SOUPQ Soupman Inc. Recent News Updates 09-29-2017
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SOUPQ Soupman Inc. Recent News Updates 09-29-2017
NEW YORK, June 13, 2017 /PRNewswire/ -- Soupman, Inc. (OTCQB: SOUP)("SM"
, a producer and marketer of high-quality branded soups bearing the name "Original Soupman" today announced that it has filed for Chapter 11 bankruptcy protection.
SM also announced it has secured a new $2 million debtor-in-possession credit facility ("DIP" from an independent third-party private investment firm to finance its working capital needs and allow business operations to continue as normal.
Michael Wyse of Wyse Advisors, LLC has been hired as Chief Restructuring Officer and Interim Chief Financial Officer of SM.
"The combination of legacy liabilities and recent company developments have made it necessary to seek bankruptcy protection. This will ensure that our delicious soups remain on grocery shelves throughout the country which is in the best interests of all of our stakeholders and customers."
"The ongoing support from our lender through our new DIP facility will allow us to continue business operations as normal. We anticipate that there will be no disruption in the quality of our product or service that we provide to our vendors and customers during this transition period," said Jamie Karson, CEO.
The Chapter 11 petition was filed in the United States Bankruptcy Court in Delaware. The law firm of Polsinelli is advising SM as bankruptcy counsel.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the Company's ability to raise the capital it needs to remain in business. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to continue to reduce liabilities and expand our product line and distribution, our ability to execute our business strategy and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-inc-files-for-bankruptcy-protection-300473491.html
SOURCE Soupman, Inc.
STATEN ISLAND, N.Y., May 25, 2017 /PRNewswire/ -- Soupman, Inc. (OTCQB:"SOUP" , makers of gourmet soup made famous on "Seinfeld", today announced that it has hired Michael Wyse as its Chief Restructuring Officer and Interim Chief Financial Officer, effective immediately. Mike is the Managing Partner of Wyse Advisors LLC, with more than 19 years of experience advising companies and other constituents through stressed, distressed and turnaround situations.
"The Company has immediately filled the functions of the CFO position to manage our business and lead the efforts to explore all strategic funding alternatives. I am confident in Mike to spearhead this process," said Jamieson Karson, CEO.
About Soupman, Inc.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. For additional information on our company please visit: www.originalsoupman.com, Twitter@OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the Company's ability to raise the capital it needs to remain in business. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to continue to reduce liabilities and expand our product line and distribution, our ability to execute our business strategy and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-hires-michael-wyse-as-interim-chief-financial-officer-and-chief-restructuring-officer-300464417.html
SOURCE Soupman, Inc.
STATEN ISLAND, N.Y., May 23, 2017 /PRNewswire/ -- Soupman, Inc. (OTCQB:"SOUP" , makers of gourmet soup made famous on "Seinfeld", today announced that its Chief Financial Officer and President, Bob Bertrand, has been suspended after being indicted on federal tax fraud charges for alleged misconduct for the period 2010-2014.
"The Company is deeply shocked and saddened by these events. The Company will be immediately launching an internal investigation to determine whether its public filings need to be amended for the period in question or any subsequent period based upon the allegations," said Jamieson Karson, CEO. "Moreover, we expect that this news will not make it easier for us to raise the capital we need to remain in business."
Mr. Bertrand, was charged in Federal Court in Brooklyn, New York with 20 counts of failure to pay Medicare, Social Security and federal income taxes for the period between 2010 and 2014. As alleged in the indictment, from 2010 through 2014, Soupman's total approximate unreported cash and stock compensation was $2,850,967.59, and the total approximate tax loss to the United States was allegedly $593,971.52. Current CEO, Jamieson Karson joined the Company in August, 2015.
About Soupman, Inc.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. For additional information on our company please visit: www.originalsoupman.com, Twitter@OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the Company's ability to raise the capital it needs to remain in business. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to continue to reduce liabilities and expand our product line and distribution, our ability to execute our business strategy and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-chief-financial-officer-robert-bertrand-suspended-after-being-indicted-on-tax-charges-300462847.html
SOURCE Soupman, Inc.
