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To: RockyBalboa who wrote (8784)7/16/2000 7:08:29 PM
From: StockDung  Respond to of 10354
 
Clearly Canadian's Doug Mason under formal investigation

SWI Steelworks Inc - Street Wire

Clearly Canadian's Doug Mason under formal investigation

SWI Steelworks Inc SSW
Shares issued 5,974,703 Jul 10 close $0.45
Wed 12 Jul 2000 Street Wire

See Clearly Canadian Beverage Corp (CLV) Street Wire

by Brent Mudry

It is now official. Prominent Howe Street stock promoter Doug Mason is
under formal investigation for alleged secret and misleading offshore share
dealings, along with his long-time flagship company, Clearly Canadian
Beverage Corp., another of his public companies, SWI Steelworks Inc., and
his alleged offshore holding company, Forthdale Investments Ltd.
In a formal investigation order filed Wednesday in the Supreme Court of
British Columbia, the B.C. Securities Commission alleges Mr. Mason used
accounts at two Vancouver brokerages, Pacific International Securities Inc.
and Haywood Securities Inc., to secretly sell 150,000 shares of Clearly
Canadian in late 1994 and trade a total of 854,000 shares of SWI
Steelworks, then known as ESC Envirotech Systems Corp., between late 1994
and early 1995.
The serious allegations have not yet been proven, and Mr. Mason remains
presumed innocent at present. The stock promoter has not returned a call
made Friday, when Stockwatch first reported he was targeted in the offshore
securities investigation, and he could not be reached for comment Wednesday
afternoon.
Kelly Lendvoy, spokesman for Clearly Canadian and Mr. Mason, says this is a
"sensitive time right now" since Stockwatch broke the story of the offshore
probe. "The investigation involves interpretive issues, and Mr. Mason
believes that his conduct has not contravened any laws, specifically, any
provisions of the B.C. Securities Act," Mr. Lendvoy told Stockwatch.
"He continues to offer his full co-operation in the investigation, and he
wishes to dispel any suggestion that he has engaged in any misconduct
himself or acted in any manner contrary to any law," says Mr. Lendvoy.
Mr. Lendvoy, a four-year employee of Clearly Canadian, confirms that he
first found out about the BCSC's probe of his boss when Stockwatch's print
edition came out on Monday. "I certainly have talked to him a lot since
Monday," says the company spokesman.
The Mason investigation order was issued May 26, 1999, under the signature
of commissioner John Graf, two months after the BCSC issued another
investigation order, targeting now-disgraced prominent Vancouver securities
lawyer Michael Seifert. The Seifert investigation order, dated March 17,
1999, launched an international probe into the lawyer's secret personal
share dealings in the offshore enclave of the Channel Islands.
The Mason investigation order has now been made public, as it was filed in
court as part of the BCSC's challenge to Mr. Seifert's law firm, Maitland &
Co., which has been less than enthusiastic about handing over the highly
sensitive file on offshore client Forthdale, which is believed to be Mr.
Mason's company.
The BCSC made a formal demand for the top-secret Forthdale dossier, "file
number 94258," to Maitland six months ago, on Feb. 1, but outside counsel
Marvin Storrow has asserted solicitor-client privilege on the file.
In a Feb. 7 letter, Mr. Storrow suggested the BCSC should put the matter of
the secret dossier before a judge, and the commission has now taken up the
invitation.
The Mason investigation order names Mr. Mason, Clearly Canadian, SWI
Steelworks and Forthdale, also known as "JC573." The order empowered three
investigators: Robert Abrams, the commission's manager of investigations,
senior investigator David Martin, and fellow investigator Mark French to
probe Mr. Mason's affairs under the specific allegations.
The commission alleges that "Douglas Laurence Mason may have committed
violations of sections 57, 87, 155(1)(c) of the Securities Act."
The order claims the alleged violations relate to three series of
transactions.
The first is in respect to trading in the securities of Clearly Canadian,
by selling a total 150,000 shares through account no. 12-9638-3 in the name
of JC573 at Pacific International Securities between Nov. 11, 1994, and
Dec. 21, 1994. The stock traded at $2.40 on Nov. 11, at $1.80 on Dec. 21,
and in a range of $1.50 to $2.90 during this period.
The second is in respect to trading in the securities of SWI Steelworks,
buy purchasing a total of 650,000 shares through account no. 20-1169-0 in
the name of JC573 at Haywood Securities, on the dates of Nov. 10, 1994, and
Dec. 1, 1994. The stock traded at $1.00 on Nov. 10, 95 cents on Dec. 1, and
in a range of 90 cents to $1.05 during this period.
The third allegation is in respect to trading in the securities of SWI
Steelworks, by purchasing 180,000 shares on Jan. 17, 1995, and selling a
total of 24,000 shares on April 7, 1995, all through the Pacific
International account of Forthdale, also known as JC573.
The BCSC claims the transaction were "all without reporting said trades to
the commission at a time when Mason was obligated as an insider to do so
and, in the case of the (second trade) ..., in a matter that may have
created a misleading appearance of trading activity on an exchange in
British Columbia."
Under these allegations, Mr. Graf empowered the three investigators to
"investigate, inquire into, inspect and examine any person, company or
other entity relating to the affairs of the parties as they may reasonably
relate to trading in securities in Clearly Canadian Beverage Corp., SWI
Steelworks Inc., or any other British Columbia reporting issuer in which
Mason is or has been an insider, during the period from June 1, 1993, to
the present."
Mr. Lendvoy notes that Mr. Mason is quite displeased with revelations of
the investigation, as published by Stockwatch. "When you are co-operating
and you are negotiating, you hope it will be kept confidential. We don't
know what the resolution will be," says the Clearly Canadian spokesman.
Although Mr. Lendvoy notes he does not not know at what point any
negotiations are, he stresses that he hopes the matter is resolved soon.
As a result of the Stockwatch article, "there is a lot of speculation ...
it is damaging to Mr. Mason and the companies with which he is associated
... and obviously his focus is to end that speculation and to have the
opporunity to dispel any speculation that he has acted in any manner
contrary to any law," says Mr. Lendvoy.
Although the spokesman for Mr. Mason and Clearly Canadian notes that his
boss strongly rejects the allegations, it is premature to discuss details
of his specific defence. "They have not formally announced what they are
investigating yet," says Mr. Lendvoy, who confirms he has not yet seen the
investigation order.
When asked what Mr. Mason's relationship is with Forthdale, Mr. Lendvoy
says he does not know.
Mr. Lendvoy stresses that Mr. Mason is a fine upstanding member of the
community, and he hopes the current cloud will blow over soon. "I think he
is one of the leaders of the business community. He was on the VSE's
president's council in 1999 ... I think he has contributed a great deal to
the VSE and now to the CDNX, and he has contributed a great deal to the
business community," says the spokesman for Mr. Mason.
"I don't think there is any confusion about his leading position in the
business community," says Mr. Lendvoy, who adds that Mr. Mason is eager to
dispel any speculation that may tarnish his reputation.

