The following is from the Management Report posted on the AQCB website July 14, 2000 ...............
New, Larger Packages
Many investors, distributors, and retailers are unaware that we've been bottling 1-Liter and
1.5-Liter packages since April of this year. These packages have met with a great reception
where sampled, because it's the same fine product in more economical sizes. These new sizes
were actually requested by some of existing accounts and some of the new accounts we're
pursuing.
GNC Southeast Region Fulfillment
So far, GNC stores in Florida, Alabama, Mississippi and Tennessee have received their initial
deliveries of the Aqua Clara FLA USA 20-oz. product. Many stores in Florida have exhausted
their inventory and ordered additional product. In addition, some stores have ordered 1-Liter and
1.5-Liter packages to offer their customers larger, more economical sizes.
New Sports Cap
While they haven't hit the shelves yet, we've begun using a new, fully tamper-evident sport cap,
which doesn't require the hard-to-remove shrink seal on the neck of the bottle and the cap. This
is seen as a significant enhancement, particularly for those suffering from arthritis or those who
couldn't see the perforations in the band due to poor vision. It also costs less than the current
cap.
Expanded Availability
Building on the GNC Southeast Region agreement announced several weeks ago, Aqua Clara has
been in aggressive contact with several large distributors about taking our product into their
systems, making it available to the general retail market throughout Florida, and beyond. One of
these, a national distributor that does in excess of half a billion dollars per year, has expressed
strong interest, and the next meeting is between Doug Cifers and owner of the national
distribution company. That meeting takes place Tuesday, July 18, 2000.
In addition, we hosted an open house for potential regional distributors on Thursday, June 6, at
our offices. The meeting was attended by four groups from the Midwest, and one from Florida.
Representatives from a Northeast distribution company, who couldn't make the Thursday
meeting, met separately with Jack Plunkett on Saturday, June 8, about representing Aqua Clara in
their distribution area. All parties are very interested, and follow-up discussions are ongoing.
Website Enhancements
Finally, as you probably noticed (if you're reading this on our site), we've been busy making
some additional improvements. Some of these changes have streamlined the loading process,
while others have added content to the site, like this report.
Other currently planned changes are a product locator page and functionality to allow the direct
download from the site of our SEC filings.
BRAND DEVELOPMENT, MARKETING and LOOKING AHEAD
Doug Cifers' business philosophy is unique and is uniquely affecting the company. He believes in
win-win relationships and approaching each project untraditionally where possible. Doug often
has been heard saying, "if we market ourselves as traditionally as all others in the same industry,
then we can expect to be no better than others." He also firmly believes in relationship
development. "Honest relationships have been the foundation of my businesses since day one.
They also are the key to continued business development," says Cifers.
FLA USA (Visit Florida) spends close to $50 million each year branding their trademark. By
co-branding the water with them, we benefit from their dollars and marketing expertise. Having
the Florida Department of Agriculture endorse our water is significant in many ways, but perhaps
most so because FDA is also Florida's consumer protection agency. Florida Media's magazines
reach more homes in Florida than any other form of media. So, we now have a high profile
brand, quality product, multiple sizes, endorsements by Florida Sports Foundation and
Department of Agriculture, and the means to drive people to the market. Doug has signed on a
national sports celebrity to endorse the product and soon will solidify a marketing agreement with
a marketing expert to hone our message and its delivery to maximize the market drive. He is also
working on several other equally significant celebrities. Expect details on distribution, marketing
and celebrity endorsement/advertisements/commercials after Doug returns from his visit with the
national distributor.
END OF REPORT |
