Just received today:
ALTA NATURAL HERBS & SUPPLEMENTS LTD. (AHS:ASE)
#1148 20800 Westminster Highway, Richmond, BC V6V 2W3
MEDIA RELEASE
Retail Expansion With Hudsons Bay Co.
Company initiates North American vertical integration strategy
For Immediate Release Tuesday October 13, 1998 6:00 AM EST
Vancouver, BC Raymond J. Irvine, Alta Natural Herbs & Supplements Ltd.s Vice President, reports that The Company has signed a three year license agreement with The Hudsons Bay Company of Canada to take over the operation of The Vitamin Stores at The Bay.
The agreement, in which The Company pays a percentage of gross sales in lieu of rent, allows Alta to enter the Canadian retail market on a large scale, backed by one of the countrys most respected retail names, without any major cash outlay.
The three-year agreement commits Alta to opening six stores on or before October 15, 1998 and a total of fifteen stores on or before November 24, 1998.
The Company will open a total of forty retail outlets within the Hudsons Bay chain in the first year of the agreement. During this initial one-year phase, The Company will assess the merits of expanding into additional Hudsons Bay locations, which are not currently served by a Vitamin Store outlet. If attractive, Alta will roll out all additional locations on a schedule agreeable to both parties.
The first six locations scheduled to open October 15th are Surrey BC; West Vancouver BC; Coquitlam BC; Victoria BC; Kewlona BC; and Saskatoon SK. The second round of openings scheduled on or before November 24, 1998 are Downtown Vancouver BC; Langley BC; Richmond BC; Burnaby BC; Surrey BC (2nd location); Oakridge (Vancouvers 2nd location); Downtown Calgary, AB; Chinook Mall (Calgarys 2nd location); and Downtown Winnipeg, MB. Each of these existing fifteen locations currently generates an average of $20,000.00 per month in net revenue after license fees.
"The Company wins big on three fronts." said Irvine "First we now capture the full retail margin on all products sold through these locations, second we are able to greatly enhance our brand recognition in the market by establishing our own retail presence and third, through this partnership with a major retailing power such as The Hudsons Bay Company, we are moving closer to achieving our goal of becoming a world player in the multi-billion dollar natural food supplement industry."
This move into retailing is the companys first step toward establishing a North America wide retail presence.
Information:
Raymond J. Irvine
Local Vancouver 604.689.0087
Toll Free 1.800.969.7222
altanat@axionet.com
<http://www.alta-natural.com/>www.alta-natural.com
The Alberta Stock Exchange has neither approved nor disapproved of the contents of this release. |
