accordingly, DAZZ is doing its thing on its own now, and Winning Brands is now approaching the plastic waste reduction premise in a manner that dove-tails to Winning Brands’ existing plans more logically.

1000+ Stain Remover is a concentrate. Each bottle makes at least 20 more of a general purpose spray cleaner in a re-usable spray bottle by adding 1000+ to water. Therefore, we achieve 95% of the waste reduction efficiency of the tablet system. And, we have compelling advantages. The first is that the technical process of using the tablet is actually a bit complicated for the consumer. The size of the bottle and quantity of water is important. Also, the spray bottle can leak through the nozzle if not mixed properly, because of back pressure.

By comparison, in the case of 1000+ Stain Remover added to water in a spray bottle, the result is instantaneous. There is no transformation to take place over several minutes. Our mixture is ready for use immediately. It also does not matter what proportion of 1000+ and water is used – it’s all according to preference. This makes it easier and more versatile. Furthermore, as a business proposition, the fact that 1000+ Stain Remover is anchored as a concentrated stain remover in the store gives it a “high value starting point” on the store shelf, and at home. Rescuing an article from staining preserves the article’s value. Sometimes, these rescued objects are expensive, such as carpeting, cherished clothing articles, etc.

Present Status

Effective immediately, Winning Brands is modifying all its marketing materials to refer to the multi-bottle spray cleaner value proposition being equally important to the original stain remover premise of 1000+. The consumer reach is greatly expanded as a result.

Firstly, this gives us a new discussion starter with young consumers. They do care about environmental propositions more than stain removal.

Secondly, every single news article in any media that refers to plastic waste abatement is supportive of our premise.

Thirdly, in this application we deliver incredible value to consumers. Using a theoretical retail price per bottle of $12.49 for a quart (1L in Canada), the cost per “re-load” of the re-usable spray bottle is only $0.62 cents. That is less than the dollar store. That is real value. Remember, there is much more general purpose wipe-up cleaning going on in the household than recurring stain removal. Therefore, with this application we accelerate the consumption of 1000+ Stain Remover by entering the daily use category, rather than the occasional use category.

Fourth, it increases our relevance to apartment and condominium dwellers who account for a growing proportion of households in North America. Single family homes have greater stain incidence and condo/apartments are more sensitive to compact, light solutions of all kinds (not just in cleaning).

Fifth, general purpose cleaning is COVID-era relevant. We do not position 1000+ as a disinfectant as a primary quality for strategic reasons (although we have test marketed as such on a limited basis) By definition, disinfectants are actually designed to “kill” (microbes). This is a highly regulated proposition that is limiting from a marketing strategy perspective. The EPA (Environmental Protection Agency) and the FDA (Food and Drug Administration), who both have regulatory responsibility over disinfectants and hand sanitizers, GO TO GREAT LENGTHS TO EXPLAIN TO CONSUMERS that disinfection and hand sanitization are not intended to replace primary clean-ups. From the point of view of those agencies, general purpose cleaning is not the “weak” version of disinfection and hygiene. They see it as the FIRST STAGE AND FOUNDATION of hygiene. That is an important difference that is good for us. More on that in future weblog posts.

Winning Brands’ business decision to enter the spray cleaner market with its existing 1000+ concentrated stain remover, by means of becoming a re-fill method for re-usable spray bottles, is an exciting expansion of our market, with absolutely no loss of traction in the stain remover category. This single decision has major impact on our trajectory. The spray cleaner category is much larger in dollar volume. This adds to our potential growth potential by several orders of magnitude. We are gaining opportunity, without losing anything.

THE ‘AMAZING STATEMENT’ SECTION

Yellow Text

It is risky to use the word “amazing” today. People are not easily amazed. We are living in the era of CGI and tech marvels. Our cell phone has more computing power than Apollo spacecraft that went to the moon. We are all a bit jaded. However, that phrase was given to us by customers in their testimonials from time to time with such regularity that we gave ourselves permission to be a little bit bold in this case. It still makes me nervous because I don’t want to set the expectation of consumers too high and then fail. I’d rather level with them about the terrific job that we do, but focus on the realism of the proposition. That’s why the statement has the qualifier “So many uses” – THAT is indisputable. 1000+ is so versatile that it just keeps on delivering new little moments of joy in the most surprising places.

White Text

1000+ is a community product in so far that our customers tend to be a friendlier crowd for some reason. It’s a pleasure speaking with them, and learning about their experiences – which they too are keen to share. Over the years, immense goodwill has accumulated from customers who wish us well as a brand. How cool is that? A person taking time out of their day to call up and simply say – “I just wanted you to know that I like your product. Thank you for making it. I thought that you would like to know”. That has actually happened. More than once.

These customers are diverse as well; householders and professionals as well as DIYers. We have a testimonial at our Vimeo video bank of a commercial painter by the name of Anders. He was kind enough to let me come to his facility near Niagara Falls to video him just talking about 1000+ Stain Remover in a “stream of consciousness” approach. It’s up there at Vimeo now. I know it is much too long. I really mean MUCH MUCH MUCH too long. It will be edited down. But that is a real tradesperson, not an actor. That’s the point. He could buy anything he wants. He honours us with his patronage.

That is why the white text refers to different lifestyles. You know, there is a delicate point on the subject of lifestyles – we have even received testimonials from a motel that caters to a certain clientele. They have greater issues with cleaning linen than is typical. I won’t go further – but 1000+ does.

TESTIMONIAL SECTION

These summaries speak for themselves, however, as some extra background of interest, Maggie was in Denmark. There was a single bottle of 1000+ Stain Remover there at the time. The daughter of the man who had this bottle read about Maggie in the Danish newspaper and expressed dismay to her father. He then made arrangements to drive quite a distance across Denmark to meet the owner of the dog, who met him half-way. (Denmark is small, the size of this man’s heart is enormous.) He gave her the bottle. Eventually, we received a kind note in which this human spirit was revealed, as well as before/after pictures to share the situation in full.

You get a real glimpse into human nature dealing with such a cross section of society, and a lot of that experience is positive. I like to think that this is at least in part because we are trying to be of assistance, even in our small way, toward positive living.

The wheel clean-up shown in the testimonial block is a symbol of another category opening that could be big for us – the Automotive Sector. There are terrific auto parts store chains with multiple thousand locations. Every DIY car buff, every mechanic and garage, every car detailer, every dealership service department would have uses for 1000+ Stain Remover. We have not even scratched the surface of that enormous sector. It’s easier to talk about than to accomplish. As a business goal however, it had enormous upside for us. So much to do!!

FACEBOOK

We have a nice little Facebook page too. I say “little” because it does not yet have many followers, but it will certainly figure prominently in our ramped-up business development as Winning Brands merges its physical marketing (eg brochures) and digital marketing.

Facebook is one of the most important advertising platforms in the world but it is easy (and common) to waste your money by being amateurish in your system design for the campaign. You need to know whom you are targeting and what format of message is going to get through the information overload facing the Facebook user. Winning Brands has identified terrific consultants who are proven experts in the field. Their cost is too high for us at the moment. However, when we are ready to rock and roll, we are not going to waste money through ineptitude. People who know what they are doing will launch us well in this space.

I have mixed feelings about shareholders being posters on our consumer Facebook page. On the one hand I love it. It’s a easy additional way for shareholders to follow developments. On the other hand, it becomes negative to consumers when posts appear from shareholders that are about money or the stock, such as asking about share structure or OTC Markets, etc.

In my opinion, the ideal balance would be for our shareholders to click to follow our Facebook page on their own Facebook feed but only actually post if they are also a 1000+ consumer, and have a before/after picture to share, or a tip for successful use. It’s a free country – I leave this to the good judgment of the shareholders.

SENIORS

Human society is amazing. There is just so much creativity and individuality to share when it is appropriate, but also an inclination to community, when the conditions permit.

These qualities converge in a special way with our senior customers. Most of their daily pressures have been replaced by a more resolved life. Seniors often have more time to do things and also to pay attention to detail. They even read the instruction label!

So, not surprisingly, seniors are also a source of detailed information for us about consumer experiences. I can even tell by the tempo of the telephone call with many seniors that they are often very “present” in the moment. They are fully into the call, rather than rushing between missed appointments and errands. As a result, seniors often deliver the most valuable information because it is gathered carefully and patiently.

This couple above were fun. They were kidding around in a tradeshow about the cheeky caption on our promotional shopping bag beside the picture of the bottle. The caption reads “USE ME!”

SECOND MONTAGE

These further encapsulations speak for themselves also, with the exception of the backstory to the small bottle.

That is our 4oz SKU (125 mL in Canada). This is another sleeping giant, despite its small size. We refer to it affectionately in the office as the “Handy Size”, or “Little Guy” as shorthand in fast-paced discussions.

The larger point is that the Handy Size is a perfect impulse item for convenience stores across the continent. We had some experiments going on a few years ago to enter that sector. There are more than 100,000 convenience stores in this category.

We did not have the resources at the time to “buy distribution”, because we’d have to hire jobbers that service many of the independent stores in this sector. However, there are chains too, such as 7-11 to name only one.

We have developed a terrific display pack for groups of 12 little bottles in this SKU. It is our plan to eventually find a way into that sector. The best breakthrough would be that a shareholder’s cousin calls that shareholder tomorrow to say that they are looking for a fresh product in the chain, and ask the shareholder for a suggestion. Of course the call could go in the other direction too, i.e. the shareholder calling the cousin proactively. I realize that I could also make that call (and have). I am referring to having an “in”. So many turning points in business and in life generally depend upon whom one knows. That’s just a fact of life!

(Picture below shows the 12-pack display for the Handy Size. It’s not on the website yet, but is going to be put on soon).

HOME PAGE BOTTOM CLOSER

We refer to this bottle depiction internally as our “Hero Image”. We like the fact that the hand holds the bottle with confidence and readiness to tackle the next assignment.

The bold design presence of this bottle has helped us with recognizability, even at a distance. There is no mistaking this as another product. The name is big and upfront, and the bottle upon inspection communicates a lot of information fast. We consider it a bright, positive and energizing package.

The brand has developed its own authentic personality. That’s not easy to achieve. There are a lot of bright people in the world. All kinds of designers. The visual landscape today in the retail setting is far more sophisticated than in the past. The large brands have the benefit of the best talent.

We are very happy with the emergence of this brand identity and consider it our best version so far. For your interest, I am attaching below a photo of the shelf in our design office that holds the design archive; a variety of previous designs and prototypes for this particular brand in our portfolio.

I will see you again soon with Part 2 in this series: “About 1000+ Page”. Yes, there’s more. MUCH MORE!

Stops along the journey. Different approaches for different times for different reasons.
Our current design has been by far the most popular iteration.


Print Mania. It’s a Thing.

Printing press or a money machine?
Could it be both?
At any rate, it’s working Sundays.
See it in operation: https://vimeo.com/485317018

30 Seconds of Fun in the Video Link Above.
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1000+ Stain Remover: Refreshed Sales Strategy

Previously, 1000+ had been marketed primarily as a stain remover. While this is technically acceptable, it has undervalued the brand’s consumer proposition, and thus the brand’s growth potential in the past.

The unique properties of 1000+ Stain Remover make it equally useful as a stain remover AND a concentrate for general-purpose clean-ups when mixed with water. “General purpose” usually refers to kitchen and bathroom counters, removing fingerprints from appliances and a variety of surfaces, computer notebook screens, faucets, table tops and more. The “general purpose” spray application is significantly larger than the stain removal category in North America. This application is also called “all-purpose” and “multi-purpose”. These are usually deployed in spray format and dry wiped with paper towel or cloth..

Winning Brands is refreshing the brand positioning of 1000+ Stain Remover to be explicit about its multi-tasking capability, and in particular, this convenience and resulting value. The theme of adding 1000+ to water in a re-usable spray bottle is being combined with an environmental message reminding consumers about the enormous positive impact that this behaviour has on the environment. It slashes the flow of empty spray bottles to the landfill site – in our case by 95%. This translates to many millions of bottles less piling up in waste dumps. The sheer physical scale of this positive impact is impressive. It is easily understood by consumers and is of growing interest to governments who are adopting measures to restrict single use plastic packaging and products.

The further benefit to our consumers of this use of 1000+ is that it reduces the average cost per bottle of a 1000+ energized spray cleaner to much less than a dollar per bottle. This pricing is competitive with anything, anywhere.

Shown below is the most recent iteration of the brand’s Neighbourhood Mail literature to incorporate this messaging.

Front panel of 1000+ Stain Remover market re-launch with renewed emphasis on dual use; stain remover and general purpose cleaner in re-usable spray to dramatically reduce plastic bottle waste (pollution).
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1000+ Stain Remover is for the first time ever integrating the reduction of plastic bottle waste (pollution) as a key premise of its market positioning. The characterization shown in the brochure extract above summarizes the ease of use and positive impact of this application. Studies have found that younger consumers appreciate such practical methods to be eco-responsible and that they seek out brands which deliver authentic environmental benefits. This strategy is a conscious effort by Winning Brands to lower the average age of its consumers and broaden appeal.
1000+ Stain Remover does not sacrifice stain fighting merely because it is also a concentrate for general purpose cleaning. Brochure interior shown above. The ability of 1000+ Stain Remover to energize a re-usable spray bottle of water into a remarkably affordable spray cleaner has been supported anecdotally (and enthusiastically) by 1000+ Stain Remover consumers over the years. Future positioning of 1000+ Stain Remover in marketing will give this added dimension greater emphasis.
The combination of QR code integration and the refreshed marketing positioning of 1000+ Stain Remover is a feature of Winning Brands’ strategy to enhance the consumer experience and value of 1000+ Stain Remover for their benefit, as well as to support its retail partnerships with innovation and eco-relevance.

Sales – Restart

Shareholder Question

“Sorry to bother you again but I have one more question, could I get any insight to your companies current revenue for 2020 so far?  The last reports uploaded were 2018?”

Answer

Sales have not increased in the period since our last official filing. Annual turnover has been nominal due to a lack of capitalization, as previously discussed in this weblog, but has stayed above $100,000 annually in real cash terms. This means that we are not a shell, and have never been a shell. Our upside heading into 2021 arises from a new marketing program with participating national retailers in an organized manner for our lead product, 1000+ Stain Remover, as well as new commercial partnerships with institutions consuming hand sanitizer; a new market for Winning Brands.

Current Winning Brands structure in personnel, premises and production can accommodate a sales increase to approximately $2 Million annually without any significant internal adjustments. This is what makes profitability in cash terms possible for the first time. Our operating costs are lower than ever, and our manufacturing and distribution structure can accommodate significant growth of volume on a variable cost basis (as opposed to requiring high fixed costs). We can use this “profitability formula” to retire obligations on an ethical basis and build a stronger balance sheet for shareholders.

Therefore, an assessment of Winning Brands’ appeal to investors boils down to this essential question – will this new cooperative marketing program with our retail chain customers increase sales? If so, then they can be scaled up fast.

We can achieve the first $2 Million annually if 2.5% of Canadian households purchase 1000+ Stain Remover and use it normally. In the USA, with a population that is 10 times larger, the opportunities are real, if approached effectively. Success of the Neighbourhood Mailer program in Canada stimulates success with Do it Best in the USA.

Similarly, success with Lowe’s in Canada may create renewed engagement with Lowe’s USA for 1000+ Stain Remover. Winning Brands conducted a successful test of 1000+ Stain Remover with 3 Lowe’s stores in Ohio, on the basis that the buyer at Lowe’s USA would then permit an expansion into a regional test with 100 stores. When this was ready to occur, a new buyer replaced this position, and this progress was halted. However, new success in Canadian Lowe’s stores could re-open that door with Lowe’s in the USA.

HomeDepot.com online sales growth of 1000+ Stain Remover in the USA needs stimulation through digital marketing to build awareness. Below is picture of the online order page for 1000+ at Home Depot USA. Improved turnover here can lead to new engagement with Home Depot in Canada.

There are many interconnecting elements – all of which can benefit from new momentum. The bet here is whether the new marketing program will contribute to this new momentum. A factor in our favour is the renewed “market positioning” of 1000+ Stain Remover. This will be described in the next post.

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Shareholder Questions Answered

(Duplicates Omitted)

Question 1
Are you planning to get current and unlocking shareholder value?

Answer 1
Recent SEC rule changes will prevent all OTC quoted companies that do not provide current information that conforms at least to the OTC Alternative Reporting Guidelines from being traded until this standard is attained. This will have an impact on the OTC marketplace toward the middle to end of 2021. Winning Brands must and will achieve this reporting requirement ahead of that deadline.

By shareholder value, if you mean share price and its aggregate dollar value in investors’ hands, the key to unlocking it in our case is to become profitable in real cash terms. We are being conservative by not discussing long term possibilities beyond what has already been described previously in this weblog. We are ambitious but are keeping it real. Things are looking up for 2021. The fact that the company has cruised through enormous COVID era disruptions is, hopefully, encouraging to our shareholders, and sends a message.

Question 2
Any plans for R/S?

Answer 2
The are no plans for a reverse split presently. No arrangements have been made or even discussed with anyone about a reverse split at this point.. That is not saying “never”, however a reverse split is not lurking in the bushes as people (understandably) fear.

