Of these losses, $2.8m in 2008 and $4.2m in 2007 were non-cash charges related to the issue of common stock, warrants and options. The company stated that the majority of the company’s losses for 2008 were due to investment ploughed into marketing the brand, establishing a distribution network and building its sales and marketing team.
Despite failing to move into profit last year, the business is bullish about the future and highlighted that it achieved total sales of $2.1m in 2008 – an increase of 189% compared with 2007.
The company launched new formulations of its Skinny Water product line in June 2008. Since then, Skinny Water’s zero calories proposition has been embraced by customers, retailers and distributors. The business is now distributing product to 32 distributors in 19 US states, and Skinny Water is available in more than 2,100 chain locations.
Ron Wilson, the company’s president and CEO, said: “Since I became CEO on 1 December 2008, my goal has been to create a long-term, sustainable business model. In pursuit of this goal, we’ve already made a dramatic reduction in our cost of goods. As a result of this and other initiatives, we expect our gross margin to improve in future periods. We anticipate that sales growth and improved margins growth will provide us with the funds to support the continued expansion of the Skinny brand.”
Source: Skinny Nutritional Corp
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