It is from my request regarding their prior logistical concerns. Many thanks to all who provided insight. It would be expected to have logistics issues when greatly increasing distribution networks in such a short timespan.
We'll be able to tell over the next couple of quarters whether these sales were real or filling preliminary inventory levels.
“We are very excited to upgrade our manufacturing partner. They have the capacity to meet our growing demand and are committed to effectively managing all the rigorous quality systems that drive our business, from raw materials and manufacturing to packaging and distribution to ensure MusclePharm finished products are safe, effective and FDA compliant for customer use,” added Mr. Brad Pyatt.
DENVER--(BUSINESS WIRE)--MusclePharm® Corporation (OTCBB:MSLP - News), one of the fastest growing nutritional supplement companies in the United States announced the shipment of $1.4 million of multiple MusclePharm products from its new manufacturing partnership in the past six weeks.
MusclePharm’s multiple products have expanded into 1,200 of the top GNC stores in the United States, as well as over 450 Vitamin Shoppe stores. MusclePharm’s award-winning products — Assault®, Battle Fuel®, Bullet Proof®, Combat Powder®, Recon® and Shred Matrix®—are also available online at gnc.com, bodybuilding.com, amazon.com and many other locations.
“The MusclePharm brand, which is closely aligned with the rapidly growing UFC, and the sport of MMA, is expanding into many health and wellness channels beyond these core markets,” commented MusclePharm’s Chief Executive Officer Mr. Brad Pyatt. “Our unique nutritional formulations backed by a highly targeted branding campaign are making MusclePharm products a part of many fitness enthusiasts, including world class athletes as well as anyone who wants to live a healthy lifestyle.”
The Company expects its new manufacturing partnership, which is CGMP and NSF certified, will ensure superior product quality and will improve shipping efficiencies in the coming quarters. All product development materials are qualified in their in-house laboratory equipped with the latest in analytical technology including High Pressure Liquid Chromatography (HPLC), Gas Chromatography (GC), and Fourier Transform Near Infrared (FT-NIR). They also have Atomic Absorption for Heavy Metals analysis and Solaris for accelerated microbial testing.
MusclePharm Inks Deal With Canadian Distributor American Nutrition Inc.
Kim Chapman 4 February 2011 Health No CommentPrint This Post Print This Post Email This Post Email This Post
DENVER, — MusclePharm(R) Corporation (OTCBB:MSLP – News),one of the fastest growing nutritional supplement companies in the United States, is excited to announce that it has signed a deal with Canadian distributor American Nutrition Inc. (ANI) to distribute its popular products to a growing Canadian market.
ANI noted MusclePharm’s innovative supplement line as one of the major reasons in agreeing to the deal.
“As President of American Nutrition, I am very pleased and excited to be offering such a unique and high-quality brand to our customers. As a past all-Canadian football player, I know how important it is to take the right supplements,” ANI President Renzo Passaretti said.
“MusclePharm is a company made up of athletes who are developing products for athletes and this is the key to their success. With all the customer support and advertising, it is becoming a must-have supplement line for any retailer in the industry.”
Currently, MusclePharm, which recently announced it is on pace to hit its first million-dollar sales month in company history for January, is currently distributed in approximately 200 retail stores in Canada, including General Nutrition Center (GNC) and Reflex.
The availability of the highly-regarded product in Canada will now greatly increase thanks to the agreement with ANI.
“Signing with ANI, a top-notch distributor, will now allow us to fully meet the strong demand of the Canadian market for MusclePharm products,” MusclePharm President Cory Gregory said.
“Canada having one of the largest MMA fan bases, and with our recent partnership with Canada’s top bodybuilding and fitness federation the WBFF, we now have all the pieces in place to rapidly penetrate the Canadian market and increase our retail presence throughout Canada.”
Gregory also revealed that MusclePharm is in the midst of expanding its distribution list in a major way throughout the world.
“Not only have we picked up ANI, but we are in the process of finishing up paperwork right now that includes working with 20 new countries direct,” Gregory said. “We strongly feel this is the start of a major MusclePharm movement.”
Well, in a nutshell here was the deal. As you know when you are a new company, and you are trying to get into a large platform like GNC, Vitamin Shoppe etc, it takes incredible efficient systems. So the problems started when the products were to be manufactured. The manufacturing ran past schedule, or then ran short, or had every problem that a start up company can have. In my small business, we had a terrible time just making our little systems work. Can you imagine how difficult it would be to get these systems efficient when you are dealing with this much product, from scratch non the less. So it was basically growing pains with the "systems." I believe you said your company was 800 mill. Can you imagine how important your systems are and what it would be like to start all over from scratch. It is painfull. If you want more detail I will get it for you. Thx.
I'm in Corporate Treasury and still do the same thing even though we're swimming in cash as well. It keeps some healthy stress to a business relationship.
Can you provide insight into the logistics issues they encountered last year?
Mr. Jour, Great points. This was exactly the case last year when MP was not getting the revenues because the logistics were a mess. Now however things are much better and bills are paid. Trust me on this. Not saying that they are 100 percent current, my own company is never 100 percent current because I will hold my A/P as long as I can even when I have the cash (which I do) because you never know what can happen.
"founded through the melting pot of many cultures"
along with the destruction of the Indian nation. Anyone who says any negatives about minorities coming to America is a disgrace. You wouldn't be here if your ancestors didn't wipe out entire race of people.
I work for a $800M company that held their A/P up to 3 times beyond terms to help muster through the tough economic times. I'm sure they're doing this until sufficient liquidity is sustainable. This is normal business. A/P will normalize in the near-term. Delayed A/P payments for a distressed company is normal. We now have cash out the wazoo because of delaying A/P. Companies of all sizes do this.
The main question is how fast will the topline grow? This is where it could get exciting.
My thoughts are that this was a $20M one-time marketing expenditure as this should not be expected on a recurring quarterly basis. As they continue to enhance their presence through bricks & mortar along with their online presence their sales will continue at a great clip eliminating the need for the strong marketing funding experienced in Q1. We'll see what Q2 has in store.
If the topline grows, as I would expect, and more historic marketing spend was experienced, anyone holding a short position is going to be burned bigtime. Also, they don't have the current excess cash on hand to be able to incur another significant marketing push. They'll be relying on positive cash inflow or further dilution in order to do another. Not long yet, but looking forward to Q2's story. Could be very interesting.