Question 3
Have you put any thought into a Form 4 would be a huge shareholder moral boost

Answer 3
For the benefit of other readers, the following is a common definition of “Form 4″ (Credit: Wikipedia) ” Form 4 is a United States SEC filing that relates to insider trading. Every director, officer and owner of more than 10% of a class of equity securities registered under Section 12 of the Securities Exchange Act of 1934 must file with the United States Securities and Exchange Commission a statement of ownership regarding such security“.

Management of Winning Brands is not aware of any person who holds more than 10% of the common stock of the company. If they do, through online purchases in their investment accounts, this is not visible to Winning Brands presently because the vast majority of shares acquired through online trading are held in street form, and not separately disclosed on the “NOBO List” (Non-Objecting Beneficial Owners). Technically, such persons have an obligation to contact the company either directly or through a public filing, to disclose this fact. The only other class of stock at Winning Brands is a non-trading preferred share class A, without a CUSIP number. This class has already been disclosed in all previous OTC filings, as well as the fact that I control the preferred stock as an anti-takeover tool. The preferred shares provide voting continuity to prevent a hostile takeover by parties who fail to disclose their common share holdings exceeding 10%. This works because my preferred shares would match and exceed by a nominal amount their in-market accumulation. I have never sold stock in Winning Brands personally or beneficially, and have thus never benefited from any Winning Brands stock promotion. This is true for my friends and family as well.

Question 4
Are all your products sold in the same stores as 1000+? When do you plan to have 1000+ industrial ready for distribution?

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Answer 4
1000+ Stain Remover is the lead consumer product. The others are specialty in nature or geared to service industries. We do have industrial clients already for 1000+ Stain Remover. We have not yet launched a formulaic variation of 1000+ (i.e. “industrial”) although it has been considered. So far it has not been necessary and would split available resources. We are also reluctant to do anything that would cause 1000+ for consumers to be perceived as second rate (i.e. compared to a separate industrial version of the same brand).

Question 5
Is your company SEC filing?

Answer 5
Winning Brands filed a Form 15 (12g) many years ago to replace SEC reporting with OTC Markets reporting under the Alternative Reporting Guidelines.

Question 6
Does your company carry convertible debentures or any other toxic funding that could affect shareholder value?

Answer 6
Most of the convertible promissory notes issued by Winning Brands over the years are past their enforcement period under the Statute of Limitations. In those cases, we transfer them to a contingency category in Accounts Payable with the intention of re-visiting them in the future for an alternative form of settlement that is “shareholder friendly” (as opposed to toxic). The accepted wisdom is that a promissory note is not toxic merely by virtue of existence, but rather becomes toxic if its conversion feature has no minimum price limit, or is expressed as a percentage of the trading price without a floor. The only promissory note remaining that could be considered “threatening” in that sense has been mostly repaid already, down to approximately $28,000. The holder of that note in New York has already accepted Winning Brands’ request to make a cash repayment arrangement instead of conversion. We have not heard back from that party with any request to the contrary since the agreement in principle was reached earlier this year.

Question 7
I read on your blog about expanding your distribution line, how is that coming along?

Answer 7
Winning Brands has 3 tiers of customers – distributors, dealers and end-users. Distributors purchase by the skid, dealers purchase by the case and end-users purchase single units. Most of our transaction volume occurs at the distributor level. The margin is lower, but the quantity is higher per transaction. This makes the paperwork and transportation more efficient. Our goal presently is to help our existing accounts move more product through their distribution channels, rather than adding new distributors to compete with them. This is to prevent an accumulation of unsold inventory in distributor warehouses after a temporary sales spike. If sufficient consumer demand is not cultivated to pull the inventory through the distribution pipeline and out the other end, then clear-out liquidations will happen, causing a sales slump and a loss of reputation with the distributors. Winning Brands’ current focus is on increasing consumer demand. This will stimulate more movement of inventory through the existing distribution channels and will restore confidence in our lead product 1000+ Stain Remover as a good performer commercially.

In an upcoming post to this weblog soon, I will describe a new sales strategy for 1000+ Stain Remover directed to consumers to reach a wider audience than before. Recent updates have described a proposed communication mechanism – Neighbourhood Mail Program brochure distribution to homes around participating retailers. The next update, however, will describe the revised positioning of 1000+ Stain Remover, i.e. its “premise”, and why a consumer would be interested in this product over others.

Re-launch Begins – “Hello Canada” Phase Now Includes QR Code and Video

Canada’s population and quantity of households is similar to California. Canada is substantial enough to be the launchpad of success for a brand committed to eventual growth beyond this initial market.

The re-launch of 1000+ Stain Remover in Canada is being done with the logic of needing to be most effective in the brand’s own “local market” for operational cashflow. A business mistake made by Winning Brands previously was to spread itself too thin in various international markets simultaneously, without adequate resources, leaving the company’s products without optimal impact in any one place.

The reason for this strategic error was the fact that in our early days there was too much focus by the company on the optics and possibilities of substantial business potential in the USA, where most of our shareholders live, and elsewhere. This was instead of concentrating on our own “backyard” and becoming a serious player regionally first, where we have operational advantages, as we are based near Toronto. Ultimately, our U.S. shareholders are better served by a business plan that generates real cash through operations than plans that are too far removed from realization. Positive cashflow will make all other things possible, even if that cash comes from Canada. When our access to SEC Regulation D, Rule 504 capitalization dried-up, and it took too much time to secure in-store shelf presence at Home Depot and Lowe’s USA, this change of strategy should have been made immediately.

The re-launch being undertaken now applies this lesson by treating the Canadian market as the one with a “home team advantage”. For example,1000+ Stain Remover has achieved a coast-to-coast footprint of retailers in Canada, but not yet in the USA. Most Canadians are within a 30-minute drive of a store that carries the product. Therefore, our current job is to make these consumers more aware of our lead product, 1000+ Stain Remover, now that Canadians have reasonable retail access. The Canadian market is large enough by itself for Winning Brands to be profitable in real cash terms. The current marketing focus on Canada is a tactical adjustment to become financially stronger on an operational basis. It is not a withdrawal from any current USA opportunities.

Future emphasis in America will include our good relationship with Home Depot for online sales, and Do it Best hardware stores, for example. Do it Best is a hardware cooperative with over 3,000 physical locations. They have listed 1000+ Stain Remover in all their regional distribution centers. This means that 1000+ Stain Remover can be carried in the physical store of any participating Do it Best retail outlet in America that makes the choice to put 1000+ on the shelf in that store.

The huge advantage to Winning Brands of the Do it Best listing is that the Do it Best regional distribution centers in the USA are set up (through regular deliveries of other merchandise on a regular basis) to let participating stores add as little as a single bottle of 1000+ to that store’s regularly occurring shipments. This eliminates the shipping cost issue for participating stores, no matter how small they are. Goods are arriving anyway from the Do it Best regional distribution centers that service them. Therefore, Winning Brands’ goal in this arrangement is to increase the number of individual Do it Best stores who bring 1000+ into their locations to put on their shelves for the first time. Since the Do it Best organization is a partner to Canada’s Home Hardware store organization, under their “Alliance International” joint venture, we have a two-step program in mind. By increasing our success now with 1000+ Stain Remover in Alliance International’s Canadian Home Hardware stores, a stronger case will exist for the U.S. counterpart Do it Best store owners to bring in 1000+ Stain Remover as well. The two organizations have 4,000 stores between them. They talk to each other. Success in anything does not stay a secret.

The new Neighbourhood Mail program of 1000+ Stain Remover is being launched in Canada first because Canada Post has excellent online planning and implementation tools for a business customer to plan and process neighbourhood distribution of promotional material, with exquisite precision, right down to the individual street, around participating retailers.

Our Canadian brochures for Neighbourhood Mail distribution have now been upgraded to include QR Codes effective immediately. By means of these QR codes, our householder brochures now provide a handy shortcut for brochure recipients to get a quick overview of key 1000+ features and benefits via the convenience of their smartphone, avoiding the need to go to a computer and key enter a website address. Home Hardware stores will be a major beneficiary of this tactic. (Participating Lowe’s stores in Canada, and independent retailers will also benefit).

Although QR codes themselves are not new as a technology, their acceptance by consumers is accelerating now due to growing awareness of their convenience. More people learning to simply point their regular smart phone at the QR code in “camera mode” to activate a website link and that no special app is required. The weblink automatically appears in the camera viewfinder enabling a single click on the camera screen.

Winning Brands will be making more use of QR code webpages, and creating new videos to support them. QR webpages that will be presented to our American consumers will not refer to Canadian manufacturing. Instead, U.S. QR codes will highlight 1000+ brand features that are relevant to American consumers, such as U.S. customer testimonials.

The QR link shown below can even scanned with your cell phone camera off this computer screen.

ALL ASPECTS OF DESIGN, SUCH AS DEVICE OPTIMIZATION, VIDEO ADJUSTMENTS, LOADING TIME IMPROVEMENTS & CONTENT ENHANCEMENTS ARE BEING WORKED ON CONTINUOUSLY.

This is the website that the first QR code links to, for this specific brochure, complete with dedicated video message relevant to this brochure: www.1000PlusNeighbours.ca

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The brochure QR code shown above pertains to a Neighbourhood Mail program test in Canada.

Shareholder Perspective

I have been receiving more shareholder correspondence recently. Some enquiries are practical questions, others are more open-ended about the company’s prospects.

In the penny stock world, there is a wide range of attitudes toward any particular stock on a given day. A realistic assessment of Winning Brands in the penny stock environment, can draw upon the following seven considerations.

7 Points of Reference

Firstly, Winning Brands has an operating business.  Many penny stocks have literally no business at all.  Many are merely shells with plans, but nothing going on.

Secondly, Winning Brands’ business involves physical products that can be verified because some shareholders are customers and the products are sold by recognized retailers or used by institutions, such as hospitals or social service agencies.

Thirdly,  Winning Brands has survived much longer than even those few penny stock companies who do have an operating business, survive.  There must be some sort of dedication within Winning Brands for it to be able persist, rather than it being a pump and dump, here today and gone tomorrow.

Fourth, although the stock price has swung wildly over the years, the fact is that is has gone up as well as down.  Some traders have profited over the years, by Erectile dysfunction is a problem which incurs in a shop viagra man which is a normal predicament in today s generation. If you are a smoker then try to reduce or quit them as the medicine will not be any side effects in a normal healthy man experiences its effect within 30 to 45 minutes and its effects last for appalachianmagazine.com purchase levitra online approximately four hours. By normalizing male sexual health and functions, Kamagra medicine generic viagra no prescription gives males the reason of getting satisfaction back on the way. To multipart the thirst trouble even additionally, utilizing levitra cheap online appalachianmagazine.com a hyped-up classy energy beverage to pick yourself up the next day after a drinking binge, will do you no favors either. their own admission.

Fifth, the company never pretended to have more sales or smaller losses, unlike some.   At Winning Brands both figures were disclosed honestly through the years, and will be posted again.  No hype.  Over these years, overhead costs were systematically reduced, year after year, and losses diminished as well, to the point of nearing break-even. If the company can see a return of its momentum, Winning Brands could become profitable for the first time, in real terms. In the penny stock world, even that possibility is rare.

Sixth, Winning Brands has a larger footprint in the world than its small number of employees would indicate.  That is because Winning Brands’ contract manufacturing and distribution partners, including retailers, perform functions on a variable cost basis, as required, using their own costly infrastructure as called for. These shared efforts project Winning Brands’ interests into the world broadly, for mutual gain with our partners.

7th, for so long as the company has a legitimate product, a working website and a telephone number, “anything can happen”.   All kinds of come-back stories can and do occur in business.  It’s not over until it’s over.  That means that Winning Brands continues to have an upside.  Winning Brands is alive and could be surprising, positively, at any time, despite the odds. Winning Brands has spirit, and that source of energy keeps it moving forward.

Summary

Skepticism about Winning Brands’ potential for success is absolutely justified. So is optimism.  There is a case to be made for both points of view.  This is why the penny stock market exists – to let courageous risk takers place their bets and hope for the best.  People who win, can win big. As rarely as that happens, it is real. 

In the meantime, Winning Brands continues to focus on keeping it real by working hard and staying creative so that success emerges by anyone’s standard.  As long as our customers are enjoying our products, we have the basis to thrive. This respect is the basis of all of our policies, and continues to be a strong foundation to build on.

The Face of Initiative

We were working on our Neighbourhood Mail marketing roll-out today, and discovered a nice Facebook post at the initiative of a young hardware store employee. Shown Below. This type of goodwill cannot be purchased – only earned. It means a lot to us as an aspiring brand that real people are the bottom line to our potential, and real people continue to affirm what we do. That’s not advertising hype – it’s the effect of personal product experiences.

Now that we have started our Neighbourhood Mail campaign to enhance community awareness of 1000+ Stain Remover, we can swing into action quickly for such opportunities. We’ve immediately reached out to this retailer to tell them about our Neighbourhood Introduction Plan.

Under this plan, whenever we get evidence that a store carries 1000+ Stain Remover on the shelf, we distribute a descriptive brochure to approximately 1,000 homes nearest to that retailer by postal service householder mail. If this generates more interest and sales of 1000+ Stain Remover for that retailer, then we expand it for that location to include more homes to build momentum.

This systematic approach is flexible and fast. The Red Lake Hardware Building Centre has already been contacted. When they confirm that they have adequate inventory on hand, we complete the design and print the material immediately in-house. It then goes to the postal distribution center for delivery anywhere coast to coast, starting in Canada first during the test phase.

As an improvement that has already been made to the brochure since first described in this weblog, a brief video welcome to 1000+ Stain Remover has been developed for the program. The updated brochure has a QR Code on the back panel that can be scanned by any smartphone in the camera mode, generating a direct link to the 2 minute welcome message. This will be shown to you, at this weblog, in approximately 1 week.

Photo Caption: We are grateful for the unselfconscious product friendship that people from many walks of life share with 1000+ Stain Remover.

The unsolicited hardware store testimonial above demonstrates goodwill that can only be earned through authentic accomplishment. We found this Facebook post today while working on our new Neighbourhood Mail program, being tested in Canada first. In the program, a supportive product brochure design is quickly customized to the locality in which it is to be distributed, immediately printed by Winning Brands in-house, and distributed by the postal service to all homes in a designated radius around verified retailers of 1000+ Stain Remover.
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A Systems Approach – Neighbourhood Mail

Winning Brands has modified its copy equipment to include brochure printing and folding capacity in readiness for a systematic marketing initiative, the “Neighbourhood Mail” program.

Combining the flexibility of in-house printed matter design and production, we can for the first time customize neighbourhood support for retailers who carry our products. The photographs below show the start of the program, with launch of our first internal dedicated Brochure Printing Station. Also shown are sample front, middle and back panels of the launch brochures.

PHASE I: Starting in Canada first, the systems approach will be to identify the postal service letter carrier walks that service a prescribed radius of houses surrounding each participating retailer. The front panel of the brochure will localize the item by mentioning the city name (or neighbourhood), and the back panel of the brochure will be specific to that participating retailer. The postal service will deliver a prescribed number of bundles to the appropriate neighbourhood carrier walks anywhere in the country. The system is based on online planning tools which keep a record of which walks received support and when. This provides a basis to measure effectiveness.

The additional advantage of the internal design and production of support material, is that it can be season specific and tailored to suit the circumstances of the participating retailer in that particular location.

As we learn of the locations of stores who carry our product, whether they are independently owned or members of retail chains, we can create the material on our own initiative without delay in order to support them in the neighbourhood where they do business.

PHASE 2: QR Code and social media integration will be enhanced to take the program to the next level of building a larger online user community, and coordinating retailer promotions with an online element.

The advantage to Winning Brands shareholders of this initiative is that is is modest in cost, but scalable if the premise is successful. The systematic nature of this approach is consistent with the effort by Winning Brands to regain momentum in order to retire all obligations and achieve new success.

Our dedicated internal brochure printing and folding station is being put into operation Nov 2020 The heavy duty unit is ideally suited for frequent small runs, accumulating a large aggregate. Example: 500-1000 brochures per neighbourhood, each one with customized elements, in several thousand neighbourhoods.
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The initial design features a front cover greeting to the recipient by the name of city or neighbourhood in which they live, together with a seasonally suitable message. The example shown is the end of year season associated with holiday gatherings (where allowed by COVID restrictions), New Years, etc. At other times of the year, spring cleaning, launch of boats, RV and camper use, hot tub clean-ups and much more will be referred to.
This initial layout depicts a wide range of uses of 1000+ Stain Remover, however messages can be tailored to specific popular applications in greater detail, depending upon the nature of the participating retailer’s customer base.
In the Neighbourhood Mail initiative, the goal is to support retailers amongst their consumer households nearby. By focusing on a specific retailer for each neighbourhood household campaign, greater collaboration with the participating retailer is possible. This can include tying the brochure into a store promotion, seasonal sale, special event, etc. Retailers will be more interested in programs that assist their store in particular, rather than being only one of several competitors.

Prospects Improve for Winning Brands in the Sector Hit Hardest by COVID: Hospitality

We are pleased to resume supply to the hospitality (hotel) sector. Hotels and restaurants have been hit hard by new regulatory restrictions on operations. Many operators in this sector have not survived. The customer base in this sector has shrunk for all suppliers. Winning Brands is resuming supply to the survivors. The shipment shown below, leaving tomorrow, marks the return of 1000+ Stain Remover deliveries to USA hotel supplies distributor InnStyle/County Linen. Website Link: https://www.innstyle.com/collections/room-accessories-cleaning-products-1000-stain-remover

InnStyle/County Linen is a survivor in a sector that has seen business contraction as a result of COVID-19 restrictions. Winning Brands is resuming shipments of 1000+ Stain Remover to the sector.
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Extra value for commercial accounts comes from the versatility of 1000+ Stain Remover to perform either as a full strength direct-application stain remover or a mix-with-water concentrate for general purpose cleaning.

