MADISON HEIGHTS, Mich. , Oct. 12, 2012 -- Creative Edge Nutrition, Inc. (PINKSHEETS: FITX), a nutritional supplement company focusing on active lifestyles.
Since my last letter to you on September 7th, 2012 there have been a number of developments in your company which I wish to comment on. Since I was appointed as CEO of the Company on April 6, 2012 , our Board of Directors had a clear vision and strategy in mind: build a vertically integrated nutrition company that can conceptualize, create and sell direct to the consumer and for Store Only Brands while leveraging strategic distribution partners globally.
I would like to personally thank everyone who stopped by the Creative Edge Nutrition, Inc. booth during the Mr. Olympia Expo. The decision to exhibit at this Expo was extremely important because of the International Distributors in attendance compared to the other major Expos is significantly higher. My mission is to catapult Cenergy Nutrition into a brand which is recognized on a global scale.
The response to the sampling of (Science Defined Nutrition) new INOVA - Blue Raspberry, and Grape pre-workout as well as the re-formulated (CENERGY) Amino Plex - Fruit Punch and Hyper Infusion - Orange was awesome! It created a buzz for sure. You know you have a winning product when you see people coming back time and time again to fill up bottles and shakers of your product.
The Creative Edge Nutrition's team was able to meet with several of the US distributors and International Distributors that service all of Europe , Australia , Canada , Mexico , Latin America , Malaysia , as well Major US Corporate Retailers and Franchises. Our products were so popular, people walked away with Cenergy bottles without asking! From the mouths of the international distributors and international chains, our packaging and products were the talk of the show. We handed out thousands of samples of our products, shaker cups and t-shirts. Our products were a hit! We are now in the enviable position to be able to pick and choose which chain and which distributors will get our products.
The importance of the vertical integration model:
Imagine a company that can conceptualize, create and sell a product in house direct to the consumer. This vertical integration creates multiple layers of profit. A product produced in house adds 35% Gross profit to the bottom line, also add the typical 25% to 30% gross profit made by a distributor to our bottom line; Then add the 20% to 35% retail markup. This is where our acquisitions of e-commerce sites is key to profitability. Our ability to sell direct to the consumer provides multiples levels of profit most brands miss out on. ALL kept in house. As you can see our record in the past we have aggressively grown by acquisitions and we are aggressively seeking other nutrition companies to consider for acquisitions.
In the past few months we have made the following acquisitions.
SDN (Science Defined Nutrition): a cutting edge supplement company with hardcore products that give hardcore results! These products are all natural and are being currently used by professional athletes, college and high school athletes; in addition to weekend warriors. They are not your typical supplements. SDN has distribution with Body Temple UK, Muscle Finesse UK, Fitnessone.com for Canada , Europa Sports Products, Lone Star Distribution, to name a few. www.sciencedefinednutrition.com
SCD Enterprises: Owns and operates 4 internet sites, a direct mail company and a fulfillment company. 4 high traffic E-commerce sites and a past proven successful direct mail company. With these acquisitions, we had the pleasure of having Fred Auzzenne join our company. Fred is a successful entrepreneur who took a prior nutrition company from $8 million in sales to $ 27 million in sales which was ultimately sold to a publicly traded company. Fred brings a wealth of business acumen and is available to our board for advice at a moment's notice.
SciFit, Natures Science and For Store Only brands were acquired and will be a revamped to modernize the line. These brands have established distribution in 20 countries and have been sold by bodybuilding.com, Complete Supplements, I-Supplements, Muscle Master, Pro Source, SB MUSCLE, Netrition, Vitamin Shoppe, Tigerfitness, Supplement Central, World Class Nutrition, Extreme Forces USA , A1 SUPPLEMENTS, JUST ADD MUSCLE, Supplement Warehouse, TSN NUTRITION, VITA SPRINGS , Vitamin World and Vita Cost to name a few. Some of the largest players in the US supplement market.
Innovative Fulfillment Corp. The purchase of Innovative is another well designed strategic move for Creative Edge Nutrition, Inc. due to the fact that this will continue Creative Edge's vertical integrated concept. Innovative Fulfillment Corp, provides fulfillment services to outside brands. With our state of the art call center, we are able to provide superior customer service for our brands and others.
Cenergy Brand: we have formulated and completed the packaging for the Cenergy Brand. We are ready to manufacture and sell these brands. We utilized only the best ingredients and one of the nation's top flavor houses. Amazingly good tasting products that work! Brand logo and packaging labels were created by Mr. Clark Mitchell www.mitchell-ink.com who has done work for Star Wars, Coca Cola, Transformers, Indiana Jones, Coors Light, Corona and the NFL.
We have signed an employment contract with Mr. Chad Nicholls who worked previously for Hitech Pharmaceuticals; a pioneer in the supplement industry. Chad also worked for SciFit. Chad has sold in excess of $40 million dollars of supplements in the past 10 years. Chad is a huge asset to our team. His love of the industry and connections are unsurpassed.
I am very proud of our distinctive, innovative and hard working company and the many keen insights we have developed that have guided our bold moves over the past year. More important, I am profoundly excited about continuing to execute the vision of Creative Edge Nutrition, Inc. We also encourage you to take the time to familiarize yourself with our other products by visiting our websites and Facebook.
We will leverage our acquisitions and strategic partners to enable continued organic and inorganic growth to support our goal of creating long-term shareholder value.
Best Regards, Bill Chaaban Chairman and Chief Executive Officer
About Creative Edge Nutrition, Inc.
Creative Edge Nutrition is a holding company and a Nutritional Supplement Company focused on developing innovative, high quality supplements. The company offers a broad spectrum of capsules, tablets, and powders, as well as science based products in the principal categories of weight management, nutrition challenges, energy and fitness. The Company manufactures under strict GMP guidelines at GMP Certified and/or FDA registered facilities. www.CenergyNutrition.com and http://www.facebook.com/pages/Creative-Edge-Nutrition-Inc/115224738609211
About Sci-Fit Natures Science
Sci-Fit offers over 600 products to fit every athlete, no matter what the sport or level of competition. While the professionals prefer our products, we also cater to the "enthusiast" who just wants to look and feel his or her best every day. www.scifitauthentic.com.
Supplementstogo.com is one of the leading online retailers in the market today for discount supplements! Always focusing on the hottest products and what provides the best results for their customers, Supplements To Go has made a great name for themselves in the world of nutrition. To find out more about SupplementsToGo.com, please view the site www.supplementstogo.com.
A-Z-Nutrition.com is one of the best known e-tailers of discount nutritional supplements. Providing its customers over a decade of quality products at the best prices around, A-Z-Nutrition supports its customers with a portal that is easy to use and to the point. To find out more about them, please view their site www.a-z-nutrition.com.
About Innovative Fulfillment Corp
Innovative Fulfillment Corp. provides fulfillment and other logistics services businesses within the direct to consumer channel. To find out more about them, please view their site
Safe Harbor Notice This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
SOURCE Creative Edge Nutrition, Inc.