Here are further thoughts about the positive course we are charting for Winning Brands.
Over the past several years Winning Brands has formed good relationships with distributors and service providers. These teams know and like our proprietary products very well and are familiar with our commercial customers. We have been exploring with these allies the possibility of expanding their role to become responsible for Winning Brands sales management and product fulfillment.
These allies have a broader account base over which to distribute the overhead costs that are associated with these functions, while also having suitable infrastructure to help grow our brands with enthusiasm.
In the adjusted model, Winning Brands would perform a supportive role but would not need to carry a duplicate infrastructure. Winning Brands would therefore experience substantial cost savings, including personnel.
Continuous cost reductions have been a feature of Winning Brands annual financial reports for several years and are a source of pride because they are difficult to achieve. After this additional efficiency is introduced, Winning Brands may be able to achieve net profits for the benefit of stakeholders. Operating profit would enable Winning Brands to do two key positive things; reduce debt and improve stock liquidity. The key factor needed in order for this arrangement to benefit Winning Brands stakeholders is that the sales and fulfillment partners would need to be genuinely enthusiastic about growing our proprietary brands to their considerable potential. The choice of partners has therefore been carefully considered in planning this approach.
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Beyond my modified responsibilities at Winning Brands, I will identify joint venture opportunities in the realm of new products and services that will be separately funded and will operate outside of Winning Brands cost structure rather than drawing on Winning Brands resources. This would ensure that Winning Brands stakeholders have the full financial benefit of Winning Brands’ improved profitability.
The arrangement is “win-win”. Winning Brands stakeholders can look forward to new successes for their brands in a new alliance with business allies, while those allies gain new sales opportunities with Winning Brands’ proprietary brands. This fresh thinking addresses the company’s current circumstances and opportunities realistically.
Implementation of this plan requires completion of negotiations and operating details. The plan will be described in the 2015 financial statements which will be filed with OTC Markets in due course, which filings will also restore the Current Information Tier.