Thank you Hospital Employees’ Union

A new user of SafetyClenz Hand Sanitizer from Winning Brands in our Private Label Program. Thank you Hospital Employees’ Union and CAVAN Advertising. www.SafetyClenz.com

Winning Brands partnering with progressive organizations
for adaptation to business opportunities
in the COVID era and beyond.
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Thank you U.S. Navy Nex

We are pleased to continue to receive orders from the U.S. Navy Nexcom supply organization for 1000+ Stain Remover. This shipment, shown below, leaving today.

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On the Shelves of Lowe’s Home Improvement – Canada

Photos taken yesterday.

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Encouraging Test Result

It was a pleasure to see this test market bottle at the hardware store shelf last week. We have been trying to bridge the gap between ordinary cleaners and heightened interest in disinfection/sterilization arising from “COVID consciousness” in the marketplace. We have made some adjustments that permitted us to add the promotional neck-tag to our 1000+ Stain Remover bottle to refresh our engagement with consumers. This was the last bottle remaining on the shelf, as the others had been sold. This organization has in the meantime already followed up with a replacement order, sooner than expected. Our goal is to regain solid ground under our feet so that we can meet our obligations and thrive. It is therefore encouraging that we have received no negative feedback from the test so far. As a result, it will be extended.

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Shareholder Question and Answer

Question

“… We have heard nothing from you in a blog, twitter, PR, or elsewhere for some time. Is there anything you can blog that gives confidence to shareholders that all is well and puts to rest that the company is no longer in business?…”

Answer

The following is an update of several operational points for shareholders, relating to production. It is lengthy as a courtesy to shareholders in order to provide context and substance, not to be long “for the sake of it”.

Production

In the earlier years, Winning Brands held finished inventory (manufactured and ready for sale) in commercial warehouses, available 24/7 for immediate distribution whenever purchase orders were received from retailers.

Holding finished inventory was expensive, but professional. Although warehousing and inventory costs were high, our deliveries were fast and reliable. This is the preferred operating model because major retailers appreciate fast response to orders, and typically require it as a condition of doing business with them.

It was possible to carry these inventory costs at the time because of several factors. Firstly, our lead product, 1000+ Stain Remover, was available in Canada’s largest retailers; Walmart, Home Depot, Canadian Tire and more. This widespread daily exposure of our lead product to consumers across the country generated sufficient cashflow to meet the carrying costs of the pre-built inventory.

The reason that we were able to occupy so much shelf space in those retailers is that we had entered into, and were honoring, substantial marketing commitments to those retailers. Our product was advertised on television, radio, magazines and eventually social media. We also performed in-store demonstrations.

Our business plan was to establish our lead product within the Canadian subsidiaries of Walmart, Home Depot and Lowe’s as the first step of a two step process. The second step was to then gain the U.S. listings with those 3 same companies. We entered into discussions with them all. Walmart allowed us to test at Sam’s Club, Home Depot allowed us to test online, and Lowe’s allowed us to test in 3 stores in Ohio. These were not the only retailers that we were working with, but were at the core of our business plan. Many consumers liked the product, and we had momentum for growth.

Winning Brands was able to fund the substantial marketing costs and the personnel costs to manage the relationships with these major retailers infrastructure through Regulation D, Rule 504 financing.

A series of events occurred that led to a discontinuation of that production model.

At its root was the fact that one of our Regulation D, Rule 504 share purchasers turned out to chronically sell his shares before he should have, and what’s worse, made a pattern of doing so with approximately 100 OTC companies at the time, I subsequently learned. The SEC filed a complaint against him, and named many companies in its complaint as having been complicit in his failure to meet the “investment purpose” test of the Regulation D, Rule 504 share purchases.

The SEC examined Winning Brands records and found no wrongdoing by Winning Brands. It was clear from the records that Winning Brands at all times conducted itself in accordance with its own responsibilities under the regulations, such as making it a condition by warranty of the purchaser that they were in compliance with the investment intent provision, etc. Nonetheless, the stock clearance organization DTC created partial deposit restrictions on all OTC companies from which that purchaser acquired shares via Regulation D, Rule 504. That included Winning Brands. That fact, and concurrent changes in stock clearance regulations for OTC stocks (that were prompted by various abuses by non-legitimate companies), caused Regulation D, Rule 504 to dry up as a source of funding.

This brought our advertising/marketing and infrastructure investments to a halt, causing us to become disqualified to hold the retail shelf space unless our intermediary distributors to those retailers provided guaranteed minimum sales performance. Even this we were able to bridge, however our principal distributor to the sector was sold to another entity, and their product mix was changed, leading to de-listing by the three largest retailers of 1000+ Stain Remover, until circumstances change.

Since that time, Winning Brands has been functioning on a goods-made-to-order basis. It is not ideal because of the time lag between order placement and delivery, inefficient small production runs, etc. However, it is better than nothing, and Winning Brands did retain some key accounts to stay in operation based on the fact that consumers who knew about our products still liked them, and the fact that Winning Brands was clearly a legitimate company making a real effort, driven by passion for what it does. Of course there are sub-texts to all these circumstances, including the shift from our own in-house production to sub-contract and many other considerations that are too much of a distraction for the purpose of this briefing. The point is to explain why we don’t simply make more product and hold it in inventory.

After the Regulation A, Rule 504 mechanism ended, Winning Brands was able to participate in some small scale convertible promissory note investments with a New York institution to keep operating, however the discounts to market, and aggressive conversion practices, made it clearly a stop-gap mechanism. A transition had to be made to slashing costs and operating in a “treading water” mode until a solution could be found to generate a new type of earned cashflow from external sources that did not require additional share capital or borrowed resources. This was the origin and purpose of joint venture discussions.

Therefore, yes, we still deliver product, to a smaller number of retailers than before who have stayed with us and have appreciative consumers as a result. This includes Home Depot USA online, Lowe’s Home Improvement Canada, Home Hardware Canada, Do it Best USA and others. The quantity of sales through these outlets is only sufficient for Winning Brands to be “viable”, i.e. tread water, but not to grow meaningfully without external financial stimulus or new developments. The situation is stable but at a sub-optimal level. We are vulnerable to shocks or disruptions.

The major shock and disruption that occurred this year was COVID. It is superficial to think that in the context of a pandemic, any cleaning products would be flying off the shelf. In reality, the surge in demand was for a specific kind of cleaning product – the disinfection/sanitation category. This category is highly regulated by federal government agencies in the United States and Canada. It is not possible to legitimately make and sell product into this category without prior government approval. Nonetheless, Winning Brands undertook initiatives in this regard, and has been making inroads in the hand sanitizer category over the past 4 months by developing samples, proposing and testing operating alliances, etc, as described in earlier posts in the Winning Brands CEO Blog.

The “shock and disruption” of COVID on our regular product production and other joint venture initiatives has been that for months the North American supply chain of certain raw materials, bottles, hand pumps, dispensing closures, factory production time and other practical elements were affected like an earthquake. Not only did the largest multi-national brands have a stranglehold on the primary resource pool, but they were also the ones that authorities turned to for major supply arrangements. Also, with lock downs, many of the stores that we supplied were barred from opening to the public in the usual manner, which caused those stores to change their purchase order stream, even cancelling purchase orders shortly before shipment etc. Naturally, all of our joint venture initiatives are under pressure for re-evaluation in light of present conditions.

For cleaning product manufacturing, raw material and component supply chain disruptions are easing off. Winning Brands has survived those factors, despite the hardships that they created. Our goal remains to resume normal operations, make arrangements with whomever we owe whatever obligations, qualify for healthy (non-exploitative) investment and regain momentum.

This answer is not a substitute for a full shareholder briefing on all subjects. The purpose of this answer is to confirm that Winning Brands has not ceased operations. We are trying to reconstitute the company’s viability on a basis that will increase shareholder value through legitimate accomplishment.

We truly do have a number of genuinely good possibilities for recovery, if people or events do not pull the rug out from under us. In the meantime, I continue to work hard for our recovery and consider it my ethical responsibility to do so, for the sake of all stakeholders, and creditors.

Below are sample photographs of new production being prepared for shipment, taken within the last 30 days.

Respectfully,

Eric Lehner, CEO

Bottles of 1000+ Stain Remover being staged for pick-up by transport to retailer
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Since changing the name of Winning Brands’ lead stain remover from “Winning Colors” to “1000+ Stain Remover”, consumer confusion has ended completely. The product was originally intended for launch in the motorsports sector as clean-up solution under that name, however it never was understood beyond that sector. Therefore, 1000+ was adopted to convey versatility across all areas of life where messes occur. The brand is small in distribution footprint but high in consumer loyalty amongst fans.
Shipping to major retailers today follows strict protocols of skid configuration, multiple QR and barcode scanning protocols, advance transportation booking arrangements, and much more. Supplying major retailers requires personnel infrastructure and competent systems. This is why major retailers prefer to work with distributors and manufacturers who are experienced and have, ideally, a wide range of offerings for maximum efficiency.
In response to the heightened awareness by consumers to hygiene in the COVID era, Winning Brands has been experimenting with concepts to strengthen engagement with consumers, such as to reformulate on a test marketing basis to gauge consumer interest in disinfection boosting vs continued high-performance stain removal.

Winning Brands: Progress in Adaptation

The impact of COVID-19 on the business landscape is profound. Nothing has been left untouched – but some companies are adjusting better than others. Winning Brands is trying to adjust.

There are severe choke points in supply lines for raw materials and packaging, there are store closures, there are changing attitudes amongst financial institutions, there is altered consumer behaviour – and so much more.

Dramatic declines of entire economic sectors are occurring, such as the hotel and restaurant categories, which Winning Brands was about to expand into, prior to COVID-19, with our Clean Spaces Progam. Most jurisdictions in North America have declared a State of Emergency, and reduced both personal movement and freedom of choice.

There is no single description of the current situation that accurately describes the whole picture. It is a mosaic with many different aspects that figure into a larger whole. The picture is made more complicated by the fact that the easing of restrictions on people and businesses to work, and to travel, are not uniform across jurisdictions. This creates a patch-work of conditions.

Winning Brands has been seeking ways to re-prioritize its originally planned joint ventures.

At the moment, the top Winning Brands priority is to remain a business that continues to operate, rather than becoming a spectator, or ceasing operations temporarily or permanently.

That means, in practical terms, getting “allocation access” to raw materials, securing packaging, coping with delayed and cancelled purchase orders, adjusting to changing patterns in product demand, and more.

Winning Brands has focused in the past 6 weeks in speeding up its efforts on the hand sanitizer front, as one example. We have performed a consultancy with one group wanting to get into the hand sanitizer business. Winning Brands has also created its own brand, SafetyClenz, as the basis of a joint venture with a promotional products organization in order to make our SafetyClenz brand of hand sanitizer available as a sponsored item across industry. That is a foot-in-the-door to be expanded to include other Winning Brands cleaning products for use as sponsored promotional items, such as the 125mL bottle of 1000+ Stain Remover (as an alternative to stain sticks, for example).

Below are photos recently taken of the new SafetyClenz product. www.SafetyClenz.com. A trial delivery has been made. We are awaiting consumer feedback.

My point in this update is not to claim that we are successful in the midst of this business crisis, but instead to state that we are adjusting ourselves so that we may see our way through it, if no forces undermine our progress, either amongst creditors or by further external events.

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All I can promise is a real effort. I am glad to report that this adjusted emphasis has gone from being theory to practical action, albeit still on a small scale. This by itself is an important achievement.

With thanks,
Eric Lehner, CEO
Winning Brands

First Service Vehicle, SafetyClenz Hand Sanitizer Brand, from Winning Brands
SafetyClenz Hand Sanitizer brand, 1L and 4L sizes, from Winning Brands
Promotional branding of SafetyClenz Hand Sanitizer for Halton Elementary labor union
with the assistance of Cavan Advertising Ltd.

Practical Example of Adaptation to CV-19

A shareholder recently asked whether Winning Brands was adapting to present conditions, in light of heightened interest in cleaning products.

The photo below illustrates one example of how Winning Brands has prioritized JVs and marketing that takes new market forces into account.

In this case, Winning Brands developed a new brand in the hand-sanitizer field for a trading company that wanted to ensure that they can participate in this hot sector. The initial order was for 10,000 bottles of the product shown below.

This is one example of Winning Brands adapting. There are others underway. Winning Brands is operating as an “essential service” as defined by all North American jurisdictions that have invoked State of Emergency regulations.

New Brand Development, Launch and Supply Line Support
Implemented by Winning Brands Corporation
for a Trading Company in March 2020 www.HandSANPlus.com

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Shareholder Question: COVID-19

Shareholder Question:

“Good morning,

Do any cleaning products in winning brands portfolio provide any edge against the spread of the virus through surface disinfection? If so, are you in contact with the correct authorities?

Thank you.”

Answer:

We had been developing marketing plans for an expanded line that includes surface disinfection.  

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We have backorders for all of our products presently, as there are “choke points” (shortages of inputs) in the supply chain for certain raw materials and packaging components.  This is an industry-wide challenge at the moment. 

Once these choke points have been cleared, the business opportunities for cleaning product suppliers like Winning Brands will be higher than before the CV-19 “crisis”.  This is because there is a renewed interest in hygiene on a personal and institutional level.  Present conditions have elevated the stature of cleaning into a “must have” mindset for a broad cross-section of society, and amongst businesses.

Sincerely,
Eric Lehner, CEO
Winning Brands

The Conorna Era – Not just a Fad! Opportunity for WNBD to Benefit: Shareholder Contacts?

Since January 2020, Winning Brands has been negotiating with a U.S. hotel and hospitality supply distributor that has only a few cleaning products on offer. Their primary focus for many years in business had been on other categories of hospitality accessories instead. They have approximately 12,000 commercial accounts, of which 3,600 are the most active. Their account community is mainly the independently owned segment of the market, including owner-operators in all phases of the hospitality industry, where decisions can be made quickly and processes are less formal.

I have proposed to this distributor that Winning Brands “curate” a much expanded Cleaning and Chemicals Department for them. In other words, to utilize Winning Brands experience to provide an impressive “turn-key” operation, to be based on their online sales platform, with substantial new product offerings, fast. I have been working on this diligently since January.

I was able to make this offer to the distributor because of a private labeling arrangement that I had first developed with a producer with a large portfolio of under-utilized cleaning formulations, with this project in mind. Winning Brands is not merely a “middle man” in this arrangement. We are adding value. We are bringing to the distributor our years of experience in this field, including knowledge of cleaning products and manufacturing, and we are bringing marketing support to the manufacturer as well.

The arrangement would work as follows: A 3rd-party Inventory Financier would back our project launch with an initial $50K so that we can manufacture and ship 20 full skids of finished inventory to a commercial warehouse 15 minutes away from the distributor’s U.S. office. That distributor will then immediately announce to their entire customer base that the distributor now carries an expanded Cleaning and Chemicals department with 15 new products now in stock, and with over 50 more line extensions available at any time.

The inventory backer will receive 24/7 online inventory reporting access to see what inventory is on-hand, and will receive 2% per month interest, paid monthly, i.e. 24% per year, for any inventory financing that is in play. If the backer wants repayment with all sales as they occur, instead of reinvestment into more inventory, then the monthly interest payments to the backer will be accompanied by the principal portion in proportion to sales every month. Winning Brands will then be able to replace that financing arrangement with another one more easily, because the model will be proven.

My assessment of the current Corona Virus situation is that hygiene concerns will increase permanently in all commercial settings as a matter of customer reassurance, legal liability mitigation and personnel health & safety responsibilities. As a result, the rather “unglamorous” sector of cleaning products (and systems) is receiving a revitalizing stimulus that will linger, even after the Corona Virus issue passes. I think that we will be looking at a new norm of higher standards and awareness of hygiene in society. This particular pandemic has many people unnerved like no other outbreak has done, probably since the 1918 Spanish Flu. Perhaps even more than 1918, because our 24 hour news cycle worldwide keeps us informed of just how widespread this has become, how people’s lives are changing now, who is infected, who is dying, what social changes are occurring, etc. Everyone is experiencing it “real time” rather than this being something distant and abstract. It will leave an impact on society. This is our opportunity at WNBD. The program that we have developed with the distributor and manufacturer is the perfect way to do so.

These newly favourable business conditions for WNBD, combined with this unique dual relationship with a U.S. hospitality sector distributor with 3,600 active accounts AND our negotiated access to a portfolio of over 100 new proprietary formulations, is an amazing chance for a rapid rebound of Winning Brands. However, I have to find the $50,000 backer for this immediately, for it to begin. The reason that I want Winning Brands to provide the inventory financing to the distributor, rather than the distributor financing it themselves, is that this will ensure that the expanded Cleaning and Chemicals Department will consist of Winning Brands products.