(c) Copyright 2000 Canjex Publishing Ltd. canada-stockwatch.com



To: RockyBalboa who wrote (8784)7/16/2000 7:11:15 PM
From: StockDung  Respond to of 10354
 
But why would Richard Geist recommend Clearly Canadian?->"In research, we found that consumers were familiar with the product and had only good things to say about it," says **Jonathan Cronin**, vice-president of marketing for Clearly Canadian. "But they didn't see it anymore. There was one consumer that summed it up for us by saying, 'I know your bottle's there on the shelf, but I just don't notice it.'"
March 13, 2000
by David Todd

'Out with the old and in with the new'-
Clearly Canadian dispenses with familiar look in effort to regain lost ground.

It begins with the white heat of passion, and ends with the Arctic chill of indifference. It's a glorious thing to be an object of desire, longed for each and every day. But all too soon, ardour fades. Eyes that once were filled with love gaze in your direction...only to look right through you. In that instant, the seeds of fear are sown: Could it really be over?

So it goes - in romance, and in the $8 billion North American "alternative beverage" market. Just ask the folks over at Vancouver-based Clearly Canadian Beverage Corporation. In the past several years they've watched the consumer's relationship with their Clearly Canadian brand of fruit-flavoured sparkling waters pass from head-over-heels infatuation to the most tepid sort of fondness.

