October 30, 2015 A Message to Shareholders from Matt Veal on the State of the Company HJOE
Hangover Joe’s Long Term Outlook Enthusiastic:
It’s easy to find reasons to be concerned about Hangover Joes – stockshorters having damaged the market for our common stock making and leaving heavy pressure from the remaining unsettled derivative financing for starters – but the long term prospects continue to provide management with confirmation that their original belief in the company will be proven to be correct as our growth and revenue is telling another story. We continue to make great strides in adding more sales and revenue and adding dealers and distribution. We are on target to reach 100 dealers in top markets in the USA in the next 12 months .Our current assessment is as follows:
• The size of the hangover market is even bigger than we thought. New York Daily News put out an article stating the cost of hangovers in the U.S. alone is more than $249 billion dollars alone. Drinking is on the rise, Hangovers are affecting a serious part of the labor force, and the news coverage of the issue is greater than ever. We are still the top hangover recovery brand in the USA solely dedicated to morning hangover recovery, and we see increasing space in the market for us in the future. We have more and more buyers on a national level taking with us than ever before, and by building the brand via the dealer’s network will bring more attention to the company and brand and added value for shareholders. When you find us in 100 markets over the next year, it becomes apparent, we are making and impact on the market and creating a new category and brand. This is a functional lifestyle brand that has a large audience and reach and a strong consumer base. This is a driving force to our success, the need in the market place and a consumer base that loves our product. We have sold millions of shots since 2009 and the brand is know and established. From the branding with the Hangover movies to our promotions the brand is finding its place into retail channels and acceptance.
• The trend towards healthy consumer products is picking upsteam – so again our leadership in an early stage category of healthy energy has plenty of room for expansion in the future as well.This is a huge market segment that will continue to grow. We have very large chain buyers talking with us about Git R Done Energy and with the support of Larry The Cable Guy it gives us lots of credibility as a brand and buyers who are looking for healthier choices. We are able with Larry to bring marketing and social media that is value added for chain retailers and our dealer’s network.
• Our turnaround from some well documented issues in 2013 is underway, not with out a few hiccups, but very well underway. 2013 brought our operation to a virtual standstill for over a year from what happen with our manufacture, not being able to support our needs and other matters that cause problems supplying international customers as well as stores in the USA and Canada. We acted swiftly and resolved this problem! Today our production is state of the art, with United One Labs of Dallas, Texas as strategic partners. We have had to rebuild that trust and have done that and also shown that we can deliver to our retailers and customer base. This has taken a lot of hard work but we rolled up our sleeves and never quite and have position ourselves to lead the categories. Over all it’s the products that that are good and consumers like and use them, the product works and perform for our customers, we have this feed back all the time from consumers and distributors, retailers, and dealers. The need in the market is well documented with repeat sales and with the distributors and retailers. We are now building the ground forces to go and take the market share that exist for this brand that we created. SMS is also doing their part and a great job with the dealership programs and we cannot be happier of their successes and ours. The training provides to the dealers and the support in the field and follow up is excellent. This is also being refined as we learn gain data and move forward.
We completed a successful soft launch of Git-r-done energy in 2014, and proved the brand had legs. We have very much increased our sales in 2015, with both brands, with some very promising opportunities ahead. We are on target to achieve the numbers and goals we have set in the short term for the company. We are on target to provide very positive numbers compared to 2013 and 2014 as I will not state these numbers yet for good reasons but I can assure we are increasing revenue and value. We wish some deals would move faster than they are, but we are working on various fronts both domestically and Internationally. We are getting ready to run another production run for South Korea, and we expect the South Korean market to continue to grow rapidly in 2016 and continue to expand as they add more chain retail and branch out into other sectors of Asia such as Japan etc. This market is going to be a strong revenue stream for the company. We are also working on other fronts internationally and going through the process of government approval in other areas of the world. The Hangover Recovery Shot will be a global brand, and we will see this brand expanded in North America, Asia and Europe over the next year or two. Our new program with Specialty Marketing Systems is catching on in a very big way here in the United States. We are in the early stages of working out FDA-types approvals in ten (10) more countries, so we see lots of good things ahead. We have much on our plate and we are busy daily working to establish long term distribution globally and building these brands.