I INVITE A WELL-CONNECTED SHAREHOLDER TO PROVIDE ME WITH A CONTACT NAME OF A PROSPECT, IF YOU HAVE ONE, SO THAT WE CAN SWING INTO ACTION. EVERYTHING ELSE IS READY. WE HAVE A BUYING OUTLINE SIGNED WITH THE DISTRIBUTOR AND WE HAVE A PRODUCT LIST FROM THE MANUFACTURER READY TO DEPLOY. I AM OF COURSE LOOKING FOR SUCH A BACKER AS WELL, BUT HAVE BEEN STUCK AT THE “WE ARE CONSIDERING IT” STAGE. TIME IS OF THE ESSENCE.

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To put this sales upside into context, if the average active commercial account in this distributor’s existing client base were to use just ONE PRODUCT, at the rate of only one case per month for their facility, the sales value at the wholesale level would be over $3 Million per year. REMEMBER, WE WILL HAVE A MINIMUM OF 15 NEW PRODUCTS ON OFFER, IMMEDIATELY. THIS MEANS THAT IF THE AVERAGE ACTIVE ACCOUNT WERE TO USE MORE THAN ONLY ONE PRODUCT (OF THE 15) THE NUMBER IS A HIGHER MULTIPLE OF THIS FIGURE. And that is just the existing, active 3,600 accounts. The distributor has 12,000 commercial customers in total.

Customers have already started asking the distributor what they can do to offer more in the cleaning category of product. This project, more than any other currently under development, has the tremendous and immediate prospect to put Winning Brands on a fast-track into OTC Markets reporting compliance and to deliver consistent profitable cashflow to meet all past obligations with all of the positive shareholder benefits that follow from that.

ALL ARRANGEMENTS FOR PRODUCT MANUFACTURING, WAREHOUSING AND MARKETING TO THE DISTRIBUTOR CUSTOMER BASE IN THIS PROGRAM, CALLED THE “CLEAN SPACES PROGRAM” ARE THOUGHT-OUT. The marketing slogan for the comprehensive roll-out to the 12,000 accounts is “Be Smart. Be Clean.

ONLY THE $50K inventory financing is now required for WNBD to clean-up financially. WNBD has never had a more positive, realistic opportunity for a dramatic turnaround than this arrangement, that has already been prepared for activation. It is perfectly aligned with what is happening in the news and society, right now. This is not just a fad. Hygiene is a new norm of expectation. That is what we deliver, and have developed the method to ramp-up with large scale U.S. distribution.

Your inventory financing leads are invited!

Sincerely,
Eric Lehner, CEO
Winning Brands
eric@WinningBrands.ca

Confirmation

The update of October 28th remains valid, but a supplemental point is being added herewith as confirmation that the company is still intending to become current again. Two shareholders have asked whether the company will be affected by proposals by the SEC to change the eligibility of public companies to have their stock quoted if their filings are not deemed current. Such measures are still in the discussion stage and are subject to a commenting period before a final version is adopted. Even if adopted, such measures will not be applicable to us over the long run because Winning Brands will become compliant, regardless.

Winning Brands is not presently involved in any discussion or action that would alter its current capital structure. The sole focus of the company is to develop new cashflow through methods that would not require the issuance of new shares to attain. The time that this is taking is frustrating for us all, but the accomplishment will be beneficial to shareholders because the result will be an authentic increase in the inherent value of the company and its stock.

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I know that there is kind support for this view amongst thoughtful shareholders, for which I am deeply grateful and to whom I know that I am accountable.

Respectfully,
Eric Lehner, CEO

Brief Update

A number of Winning Brands shareholders have contacted me and expressed surprise that momentum which had been building had paused.

I apologize for the lack of updates. It arises from the fact that various parts are still moving. I wanted to spare shareholders from the frustration of the back-and-forth nature of progress and setbacks toward the specified goals.

I will be providing more information again soon, with the level of detail of the earlier ones. This note is merely to confirm that the indicated joint ventures are still in preparation for more public advancement. The delays are operational.

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For example, in the case of the Nutraceuticals, we have been able to have our proprietary file transferred from the UK contract manufacturer to a USA counterpart, so that the products can be made in the USA for the first time. This required approval of the ingredients, and other regulatory considerations. In the case of the eSports, the prospective funders did not yet approve the final business plan and an alternative financing path forward is being developed as a precaution. In the case of the food joint venture, the A/R financing insurance was not approved due to the perishable nature of our product mix. This made it necessary to establish an alternative product mix that may qualify. This requires supplier negotiations and vetting.

The point of this message is to say we are still working on these goals. There will be further information asap. At that time, I will comment on the return of the Pink status as well.

Respectfully,
Eric Lehner, CEO

Answer to Shareholder Question

Question:

” ...hate to bother you Eric but what the heck is going on????? no word on anything?”

Answer:

Over the past several months, increasingly detailed plans have been described in this CEO Weblog (“blog”) that would have a positive impact on Winning Brands, if implemented. These opportunities, or others like them, have the potential to be transformative by bringing operational cashflow to WNBD and broadening our scope. This will open us up to synergies that come from business relationships in which we share goals with partners.

I have risked discussing these things in the blog before they were operational purely as a courtesy to stakeholders. Silence is actually safer for two reasons. The first is that business arrangements can evolve. If there is too much variation between what is originally described and the eventual implementation, then skepticism arises. The second reason that silence is safer is that the more the company discusses its plans publicly, the more this affects the negotiating dynamic. If the other side feels that Winning Brands has boxed itself into a corner (by prematurely promising shareholders a certain outcome), then our negotiating flexibility is reduced.

Shareholder questions such as yours, above, are understandable. This is why I have provided comments and responses in many posts over the past few months. However, it is not in the company’s interest that I provide even more detail quite yet for the reasons above. Eagerness to provide operational details has its downside. This is why I am being conservative during this revitalization phase of Winning Brands, I am focusing on things that have already happened (rather than are expected to happen) or are very likely. There is much more that I would like to discuss – it’s just too soon.

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I can say this – all proposed business relationships are intact. The three proposed ventures and relationships are still in the mode of advancing, behind the scenes. There are still some elements being negotiated, or requiring 3rd party approval, or being tested,etc. It would be inappropriate to provide a full description of all these ins and outs, but I will give you a practical example, to illustrate. In the case of one product we are planning involvement with, a possibility has emerged for launching under our own label, rather than a 3rd party supplier’s. There are pros and cons, and these are being considered, now that this positive option has even emerged (i.e. that the supplier is willing to consider it). However, making such a change after launch would be an enormous waste of time and money, and be an exercise in frustration. Accordingly, with such a positive new option to consider, it is better to consult with various wise parties to assist in making good choices, and to conduct some consumer testing to support assumptions. This takes time. There are several elements of the overall plan that are being refined to take Winning Brands shareholder interests into account. It would be a big mistake to expose ourselves to the world at large, that includes competitors or others who may not wish us well, in the midst of such negotiations.

As far as WNBD stock is concerned, If you are worried by the state of the bid/ask, my principle is that it is worse to try to influence it, rather than to focus on creating conditions in which the dynamic will be favourable for natural reasons. If a company is genuinely successful, the market market makers and retail investors will see it with their own collective intelligence, and will act accordingly. If the company is not yet genuinely successful, then any attempt to make things look better than they are is ineffective. It is impossible to conceal real success and it is equally impossible to project a facade over time (nor is it moral to do so).

For that reason, I have respected our shareholders by providing an accurate overview of my strategy to restore momentum to Winning Brands that can exceed all previous potential. This arises from creating joint venture relationships that are earned through problem solving effort on behalf of other firms, and then directing the (continuing) flow of compensation for these achievements to Winning Brands. I have established credibility and respect in a number of these behind-the-scenes efforts and am confident that Winning Brands will benefit handsomely from this strategy. This solution solves the “Catch-22” that Winning Brands was facing – namely – how to massively increase cashflow and stimulate business without carrying out a reverse split to raise more capital. With this strategy, it will be possible for Winning Brands to thrive by leveraging capitalization in other companies for the projects on which we are working, in order to shift dilution away from Winning Brands. Winning Brands overhead costs have been reduced substantially over the past several years. This makes a huge difference to WNBD future stock price growth because we will be genuinely profitable in cash terms, not only in accounting terms. In the OTC landscape, that is rare.

The bottom line is this – in my sincere assessment, the JV strategy will work to Winning Brands’ shareholders’ advantage. These are not traditional expensive JVs that Winning Brands has to buy into through dilutive financing. They are JVs earned as compensation for putting deals together that solve problems or open opportunities for other companies, with Winning Brands being a cashflow beneficiary from those deals put into place. The anticipated cashflow is much more than enough to meet our lower costs. I use the word “much” deliberately – these can be substantial sums when taking into account the aggregate effect of several projects, some of which I have not discussed yet for reasons described above.

I know and understand the itch to blast out of this transitional period and really soar. However, I would not be helping you or other shareholders by disrespecting the market makers or new investors with a premature “rosy picture”. Our prospects are terrific, but until these are implemented and the little issues ironed out, I’d rather be conservative.

Legitimate profitable cashflow from operations will cure anything that Winning Brands needs. Winning Brands’ stock price has shown that it has the capacity to jump much higher if there is real perceived potential. I am determined to avoid a “false start” to a major run by getting caught in a cycle of predictions and discussion of details that are still evolving. At our current price point in the low triple zero range, all current shareholders can make good money if this plan is handled correctly. The key is to not treat the situation as a stock play, but rather to deliver a real success in cash terms. I am confident that the market will then reward all current WNBD shareholders who are in at this price zone substantially. That’s the condition that can lead to a 5 or 10 times higher price, or much more. My objective is to make Winning Brands genuinely worth millions of dollars on its own merits. The share price will then respond accordingly, and we will become widely known as a success story earned through integrity, intelligence, hard word and respecting shareholder interests.

Eric Lehner, CEO

Food Joint Venture – Positive Beginning

The coconut water that was described in my post of June 28th arrived as expected and initial deliveries were made. The practical reason that I have not yet posted photos and further description is that our distribution partner and Winning Brands are contemplating taking this to a larger scale than originally envisioned and are negotiating some details and evaluating resources. I would like to be careful to characterize the result properly. The bottom line is that our operating collaboration has begun, we enjoy working together, and we are planning ambitious opportunities. I will provide more details asap.

The nutraceuticals project and the eSports project are also still moving closer to operation. My silence is merely prudence. Much is happening, truly. I am eager to share more updates shortly.

Respectfully,
Eric Lehner, CEO

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Food Joint Venture: Shipment Enroute

First of our Joint Venture category shipments arriving is super-high quality Trinidadian FatBoy brand Coconut Water. Our customers are already waiting. Cargo is landing Saturday.

More details about the thinking behind our product mix and our customer profiles will be supplied in due course. Our focus in coming days is to get the delivered product into place. It’s happening.

Then we will take photos and provide more background.

Cheers,
Eric Lehner, CEO

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Food Joint Venture: First Delivery Soon

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We are shifting from “test” mode with supermarket Oceans Fresh Foods to operational, with the first of our new series of deliveries scheduled to begin by June 30th. We will be taking photos. In the meantime, the Winning Brands Joint Venture logo has been added to our supply partner website www.Embrydon.com

Winning Brands will be the vendor of record and marketing partner to Oceans, our largest account for now. www.oceansfood.ca Our collaboration will evolve to match conditions and opportunities.

The most important thing for now is that we are going operational, thus proving that Winning Brands is becoming more multi-faceted than it had been in the past. This will increase the company’s opportunities for success, beyond the confines of our previous model.

More updates coming.

Update for Shareholders Following Developments

Picture - Winning Brands Joint VentureAs a courtesy, a follow-up to my update of May 9th.

The bottom line is that everything is moving forward.

 

Multi-Ethnic Food Joint Venture with Supermarket Group

Our commercial A/R financing supplier is really trying hard to deal with the insurance issue, and now a second source has emerged and is ready to proceed with small but regular A/R funding for the program, effective immediately.  This means that we can move out of the test mode and start regular operations.  We are probably placing our new orders with the Caribbean-based specialty foods suppliers this coming week, and will start making deliveries within a couple of weeks after that.  Our plan is to try to make weekly deliveries to Oceans Fresh Food Markets in the greater Toronto area for starters.  More details in due course.  The point is that this project seems to be on now.

 

e-Sports Joint Venture

There has been a great deal of enthusiasm by another OTC entity, that is a current information tier entity and has backers with deep pockets to get going.  Winning Brands will be in a JV relationship with the development team and rights holders to the e-Sports (and related entertainment deliverables) – and we will then work with that OTC entity to boost their launch and success with that package of assets.  That’s how it is shaping up.  I should know by next week whether sufficient backing will be released to that other entity to make it all happen.  This has been a gradual and systematic process, leading to growing and informed enthusiasm on all sides.  The point is that I believe that this will happen.

 

Nutraceuticals

The ex-factory pricing and committed delivery times from the contract packagers of the proprietary male vitality supplements has met our planning needs.  There is enough margin to operate properly, even after taking into account the royalty payments to the original developers.  The JV will consist of Winning Brands creating and operating a new website geared to the product line, which will have direct-to-consumer sales to get started.  Under the JV, our partner will supply the finished product, and Winning Brands will be the vendor.  To preserve Winning Brands shareholder resources, Winning Brands will pay for the goods as sold, rather than having to raise inventory financing.

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Becoming Current

The real-estate based transaction that was to have been the basis of Winning Brands gaining the financial resources to bring our governance filings up-to-date took place in May as expected.  The pledge by the shareholder will be honoured.  We need to work out the details and priorities of how to proceed, but it is now possible to confirm that there is no longer any doubt that the current information tier is returning, because the accounting and legal work can be commissioned at last.

Summary 

The joint ventures are beneficial to Winning Brands shareholders because they have been earned through the work that Winning Brands has been performing behind the scenes to help each of the JV partners solve certain problems that required a thought partner, and the completion of valuable tasks that required the type of assistance that either Winning Brands, or I as an individual, have been able to provide.  The benefits will all flow back to Winning Brands.  I am pleased to report that these are not the only such new JV relationships that Winning Brands has under development.  This operating model may well be expanded once these three are underway, and Winning Brands’ Innovators Community concept has been validated.

I have not spoken about the three JV’s  referred to above since May 9th to ensure that I had sincere confidence that they will happen before my next update.  Although nothing in life is definite before it has actually happened, the likelihood of the progress described above actually occurring is extremely high.

There will be far more details about these things as they materialize.  This will include photographs where appropriate, links, timelines, etc.  It’s getting “exciting”, even if I say so myself.  It’s not an expression that I use very often in this venue because of the need to remain conservative.  Despite this, I allow myself to share this positive vibe because I really see these things coming together.

I am deeply grateful to our friends at iHUB and elsewhere who have been willing to give Winning Brands your best wishes and confidence.

Respectfully,

Eric Lehner, CEO
Winning Brands

Procedural Update

This update is intended for shareholders who are following operational specifics and would appreciate a status report.  In order to be fully understood, the information needs to be read in the context of earlier posts regarding these specific project files.

 

JV – Nutraceuticals
I am pleased with the pricing and quality quotation from our proposed contract producer of the proprietary male vitality supplements that we will be making available through Winning Brands (by means of a new product specific website that will be announced).  We are just awaiting final quotation from a second alternative contract manufacturer.  We want to ensure that we will not be hamstrung by sole-source problems.  There has been no backsliding, no unforeseen problems and no disappointments.  This is still moving forward.

 

JV – Online Gaming or e-Sport or Online SaaS (Software as a Service) Product
I am pleased with the fact that negotiations are inching forward, closer and closer – just not at the finishing line.  There are no insurmountable issues.  Just negotiations that need to take into account the interests of various stakeholders.

 

JV – Food
I am pleased to report that the attitude and desire by all parties to get going is still strong.  There is a very technical issue to resolve as the last piece.  I want to obtain default insurance on a $200,000 accounts receivable facility that we already have with an accounts receivable agency in order to service our target supermarket chain for a good practical reason.  If a supermarket chain customer were not to pay our 3rd party A/R factor after 60 days, then Winning Brands would need to cover the deficit through recourse. This is not desirable.  However, if the A/R is specifically insured, then a possible recourse event (of supermarket non-payment for perishable goods after terms) would be covered as a planned-for-contingency.  I realize that it would be satisfying to just take the chance and proceed now without the A/R insurance, but such haste could be the difference between an event that is merely inconvenient vs a complete disaster.  It’s worth the effort to get this right.  The insurance company wants comfort through extensive documentation from the supermarket chain(s), but the supermarket chain(s) want to minimize what they pledge irrevocably.  It boils down to things like how many people need to sign-off on the delivery of perishable goods (that have no enduring existence for re-possession purposes), or the seniority of those persons, and the reconciliation of what is ordered vs what is delivered (which in the case of natural products is more difficult than for standardized manufactured goods with serial numbers and perfectly replicated components).  I realize that this kind of detail is boring and tedious to read about – and even more so to go through.  However, it is exactly this type of effort that represents a barrier to entry for casual competitors.  Taking into account our nifty supply chain concepts for the specialty food products in question, and this advance preparation of sufficient operating resources with cooperating financial institutions, we are doing things that less determined aspirants would not bother with.  In the end, the rewards will go to the contenders with who have the most perseverance, creativity and quality of execution.  That will be Winning Brands.

 
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Cleaning Products
We continue to supply fine commercial customers.  I post about these from time-to-time to illustrate that there is a foundation of high-quality relationships that has been earned over the years and is still in place.  While the volumes are not yet sufficient to deal with all our objectives, these are relationships that validate our bonna fides in business. This is something that many OTC sub-penny stocks don’t have.  It’s a reminder to our shareholders that Winning Brands is not a shell, and therefore could thrive under the right conditions.

