Jul
05
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Shareholder Question: Inventory
1000+ in the Community, Launch Activity
by Eric Lehner
Topic: Inventory at Canadian Home Depot.
We have received a shareholder request to comment on the status of Canadian Home Depot stores and 1000+ Stain Remover.
That account is serviced for us by a distributor. Winning Brands has received no direct communication from the retailer indicating a change in status of the product, and no price discounting has taken place at the shelves to the best of our knowledge, however it would appear that stock is not being replenished when depleted at the store level.
Review of the situation with the distributor has revealed the distributor’s plan was to provide space for 1000+ in the Cleaning Department instead of the Paint Department (where the presence of DIY cleaning supplies has apparently been reduced by the retailer across its plan-o-gram). As of the time of this posting, the arrival of 1000+ in the Cleaning Department has not occurred. The company is investigating what the operational status and issues are. Conventionally, the manufacturer would not interfere in routine operations of the distributor representing the product, however the current situation is clearly unresolved and not acceptable.
For context, it should be stated that a similar situation arose for Winning Brands before in which its product had an interruption of a retailer’s shelf presence (Walmart), which was eventually resolved with a complete resumption of the shelf presence.
In summary – a review is underway to determine whether circumstances in this case can be addressed in the same manner that provided a positive outcome previously. Until then, it would be unprofessional for Winning Brands to discuss the operational negotiations as between the distributor, the retailer and ourselves.
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