Jamieson Karson CEO Letter to Shareholders
STATEN ISLAND, N.Y., Jan. 20, 2017 /PRNewswire/ --
FROM:
JAMIESON KARSON
CEO AND CHAIRMAN
SOUPMAN, INC. (OTC: SOUP)
Dear Fellow Shareholders,
In the Q1 2017 fiscal quarter ending November 30, 2016 which has just been reported, the total revenue for this quarter was $1.050 million, our Tetra Pak sales increased 121% over Tetra Pak sales vs. Q1 2016 on top of the 92% Tetra Pak sales increase for the fiscal year ending August 31, 2016 over the prior year. We are encouraged as this is the fourth consecutive quarter of Tetra Pak sales increases and we exceeded our earlier guidance of 117%.
We believe this increase is primarily due to the following factors: (i) increased varieties of soup on shelf per store over last year; (ii) increased case sales per store from an average of 1.5 cases sold per month per store last year to an average of 2.7 cases sold per month per store this year and (iii) increased store count bringing the total number of stores to approximately 6,500 stores. In this month's letter, I have set forth an analysis of our marketing and promotional efforts over the quarter measured against our results. Targeted marketing and promotional efforts including sampling, in-store radio and personal appearances by the "Soupman" at stores and in the media, are the primary reason that we were able to increase market share and increase selling velocity per store per month.
We spent $127,000 more on marketing and promotional activity in Q1 2017 versus Q1 2016. A portion of the benefits of the increased spend are realized in the short term and a portion is an investment in the longer term. As this relates to overall quarterly performance, of the total operating loss of $886,000 in Q1 2017, $331,000 was spent on marketing and promotional activity in Q1 and $285,000 was non-cash stock grants to outside third parties and to employees pursuant to contract. Therefore, excluding those non-cash items and the marketing and promotional spending from Q1 2017 vs. Q1 2016 when compared on an apples to apples basis, operating expenses actually decreased by $9,000 in Q1 2017 over Q1 2016.
Increasing the velocity of our inventory turns at existing accounts monthly is our overarching goal. Faster inventory turns on shelf has been shown to cause three things to happen: (i) in the short term, re-orders typically become more frequent and larger in overall dollars, (ii) in the longer term, retailers who already carry our product are more willing to accept additional SKUs (varieties) for their next season thus driving topline sales, and (iii) in the longer term, new retailers will view the IRI selling data and will be more likely to add our product to their soup aisles. The larger grocery chains generally add new products and SKUs once per year in the Fall and sometimes in January.
Different accounts require different tactics and therefore, we are customizing our tactics and programs to maximize inventory turns in the most cost-efficient manner. At Kroger, an account that for the past year has kept our SKU count identical (3.5 SKUs per store across approximately 2000 stores), our sales increased by 62% for Q1 2017 versus Q1 2016. Several factors have led to this sales increase this Fall: (i) utilizing Larry Thomas, the "Seinfeld" Soupman, to make personal appearances and sample in store and appear on local media; (ii) discounting the on-shelf price from $3.49 to $2.99 during certain promotional periods; and (iii) running a 30-second in-store radio commercial twice per hour/every hour in approximately 300 Kroger test stores for a 4 week period.
We analyzed the actual costs of all three initiatives measured against the number of stores that experienced sales lifts, and we concluded that in-store radio provided the most impactful cost/benefit. Specifically, we tested in-store radio in approximately 300 Kroger stores in Atlanta and Cincinnati, which is only 15% of the Kroger stores we are in, and in approximately 150 stores in other accounts spread across Florida, NYC Metro and Ohio market trade areas. At Kroger our sales in these test stores increased by 44% in the 4-week test period over the same for the prior 4-week period, this on top of the 62% sales increases at Kroger chain-wide year over year for Q1 2017. The increases at the other 150 stores exceeded these results on a percentage basis.
The cost of our in-store radio program was $12 per store per week compared to sampling which is $200 for 4 hours per store. Given those strong results we believe that in-store radio is currently the most cost-effective way to reach the largest number of customers at Kroger and therefore, we intend to expand this program at all 2,000 Kroger stores and at as many other large accounts as possible throughout the year.
At Publix during Q1 2017 during product sampling events in their stores, we surveyed 1,456 Publix customers who tasted our soups and 92% of those tested concluded that they would buy our product and 25% of those bought it on the spot. This supports our contention that once consumers try our soup they are highly likely to purchase it because of the superior taste and quality of our soup when compared to any other soups on the market. Our Publix sales are up over 100% for Q1 2017 vs. Q1 2016 in the 1,100 stores we are in, however Publix is one of a handful of accounts that does not permit in-store radio commercials. So, at Publix in 2017, we intend to focus on promotions, such as 2 for $6 to drive consumer trial and inventory turns as in-store sampling in 1,100 stores would be too expensive.