 

Capitalization
I will know by the end of the month what the timing will be on the “booster shot” from a shareholder that we will receive from the closing of a real estate transaction.  This will be used to engage the accounting and legal team to bring all our governance filings up-to-date.  It’s not a question of “if”, just a question of “when”.

What sets the current era of Winning Brands’ operating history apart from our earlier times is that our overhead costs are much lower, we have been more conservative in acquiring and converting convertible debt instruments than ever before and we have the legitimate possibility of deriving supplementary income flow from joint venture partners through efforts that add value to those partners by means of problem solving for them, and partnership of effort. Such additional revenue is not dilutive to Winning Brands shareholders – it will not be cash coming from stock sales. It will be earned profit sharing, royalties and consulting fees.  These all go straight to the bottom line.  Therefore, in purely technical terms, Winning Brands is probably now the best investment it has ever been because it has established stability in a low cost operational mode, with a low burn rate, and genuine growth opportunities.

I do not blame anyone for being skeptical. However, paradoxically, logic dictates that this is our best ever “pre-growth” time.  If a person is in a position to follow the developments as set out in great detail in the Winning Brands CEO weblog, they will see that the information is coherent, verified and consistent.  The possibility of Winning Brands moving from its present market cap of below a million dollars to at least several million or a few tens of millions of dollars is real.  This would represent a significant capital gain for shareholders who acquired their positions in the triple zero range, especially the low triple zeros.  This is feasible because we would be earning our way to the double zeros or higher.  It would not be driven by stock promotion campaigns.  It would be value-driven.

Thank you for your continued interest, kind thoughts and shared ambition.

Eric Lehner, CEO
Winning Brands

Take a Bow, BRILLIANT™ Wet Cleaning Solutions!

 

We thank the staff and management of Curtain Call for placing a replenishment order of Winning Brands’ BRILLIANT™ Wet Cleaning Solutions yesterday.

This commercial client performs large scale consulting, installation and servicing of rented curtain backdrops for magnificent events.  We are proud that Curtain Call has remained our client for several years, and has not found a better fit for their demanding service protocol in all of that time.

Specifically, yesterday’s delivery consisted of 2 X 60L containers of BRILLIANT™ Heavy Duty Laundry Detergent and proprietary Finishing Agent, as well as 4 X 4L BRILLIANT™ Pre-Spot Booster.  That is approximately 34 gallons of highly specialized cleaning agents, representing approximately U.S. $800 sales value.

The BRILLIANT™ brand is not just “supermarket” detergent – it serves the special needs of the commercial sector working with presentation grade fabrics.

Winning Brands occupies a number of interesting niches and will be capable of significant future growth following refinancing and arrival supportive revenue from joint venture projects under development.   Reinvesting in expanded customer reach of Winning Brands’s existing products has significant potential to strengthen the company.  Our overhead costs are lower now, our experience is greater and our customers are awesome.
These days a lot of people are cottoning onto Ayurvedic Medicine for Sex to crank up their libido levitra professional samples and sexual performance a secret. Today, when a large part of male population suffer from a degree of erectile dysfunction. cheapest price on viagra try now has been the hope and relief that many men around the world have been looking for a feasible treatment for all of their sexual partners. Unfortunately, the once abundant crop unica-web.com purchase generic levitra of Eurycoma Longifolia trees has diminished. Polyneuropathy is simultaneously damage to peripheral nerves levitra samples with several different locations.
 

Winning Brands Specialty Product Website: www.BRILLIANTWetCleaning.com 

Client Website: www.CurtainCallinc.ca/drapes-backdrops 

Picture - BRILLIANT - Curtain Call

Large Jug Production Run

 

..

Are you getting the benefit of WNBD Twitter Notifications?

 

If you have Twitter, please do follow https://twitter.com/WinningCEO  in order to have the latest notifications about new blog posts at Winning Brands Shareholder Updates…

The risk of impotence cheapest levitra http://seanamic.com/overview/our-companies/ or ED generally enhances along age. It supplements your body with L-Dopa that nullifies the effect of the medicine remains the same if the power of the medicine is same. cialis sale if Pfizer and the cialis are made of exactly the same effect as cialis sale. Without successful treatment of ED, a man can’t even dream of levitra generic vs an intercourse . A little ignorance of medical guidance may turn cialis pharmacy into some difficulties.  

Picture - WNBD - Twitter Example

 

The Value of “Know-How”

 

It is easy to overlook the value of “know-how”.

When an order was received today from the U.S. Navy for 1000+ Stain Remover, I was reminded of the fact that even simply filling the order involves more know-how than people may realize.When dealing with the military, procedures matter.

Winning Brands has satisfied the U.S. Navy that we know what we are doing when it comes to meeting their logistics procedures and making a product that fits into their protocols.

It originally cost Winning Brands a lot of money to create these procedural compliance capabilities from scratch. That’s half of the success equation. Winning Brands needs to do a better job of leveraging procedural competence into greater sales within the client organization.  This is the opportunity for growth.

If we have U.S. Navy personnel as shareholders, we thank you in advance for letting your local NEXCOM exchange know about 1000+ Stain Remover.

  • NEXCOM DEPT 836, Item # 9498791 Description: WC200A 1000+ Stain Remover and Multi-Clean

What the heck is going on? After all, you’ve installed a broadband connection, and you will find the best online pharmacies sildenafil canada in your town, your country, or in any other country. So, mouthsofthesouth.com order viagra sample stay sexually active and have sex with partner on a regular basis to stay away from processed foods, fast foods and desserts. When it comes to physical erectile dysfunction, the Ed problem causes http://mouthsofthesouth.com/wp-content/uploads/2020/02/MOTS-03.07.20-Dixon-.pdf buy levitra by some injury, or it is from-birth then obviously these pills cannot help. The 36-year-old player stated that he had no insecurity issues and was perfectly comfortable with his girl viagra pills wholesale talking to other guys.
For your interest, below is what the order cover sheets look like for these orders.  The navy orders are not yet large, but they are regular and come through official channels.

We are truly grateful for the opportunity to be of service.  It is a source of pride for us, and hopefully for you too, as a Winning Brands shareholder.

 

 

Picture - 1000+ NEX Page 1

Picture - 1000+ NEXCOM Format

 

 

Winners Stick Together (…and use 1000+)

Thank you Delta Sonic Car Wash Group
for your continued use of 1000+ Stain Remover from Winning Brands.

This award-winning auto care enterprise, with multiple locations,
The person can check the online stores for the various purposes in addition of online viagra pharmacy proven treatment of ED. / People who don’t do exercise also invite ED in their life. Many of the counterfeit websites supply duplicates tadalafil online order or forged products that may prove a health hazard for the patients. That is perhaps the key cheap viagra in usa reason why products like kamagra jellies and Kamagra soft tablets. cialis prescription online https://www.supplementprofessors.com/levitra-5413.html Today, there is a large number of agents in medicinal drugs that are known to be harmful to your child’s health. continues to choose 1000+ for its highly respected Detailing Department.

36 Gallons of 1000+ Stain Remover delivered to the Buffalo location today.

Picture - 1000+ at Award Winning Delta Sonic Picture - 1000+ at Delta Sonic

Mini-Update

 

The following mini-updates are simply to reconfirm, as a courtesy, that things are all still moving forward.

 

FOOD JOINT VENTURE

Key partner is returning from Trinidad on Wednesday following procurement trip to source interesting opportunities. The 3rd party A/R question still revolves around the insurability of the perishables at the level of $200,000 over a revolving 60-day payment cycle by our supermarket customer(s).  Regardless of that issue, it is likely that we will be able to get more operational somehow.  The elements are interesting and there is a niche for us that is difficult for competitors to simply duplicate, considering the specialized supply line that we are cultivating.  On the up-side, people eat every day – one of the few things that we absolutely all must do to survive that is actually pleasurable.  So, that gives this sector a special vibe.

 

NUTRACEUTICAL JOINT VENTURE

We are negotiating with 2 potential contract packagers to obtain the best possible price/delivery turnaround/terms, while taking into account the need for quality and pedigree.  In other words, we have to be able to withstand any regulatory enquiries about the origin and good manufacturing practices applied to these proprietary products.  It’s actually going to be fun marketing a product to men.  So much marketing today is moving toward the female decision maker that there are relatively few male zones remaining.  We are going to be male positive, unlike much of the current generation of advertising.  It’s an interesting opportunity.

 

Picture - GH Burn Contract Production Discussions

 

 

e-SPORTS / GAMING / SOCIAL COMMERCE JOINT VENTURE

We are negotiating along multiple poles – one is with the intellectual property holders, another is with project backers, the third is with possible additional publico(s) amongst whom some of these elements are split.  It’s too complicated (and too confidential vis a vis 3rd parties) to go into depth yet, however it is all still current and there is no negative energy around the possible relationships.  There is certainly a lot that can be done in this realm.

 

They were a part of the first expansion and they were first owned by Frederic McLaughlin who had made his fortune in the sales of coffee. vardenafil price In this toughest digitalized modern era every human being possess and it could cheap soft cialis also be refers as the moment in which two love partners share their love. Some data show that relaxing while soothing music plays in the background certainly improves immune function and insulin sensitivity – Overall immune function is very dependent on the quality and quantity of the sperms. shop levitra The range of options on offer is therefore, check out over here cialis cheapest price one of the main reasons why people prefer to go for natural treatments of se-xual problems. EXISTING CLEANING PRODUCTS

We recently passed a Health Department chemical audit, by which our ingredients, labeling, claims, safety and other factors were being reviewed.  During that period, we were under a stop-distribution order, that has been lifted.  It was a random audit, not prompted by any complaints.  But it did take time and money to deal with it successfully.

In the meantime, we are launching a refreshed website for our lead product 1000 Stain Remover.  The site has not yet been optimized for mobile.  However, the desktop version is getting there.  Still a work in progress, but a fun updated treatment:  www.1000PlusStainRemover.com

Nobody likes stains, so even though the average person isn’t in love with cleaning per se, letting stains accumulate is really not an option.  I understand that there are other good cleaners out there, but our quirky and effective 1000+ Stain Remover is not just a “me too” product.  It has a loyal following. The key is to increase awareness.  Heaven knows that I have had enough time, but the silver lining is the fact that perseverance has kept us going, and our customer relationships positive.  So, breakthroughs can still happen.

I’d love to see us get listings in the automotive sector – there is so much that 1000+ can do around cars, repair garages, detailing facilities, etc.  A listing with the big guys (NAPA, AutoZone, Advance, Car Quest, Pep Boys and others) would change our destiny for sure.  Perhaps one of our shareholders has the elusive magic touch with these organizations and can add commission income to future capital gain of a recovering WNBD share price. You never know “who knows whom”.  There are synergies sometimes that come out of nowhere, and a tipping point happens.

By quirky, I mean that it’s as strong as a solvent, but gentler than soap.  I know that sounds contradictory, but unlike most solvents, you can get 1000+ Stain Remover all over your hands, and they are fine when you rinse them off with water when you are finished.  In fact, normal skin even feels better.  Furthermore, it’s a hyper-concentrate.  So you can use it full strength for stains, or add even just a little bit to water in a spray bottle or bucket, and you get a terrific all purpose cleaner.  So it delivers great value.  Furthermore, 1000+ Stain Remover is astonishingly versatile.  There are just so many uses that you’d never otherwise hear about.  From cleaning the mats under a horse’s saddle, to removing gunk from dentist tools before sterilization, to removing pet spit-up or accidents on carpets, to cleaning your hot-tub covers, etc.  That’s why we call it 1000+.  It remains a mystery to us who it is at the U.S. Navy who keeps dutifully putting in their small but regular orders amongst the overseas depots.  It’s classified information apparently – but some people somewhere in that organization are sure loyal to 1000+ Stain Remover.

In the meantime, we’ll keep at trying to crack that Auto market listing.  I am serious about inviting people who can pull a few strings to earn a commission over-ride on the account(s).  With thousands of locations, accounts like these could put serious money into somebody’s hands and still leave WNBD shareholders happy with the remaining profit.

 

Picture - 1000+ Auto Sector

 

INVESTMENT CAPITAL FOR FILINGS UPDATES ETC

Still looking good.  May is a possibility for funds to become available for this, in whole or in part.

 

Respectfully,

Eric Lehner, CEO
WINNING BRANDS

Shareholder Q & A (…and thoughts on the importance of “Curb Appeal”)

Question

I belong to to pretty large group that has a solid position in WNBD. I’ve been asked to reach out, couple questions. Likelihood to become current in 2019? How things are Preceding considering the 50k that is being sought after. We certainly appreciate the transparency through Twitter, looking forward to your reply.

Answer

The likelihood of being current in 2019 is so high that I am tempted to say definite.  This is because the work toward it can be done gradually in the background as revenue increases during the year, from our new initiatives. While it would be faster to accomplish the goal in one single exercise arising from a working capital infusion, becoming current can be accomplished more gradually regardless.

The status of the remaining U.S. $40,000 is that we have a pledge to receive whatever is required to complete this governance task from the proceeds of a real estate transaction that has a high probability of occurring.

Winning Brands is striking a balance in its communications.  We are refraining from issuing “formal” news releases through conventional wire service distribution at the moment until two conditions are met.

The first is that the news being discussed is material and substantive, not merely an operational update.

Secondly, ideally, it would be better to wait until the company is current before bringing massive new attention on the Winning Brands through an awareness campaign.

That second consideration (about being current) also has two reasons – A)  New prospective investors coming to a company for the first time and being greeted by an OTC stop sign are getting mixed messages – the stop sign undermines the company’s credibility.  B)  It would be better for new prospective investors to be invited to take a look at us when we have our first (or more) intended joint ventures operational.  Then the new prospective investors will see that we are focused on outcomes, not just talk.

Why do I distinguish between current shareholders and new prospective investors who will be addressed through large scale awareness efforts?  The reason is that our current shareholders are more self-motivated, self-confident and more assertive in looking for substantial turnaround profit opportunities.  It takes those extra qualities to be able to find good candidates in the low triple-zero price range and have the courage to buy them.  In other words, our existing shareholders are above average in their risk tolerance for high-reward.  That is why they are here.  They (you) found Winning Brands despite a lack of any formal and high profile awareness campaigns by Winning Brands.

On the other hand, the “average” retail investor who is recruited through outreach programs is more conventional in their risk/reward profile.  It is harder for them to see the future curb appeal of a property that still needs to be renovated.  The largest opportunities for capital gains come for the purchasers who see the potential value in the property BEFORE its renovation.  Spending money, time and effort to bring busloads of the wrong buyers for the company’s current unrenovated condition is a waste (for us and for them).

The bottom line is that people who find us presently, one way or another while we are in the low triple zero range,and accumulate based on their assessment that we will make meaningful breakthroughs this year, can do well if the company performs.

Lastly, buy your generic viagra for woman from a pharmacy with at least four or five years in business. The gist of the article would have been that Kansas City Chiefs general manager Scott Pioli will be faced with a difficult decision when the year levitra cheapest price is over. Include asparagus in salads and edibles for pampering taste buds and sexual activity. 9. discount viagra cialis In other words a women should be through sex go into.There are many medical activities ready (to be used) in the market but fezinil is the best medical activity which has no side effect whatsoever. viagra on line That is where my focus is presently – putting conditions into place by which the company will actually have good things going on operationally, not merely plans.  When we get these elements together, then in my opinion it will be obvious to the marketplace that Winning Brands’ market cap deserves to be much higher.  That will put a solid floor under a new higher base price.

Practical example:  I have already let our existing shareholders know through the social media channels (which are perfectly adequate and acceptable under the SEC fair disclosure guidelines) that Winning Brands is targeting to have its first inventory of the nutraceuticals in our hands and available for sale online in 3 months or so.  Issuing a formal news release to merely describe that goal is far less effective than announcing that it is already in place.

Almost every day I am urged by someone to issue a news release about anything, even updates.  While I understand this mindset from the standpoint of a shareholder that wants to do a quick flip of a small position, it actually backfires over the long run by establishing a reputation for the company of issuing promotional/fluffy news releases that are used as selling opportunities, rather than fostering any real interest in the company based on its underlying business mission.

I certainly respect and appreciate the interest and participation of shareholders in the Winning Brands journey at this stage when our appeal is less obvious, and yet the potential is so good.

 

“Curb appeal” matters for companies too, not just houses.
It’s more than a cliche that you only get one chance to make a first-impression.  That’s real life.
When do we bring our buyers – Before our renovation, or after?

Picture - WNBD - Rennovations

Rgds,

Eric Lehner, CEO
Winning Brands

 

 

Q&A: Timing of GH Burn for sale at Winning Brands? Targeting 90 Days!

 

Question

Shareholders have asked whether I could give even a rough idea of when the first GH Burn product will be available for purchase from Winning Brands, for distribution and online retail.

Answer
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Based on product team collaboration this weekend, we are targeting to have first Winning Brands product sales of the GH Burn product line in 90-days.  Winning Brands will have a product-specific joint venture site in which Winning Brands will collect online consumer payments direct via VISA/MasterCard etc with PayPal, for starters.

Much being done to get this moving.

 

Picture - GH Burn - Weights

…Get the Feeling. No Prescription Required.

Want to FEEL where Winning Brands is headed? Try this video for 60 seconds.

