Winning Brands Corporation (WNBD)

[just_an_ant]

WNBD future lies in the USA initiatives

surrounding the DRTV (July/August)
surrounding the ECRM with 40+ appt with large buyers representing large USA national accounts (July)
Lancaster and Udell rollouts and continued rollouts into retailers and stores (July/August)

as well as sprouts internationally taking root....

the business plan isn't centered around one country or one particular retailer.....

it isn't about short term glory and selling shares of stock, but building a business and brand to last years, can't take a short cut for short term glory and sacrifice the long term plan.

I think some of the recent activity (in PPS) already reflects some of this event (or at least helps explain it).....

Things like this happen in business....

The buyer who was originally in charge indicated the desire to expand Winning Colours into all stores because of these positive leading indicators. A new buyer is now in charge, and has proposed new rules for the listing, including price adjustments and operational concessions.

Eric obviously doesn't want to lose the account or listing in some capacity (even if change in departments, aka move from paint to auto, pet, cleaning or laundry), but he can't compromise to the detriment of existing national retailers relationships (those existing and those in works).

Something that will likely take some time to work through. Will have these struggles/battles/discussions as change in management, etc. happens within national accounts.

What exposure does any retailer give us in Canada? Any relationship in Canada has at this point little impact on value or PPS with WNBD. Additions there are nice, but won't take WNBD to the next levels in the business plan.

It all hinges on growing retailers in USA and abroad (but mostly USA) and continuing to show an increase in sales and move towards the next phase(s) in the business plan. Walmart Canada is not going to get us there by itself. While Canada may represent $500k in revenues (is Walmart 10% of that?) it will be replaced by other retailer imo; what is important is reaching an equivalent mass in USA (4,000-8,000 stores with mix of national and local stores) and reaching 10x the 2009 revenue levels and reaching 5 million in sales.

250,000 folks buying a bottle a quarter = 1 million bottles sold at $4 wholesale that is $4 million in revenues and with 50% Gross Profit - self sufficient (break-even or close to it)

the next two months really sets the stage in my opinion..to show potential to close in on that 10,000 store level.