At ShopRite, Acme and Fairway, all of which are in our NYC tristate home market and have far fewer stores than Kroger or Publix, we can sample in a cost-effective way with our own sampling team. The most meaningful emotional connection to the consumer is made through sampling combined with the Soupman's personal in-store appearances supported by regional media appearances and localized social media outreach. At ShopRite we have invested significantly in sampling to drive sales because on a per store basis, we have experienced the highest case sales/store per month at this account. We have robust selling on a per store basis at Costco Midwest (30 of 82 stores) and Costco Northwest (20 of 65 stores) this past Fall and we utilized sampling to gain trial at this account too.
Our efforts over the past year have been geared to driving Tetra Pak sales by building points of distribution. Now that we have approximately 6,500 points of distribution, our efforts will focus on driving sales in those existing stores. That means we intend to spend considerably less on slotting to add new accounts and more on specific initiatives as discussed above to drive inventory turns at existing accounts. Our efforts have been and must continue to be devoted to increasing inventory turns at all existing accounts, establishing new points of distribution and creating consumer awareness of the product availability and quality. We believe, therefore, it would be too early to measure return on capital unless and until those efforts generate sufficient annual topline of at least $6 million. Further to the point, we are a young growth brand and micro category leader and as such top line sales and repeat sales/turns at the store level are the most important measure of the business. Our lobster bisque in a short time has become the # 1 selling lobster bisque in the country at all our accounts surpassing or replacing brands that have been on shelf for many years. We intend to remain the leader in the premium seafood soup category and build on this success with other unique varieties that we make with intentions to continue to bring innovation to the dreary soup aisle nationwide.
On a forward-looking basis, we cannot provide guidance for Q2 2017 as we have 6 weeks to go. Our Tetra Pak sales for the month of December 2016 are up over 300% vs. December 2015 on an unaudited basis. In general terms, for our next fiscal quarter, expect a meaningful increase in Tetra Pak sales, a decrease in non-marketing and promotional related cash operating expenses and a decrease in overall gross margin to the extent selling is significant at Costco since Costco gross margins are typically in the 20% range compared to approximately 30% gross margin at other accounts, however, since the marketing spend required at Costco is less, it equates to a similar net margin. Gross margins will improve in 2017 with sales increases based on economies of scale with larger volume ingredient purchases. Nonetheless, the operating burn has decreased over the past 12 months and will continue to do so, notwithstanding greater marketing and promotional spending, and we project positive operating income in 2017.
Given the further reductions to operating expenses implemented in January 2017, including payroll reductions, and based upon our current sales trends, we reasonably believe that the current stock price does not reflect quarter over quarter positive sales increases or other positive developments, nor does it reflect in our opinion, fair value.
Please email any thoughts, questions or comments you may have to me at jamie@originalsoupman.com. I will continue to provide these business updates on a monthly basis and look forward to your feedback. Thank you.
This letter may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include statements regarding our plan for 2017, general expectations for Q2 2017 and ability to continue to grow Soupman's brand presence. All forward-looking statements in this letter are made as of the date of this letter, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to implement our plan for 2017, accounting adjustments to be made in connection with the Q2 review, our ability to continue to grow our brand presence and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jamieson-karson-ceo-letter-to-shareholders-300394244.html
SOURCE Soupman, Inc.
News Provided by PR Newswire via QuoteMedia
NEW YORK, Dec. 15, 2016 /PRNewswire/ -- Soupman, Inc. (OTCQB:"SOUP" , makers of fabulous gourmet soup made famous on "Seinfeld", today published a letter to shareholders from its Chairman and CEO, Jamie Karson. The letter sets forth the Company's plan for 2017 and for the first time in the Company's history, announces revenue guidance for the next fiscal quarter.
Jamie Karson, Soupman's Chairman and CEO, stated, "This letter is the first of many in which I will be communicating directly with our shareholders on a monthly basis so that they may have total visibility into the business. Our year over year Tetra Pak sales are up 92%, and as set forth in my letter, are projected to be up 117% in our next fiscal quarter which will be filed by January 14, 2017. In this past year we focused on re-establishing our presence in the grocery channel. Now that we have made progress there and are currently selling product in 6,500 stores, as we transition into 2017, we will focus on reducing our operating expenses while driving revenues. We are thankful to all of our shareholders for their support."
