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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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.
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