News
Letter to Shareholders
TORONTO-(Business Wire)-May 6, 2008 - Clearly Canadian Brands (OTCBB:CCBEF):
Dear Shareholder,
My name is Bobby Genovese, and I am the new CEO of Clearly Canadian Brands. My company, BG Capital Group, has been a major investor and controlling shareholder in CCBEF for the past 3 years. Recently, I felt it was in all of our best interests to take a more active role in the day to day operations for Clearly Canadian Brands. I believe this will help to insure that the company delivers on its incredible potential. In the last two years, we have made tremendous strides in the reorganization and redirection of Clearly Canadian Brands, and we are now positioned for great future success. We have now moved all of the company's operations to Toronto in an effort to consolidate operations, save costs, and centralize personnel. These actions will help to increase our margins and make a significant impact to our bottom line profitability. I am invigorated by this opportunity to help guide this highly recognized and respected brand name back to prominence. It is my pleasure to issue this corporate status report to all of our shareholders, and the investment community, who have shown so much interest and enthusiasm in the renaissance of Clearly Canadian Brands.
Since becoming CEO and Chairman of the company, it is with great pleasure that I can report to you that for the first time in over 10 years we have experienced top line revenue growth, as sales increased 42% in 2007 from $7.4 million to $10.6 million. In direct response to our decision to position Clearly Canadian Brands at the fore-front of the heightened consumer movement towards healthy, natural and organic products, we are now on track for continued sustainable growth. I must say that as excited and pleased as we are with the 42% revenue increase for 2007, we are even more excited about the prospects for 2008 and beyond. We are well into the major transformation of Clearly Canadian Brands, and are now a more diversified company, controlling numerous brands all focusing on the "Good for You Foods" market sector. We are forecasting another 50% growth rate for 2008 from our three existing product lines, Beverages, My Organic Baby and Snack Foods bringing these divisions to over $16 million in sales this year. We also anticipate closing several more strategic acquisitions that could significantly accelerate this already tremendous growth rate. Clearly Canadian Brands has now created extremely strong alliances with some of the world's major retailers such as Wal-Mart, Whole Foods, Loblaw's, Safeway, Shopper's Drug Mart and 7-Eleven. We have proven ourselves as a reliable supplier of top quality, innovative products that are delivered on time and at a fair price. We will now focus on growth by both horizontally expanding existing product lines and vertically adding stimulating new brands through strategic acquisitions. Our beverage division has been challenged by the significant cost increases in shipping and delivering our products, which has affected many beverage companies. We have spent the last nine months addressing this problem and feel confident that with the significant guidance of INOV8 Beverage Company, LLC we are now well positioned to significantly increase revenues in this division in 2008 and thereafter. We are extremely pleased with the progress made by INOV8 Beverage Company as they have completed mass focus group and industry trend studies, and are currently in negotiations with major bottling groups for an overall North American bottling agreement for our beverages. 2007 was a solid turnaround year for us, but it was not without its challenges. I strongly feel that 2008 will see us begin to emerge as a force in the fastest growing sector in the marketplace "Good for You Foods". Again I thank you for your continued support. -0- *T Clearly Canadian Brands Corporate Highlights: — Major Transformation for the Beverage Division to a concentrate model is underway. — INOV8 Beverages has now entered the negotiations phase of this all important move for our beverage division to a concentrate model for a North America wide bottling agreement. Thereby drastically reducing the production and delivery cost that have plagued our beverage division for years. — We have consolidated all operations to Toronto and have an infrastructure in place to take us above $30 million in revenues with minimal additional overhead costs. — The integration of the two major acquisitions My Organic Baby and DMR Foods is now complete with all divisions working from one infrastructure, resulting in tremendous overhead expenditure savings. — Strong balance sheet as of April 30, 2007 with approximately $5,500,000 in cash. — We are in a strong position to execute all of our marketing and sales initiatives, as well as continue to look for opportunities to add more quality brands names to our fast growing family. — The Reality Television Show About Clearly Canadian Is a Huge Success. — The 8 episode show entitled "Bobby G Adventure Capitalist" shown on Mojo-HD through most major U.S. cable providers has given Clearly Canadian Brands a high level of visibility and created many opportunities for the company. *T
These recent accomplishments at Clearly Canadian have built a solid base for the company to become a leader in the emerging organic and natural sector. With our multiple, "good for you" brand offerings; we have a strong platform to capitalize on strategic efficiencies and opportunities. We are focused on growing revenue, profitability and shareholder value.
Forward Looking Statements
Statements in this mailer that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including but not limited to future revenue projections. These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.
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