The CEO's letter to shareholders stated:
Dear Fellow Shareholders
When I joined the Company in July, 2015, I came to realize that despite making some of the best soups in the world, it appeared that a re-set of the Company was in order. Over the past year we compiled and analyzed selling data down to the individual store level at certain accounts. This led us to simplify our distribution model to focus on our wholesale Tetra Pak business and increase our marketing and promotional efforts at certain key wholesale accounts such as Kroger. Our analysis further suggested that we increase our product offerings in Tetra Pak, thus leading to the development of our new Shrimp Bisque. In our view, the ready-to-serve soup category lacked sufficient seafood varieties and we are filling that void with Lobster Bisque, Crab Corn Chowder, Jambalaya and Shrimp Bisque. Currently, we now have 7 varieties of our soup in grocery stores with more to come in 2017.
As a result of these efforts over the past year, we have gained increased acceptance of our brand and product in more grocery chains and stores than ever before. Presently, we are selling our soups in 17 ounce Tetra Pak cartons in 6,500 grocery stores. It is quite extraordinary for a company of our size to be in as many grocery locations as we are, including such prestigious national retailers as Kroger, Costco, Safeway, Albertson's, Publix, Wegman's, HEB, Shoprite, Acme, Shaw's, and Winn Dixie and fine regional chains including Heinen's, Fairway and Big Y. In 2017, we expect to add additional national and regional chains and as I mention below, add additional channels of distribution.
Establishing a broader base of retailers is only the first step in generating higher revenues. Increased marketing and promotional efforts has led to faster inventory turns which has led to more product on the shelf. As you know, we compete for shelf space at grocery against the largest companies in the industry with much larger marketing budgets than ours, yet we are gaining shelf space around the country because of increased brand awareness on the part of the consumer, the quality, consistency and taste of our product, and the greater variety of product offerings that we are selling now versus 18 months ago. All of this has resulted in a 92% increase in our wholesale Tetra Pak revenues year over the prior year.
By analyzing selling metrics at key accounts across the country, we plan to further increase our core product offerings and add other related products to our lineup, such as bone broths in 2017. We believe bone broths are a natural extension of our brand and will be well-received by consumers, especially millennials, as this category is trending positively on sites such as Amazon and ThriveMarket.com. Keep in mind that new product development is costly and we must always weigh the potential benefit of new products against the development and placement costs. Nonetheless, since we have repositioned our company over the past 12 months through re-setting our business model and raising capital, we are able to judiciously develop new core products and line extension products for distribution in 2017.
Another key initiative for 2017 is to expand our channels of distribution to include convenience stores. Currently, there are approximately 150,000 convenience stores in the country. Many of them sell grocery items including soup and several chains also sell hot soup in kettles. This represents a fresh opportunity for us which we are actively pursuing in conjunction with a Madison, Wisconsin-based fixturing company, Food Concepts Inc. (www.foodconcepts.com). FCI designs and manufactures fixtures for many of the largest convenience store chains in the country including Circle K. We have jointly developed a new branded "Soupman" display fixture to feature our best sellers in new 10 ounce single-serve Tetra cartons. The display will also house new, proprietary, custom "Soupman" cups so that our soups can be eaten without a spoon and will fit in a car cup holder. We have reformulated some of our soups so that they are drinkable and may be consumed easily in a cup/lid format. This past October, we met with some of the largest national and regional distributors and convenience store operators at the NACS show in Atlanta and our product and brand were well received. The demand from the industry for our product in this format is strong and we will be shipping our first orders in early 2017.
In addition, in 2017 we intend to actively pursue distribution of our product in bulk packaging to national restaurant chains, college campuses, stadiums and other food service venues. This has been an under-exploited channel for us and represents future growth. Early tests in this channel, particularly in a certain national restaurant chain, have been very successful and we expect to expand this test in the near future.
When I started at the Company 15 months ago, our quarter over quarter revenues were downward trending. I am pleased to report that over the past four quarters we have reversed that trend and our revenues are comping up by an average of 92% per quarter over the same quarter last year and by 57% over the quarter immediately preceding. We believe that this positive trend is primarily due to three factors: (i) utilizing targeted marketing and promotions, including the actor, Larry Thomas, who played the "Soupman" on "Seinfeld", to raise our brand's awareness and drive increased order demand; (ii) increasing our distribution in the past 12-16 months to add Kroger, Costco, Shoprite, Winn Dixie, Acme, Shaws, Heinens and Fairway, all of whom have placed our product front and center in the soup aisle next to Campbells and Progresso; and (iii) adding new product varieties into the mix that have performed well at retail such as Shrimp Bisque. It is our belief that if we continue to aggressively expand our product offerings and correlate price and value, coupled with effective, targeted marketing and promotions, we will achieve positive operating margins in 2017.