"In research, we found that consumers were familiar with the product and had only good things to say about it," says Jonathan Cronin, vice-president of marketing for Clearly Canadian. "But they didn't see it anymore. There was one consumer that summed it up for us by saying, 'I know your bottle's there on the shelf, but I just don't notice it.'"

How to re-ignite the blaze of passion? Lovers have been known to go to spectacular lengths - and that's exactly what the Clearly Canadian brand has done in its bid to recapture a place in consumer's hearts.

"If consumers weren't looking for the brand anymore, then we needed to give them something that would attract their attention and make them seek it out," Cronin says. That "something" turned out to be a radical packaging overhaul, which made its debut March 1.

Packaging has been critically important to Clearly Canadian ever since the brand first hi t the market in 1989. Its bold look - the distinctive clear, pear-shaped glass bottle - stood out dramatically in a sea of cans and plastic containers, communicating in no uncertain terms that this product was indeed something new under the sun.

At the time, the alternative beverage category (which encompasses just about everything that isn't a soft drink or a dairy product) represented no more than $600 million in annual sales. However, the arrival of Clearly Canadian, with its striking package design and unusual flavours, proved one of the catalysts for growth in this market.

In recent years, consumers have seen a profusion of new brands in the category - from sports drinks to iced teas to premium sodas, many with unique packaging twists of their own. According to industry estimates, Cronin says, the average North American now drinks an estimated 103 different alternative beverages in the course of a single year.

When it comes to this kind of product, the youthful target audience tends to crave the new and different - and therein lay Clearly Canadian' s dilemma. After a decade on the market, the brand had begun to look a whole lot like yesterday's news. Sales had been sliding for five years, and showed no sign of turning around on their own.

"For several years, we've been trying to figure out a way to inject the brand with some life," Cronin says. "And by this year we'd come to the realization that it needed a significant marketing effort behind it if it was going to survive at all - let alone grow."

The brand had updated its packaging in 1997, deepening the blue of the bottle and adding more vibrant graphics to convey the fruit flavours. But when the Clearly Canadian team sat down last spring with their packaging design agency, Vancouver-based Karacters Design Group (a division of Palmer Jarvis DDB), they quickly agreed that more radical cosmetic surgery was in order. The brand needed to regain what it had in 1989 - namely, a look that set it apart from everything else in the cooler.

"The consumer chooses 103 different beverages a year, and we want to be one of those," Cronin says. "And the only way we can do that is to be different from the other 102, in a very compelling way."

The redesign proved, in its initial stages, a frustrating process. The common-sense approach was, of course, to modify the existing design - thereby preserving the equities associated with that look - rather than taking a clean-slate approach. Try as they might, however, the designers at Karacters couldn't find a variation on that theme that stood out the way the original did in 1989. Little by little grew the realization that a more drastic change might be called for.

"We went through this awkward teenage stage of trying to retrofit bits and pieces of the equity into a new design, and that obviously wasn't working well" says Matthew Clark, associate creative director with Karacters. "So finally we said, 'What if we threw out all of the sacred elements? What could we do if we started from scratch?'"

It wasn't an easy proposition to accept, notes Maria Kennedy, vice-president and creative director at Karacters. The existing design, after all, had the virtues of familiarity and recognizability. The more they studied the research, however, the more evident it became that consumers had stopped noticing the old bottle. So what was there, really, to lose?

"We were holding [the old design] way closer than anybody else out there," she says. "We were thinking it was more important to keep those elements than consumers did."

The new Clearly Canadian bottle has a sleeker, more contemporary line, and makes much bolder use of colour. The shrink-sleeve label that covers the bottle is completely opaque, save for a "window" that affords the consumer a glimpse of the product inside. Each flavour's label is a different hue (red for Strawberry Melon, mauve for Blackberry, green for White Grape, and so on), with a subtle tone-on-tone pattern to lend added visual interest. The underside of the coloured label is a frosted white, so that the bottle seems to glow slightly when one peers through the window.

(For the new diet products that Clearly Canadian is adding to its line, Karacters reversed this design: The shrink -sleeve label is predominantly translucent, except for the "window" area, which is full-colour and opaque.)

In all, Karacters produced close to 40 different design prototypes, incorporating just about every type of colour, shape, and imagery imaginable. But from the moment the designers put this concept on the table, Cronin says, everyone realized they were on to something special.