•The Market for financing for small companies is shrinking – and the financial issues of our economy are well documented, but we have been assured we can finally obtain the financing we are looking for upon the achievement of the larger planned sales in Korea and Canada to go with what we have built so far. We are just a few bridges away from changing the nature of this company forever, this will come to pass. The turn around is in place, we just need to keep moving forward and doing what is needed to get the company to the next level. One of our main investors Gene Gilstrap is continuing to invest in the company and is providing other resources to help in management and growth, he is a strategic partner who is behind the company and continues to support us financially as well as aid support in many ways. Management is still having to share the pain of the investors - dwindling values of our holdings, and pressures from convertible lenders who have long since recouped their original investment with a profit. Attempting basher campaign in an attempt to scare new investors and typically trying to cause conflict, that at the end of the day in the long run this does not effect what we do and will not. Still, we have in the past found a way to achieve what many thought couldn’t be done and we are still convinced we are going to win the war as we fight the battles and continue to move the company forward daily.
We appreciate the patience of those who believe in us but still wish we could do more. We will financially report when the time is right as I stated before. We have a few bridges to cross before we do this. We have increase revenue dramatically compared to the last filings and we are on track to reach our short term goals with long term goals in place for the next few years. We will continue to move the company forward into 2016. We are building a global brand and have a tiger by the tale. I am addressing our longs, the believers in this address. We are going to Git R Done for HJOE. We again wish to express our gratitude to our friends for supporting us, particularly with aggressive paid bashers all around us, and look forward to promising times ahead once we’ve completed this current challenging phase in our history. To our enemies we will continue to frustrate you as well. We have a compelling store to tell and in time we will tell that story. We are staying the course and focusing on building our brands and supporting our dealers and working on more international distribution. Keep the faith. I thank you for your support.
Matt Veal
CEO
Hangover Joe's HJOE
Hangover Joe’s Long Term Outlook Enthusiastic:
It’s easy to find reasons to be concerned about Hangover Joes – stockshorters having damaged the market for our common stock making and leaving heavy pressure from the remaining unsettled derivative financing for starters – but the long term prospects continue to provide management with confirmation that their original belief in the company will be proven to be correct as our growth and revenue is telling another story. We continue to make great strides in adding more sales and revenue and adding dealers and distribution. We are on target to reach 100 dealers in top markets in the USA in the next 12 months .Our current assessment is as follows:
• The size of the hangover market is even bigger than we thought. New York Daily News put out an article stating the cost of hangovers in the U.S. alone is more than $249 billion dollars alone. Drinking is on the rise, Hangovers are affecting a serious part of the labor force, and the news coverage of the issue is greater than ever. We are still the top hangover recovery brand in the USA solely dedicated to morning hangover recovery, and we see increasing space in the market for us in the future. We have more and more buyers on a national level taking with us than ever before, and by building the brand via the dealer’s network will bring more attention to the company and brand and added value for shareholders. When you find us in 100 markets over the next year, it becomes apparent, we are making and impact on the market and creating a new category and brand. This is a functional lifestyle brand that has a large audience and reach and a strong consumer base. This is a driving force to our success, the need in the market place and a consumer base that loves our product. We have sold millions of shots since 2009 and the brand is know and established. From the branding with the Hangover movies to our promotions the brand is finding its place into retail channels and acceptance.
• The trend towards healthy consumer products is picking upsteam – so again our leadership in an early stage category of healthy energy has plenty of room for expansion in the future as well.This is a huge market segment that will continue to grow. We have very large chain buyers talking with us about Git R Done Energy and with the support of Larry The Cable Guy it gives us lots of credibility as a brand and buyers who are looking for healthier choices. We are able with Larry to bring marketing and social media that is value added for chain retailers and our dealer’s network.
