Winning Brands Corporation (WNBD)

[teddibear]

You missed most of it...but the small excerpt that you posted was right on the money.

Thank you to our “Longs”

January 14,2011


by Eric Lehner
CEO, Chairman Winning Brands Corporation

I would like our “longs”, ie the investors who have been with the firm as a long term holding, to know that I understand the appeal that some positive news releases would have right now. I understand the view that this could bring greater awareness to the company and stimulate buying of shares perhaps. I too would like to issue news releases that describe finished and substantial new business arrangements.

However, Winning Brands is at a very delicate moment with regard to these envisioned relationships. We have advanced in our standing with the top 3 companies in the primary business category that we are pursuing for Winning Colours Stain Remover. Whether being in a test, or short listed (ie a finalist amongst a larger earlier group of contenders), or being made to understand that there is a “high degree of interest”, Winning Colours is under active consideration by each of these retailers in a manner that we have never been before. It would be disastrous for the trust and confidence of these negotiations if I were to “leverage” these accounts for publicity value to offset doubt or skepticism by a few critics at this moment.

The maturity of Winning Brands in dealing with these retailer trust issues is one of the characteristics that is taken into account when buyers assess whether they can do business with a young company. Our senior account prospects are quite aware of what Winning Brands is - they know that we are an “emerging” brand, independent, driven by passion for our product and our customers – on a mission to become the favourite in our category. These buyers are aware that our funding structure can be a blessing, or a problem, depending on how Winning Brands handles things.

If our dealings with these accounts are product centred, professional and oriented to the development of mutual business goals – then it’s good. The passion that I’ve described is something that money can’t buy, and is appreciated. They know that America has rewarded spirited independent brands of this kind. Our enthusiasm brings positive energy to the department. Such enthusiasm can drive growth. On the other hand, if Winning Brands comes across as a “stock play”, with the company issuing unauthorized/premature news releases, or putting confidential business plans on the newswire in order to create buzz for trading purposes, then the same retail partners will feel “gamed” and not want the risk associated with “here today, gone tomorrow” promotions.

When the senior national buying personnel in such organizations look me in the face, shake my hand, and express trust in me and our approach (as they do), I take this very seriously. Winning Brands is building a reputation as a company that is laying a solid foundation in relationships and operations.

One of the oldest articles of wisdom is as simple as it is powerful: “All’s well that ends well”. There is absolutely nothing about Winning Brands’ present circumstances that cannot be easily remedied by the type of business success that would follow from activated accounts of this stature. Our share structure, our obligations, our share price – all this would easily be improved, vastly, if we get that solid business under our feet – and that is clearly becoming more likely now than at anytime over several years.

There is a small number of vocal naysayers on discussion boards who have created a credibility crisis for themselves. They are obsessed with predictions of failure, of my own incompetence, of the product’s shortcomings, trivial operational glitches, the market’s unfavourable characteristics or anything else they can find fault with. Our success would reveal them to have been nothing more than short sighted and boring critics. Their careless and inaccurate statements and assumptions that are designed to undermine our collective confidence can be seen for what they are. It is much easier to tear something down than it is to build.

The fact of the matter is that Winning Brands has survived longer than most public company start-ups in our peer group, has ethical management with a terrific product(s) and growing traction amongst retail partners that matter.

I thank our shareholders for your many e-mails and expressions of interest and support for what we are doing, and how we are doing it. The majority of our shareholders are clearly legitimate and insightful investors who “get it”: that Winning Brands is “real”, determined and is advancing toward its goals. The share price is going to catch-up and has shown itself capable of rising substantially on very small trading volume. When substantial, meaningful business arrangements are announced, that will be plain enough for all to see.