EMPO Progress Reports

Empowered Products takes PINK® and Gun Oil® to Meet the Market at NACDS Convention

September 3, 2014

We are pleased to report to our shareholders that we just completed this year's National Association of Chain Drug Stores (NACDS) convention, which was held on August 23rd through 26th in Boston, Massachusetts. This is the 3rd consecutive year Empowered Products has had a booth at the show including our participation in Meet the Market. This year, we met with numerous companies including Walgreens, Walmart, HEB, Sam's Club, CVS, and the Chain Drug Marketing Association - to name just a few.

A key advantage of the NACDS over most other tradeshows in this market segment is that the NACDS offers a unique Meet the Market component prior to the official start of the show. Meet the Market typically commences the day before the show's opening and presents an opportunity for Empowered Products, as a vendor, to conduct face-to-face meetings with buyers from our product category.

Meet the Market proved very fruitful for Empowered Products in 2012 and 2013 as it provided an excellent opportunity for us to introduce our products to key buyers in the national retail chain sector. This led directly to product placement of our PINK and Gun Oil brands in many of the major national chains including CVS, Walmart, Walgreens, and Rite Aid. At this year's convention, we enjoyed a bit of a shift with the national retailers as we now have recognition and product placement with many of them and are able to move directly into discussions regarding increased product mix and quantities. 

Already in 2014, we've benefited from increased profitability of our active sales relationships with the major U.S. retailers, and we anticipate a continuance of increased shelf-space from our current chain presence, which is presently as follows:

  • CVS: 6,300 U.S. retail locations
  • Walmart: 600 U.S. retail locations
  • Walgreens: 7,000+ U.S. retail locations
  • Rite Aid: 4,548 U.S. retail locations for PINK(R) Silicone / 3,705 U.S. retail locations for PINK(R) Water
  • Kroger: 1,400 U.S. retail locations
  • Target: Online retail sales at Target.com

As mentioned, the NACDS presents a unique venue for one-on-one meetings with key buyers from national and regional chains that currently carry our products. At this year's meetings, we enjoyed numerous positive discussions regarding sales initiatives for the coming year, product expansion strategies, discounting programs, and advertising campaigns presently in the works.

Additionally, many of the smaller chains and pharmacy buyers, most of whom have now had a year or two to see how well our products move, are becoming increasingly interested in adding our PINK and Gun Oil lines to their store shelves. At this year's NACDS, we made several contacts with these smaller chains, which utilize distributors such as McKesson and Cardinal Health. We see these buyers as key to our continued penetration into this market segment as the major distributors like to see this type of widespread product support.

Scott Fraser, president and CEO of Empowered Products, commented, "Our annual presence at NACDS continues to promote access to the national retail mainstream sector for our PINK and Gun Oil brands of proprietary lubricants. This access is proving to be a key contributor to our company's increased sales and net revenues thus far in 2014. We are currently implementing that same successful strategy toward gaining comparable access to the national chain retail space throughout the European Union."

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