• Our turnaround from some well documented issues in 2013 is underway, not with out a few hiccups, but very well underway. 2013 brought our operation to a virtual standstill for over a year from what happen with our manufacture, not being able to support our needs and other matters that cause problems supplying international customers as well as stores in the USA and Canada. We acted swiftly and resolved this problem! Today our production is state of the art, with United One Labs of Dallas, Texas as strategic partners. We have had to rebuild that trust and have done that and also shown that we can deliver to our retailers and customer base. This has taken a lot of hard work but we rolled up our sleeves and never quite and have position ourselves to lead the categories. Over all it’s the products that that are good and consumers like and use them, the product works and perform for our customers, we have this feed back all the time from consumers and distributors, retailers, and dealers. The need in the market is well documented with repeat sales and with the distributors and retailers. We are now building the ground forces to go and take the market share that exist for this brand that we created. SMS is also doing their part and a great job with the dealership programs and we cannot be happier of their successes and ours. The training provides to the dealers and the support in the field and follow up is excellent. This is also being refined as we learn gain data and move forward.
We completed a successful soft launch of Git-r-done energy in 2014, and proved the brand had legs. We have very much increased our sales in 2015, with both brands, with some very promising opportunities ahead. We are on target to achieve the numbers and goals we have set in the short term for the company. We are on target to provide very positive numbers compared to 2013 and 2014 as I will not state these numbers yet for good reasons but I can assure we are increasing revenue and value. We wish some deals would move faster than they are, but we are working on various fronts both domestically and Internationally. We are getting ready to run another production run for South Korea, and we expect the South Korean market to continue to grow rapidly in 2016 and continue to expand as they add more chain retail and branch out into other sectors of Asia such as Japan etc. This market is going to be a strong revenue stream for the company. We are also working on other fronts internationally and going through the process of government approval in other areas of the world. The Hangover Recovery Shot will be a global brand, and we will see this brand expanded in North America, Asia and Europe over the next year or two. Our new program with Specialty Marketing Systems is catching on in a very big way here in the United States. We are in the early stages of working out FDA-types approvals in ten (10) more countries, so we see lots of good things ahead. We have much on our plate and we are busy daily working to establish long term distribution globally and building these brands.
•The Market for financing for small companies is shrinking – and the financial issues of our economy are well documented, but we have been assured we can finally obtain the financing we are looking for upon the achievement of the larger planned sales in Korea and Canada to go with what we have built so far. We are just a few bridges away from changing the nature of this company forever, this will come to pass. The turn around is in place, we just need to keep moving forward and doing what is needed to get the company to the next level. One of our main investors Gene Gilstrap is continuing to invest in the company and is providing other resources to help in management and growth, he is a strategic partner who is behind the company and continues to support us financially as well as aid support in many ways. Management is still having to share the pain of the investors - dwindling values of our holdings, and pressures from convertible lenders who have long since recouped their original investment with a profit. Attempting basher campaign in an attempt to scare new investors and typically trying to cause conflict, that at the end of the day in the long run this does not effect what we do and will not. Still, we have in the past found a way to achieve what many thought couldn’t be done and we are still convinced we are going to win the war as we fight the battles and continue to move the company forward daily.
We appreciate the patience of those who believe in us but still wish we could do more. We will financially report when the time is right as I stated before. We have a few bridges to cross before we do this. We have increase revenue dramatically compared to the last filings and we are on track to reach our short term goals with long term goals in place for the next few years. We will continue to move the company forward into 2016. We are building a global brand and have a tiger by the tale. I am addressing our longs, the believers in this address. We are going to Git R Done for HJOE. We again wish to express our gratitude to our friends for supporting us, particularly with aggressive paid bashers all around us, and look forward to promising times ahead once we’ve completed this current challenging phase in our history. To our enemies we will continue to frustrate you as well. We have a compelling store to tell and in time we will tell that story. We are staying the course and focusing on building our brands and supporting our dealers and working on more international distribution. Keep the faith. I thank you for your support.
Matt Veal
CEO
Hangover Joe's HJOE