2016 was a year in which we focused primarily on driving revenues in our wholesale Tetra business and re-establishing our brand at grocery. As some of you may recall, the Company's revenues had dramatically declined in 2015 from the prior year so the Company's re-set was based upon first, re-establishing and strengthening our relationships with our grocery partners. In 2016 we explored different approaches to marketing, promoting, branding and new product development, discarding the cost-ineffective methodologies and practices along the way and incorporating the positive teachings into our plan for 2017. As we transition into 2017, we plan to aggressively and efficiently market our products to drive brand awareness but in a more cost-effective way, such as in-store radio. We developed a 30 second commercial utilizing our brand heritage to play in grocery stores and the early results across a number of accounts are very encouraging.
Similarly, we also plan to immediately begin significant cost-cutting measures in all areas of the business. We recognize that our goal must be to lower our operating costs at the same time that we are driving revenues.
Generating positive earnings per share is our ultimate goal. While EPS is greatly affected by the number of shares outstanding and the original issue discount associated with that, as well as several other accounting algorithms, as mentioned, we are turning our attention to streamlining our operations while increasing revenues. As revenues increase, gross margins should improve through lower per unit ingredient costs and lower freight expense due to shipping full pallets. Expect a leaner company with higher revenues and improved gross profit in 2017.
Starting immediately with this letter, we are going to provide more transparency into the business than ever before. In that regard, set forth below is our current revenue expectation for our Tetra product at grocery on an unaudited basis for the first fiscal quarter of 2017 compared to the same quarter in 2016. We expect to issue our actual information for the quarter by January 14, 2017.
First Quarter 2017 $925,000 First Quarter 2016 $425,654 Increase - 117%
It is for these reasons that we believe that the current stock price does not adequately reflect fair value.
I joined the Company 15 months ago because, in my view, the opportunity for a company with soup as good as ours was overwhelmingly obvious. That opportunity for our Company to succeed has never been greater than it is today.
I will be communicating with you directly each month through a monthly letter, providing you with our latest updates, both positive and otherwise. I encourage you to contact me directly by email at jamie@originalsoupman.com with any questions or comments you may have. Thank you and looking forward to a great 2017!
Sincerely,
Jamie Karson, Chairman and CEO
About Soupman, Inc.
The Original Soupman® offers over 50 varieties of soups including such famous flavors as Lobster Bisque, Crab Bisque, Chicken Gumbo, Crab Corn Chowder, Mulligatawny, Butternut Squash, Jambalaya, Shrimp Bisque, Italian Sausage, Eggplant Parmigiana, Tomato Basil and many more. The Original Soupman® soups are also available in 6 varieties in 17 ounce Tetra Pak cartons in grocery stores including Publix, Kroger, Ralph's, Vons, Pavilions, HEB and Safeway among many others. The soups can also be ordered online and at Amazon.com. For a store tracker or to order, go to www.originalsoupman.com.
Consumers can visit the Soupman at his original store in NYC on 55 Street & 8th Ave, on soupmobiles at local events throughout the nation and ladling soup for fans at MetLife stadium during the football season.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. We sell soup across America in Tetra Pak cartons to grocery stores next to Campbell's and Progresso as well in our franchise restaurants, soupmobiles and through foodservice companies. Jamieson Karson, former CEO of Steven Madden, LTD., is our Chairman and CEO. Steve Madden, Tim Gannon and Reggie Jackson are on our Board of Advisors. Soupman Inc., is a fully reporting public company trading on the OTCQB under the symbol SOUP. For additional information on our company please visit: www.originalsoupman.com, Twitter@OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding our plan for 2017, current revenue expectation for Q1 2017 and ability to continue to grow Soupman's brand presence.. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to implement our plan for 2017, accounting adjustments to be made in connection with the Q1 review, our ability to continue to grow our brand presence and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K.
All trademarks and logos referenced herein belong to their respective companies.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-chairman-and-ceo-addresses-shareholders-in-letter-300379317.html
SOURCE Soupman, Inc.