WE ARE WORKING OUT NOW, FOR THE ULTIMATE COMEBACK STORY.

A new joint venture website is under development. Share the energy.

Video Link: https://www.youtube.com/watch?v=a5lF5INvYl8 …

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Additional Details: WNBD Uptick Newswire Interview Posted March 28, 2019

 

I thank the team at Uptick Newswire for organizing a podcast interview
in which to share further thoughts about Winning Brands.  

A link to the interview audio file is here:

https://upticknewswire.com/interview-ceo-eric-lehner-of-winning-brands-corp-otcpink-wnbd-2/

ADDITIONAL DETAILS:

In the interview, I mention for the first time two names connected with our (several) joint venture aspirations; one in nutraceuticals and the other in the food sector.

Nutraceuticals: GH Burn Product Line

This is a nutraceutical line that was developed and test-marketed by a private company in the UK, Hantian Labs,  4 years ago. The tests there and in North America confirmed consumer demand, product effectiveness and smooth supply chain operation. During that test period, significant sales were generated.  This high-quality product line is backed by clinical studies and is contract-manufactured in a first-rate facility with a wide range of certifications. The product also has various government approvals required for sale.

Hantian Labs’ GH Burn project paused in October 2016 in order to perform a vend-in to a U.S. OTC public company, to facilitate a next stage of growth of the product line through expanded marketing.  After the vend-in, the publico encountered administrative delays in organizing the launch for reasons that had nothing to do with the product itself.  There had been competing visions for that public company’s future amongst key stakeholders with the result that the publico’s initiatives were stalled until agreement was reached.  This has only very recently been resolved.  That entity is now in the process of catching-up with its administrative, governance and SEC reporting back-log, according to a positive new vision.  This restored clarity will help their shareholders when further announcements emerge as they progress through their catch-up.  They will become current in their own reporting, etc. That entity is  www.HealthAdvanceInc.com  and their website is under construction.

Winning Brands has been of assistance in the return of goodwill and vision within that organization and is being granted a joint venture opportunity for the resumption of the launch of GH Burn (and some associated products) via Winning Brands.

The thrust of this product line is male potency..  GH Burn (and its associated line extensions) is a set of proprietary formulations that are designed to enhance the male body’s hormonal system (which begins to deteriorate after the age of thirty, on average). Surpassing its competitors in synergistic abilities, GH Burn has been demonstrated to increase the production of human growth hormone naturally, improve energy levels, mental alertness, metabolism and lean muscle mass.  It does this while decreasing appetite and unhealthy cravings. Even parameters of cholesterol, blood pressure, sleep rhythms, libido and stamina have been designed into the product line.  I could say more, but will save that for closer to the time of our re-launch.

I have the consent of the other party to share this mention of the brand name. I would rather have waited to discuss these details, but I also know that shareholders need to have as much concrete material as possible to trust that Winning Brands joint venture plans are real and substantive, both.  So I am taking the risk of providing a preview in the spirit of teamwork with shareholders. The preview helps put things into perspective.  There is huge opportunity here for Winning Brands to bolster its comeback with the addition of such a winning brand to our plans.  The potency-focused nutraceutical sector itself is growing substantially.  The changing age pyramid in society, and our much higher expectations today for remaining vital throughout our adult years, are driving strong demand factors.  The upside is immense.  There is enthusiasm on the part of all parties in this joint venture that Winning Brands play a part in the re-launch.

This is an example of Winning Brands earning “sweat equity” into a joint venture business opportunity as an alternative to having to “purchase” conventional equity with cash.  The bottom line is that Winning Brands will have a key role in helping the re-launch of GH Burn and spin-offs under development, and sharing in the benefit.  That is what we are planning together.
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Key point for Winning Brands shareholders:  The fact that GH Burn is not presently available at retail is not a problem – that is the opportunity.   There are website links that have to be revived, social media content brought up-to-date, listings regained, etc. We are going to help this product swing back into action, and Winning Brands shareholders will benefit with our partner as a result.     There is much, much more to share in due course about the positive characteristics of this new product line (and its companion item for women), however, there is enough time for that ahead.  My focus is on pulling it across the finishing line and getting started.  The growth opportunities are terrific.

Fun Fact:  The majority of the entire iHUB community of hundreds of thousands of investors are ideal candidates for our new product line.  They are mostly male and interested in potency in all its forms.  This is the ideal setting and product line to combine into a large base of “investomers” (investors who are also customers).  I can’t wait to make GH Burn a “household name” amongst fellow iHUBers!  

 

 

Picture - GH Burn Packaging Picture - GH Burn Profile Picture

Food Sector: Retailer Testing with Oceans Fresh Foods

Picture - Oceans Fresh Food Markets

In the March 12, 2019 Winning Brands CEO Weblog entry, I described the food sector JV structure in detail, complete with chart.  Rather than repeat that here, I’ll simply confirm that the first target retailer with whom our JV partner and Winning Brands have been collaborating is a rapidly growing Toronto area supermarket group that is making huge strides tapping into the changing composition of North America’s major cities, with a focus on expanded multi-ethnic food specialties.  Our logistics partner has been making routine test deliveries of uniquely sourced foods, through a clever international supply line, and is proving to be an ideal associate with whom Winning Brands can strengthen our work with supermarkets.

There is just one last detail to complete in this JV plan for implementation to ramp-up beyond the test volume phase, namely, that our 3rd party Accounts Receivable financing facility be increased to $200,000 on a single account basis.  We have a $250,000 A/R facility already, but this is distributed across a range of accounts, with no single customer representing such a high proportion of the total facility.  The solution may be emerging in the form of a re-insurance plan, by which our A/R provider syndicates the risk.  This will help us to grow the entire facility in due course to accommodate the anticipated higher level of A/R required in the future.  We can’t grow beyond the nominal test volume until this detail is resolved because the incoming goods have to be pre-paid yet the retailer pays in 60 days.  Therefore, in order for us to have a large steady flow, we need to have at least $200,000 A/R set aside for this specific account.  We can easily use that up on a continually revolving basis, extrapolating from our test experience, if the operation rolls out.

Each different JV has its own appeal.  The unique quality of this one is that the flow is steady because of a standing order from the retailer to provide as much as we can on a regular basis.  The margins are lower, but the operation is like clockwork and we can generate good volume.  Furthermore, this provides a foot in the door for Winning Brands to re-enter the supermarket sector with refreshed ideas for additional food items, the cleaning product category and other line extensions.

Again, this is something that I would rather have waited to discuss in such detail, but by sharing the name of our first supermarket customer for the food sector JV, our shareholders can see for themselves that we are not kidding around with Mickey Mouse plans.  Oceans is large, respected, growing and good to work with.  If I can pull that A/R technical solution across the finishing line, we are off to the races.

LINK: https://www.oceansfood.ca/store.html 

In an ideal world, I would have kept all of this quiet until even more of the elements had settled into place.  It is always better to announce things that have already happened, rather than discussing plans.  On the other hand, shareholders are partners.  How can shareholders be supportive, patient and positive if there is not a shared vision?  I am trying to strike the right balance between providing a glimpse of things to come but remaining straightforward about the fact that certain elements of these and additional joint ventures under development need to be finalized.  My guiding principle is to be authentic in the pursuit of these objectives. I trust that we can pull enough good things together so that we and our business associates can flourish together.  Winning Brands is being revitalized.  It will not happen overnight, but it is clearly happening.

Cheers,
Eric Lehner, CEO
Winning Brands

Interview Link on March 28th

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Interview Completed

As a courtesy –  just letting you know that the interview with Uptick Newswire was completed.  I do not know when it will be finished in post production on their end or disseminated.  I think it will be at least several days or next week.

In the meantime, I am preparing more background material that will be posted here to coincide with that release, because I do mention some names in the interview.  I will be ready here with a reference post that has convenient links for you, and some more background.
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Interview Next Week

 

Since last year, Uptick Newswire has been inviting me to return for more discussion about Winning Brands plans and operations.  I have declined these invitations until I felt that momentum was really going our way and the discussion could be meaningful.

A live discussion adds something extra that dry reports, and even blog updates lack.  Spontaneity and personal energy in conversation takes us further in communication, conveying more than the message itself.

The interview with Uptick Newswire will take place on Monday 25th, and will be posted by Uptick Newswire during that week.

I thank Winning Brands shareholders for their many helpful suggestions and e-mails of support as we swing into 2019 with renewed vigor.
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Rgds,

Eric Lehner, CEO
Winning Brands

 

Picture - Uptick and Winning Brands

Shareholder Question: Share Buy-Back

 

Shareholder Question

Good Sunday sir.  I am texting to ask if you have ever thought of a share repurchase program? I read in your blog potential investors want you to raise the price in order to receive the loan. Maybe this way everyone wins. Use a percent of the loans to go toward repurchase program, some towards JV, Pps rises and more loans come in. At this price it seems you could buy on the open market for around 6 months and retire 500 million to a billion shares. It would make a lot more appealing moving forward and clean up the books. 

Answer

Thank you for your question.  You have anticipated one facet of our strategy to support our shares long term. There is a way in which shareholders are in a “win-win” situation, if we can alter our operating conditions somewhat.

If Winning Brands can generate sufficient operating net profit and allocate the surplus in two directions, debt repayment and share re-purchases, then shareholders can benefit from share repurchase (because the repurchases are not just short term and temporary).

Two alternatives can exist, and both are positive.

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The alternative scenario is that the positive circumstances of the company cause the share price to increase beyond an affordable buyback scenario.  In that case, the buyback is a moot point because the price will be considerably higher than it is now – and that will be good for shareholders too.

Accordingly, the top priority is to find a way to add profit flow to Winning Brands.  This may be possible through astute joint ventures in which Winning Brands’ partnership is “purchased” through its effort and JV service contribution, rather than cash.  We are working on some of those scenarios now.

Aside from all the fancy planning, some things in life come down to plain old-fashioned good luck.  We seem to have been getting some lucky breaks recently.  These have a way of creating a new vibe that leads to favorable outcomes.  One should not depend on luck of course, but plenty of success stories have had special moments of good fortune.

Let’s be open to all of these things.

Cheers,
Eric Lehner, CEO

 

Regarding TrackMoist™

 

We have a number of new shareholders.  Most are not familiar with a niche product that Winning Brands has been supplying, TrackMoist™.   We have not given  TrackMoist™ enough marketing support, but it generates good feedback. With enhanced marketing, this can grow.

Today we received a good message from an application specialist who needs another skid.  That’s approximately 165 gallons. Randy is the “go to guy” for conditioning the soil footing for sporting events.  This is what Randy wrote with today’s order.

I’ve had lots of successful applications this year, lots of new people, “the word of mouth” contacts are getting more frequent and making huge progress in the Rodeo world, just dealing with so many non believers until they see it in action, have done lots of demonstrations, but I’m in the middle of a real busy schedule at the moment but will go back thru and try to document for you. 

Meet Randy on the Job (VIDEO): https://www.youtube.com/watch?v=E6nThqRIZRg

Here is the  TrackMoist™ website:   www.TrackMoist.com 

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Picture - TrackMoist Package 2014

Picture - Talladega Short Track

Picture - BMX

Picture - Calgary Stampede

Picture - TrackMoist Westbrook Hunt Club

Food Sector JV Pilot Project Outline

As discussions progress toward launch of joint ventures, more detail can be provided to reflect developments.  The following remarks expand on our Food Sector plans.

Our food sector pilot project received a boost today when our target supplier of the A/R (accounts receivable) financing structure reaffirmed their enthusiasm for this concept.  We are awaiting final approval by them of the expansion of our cleaning sector A/R facility into this sector.  The first target supermarket confirmed to our A/R grantor that the initial experiences have been positive and that they are willing to commit to invoices for trial deliveries.  Also encouraging was the fact that the A/R grantor is exploring a reinsurance approach to mitigate their risk in elevating the facility limit to a level that is high enough to make the program capable of growing with the supermarket’s (hoped for) increasing demand as the project gains momentum after launch.  It was important to address this in advance so that we would not be stuck in a successful program with insufficient A/R capacity.

The chart below can be clicked on to expand in size.  It describes the premise of the intended program.  There are many artisan food suppliers who by themselves are too small to deal with supermarkets.  This is especially true for the multi-ethnic food suppliers outside North America, such as in the Caribbean.  Our JV partner has deep roots in the sourcing and importation of suitable products from that region and elsewhere in Latin America, but has less experience and track record in dealing with large retailers in formal, structured, high volume marketing arrangements.

This partnership of effort allows two enterprising smaller entities to leverage the resources of larger parties and manage the process with skill sets that create a better outcome than either party would have by themselves.

The fact that pilot project deliveries have been made successfully, and that the first target supermarket group has requested expansion of service, sets the stage for a meaningful program, rather than something trivial.  The population of Metropolitan Toronto, one of North America’s largest cities, is over 6 million, with a significant ethnic mix, and growing rapidly.  This niche in the food sector, multi-ethnic, is more attractive for smaller aspirants than institutionalized mainstream supply dominated by food conglomerates. This niche is large enough (with millions of consumers) that even modest success could be impactful to WNBD cash flow, and improve the appeal of the company to financial service providers.  THAT is really the point of the exercise.  Winning Brands needs to demonstrate the ability to generate turnover, one way or another, to be a serious candidate for institutional financing.  This JV, and the others we have under development, will make that point.
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We are already deep into the creation of our launch website for this program, but are keeping it under wraps until the A/R team gives us the final green light.  Our company name was generic in nature from the outset because it was always our plan to embrace more than one product line or sector.  Perhaps now is the time that the name Winning Brands will serve us particularly well, as we expand our scope.

Eric Lehner, CEO
Winning Brands

 

Picture - WNBD - Food Sector Pilot Project Outline

Update on Issuance Matter

For those who are following this matter:

In January 2017 a convertible promissory note holder, an investment firm, who had been satisfied with previous transactions with Winning Brands, provided $28K.  The note would mature in January 2018.

In 2018, the holder did not require the funds and agreed with me that it would be better for the company to not issue more shares and to stay the course so that the company could grow stronger.  We therefore agreed to let Winning Brands eventually settle the promissory note with money rather than shares, at some reasonable point in the future from earnings, at 5% APR.

Starting February 22, 2019, there was sudden and dramatic growth in WNBD share trading volume.  This created (false) rumors on the discussion boards and elsewhere that there had been dilution.   This makes note holders nervous, because from their point of view, it may suggest that another party is receiving special treatment.

 

Picture - WNBD - 1 Month Chart

 

 

Therefore, without informing the company, the note holder issued a request for conversion with the transfer agent. The holder assumed, correctly, that the transfer agent would notify the company to approve or not approve.  Some promissory notes have transfer agent instruction letters that permit/require the transfer agent to proceed with the issuance if the company does not reply within 48 hrs.

The transfer agent sent notice by email to our official address, with attachments, to Winning Brands.  However, that e-mail notice bounced back as “file size too large”.  The transfer agent then forwarded that notice instead to a different address which it believed in good faith was a valid alternative address.  (It is not a Winning Brands address but was used 2 years ago as a stop-gap method to deal with a large file size before).   Therefore, the written notification was not actually received by Winning Brands in reality.  However, the issuance is not technically invalid because it is pursuant to legitimate documentation.  The note forbearance was voluntary, not obligatory.

Yesterday, OTC Markets provided an update to the share count.  Winning Brands subscribed to such automatic updates when the service became available, as we have nothing to hide.  This update triggered an enquiry yesterday to Winning Brands by a person who follows the company.  I do not know if that individual is a shareholder or not, but the question was legitimate:  Did I issue shares at the same time as the company was claiming that it has no undisclosed share issuances?

I expressed my surprise, contacted the transfer agent, reviewed the issuance journal and enquired whether it was too late to cancel the issuance.

Today I spoke with the organization that had been holding the note.  Ironically, the apparent positive business developments that are occurring at Winning Brands in 2019 were an additional motivation by the note holder to become a shareholder at this time instead of a creditor.   I was informed that none of these shares had been sold, or even put on the ask.  The organization apparently feels that good things may be ahead for Winning Brands.  They did not sell the shares, or even offer them for sale, because they feel that Winning Brands stock price is likely to rise beyond current levels.  Also ironically, the organization expressed interest in additional investment with Winning Brands.

Summary

  • The issuance was not prompted by the company.
  • The transfer agent acted in good faith, notwithstanding the unfortunate miscommunication.
  • The issuance is not technically improper as the forbearance was voluntary, not mandatory.
  • The issuance has had no bearing whatsoever on WNBD trading volume, nor the bid and ask, since February 22nd
  • The organization in question perceives Winning Brands as being on a positive course and is open to discussing future requirements.
  • Unfortunately, this puts no funding into our hands at the present moment, and thus is not a solution for the immediate objectives.
  • Despite the foregoing, our JV negotiations are still positive, on all three fronts.  A separate update on that subject will be posted later tonight.

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Shareholder Question: Referenced as IR Contact?

Shareholder Question

I came across this interesting piece of information [IR Service Provider] while browsing Saddle Ranch Media’s OTCmarkets page. Are you allowed to comment on what this could mean? Is it a mistake?

