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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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