NEW YORK, June 13, 2017 /PRNewswire/ -- Soupman, Inc. (OTCQB: SOUP)("SM"
, a producer and marketer of high-quality branded soups bearing the name "Original Soupman" today announced that it has filed for Chapter 11 bankruptcy protection. SM also announced it has secured a new $2 million debtor-in-possession credit facility ("DIP"
from an independent third-party private investment firm to finance its working capital needs and allow business operations to continue as normal. Michael Wyse of Wyse Advisors, LLC has been hired as Chief Restructuring Officer and Interim Chief Financial Officer of SM.
"The combination of legacy liabilities and recent company developments have made it necessary to seek bankruptcy protection. This will ensure that our delicious soups remain on grocery shelves throughout the country which is in the best interests of all of our stakeholders and customers."
"The ongoing support from our lender through our new DIP facility will allow us to continue business operations as normal. We anticipate that there will be no disruption in the quality of our product or service that we provide to our vendors and customers during this transition period," said Jamie Karson, CEO.
The Chapter 11 petition was filed in the United States Bankruptcy Court in Delaware. The law firm of Polsinelli is advising SM as bankruptcy counsel.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the Company's ability to raise the capital it needs to remain in business. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to continue to reduce liabilities and expand our product line and distribution, our ability to execute our business strategy and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-inc-files-for-bankruptcy-protection-300473491.html
SOURCE Soupman, Inc.
STATEN ISLAND, N.Y., May 25, 2017 /PRNewswire/ -- Soupman, Inc. (OTCQB:"SOUP"
, makers of gourmet soup made famous on "Seinfeld", today announced that it has hired Michael Wyse as its Chief Restructuring Officer and Interim Chief Financial Officer, effective immediately. Mike is the Managing Partner of Wyse Advisors LLC, with more than 19 years of experience advising companies and other constituents through stressed, distressed and turnaround situations. "The Company has immediately filled the functions of the CFO position to manage our business and lead the efforts to explore all strategic funding alternatives. I am confident in Mike to spearhead this process," said Jamieson Karson, CEO.
About Soupman, Inc.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. For additional information on our company please visit: www.originalsoupman.com, Twitter@OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the Company's ability to raise the capital it needs to remain in business. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to continue to reduce liabilities and expand our product line and distribution, our ability to execute our business strategy and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-hires-michael-wyse-as-interim-chief-financial-officer-and-chief-restructuring-officer-300464417.html
SOURCE Soupman, Inc.
STATEN ISLAND, N.Y., May 23, 2017 /PRNewswire/ -- Soupman, Inc. (OTCQB:"SOUP"
, makers of gourmet soup made famous on "Seinfeld", today announced that its Chief Financial Officer and President, Bob Bertrand, has been suspended after being indicted on federal tax fraud charges for alleged misconduct for the period 2010-2014. "The Company is deeply shocked and saddened by these events. The Company will be immediately launching an internal investigation to determine whether its public filings need to be amended for the period in question or any subsequent period based upon the allegations," said Jamieson Karson, CEO. "Moreover, we expect that this news will not make it easier for us to raise the capital we need to remain in business."
Mr. Bertrand, was charged in Federal Court in Brooklyn, New York with 20 counts of failure to pay Medicare, Social Security and federal income taxes for the period between 2010 and 2014. As alleged in the indictment, from 2010 through 2014, Soupman's total approximate unreported cash and stock compensation was $2,850,967.59, and the total approximate tax loss to the United States was allegedly $593,971.52. Current CEO, Jamieson Karson joined the Company in August, 2015.
About Soupman, Inc.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. For additional information on our company please visit: www.originalsoupman.com, Twitter@OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding the Company's ability to raise the capital it needs to remain in business. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to continue to reduce liabilities and expand our product line and distribution, our ability to execute our business strategy and position the Company for future growth, and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K. Copies of these filings are available www.originalsoupman.com.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-chief-financial-officer-robert-bertrand-suspended-after-being-indicted-on-tax-charges-300462847.html
SOURCE Soupman, Inc.
Jamieson Karson CEO Letter to Shareholders
STATEN ISLAND, N.Y., Jan. 20, 2017 /PRNewswire/ --
FROM:
JAMIESON KARSON
CEO AND CHAIRMAN
SOUPMAN, INC. (OTC: SOUP)
Dear Fellow Shareholders,
In the Q1 2017 fiscal quarter ending November 30, 2016 which has just been reported, the total revenue for this quarter was $1.050 million, our Tetra Pak sales increased 121% over Tetra Pak sales vs. Q1 2016 on top of the 92% Tetra Pak sales increase for the fiscal year ending August 31, 2016 over the prior year. We are encouraged as this is the fourth consecutive quarter of Tetra Pak sales increases and we exceeded our earlier guidance of 117%.