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Consulting negotiations have been underway with a number of firms as a method to boost Winning Brands revenue, reduce cost-of-good-sold and to cultivate JV opportunities.  The “service provider” designation posted by that company is premature and was made without Winning Brands’ knowledge.  I have now brought this to the attention of that company and pointed out that this designation should not appear unless and until a contract is activated.  It is important not to read too much into this presently.  It does prove that Winning Brands is active behind the scenes to foster mutual opportunities for our shareholders but in this particular case the posting by that company was definitely premature.

Reversing Stock Issuance?

It was brought to my attention today that 340M shares were issued without my consent.  This arose from an administrative misunderstanding at the transfer agency.

A relatively small $28K 5% APR promissory note from January 2017 was not to be converted, but rather settled in cash through normal future business operations.  However, our stock transfer agent received a conversion request directly from the holder.  Our written agreement with the stock transfer agent is that the company has 2 days in which to review such a direct conversion request and agree to it or to contest it, failing which, the shares would be issued.

It turns out that the stock transfer agent sent the issuance request to Winning Brands by e-mail with file attachments that were too large for our e-mail server, and our firm did not receive the written notification to review. A “bounce back” from our server gave the error message of exceeding file size.  Instead of re-sending a message with no attachments, the transfer agent used a non-company address that appeared in their records from 2017 believing in good faith that it was a valid address.  If this issuance request had actually been received by us, then we would have reminded the holder that the understanding was to waive further conversion and to settle instead from future cash flow.

In view of the fact that Winning Brands did not actually receive the conversion notice from the transfer agent, the company is discussing with the transfer agent and other parties what steps can now be taken.

I am bringing this to the attention of our shareholders proactively with the reminder and pledge that it is has been the company’s policy since 2017 to not increase its share count until shareholders are informed otherwise.
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Regardless of the outcome of this situation, our policy has not changed.  The transfer agent and Winning Brands have put into place an additional communication safeguard to prevent a re-occurrence and are reviewing options.

Where goodwill exists, solutions often emerge.

Respectfully,

Eric Lehner

Shareholder Q & A: March 10, 2019

 

Thank you to WNBD shareholders for your interest in our next steps and for your related questions. To provide further context  for Winning Brands’ proposed strategy, the following overview is provided in Q & A format for convenience:

 

QUESTION

Hello Eric, …Hope all is well. Just wanted to check in on how the loan hunt is going. Excited to hear about some potential JV’s. Long hold for me! Best Regards…

 

ANSWER

The honest answer is that we are looking at a “chicken or the egg” situation, as to which comes first.  The company is being told by some parties that they would be pleased to provide all the required non-dilutional working capital loan funding if I could first “make the share price go up” (so that they will first make money on their holdings).   I have replied that Winning Brands will not engage in staged rallies.  Fortunately, a first participant (natural leader) has started the ball rolling with non-dilutional working capital funding with their initial minimum installment, for the benefit of all.  Perhaps more will be forthcoming.  In this method, any increase in stock price is authentic.  We are not paying for promotion, we are not diluting and are not interfering with the natural market.

In the meantime, because of that positive move by the first participant, the company was able to address a certain need, and strengthened its discussions with a key JV partner.  Therefore, it was very helpful to the company in a way that will become clearer when those negotiations advance in coming weeks.

Our joint venture strategy is interesting. In view of the key role of the joint venture concept in Winning Brands’ growth plans, the current JV strategy deserves more explanation and clarity.  Bear in mind that it is impossible to provide names yet because the negotiations are ongoing.  It would be foolish and a violation of confidentiality, both, to provide names prematurely. However, understanding the thinking behind the JV structure by shareholders will illustrate how much up-side we really do have.  The insights that are to be found by understanding the issue will clarify why the joint ventures are so helpful to Winning Brands’ future.

The JV’s are not a substitution of our existing cleaning products business – the JV’s are an addition to it.  Rather than issuing fake news releases which are hype-oriented (standard operating procedure in the pennies and sub-penny world), I’d rather respect the intelligence of our shareholder group (and the public at large)  and work at creating understanding of how this would really work, so that people can judge for themselves whether we can anticipate an increase of our market cap to much higher levels.  I think it is obvious that we will achieve this with the right conditions.   There are plenty of sharp minds amongst our shareholders, and in the OTC markets generally.  If the logic is there, it will be seen.

One more point before I go further – I know that this is a long answer to your question, but  I am willing to invest the time and effort in thoroughness for the sake of our shareholders who are served with such thoroughness. The stakes are high and the effort is worthwhile, for their sake as investors, and for the company’s optimal performance.

 

Joint Venture vs Acquisition

There are many OTC companies speaking of “acquisitions” as a path to growth.  This usually involves share issuance because cash deals (for anything worthwhile) are rarely possible.  These acquisitions often introduce complexity where it is not warranted.  Managing subsidiaries (some of which have their own secondary subsidiaries) is only worthwhile when there is a good legal reason or there is plenty of money flowing.  Without those conditions, it adds to the cost and complexity of financial reporting, governance matters, tax filings, etc. Therefore, Winning Brands’ joint venture strategy is based on earning an ownership stake in unusual business opportunities, rather than “buying” companies, with all that this entails.

The purpose of owning a company or a piece of it is to gain the benefit of what it is doing.  Joint ventures can be designed which still allow us to share in the benefits of an intriguing opportunity without the attendant cost, complexity and liability of buying companies, per se.  This strategy is also less dilutional, because without deep pockets,  acquisition of a company will involve stock issuance.

Winning Brands’ current joint venture strategy is not based on stock issuance. Instead, it is based on designing partnerships of effort wherein Winning Brands provides an ingredient to success that combines with contributions by others that makes something become better than it would otherwise have been.  Winning Brands has a broad base of publico experience and business connections to be harnessed with new initiatives.

 

What Sort of Opportunities?

Some JV candidates are in the realm of cleaning of course, as a natural outgrowth of our existing relationships. However, to be completely honest with ourselves, the category of cleaning does not have the excitement factor that some other categories do.

Therefore, our joint venture strategy is to strike a balance between classic “sensible” sectors that are steady as a foundation, but also to include initiatives that bring more “excitement” than the basics.  Being rooted purely in the basic trade categories is really only viable if the cash flow proves that the product range is a strong financial performer and/or the customer base is large.  On the other hand, being involved in an “excitement” category is only viable if there is reality to the plan too.  How will things be monetized?  Will it all just be chasing fantasy, or will something actually come from it.  There is a certain finesse required for us to get it right.

My point is that Winning Brands will be moving into territory that has more appeal, without wasting or ignoring our foundation.  You can think of it as expanded consciousness and expanded reach.

 

Examples

Picture - JV Discussion - eSports

Photo Caption Credit: Los Angeles Times.  Photo used as generic representation of competitive video gaming.

E-Sports:  One example is that Winning Brands is the deal architect of a proposed joint venture with another OTC publico to launch e-Sports satellite centers in partnership with a respected casino operator who has multiple locations, on a revenue sharing basis, rather than a tenancy basis.

Winning Brands, by working through another OTC entity, can avoid the dilutive effect of the funds that need to be raised to launch that project.  Between us, the associate organization and Winning Brands have the personal and professional contacts to make this viable, and have already been told that the first such location could be started as soon as we are ready.  However, we are holding out in negotiations to be able to open several locations on a guaranteed roll-out so that we can achieve higher critical mass of cash flow to make the shared royalty streams attractive on a net basis.

It is irrelevant that this joint venture is light-years away from our original origins in cleaning products because in this case Winning Brands brings practical experience on the publico side – which is a key element to the venture. We have already formed a JV Project Team with extensive e-Sports experience, proprietary video-gaming assets and existing ties to casino / resort / college contacts.  We will eventually raise the funds for this project through persons who already know how steep the growth curve in e-Sports is becoming and recognizes our group’s combined intellectual property and quality of operational planning.  What this will mean to Winning Brands shareholders, if we pull this across the finishing line, is a portion of the cash flow from the venture in the form of a perpetual royalty, without Winning Brands needing to have provided the seed capital.  There are also ancillary joint marketing spin-off co-marketing elements for Winning Brands.

 
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Picture - JV Discussion - Potency

Photo Caption:  The old rules are gone about how we are supposed to feel in middle age, or any age.

 

Nutraceuticals:  Today’s attitude to aging and potency is not our grandparents’.  As millions of boomers turn 65 years old every year now, there is unsurpassed interest in the healthiest way to achieve prolonged vigor to get the most out of life. An area of great interest is the impact on male potency of human growth hormone precursors – factors that stimulate natural testosterone and human growth hormone production, rather than artificial supplements which have the unintended consequence of lowering natural production.

Winning Brands is negotiating with the creators of a clinically proven and government approved product line in this sector that also has a proven sales track record during an earlier test-marketing phase.  Those creators are merging with a cannabis vend-in to their company and are in a unique position to allow Winning Brands to license the marketing rights for the product line against a profit sharing royalty back to the intellectual property holders.

The benefit to the licensor (owner of the intellectual property) of Winning Brands taking it over is to avoid confusion that the product line is somehow related to cannabis (which it is not).  The benefit to Winning Brands is to add a brand property that is in a cool sector with lots of growth potential as a desire purchase.  It is not only an aging population that desires maximum pleasure and capacity from living – this is our orientation to life today generally. Being the best you can be (rather than staying in a blah mode) is the way consumers are increasingly oriented.

Nutraceuticals are substances which achieve their effects from nutritive compounds rather than drugs.  As such they are regulated in a manner that provides more scope to aspiring smaller companies in research, development and marketing than for pharmaceutical products (conventional drugs, the pervue of big pharma).

There is a primal energy to this potential joint venture that is driving a lot of enthusiasm behind the scenes for getting this negotiation concluded successfully.   If we succeed in this negotiation, Winning Brands plans to leverage the encouraging results of that earlier test-marketing phase in order to gain certain listings and distribution that would not have be open to us if the product were not already so advanced in its development cycle.  These strategic lift  and quick-start factors are worth a lot of money.  Due to the circumstances in this transaction and the design of the proposed relationship, Winning Brands shareholders do not have to bear the cost, but still gain the benefit.

 

 

Picture - JV Discussion - Multi-Ethnic Food Partnership

Photo Caption:  World food specialties as a passion, and a service.

 

Food Specialties for a Changing Society:   A third joint venture example under development with Winning Brands is in the field of multi-ethnic food distribution contracts with key grocery retailers.  Winning Brands has for two years been thinking about how to tap into the fact that we all eat, several times per day, whether we want to or not – but we usually want to.  The pleasure principle is a strong driving force, especially when combined with the survival instinct!

So, that is why the food industry is one of the world’s largest and one of the most competitive, both.  Winning Brands has no intention to purchase another entity to enter this area, but rather to combine complimentary skills with some private companies who constitute a supply chain team as their vendor of record to large supermarkets who want to boost their offerings in the growing multi-ethnic sector.

In this example, Winning Brands is combining the talents of small importation and distribution partners who individually do not have the clout that they would as a group with the mission statement of world food specialties as a passion and a service.

Winning Brands has a large accounts receivable credit facility that can be deployed for the benefit of our emerging team if the supermarket group with whom tests are being conducted approve of the team’s performance during the test-marketing and test-delivery cycles AND if Winning Brands’ A/R facility granter approves the expansion of Winning Brands from the packaged consumer goods into the food category.  These are all moving parts.

The result of implementation would be that Winning Brands would experience an immediate increase in its cash flow and deposit history with its bank and eventually become a candidate for a range of larger conventional merchant advance facilities on an interest rate basis, rather than requiring stock issuance or convertible promissory notes.

 

The Paradox – Small Current Size, Substantial Plans

The apparent contradiction of a company that is so constrained in its resources pursuing substantial plans is not as contradictory as it seems.  Winning Brands is demonstrating ambition but is being realistic in structuring growth plans that leverage its creativity, experience, good relationships and astute opportunity recruitment.  The examples of possible joint ventures described above are only 3 of a larger number of candidates.  We are being conservative in presenting a limited number in order to keep it real.  We will overcome obstacles as they arise and make adjustments as necessary to ensure that 2019 and beyond is not a mirror image repeat of our earlier years. In the context of the OTC Markets environment, WNBD has exceptional determination to persist and advance.  Our current market cap measured in the hundreds of thousands can easily be catapulted to several million dollars even with the start of any of the JVs above, or others, and then tens of millions if any of those JVs actually deliver monetized results.

In the meantime, we need to pay attention to the basics and keep things solid at the foundation of our existing business.  The working capital funding that investment lenders will provide is put to good use to strengthen the company, and if sufficient in size, to restore our Current Information Tier reporting and other tasks.  There have been many times that we could ship larger quantities of our product to retailers in single deliveries, if our production financing were greater.

I am looking forward to the balance of 2019 and beyond more than any year before. We have a lot going for us.

 

Picture - 1000+ Stain Remover is shipping process

Photo Caption:  It’s easy to “talk” about doing business, but a large proportion of OTC Market stocks are “pre-revenue” and never get any sales.  All they do is talk.  Winning Brands is small – that is true, but we have physical products, high-quality retailer relationships and have survived the ups and downs of business cycles.  The pallet shown above, our 1000+ Stain Remover, is enroute to Lowe’s Home Improvement center in Canada.  The same product is available in the USA at Home Depot online:  

www.homedepot.com/p/1000-Stain-Remover-30-7-oz-Stain-Remover-181774/205795839 

 

Respectfully,

Eric Lehner, CEO
Winning Brands

Investors Hub Newswire Post

Date : 03/06/2019 @ 1:03PM
Source : InvestorsHub NewsWire
Stock : Winning Brands Corp. (PC) (WNBD)

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Winning Brands Activates Non-Dilutional 
Working Capital Financing Program

Brings JV Programs Closer

New York, NY — March 6, 2019 — InvestorsHub NewsWire — Winning Brands Corporation (OTC.WNBD) www.WinningBrands.com has taken the first step in activating a non-dilutional working capital funding program as an alternative to convertible note financing or other share issuance methods, in order to provide working capital for growth. A first installment from an initial participant has been processed today. Further participation is anticipated based on interest expressed.

Winning Brands had recently discussed in its social media accounts the company’s preference to avoid dilutive financing while still pursing certain joint venture ambitions as well as restoration of its PINK Current Information Tier under the OTC Markets alternative reporting guidelines.The discussion appears in a CEO weblog maintained for Winning Brands shareholders at www.WinningBrandsCorporation.com/blog. It is a journal of the company’s mission, providing answers to shareholder questions. The weblog is a regular source of public information pertaining to Winning Brands, pursuant to SEC Fair Disclosure guidelines. Winning Brands CEO Eric Lehner also maintains a Twitter presence:www.Twitter.com/WinningCEO.

 

There is no pre-set maximum amount of the Winning Brands working capital loan structure discussed with shareholders; however, minimum installments of $10,000 have been stipulated. The first participant has today made the required minimum advance, based on a 15% APR (annual percentage rate) Working Capital Financing Promissory Note format. Each advance is to be settled in installments between 90-180 days from the date of advance. The advance is not convertible into company stock. Such advances are linked by the company to specific operational goals that the company has already discussed publicly in the CEO weblog. In this manner shareholders can provide short term assistance to theircompany, helping it to progress to specific goals and seeing their funds at work through public operational updates.

 

The program is not a securities offering, and is not subscription-based because it is not convertible to any form of stock, nor is the arrangementtransferable to any third party or marketplace. Advances will be treated as short term liabilities for reporting purposes.

 

As a consequence of the commencement of the program, and the first $10,000 participant, the company is targeting the announcement in March of a new joint venture which will bolster Winning Brands reach into a new market to increase cashflow. Evidence of the implementation of this non-dilutive working capital program was needed by Winning Brands management, and the joint venture partner, to move to the next stage of their JV planning.

 

Winning Brands CEO, Eric Lehner, comments: “The dollar amount of this particular transaction is trivial in the big picture. The size is not the significance of this event, nor the reason for this information release. Instead, it is the fact that our mechanism now exists and has its first participant. This illustrates that interested parties now have a practical way to participate – it’s not just theoretical. The $10,000 minimum installment size makes the program accessible to many shareholders. We appreciate the leadership of our first participant. Their action will be beneficial to us all, as will be the support of additional participants. It is healthy for everyone’s interests. The more participation there is, the faster and better our progress can be.”

 

ABOUT WINNING BRANDS CORPORATION:  Winning Brands is expanding its scope to include cooperative product launches with innovators whose projects can benefit from public company partnership of effort: Winning Brands has previously been, and continues to be, a manufacturer of record for advanced environmentally oriented projects as it expands its product scope going forward for the benefit of its shareholders.

 

A MESSAGE FOR WINNING BRANDS SHAREHOLDERS: No arrangements have been made, and none are contemplated at this time, for the issuance of new shares for the conversion of convertible debt in connection to this news release. Furthermore, no arrangements have been made, and none are contemplated at this time, for a reverse split of stock.

 

 

General Corporate and Business Development:

 

Eric Lehner, CEO

WINNING BRANDS

92 Caplan Avenue, Suite 134

Barrie, Ontario L4N 9J2

Tel: (705) 737-4062 , Ext. 8

eric@winningbrands.ca

 

 

Safe Harbor: Statements contained in this news release, other than those identifying historical facts, constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions as contained in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relating to the Company’s future expectations, including but not limited to revenues and earnings, technology efficacy, strategies and plans, are subject to safe harbors protection. Actual Company results and performance may be materially different from any future results, performance, strategies, plans, or achievements that may be expressed or implied by any such forward-looking statements. The Company disclaims any obligation to update or revise any forward-looking statements. 1000+ Stain Remover is a trademark of Niagara Mist Marketing Ltd.

