Letter To Shareholders From Creative Edge Nutrition, Inc.
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.
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