"It stood out among all the others as a 'wow' package," he says. "I just couldn't keep my eyes off it - it was that special... It filled the same role that the original bottle did, in a fresh and different way. It made a statement about what the brand is: premium and sophisticated."

While the opaque, full-colour label lends dramatic impact, the translucent window still allows Clearly Canadian to showcase a key product attribute: its clear, clean appearance.

"The window gives a hint as to what's inside," Kennedy says. "But where before we showed it completely, now we're just giving you a little glimpse - and that almost makes it sexier."

Bottle shape was another key consideration. The alternative beverage category, Clark says, is dominated increasingly by "bulbous, overcomplicated" shapes. The new Clearly Canadian bottle, by contrast, is slender and fits easily into the hand - a particularly important consideration, given that the brand's consumers tend to skew female. (It's also taller, and has greater volume: 14 ounces, versus the old bottle's 11.)

"Keep it simple" was the philosophy that guided just about every major design decision. When it came to typeface, for example, the team settled on Helvetica New - a clean, classic style that helps to reinforce the "premium and sophisticated" positioning.

The only element of the label with any complexity at all is the new Clearly Canadian logo - a stylized "CC" orbited by several smaller circles, embodying the effervescence of the product. "It's almost like an exclamation point on the bottle," Kennedy says, "It's not the biggest thing on there, just an element that gives a little extra emphasis.

Clearly Canadian began shipping the new bottle throughout Canada and the U.S. at the start of the month. (No advertising is planned at this stage. Rather, the company has poured most of its resources into securing additional listings, and developing materials for support at the retail level.) Cronin says major distributors have responded enthusiastically to the change - and he anticipates a similar reaction from consumers.

The new design, in his view, answers all of the brand's requirements. It has the kind of stopping power necessary to capture the attention of style-conscious young consumers. And it conveys a more contemporary image, without seeming hopelessly trendy.

"Doing something for the sake of being trendy would undermine the proposition of the brand," Cronin says. "We don't want to be perceived as fleeting."

Kennedy agrees, "We didn't want to do something just for the sake of today's fashion," she says. "When Clearly Canadian first came out, people gravitated towards it because they had never seen anything like it. And that's what we wanted to do again."

Back to Press Clippings



To: RockyBalboa who wrote (8784)7/16/2000 7:18:50 PM
From: StockDung  Read Replies (1) | Respond to of 10354
 
Clearly Canadian Corp->"Richard Geist, who publishes an investment newsletter, says Orbitz is just the most visible sign of a turnaround. He thinks the stock will take off and double in a year. Insiders like Mason and other officers now own 25% of the shares, up from 10% last year. After Orbitz, Mason plans to introduce exotic herbal and other drinks. He's also sitting on about $15 million worth of cash and is hungry for acquisitions. A Canadian juicer may be the first swallowed."

Tastes Like Lava Lamp clearly.ca
Fortune Magazine, June 1996.
Written by Eric Schonfeld

In what will either be the next craze among fifteen year olds or the latest dud to enter the annals of marketing misfires, Clearly Canadian Corp. (CLCDF, Nasdaq) is set to launch a unique drink called Orbitz. Resembling a mini-lava lamp, each bottle contains a whipped up gelatinous fluid in which fruit flavored gelatin spheres are suspended. (Yum!) CEO Doug Mason hopes kids will be hooked: "This could be another Hula-Hoop," he enthuses.

A few years ago Clearly Canadian's soda helped usher in the "clear" soft drink fad. Its 1995 sales (not yet reported) are estimated to have declined more than 25%, to about $50 million. The Vancouver company is expected to post a loss because of restructuring charges and consumer migration to iced teas and fruit drinks. Long since fallen from its 1991 high of $24 per share, the stock is now trading near $3.50.

Richard Geist, who publishes an investment newsletter, says Orbitz is just the most visible sign of a turnaround. He thinks the stock will take off and double in a year. Insiders like Mason and other officers now own 25% of the shares, up from 10% last year. After Orbitz, Mason plans to introduce exotic herbal and other drinks. He's also sitting on about $15 million worth of cash and is hungry for acquisitions. A Canadian juicer may be the first swallowed.

Back to Press Clippings