***Eric's Comments on Surefil***
Winning Brands Official Response to your enquiry:
Surefil, a company with a reputation for excellent quality in all aspects of its operations has taken the farsighted step to make a proposal to its supplier and creditor group to manage the unusually tight credit environment by rescheduling payments of various normal commercial obligations to better match the flow of production. This measure does not undermine the ability of Surefil to continue to provide top quality services to a range of top tier customers. It is anticipated that this measure will be withdrawn in due course as the benefit of the rescheduled payments will be felt in operations of that firm.
Winning Brands, is one of several customers of Surefil, and has experienced no impact of this adjustment by Surefil in its creditor arrangements. As a practical matter, Winning Brands has always retained sufficient internal production capability to provide continuing product flow, regardless of the circumstances of any single supplier. The primary role of Surefil in the Winning Brands business plan is to ensure that surges in demand which exceed Winning Brands internal production capacity can be met quickly and cost efficiently by avoiding the need to increase Winning Brands internal plant capacity.
Winning Brands has a policy of “secondary sourcing” wherever possible. This is an arrangement by which Winning Brands can turn to alternative sources of products and services from an alternate supplier in the event of an interruption for any reason from a primary supplier. In the matter of contract filling, Winning Brands has such alternate arrangements available and tested. Winning Brands however prefers to support our valued and respected business partners where appropriate. In this case, the technical filing by Surefil is not a material development.
Eric Lehner, CEO