Investors aware of the growing global trend of eating and drinking healthier have watched the success of stocks like Whole Foods Market, Inc. (NasdaqGS :WFM) . Can you give investors some insight as to why your company chose to focus on the functional beverage and nutritional supplements sector?
A: Stephen F. Horgan, CEO (SFH)
The total non alcohol beverage market is over $110 Billion dollars in the US. Functional Beverages are approaching $15 Billion of that total. Our history is in nutritional supplements, which is where everything with our products emanates from. With the development of our proprietary flip-top cap delivery system, we were able to cross over into certain beverage occasions of nutrition conscious consumers. Our supplements provide a variety of solutions for these consumers looking for optimal nutrition delivery versus the minimal daily requirements. This is the case both with our dry line as well as our beverage line.
Q: Investorideas.com staff
You recently announced a distribution agreement that will potentially provide HARD Nutrition access to tens of thousands of retail outlets nationally. Can you give investors insight into the rollout of this agreement?
A: SFH
Our first priority will be to penetrate bell weather beverage markets geographically. This would mean Southern California initially, and eventually NYC. Our product has historically only been available in Colorado and it is time we moved outward from here to diversified markets with broader reach. Concurrently, we will begin speaking with national retailers about our products and the unique benefits it offers to their customers. The cycle on the former is much faster than on the latter so we would expect to see geographic progress ahead of national retail progress.
Q: Investorideas.com staff
Very few of the large domestic and international beverage companies have taken the steps to add stevia as a healthy sugar substitute. It appears to be a growing trend with some of the smaller niche beverage companies . Can you tell investors why you chose to have stevia added into your new reformulated drinks?
A: Dr.Bob Nikkel
The reason Hard Nutrition uses Stevia is because it is the only natural plant source that provides the sweetness taste in an all natural way without any calories, or side effects.
Q: Investorideas.com staff
In addition to your functional beverage product line you also have a wide array of nutritional supplements and vitamins to offer consumers. Can you give investors some insight on how you are continuing to develop and revamp these products?
A: Dr. Bob
We maintain a close watch on market and product developments as well as continually improving our products. Therefore are very aware of all new products, research their properties, constituencies and efficacy, and if we believe there is a component that can improve any of our formulas, in the interest of delivering consumer value and benefit, we will adapt as necessary.
Q: Investorideas.com staff
Can you explain to investors what sets your drinks apart from some of the larger health and vitamin beverage competitors?
A: Dr Bob.
The very obvious difference is that we deliver true functions, with all natural vitamins and herbal supplements for maximum efficacy. We have a patented delivery system that is distinctive and separates the beverage, or hydration aspect, and the dry supplement and vitamins. By doing this we deliver the function that the consumer desires, in a very flavorful and satisfying way.
When vitamins and supplements are added to the liquid the efficacy is reduced or even eliminated, due to heat applications for pasteurization. Moreover, the resultant taste of a drink when the vitamins and beverage are combined fails to meet the consumers expectations.
It is this unique and patented delivery flip-top cap system that really sets us apart. If you try to put enough nutrition in the drink you will get either a pungent and harsh taste, or so much masking flavor (sugar) will have to be added to make it taste pleasant that you negate the benefits the consumer is seeking. The maximum amount of nutrition that can be added into a drink is about 10% without resulting in a very harsh taste. This is why we separated the drink and the vitamin supplements in creating this first functional beverage system.
Q: Investorideas.com staff
In closing, can you give investors insight into your overall growth strategy for this year?
A: SFH
As soon as I began in June we immediately created 4 separate divisions for the company; Functional Beverage, Dry Supplements, Online and International. Although beverages will get most of the press, we expect that our Southern California and retail efforts in beverages will initially be enhanced by growth in our Dry Supplements and Online Divisions. International will be slower in developing and will take about a year before it will begin to contribute. We expect to be in the market with our new distinct, eye catching packaging in 30 days. We will also implement a very aggressive grass roots online, social media networking marketing approach to gain local consumers, and use that traction to expand the distribution network into other national markets that we believe have a consumer base that will embrace our nutritional dry and beverage products.
DC Brands International, a publicly traded company under the ticker symbol (HRDN), presently specializes in the manufacturing of its functional beverages and health products. Established in 1998, DC Brands began producing a number of lines of energy drinks in 2005. DC Brands then purchased the assets of H.A.R.D. Nutrition and began its quest to produce a new health line of products. DC Brands has recently announced the release of its new H.A.R.D. Nutrition Functional Water Systems, which it expects will revolutionize the functional beverage category. www.hardnutrition.com .
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