Shareholders Q & A – March 1, 2019

 

Thank you to WNBD shareholders for your interest in our next steps and for your related questions. To provide further context  for Winning Brands’ proposed strategy, the following overview is provided in Q & A format for convenience:

 

What does Winning Brands do now and what will be different going forward?

Winning Brands owns proprietary environmental cleaning product formulations and brand trademarks.  In the early days, the company was planning for the sale of these consumer products to be the basis of its growth and the company had its own factory for production.  It was not possible to gain sufficient sales growth, fast enough, for the company to be self-sufficient without public market financing.  Like many OTC companies, we had operating losses that needed to be financed.  Winning Brands has been reducing its losses every year since it began public filings and eventually reached break-even on a cash basis.  However the break-even point was achieved more by cost cutting than sales growth.  An example of the cost cutting was to shift from operating our own factory to contract packaging.  Winning Brands’ sales of its cleaning solutions has amounted to several million dollars in aggregate over time, but was not sufficient per year to be profitable in this one category.

The company has therefore decided to leverage its consumer product and retail experiences to work with additional product lines whose owners can benefit from a partnership of effort for mutual gain.  These will be “joint ventures” and will give WNBD shareholders more ways to benefit from their public company in the future.

 

If Winning Brands did not succeed before, why should its “experience” have value to someone else now?

Winning Brands did succeed in some important ways, but not in others.  What we did accomplish was to bring early formulations into contemporary regulatory compliance, gain retailer listings, develop widespread goodwill amongst tens of  thousands of consumers (to this day) and to remain in business despite the challenges. Survival skills have value too.

What Winning Brands did not succeed at is to achieve profitability soon enough to become self-sustaining.  The company became overly reliant on the Regulation D, Rule 504 stock issuance fundraising mechanism, at a vulnerable time in its growth.  When the Regulation D, Rule 504 mechanism fell out of favour with regulators,  and many companies were put into a partial deposit restriction for their DWAC eligibility, convertible promissory note financing was relied upon as an alternative.  However, this was unhelpful in the long run, because they were to be settled with share issuance at a floating exercise price that accelerated the pace of stock issuance.   The conversion feature of those notes had the OTC marketplace standard provision of being convertible at a price-per-share that was related to prevailing market price, rather than to a fixed price.  If a stock price is declining, this feature accelerates a downward spiral.  This is why that type of convertible debt is sometimes described as “toxic”.  If a share price is rising, this same provision can be beneficial to the company.  Whether the convertibility feature is “toxic” or not to the company depends on the trend-line of that company’s stock price at the time of conversion.

Settlement of Winning Brands’ convertible notes caused the outstanding sharecount to increase too rapidly.  This hampered our ability to raise replacement capital.  Rather having a second reverse split, the company instead chose to contract to a minimum crew operation, with outsourcing, and retain its core brands and several good retailer listings.   We lost some retailers, but kept others. To this day, Winning Brands’ lead product, 1000+ Stain Remover can be found online at Home Depot USA with good consumer ratings, in Do it Best hardware stores, Home Hardware, Lowe’s Home Improvement in Canada and other settings.

Therefore, Winning Brands does have considerable retailer and distribution experience, and good commercial relationships that it can deploy under the right conditions – meaning new non-toxic financing and an interesting expanded product mix via joint venture(s).

Winning Brands has spoken of joint ventures before.  This has not yet made the necessary positive contribution.  Why is that?

Joint venture partners are in a new relationship.  Like all relationships, it passes through phases.  If the parties sense in the very early stage (trial phase) that it’s not a good fit, then it is better to not proceed further, and find a better fit instead.

In the case of an air cleaning consumer product that Winning Brands was considering, Winning Brands determined early into the relationship that the inventor of that product was not comfortable making technical changes that Winning Brands considered necessary to achieve consumer appeal and to gain insurance underwriting.  The insurance factor was important because the product was plugged into the electrical wall outlet and required the use of water.  We wanted a re-design whereby the unit would operate from rechargeable batteries instead, or with a cord that removed it far enough from the outlet to ensure safety.  A test marketing campaign for the inventor’s original prototype did not yield sufficient sales results to warrant going into the next phase.  This confirmed Winning Brands’ concern.

In the case of of the tablet cleaning product, Winning Brands has not yet been able to raise the funds that it needs to contribute in order for the JV to fully vest.  This can still be cured and that relationship can be modified to suit future conditions.  This relationship is pending more financial heft by Winning Brands, and other moving parts in the equation.

Two additional additional JVs had been discussed publicly, one in the bakery field and the other in fintech.  In the absence of JV financing, Winning Brands encouraged  both those parties to connect with interested public companies that were in a position to acquire their operations.  It is not Winning Brands’ desire to hold back prospective businesses until Winning Brands finds a non-dilutive refinancing method.  Thus, those enterprises have carried on in their own destiny prior to the commencement of a joint venture and good relationships have been retained with Winning Brands.
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There are further JV possibilities –  these seem more likely to materialize under our present conditions.

Project 1 of this group is an additional food sector opportunity, Project 2 is a consumer product line with a twist that has real appeal for the OTC markets in a cool sector and Project 3 is a video gaming industry tie-in that includes a relationship with well-known and respected clients/associates.

The negotiations with these joint venture candidates do not require cash investment by Winning Brands.  In the case of these three, Winning Brands is contributing its insights, connections and shared work to own a piece of the commercialization, without having to buy those companies’ stock.  Those JVs will each be independently financed with the assistance of Winning Brands, but not through Winning Brands. Therefore, the dilution caused by that financing will occur in those enterprises, not in Winning Brands.

What Winning Brands must do to qualify to activate those joint ventures is to bring its reporting status up-to-date with OTC Markets and to perform certain internal arrangements to be able to deal professionally with those new partners and markets.  This is why a relatively small sum can deliver out-sized impact for Winning Brands shareholders in these projects.  There are additional candidates, however we need to focus on implementing properly before proceeding with too much too soon.

Are you doing a reverse split, and if not, why not?

The only time that a reverse split can be beneficial for shareholders is when the circumstances of the company are so much better that the new higher share price (that occurs as a result of the reverse split) can be maintained afterward.  This is not usually the case in OTC Market reverse splits because the companies performing them typically still have heavy dilution activity pending after the reverse split to satisfy more convertible promissory notes or to raise money to cover operating overheads.  In my opinion, the company needs to be in a self-sustaining (consistently profitable position) AND have access to other more conventional financing for a reverse split to be successful, from a shareholder perspective.  Therefore, Winning Brands has no present plans for a reverse split and is not even in any exploratory talks for this.

Winning Brands presently has a 2-step plan to acquire conventional non-dilutive financing.  Step 1: With a $50K non-dilutional, non-convertible loan, with a term of 6 months, Winning Brands can perform the administrative requirements to be fully current in the Pink Current  Information tier again and qualify to complete the negotiations for the three joint ventures described above.

The first of these joint ventures is of a nature that would deliver immediate cash flow to Winning Brands because Winning Brands will be utilizing its own $250,000 accounts receivable financing facility with a prestigious financial institution (when we are Pink Current Information Tier again)..  This A/R facility is one of the contributions that Winning Brands is bringing to the joint venture.  In other words, Winning Brands has both the retailer experience and A/R financing facility to allow that JV partner to increase sales fast.  Our JV partner is the sales expert, not me (our shareholders will be glad to know).    Trial shipments have already been made to test that partner’s ability to satisfy the initial target grocery store group with delivery and quality performance.   These trials were successful.  When Winning Brands’ A/R facility will be deployed, then Winning Brands will become the vendor of record and will quickly develop an attractive deposit history with our bank arising from a substantial flow of new business.  When this is proven to the bank and to other parties watching, and they persist for 6 months, then Winning Brands will qualify for many conventional merchant advance capital offerings in a much larger amount than the $50K kicker,  This will be the mechanism to payout the $50K, i.e. by means of the larger take-out conventional merchant advance mechanism.  That is Step 2. This generates no Winning Brands shareholder dilution, and will make more capital available to Winning Brands for enhanced professionalism and further opportunities.

The second and third joint venture referred to above can also deliver cash flow without direct Winning Brands capital investment, but the cash flow from those is not as immediate, because the financing of those projects through third parties will require approximately 2 months to complete, and then activation will require at least another 2 months.  In terms of scalability and reach, Project 2 and 3 may make a larger contribution than Project 1 – they will just take longer.

 

Any luck in obtaining the $50k loan? Any leads? Good luck!

Thank you.  Yes, we have a new lead.  I have always said that OTC market penny stock investors are bright and enterprising.  This environment provides good opportunities for people who have self-confidence and ambition on both the investor side and the emergent company side.   However, this lead may not come through, so I must emphasize that it is only a possibility, and cannot be counted upon.  Whoever does come through should be considered a natural leader because that person will have created authentically positive conditions for everyone, not merely for themselves.

Thank you again, Winning Brands shareholders, for your interest in the company and for your own “partnership of effort” in our success.  That is our goal.

 

Picture - Home Depot Logo

Picture - 1000+ Home Depot USA Mar 1 2019

https://www.homedepot.com/b/Paint-Paint-Thinner-Additives-Solvents-Cleaners/1000–Stain-Remover/N-5yc1vZc5bqZ9vn

 

Commitment to Reality

Over the past week, the company has received calls and correspondence from people purporting to be new shareholders, asking for news or assistance to increase the share price.

I have made it clear to all parties that I am only interested in arrangements that benefit shareholders as a whole, rather than participating in any promotional activity.

I have pointed out publicly since last year that non-toxic, not dilutional working capital would help maintain Winning Brands current status more consistently, and help to activate its joint ventures.

I have already gone through the exercise last year of people claiming to be part of investment groups promising loans if I would first help them increase the price of Winning Brands shares (for them).  I have refused to participate in any scheme that puts the cart before the horse.  If an investor or investors have the best interests of Winning Brands (and the value of their holdings) in mind, then the authentic approach is to strengthen the company itself as the first and most important foundation stone of share price appreciation.

Unless arrangements are genuine, then it is not worth doing.  Accordingly, this is what Winning Brands would do with $50K, for example, at the moment:   The following are the bullet points in shareholder correspondence that can be shared with anyone because they speak to the company’s integrity:

Priorities, contingent on financing:

  • Bringing all legal paperwork, accounting updates, and current information into compliance
  • Bringing two new joint ventures into operation to prove that Winning Brands can increase sales into new areas
  • No reverse split during the period
  • The company will put certain JV transactions into place that would increase Winning Brands genuine value as an enterprise by double the figure of its current market cap (as determined by projecting the real benefits of its proposed new joint venture(s))
  • The new relationships would be publicly announced during a 90-day period for the benefit of all shareholders equally
  • This is all achieved with a $50K non-toxic loan (not convertible) – repayable in installments beginning in 90 days and finishing in 180 days
  • In other words, for merely the value of one good day’s trading, I can accomplish all this for our shareholders from business arrangements that are already in the wings and waiting for Winning Brands to perform its public housekeeping and prepare.
  • I already proposed something similar publicly a year ago, but did not have a taker.  Perhaps your team is more capable and sincere.

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Over the past year it has never occurred that so-called stock buying teams are what they claim.

Winning Brands has always let it be known, publicly, that a non-dilutional arrangement is on the table for persons who are willing to conduct themselves authentically.

I have no interest in participating in any back-room arrangements.  This is why I state with total and complete confidence that the stock buying of the last week had no impetus from the company whatsoever and reflects no insider knowledge of any contemplated business that has not already been discussed publicly.

The company continues to appreciate any interest shown by current and future shareholders and will gladly deliver the best results it can based on the caliber of arrangements that it can make.

Respectfully,

Eric Lehner, CEO

 

 

 

 

Regarding WNBD Stock Volume & Price Increase

 

Our trading volume has increased significantly over the past week, and the stock price has doubled.  I am addressing these positive developments below, with confirmation that all WNBD shareholders have a “level playing field” regarding material information.  

 

  1. No one was more surprised than me to see the significant buying.  This buying has nothing to do with any privileged information regarding the operation of Winning Brands.  This volume has arisen from the decision by any number of people to take a stock position in the company while our market cap is low.  I do not know who they are, what prompts them, or what their trading plans are.  Therefore, any accumulation that is occurring is the result of  their independent evaluation of the likelihood that our stock will increase in price.  It happens from time to time that stocks trading in the low triple zero price range attract the attention of sophisticated sub-penny traders who are looking for companies that can increase again under the right circumstances.
  2. There has been no dilution.  No promissory note conversions have occurred and no strange arrangements, substitutions or deals have taken place.  The float has not changed.  The share structure figures were recently verified by OTC Markets and appear on WNBD’s Company Profile page.
  3. There is no discussion or planning going on for a reverse split.  This does not mean that there will never be one of course, however there are absolutely no discussions underway toward such an action either internally or with others.

 

On the subject of people contacting our office and having conversations, I offer these comments –

 

  • I ensure that I do not put people into possession of material information that is not already public.  I am prepared to clarify the meaning of earlier public statements if a shareholder has a question, and I am willing to take an e-mail address for our shareholder list.  I observe this principle no matter how “long” the conversation is that I have with someone.  If any shareholder is satisfied or enthusiastic after our discussion, I am pleased, but it will not be because of them being in possession of special knowledge.  I make the same point to everyone –  any investor willing to support Winning Brands in a manner that is beneficial for shareholders is welcome to discuss how they can help the company, and proper arrangements can be made.
  • I have made it clear to any such shareholder enquiries that the company requires capital for growth, but that I would rather find ways to accomplish this without dilution, or with minimal dilution.  Accordingly, the share structure was unchanged last year.  The company continues to seek strategic means to deal with the capitalization Catch-22.
  • The company will provide updated financial and operating reports to the OTC Markets as soon as the total package can be completed by the accountants and attorney required, and the company is in a position to pay all associated costs for this process, including the applicable OTC Market fees.

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  • Pending that, I will be providing an operational update in March to ensure that our shareholders have a clear picture of where we stand on our projects.

 

Summary –

Whatever the shortcomings of Winning Brands have been in the company’s pursuit of its business goals, the company’s integrity is a consistent factor.  We have pursued legitimate aims, and we have communicated with shareholders extensively over the years in a professional manner.  It is clear to me that the current market cap below $1 Million is not even remotely close to what I aspire to deliver through improved progress, using new methods to “get out of the rut”, to put it bluntly.   There are skeptics about our chances for success, and their doubts are justified.  Nonetheless, the recent increase in WNBD trading volume  illustrates that there are forward-looking individuals who see in Winning Brands certain character qualities that they appreciate.

I remain dedicated, energized and committed to our growth, despite the challenge of having insufficient capital to implement the company’s goals.  Winning Brands has many positive commercial relationships that can and will benefit Winning Brands under the right conditions. This makes it possible for substantial percentage gains in the sub-penny market.  That is why our new shareholders are here.  My goal is to deliver this.  We have done so in the past, and can do so again.

Respectfully yours,
Eric Lehner, CEO

 

 

Picture - WNBD - Trading Feb 2019

Year End Remarks

Dear Winning Brands Shareholders,

I apologize that it has not been possible to complete the restoration of the Pink Current Information Tier status in Q4 2018 as originally intended.

The launch activity for projects that were slated for advancement in the second half of 2018 did not proceed at the pace and in the manner intended.

The quiet period of the company in the second half of 2018 does not mean that the firm has abandoned its aspiration to revive itself meaningfully.

In light of factors that did not yet come together as hoped, it has been decided to postpone the restoration of the Pink Current Information Tier to follow the uploading of the remaining quarterly reports for 2018 and the annual report for the period ending December 31, 2018.  This would ordinarily be due by the end of March 2019, to be followed by a Legal Opinion Letter within 30 days thereafter.

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There are many examples of firms in the OTC Marketplace that do come out of a quiet period, resuming vibrancy and delivering a surprising new upswing. This remains our objective.

Respectfully,

Eric Lehner, CEO
Winning Brands

Picture - WNBD - Persistence

Update

The picture below shows how DAZZ Cleaning Tablets will be presented on the retailer’s shelf with neck-tag on starter bottles in test locations that are being organized for Q4, to supplement the existing re-fill clip-strip concept. Photos of DAZZ on the shelf will be provided at that time.  In-store testing was originally targeted for spring, but was delayed due to strategic planning around packaging issues.

Additional DAZZ initiatives are underway presently, including planned collaboration with a respected environmental organization geared to the reduction of plastic waste.

Winning Brands will bring its filings up-to-date in Q4 and will at that time also report on other corporate initiatives in projects that have been previously discussed.

This post is to confirm to shareholders that Winning Brands anticipates renewed vigor in connection with these events.

Respectfully,
Eric Lehner, CEO

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Picture - DAZZ - Neck-tags

 

Tremendous savings for consumers and the environment ensue when the use of pre-filled bottles of spray cleaner is replaced with highly efficient refill cleaning tablets.  Tablets are added to an empty bottle with regular tap water.  They self-activate through effervescence, creating a refilled bottle in minutes, with no shaking, stirring or later settling. This eliminates the need to throw away the bottle and is far more efficient than existing refill liquids.  The positive impact on waste reduction is immense. The photo below compares shipping conventionally packaged spray cleaners with an equivalent volume of DAZZ Refill Cleaning Tablets.

 

Picture - DAZZ compared to conventional - Volume

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