Gunther Grant Inc (GNGR)

[BL28]

New Update 09/24/14

Wednesday September 24, 2014

I won't be posting financial projections but I will post what we are doing to get back into the markets we have been in and need to stay in. I will first say that the SOAP programs we are offering are not deviating from our chocolate business. We needed to expand our Ad Specialty line to distributors so as chocolate orders come and go, so to do the soap and other ideas that are in the works.

As for CHOCOLATE, we are going to focus on ONE item "fudge minis" for 7-11s. I have a group I am meeting who will be 100% commission based sales reps for just 7-11's and delis (being there are as many delis and within close distance to 7-11's to justify selling to delis along with 7-11's).

The website will be down for now until we establish a significant amount of 7-11's. A list has been compiled and territories will be given out to sales reps. We did test our fudge minis in 7-11's locally that sold at retail for $2.49 with a wholesale of $1.25. Each case of 60 fudge minis per case came in 4 counter displays of 15 per display. The displays were 12" long and only 3" wide making them perfect for counter register sales at check out with out taking up much space on the counter. We had to STOP due to the use of the TOP HAT as part of the nestle issue so new art and labels needed to be re-printed.

nestle caused us to have to stop and answer their grievances and change our labeling etc., but they cannot and will not stop us from going back on the shelves of stores with far superior items that have little to no competition.

I will also offer incentives to each store for placing us on the counter next to the register such as: extra fudges per case to sell for more profits and some rebate incentives or a reduced wholesale price so each fudge mini will generate more than double their cost. Sales reps will visit each week for reorders and to make sure they adhere to the agreement as to where our fudge is displayed.

Our goals are to supply each 7-11 location (and deli) with a case of 60 (4 - 15 count displays) totaling $75 per store every two weeks (or more if they sell faster) and branch out from Suffolk County to Nassau and further on. Once we are able to show the sales and numbers, we will then compile that data and send to the 7-11 McLane distribution group for review to become nationally distributed, but that is putting the cart before the horse as they say.

I will post what 7-11's we will be in so anyone wishing to buy our fudge can go there and pick one up (or more) This way I won't have to sell and ship one here and one there from a website. There will be no pickles, bars, candy or holiday items until we achieve our goal of at least 100 7-11's FAST! and possibly 100 delis as well.

Marcie in Vegas will be working with her distributor and casinos as well with the Soap and casino promotions. Chocolate stores are all but gone in Vegas due to the heat. However we will introduce the fudge to gift shops and stores because our fudge won't melt like chocolate and shipping will be easy and cheap.

So the projections are a compilation of, start with what we know will be well accepted based on past sales and focus on that and than move on to new items which will be well received by those who are happy with the fudge sales, service and pricing.

Once I have the sales numbers that are consistent and show growth potential will I than post figures and move GNGR back to an attractive company. We my be in a slump and that was due to trying to be in every place, store, craft show, retail store, Internet etc etc etc. But like any other business (public or private) things have to be changed or corrected to move ahead better, smarter and more profitable.

Fudge first in 7-11's and delis, Marcie heading the west coast marketing and sales. After that will decide what to take back to market from our product line or what we can create to better our sales.

Things change, and focusing on ONE winner will be key to a better strategy.