We believe this increase is primarily due to the following factors: (i) increased varieties of soup on shelf per store over last year; (ii) increased case sales per store from an average of 1.5 cases sold per month per store last year to an average of 2.7 cases sold per month per store this year and (iii) increased store count bringing the total number of stores to approximately 6,500 stores. In this month's letter, I have set forth an analysis of our marketing and promotional efforts over the quarter measured against our results. Targeted marketing and promotional efforts including sampling, in-store radio and personal appearances by the "Soupman" at stores and in the media, are the primary reason that we were able to increase market share and increase selling velocity per store per month.
We spent $127,000 more on marketing and promotional activity in Q1 2017 versus Q1 2016. A portion of the benefits of the increased spend are realized in the short term and a portion is an investment in the longer term. As this relates to overall quarterly performance, of the total operating loss of $886,000 in Q1 2017, $331,000 was spent on marketing and promotional activity in Q1 and $285,000 was non-cash stock grants to outside third parties and to employees pursuant to contract. Therefore, excluding those non-cash items and the marketing and promotional spending from Q1 2017 vs. Q1 2016 when compared on an apples to apples basis, operating expenses actually decreased by $9,000 in Q1 2017 over Q1 2016.
Increasing the velocity of our inventory turns at existing accounts monthly is our overarching goal. Faster inventory turns on shelf has been shown to cause three things to happen: (i) in the short term, re-orders typically become more frequent and larger in overall dollars, (ii) in the longer term, retailers who already carry our product are more willing to accept additional SKUs (varieties) for their next season thus driving topline sales, and (iii) in the longer term, new retailers will view the IRI selling data and will be more likely to add our product to their soup aisles. The larger grocery chains generally add new products and SKUs once per year in the Fall and sometimes in January.
Different accounts require different tactics and therefore, we are customizing our tactics and programs to maximize inventory turns in the most cost-efficient manner. At Kroger, an account that for the past year has kept our SKU count identical (3.5 SKUs per store across approximately 2000 stores), our sales increased by 62% for Q1 2017 versus Q1 2016. Several factors have led to this sales increase this Fall: (i) utilizing Larry Thomas, the "Seinfeld" Soupman, to make personal appearances and sample in store and appear on local media; (ii) discounting the on-shelf price from $3.49 to $2.99 during certain promotional periods; and (iii) running a 30-second in-store radio commercial twice per hour/every hour in approximately 300 Kroger test stores for a 4 week period.
We analyzed the actual costs of all three initiatives measured against the number of stores that experienced sales lifts, and we concluded that in-store radio provided the most impactful cost/benefit. Specifically, we tested in-store radio in approximately 300 Kroger stores in Atlanta and Cincinnati, which is only 15% of the Kroger stores we are in, and in approximately 150 stores in other accounts spread across Florida, NYC Metro and Ohio market trade areas. At Kroger our sales in these test stores increased by 44% in the 4-week test period over the same for the prior 4-week period, this on top of the 62% sales increases at Kroger chain-wide year over year for Q1 2017. The increases at the other 150 stores exceeded these results on a percentage basis.
The cost of our in-store radio program was $12 per store per week compared to sampling which is $200 for 4 hours per store. Given those strong results we believe that in-store radio is currently the most cost-effective way to reach the largest number of customers at Kroger and therefore, we intend to expand this program at all 2,000 Kroger stores and at as many other large accounts as possible throughout the year.
At Publix during Q1 2017 during product sampling events in their stores, we surveyed 1,456 Publix customers who tasted our soups and 92% of those tested concluded that they would buy our product and 25% of those bought it on the spot. This supports our contention that once consumers try our soup they are highly likely to purchase it because of the superior taste and quality of our soup when compared to any other soups on the market. Our Publix sales are up over 100% for Q1 2017 vs. Q1 2016 in the 1,100 stores we are in, however Publix is one of a handful of accounts that does not permit in-store radio commercials. So, at Publix in 2017, we intend to focus on promotions, such as 2 for $6 to drive consumer trial and inventory turns as in-store sampling in 1,100 stores would be too expensive.
At ShopRite, Acme and Fairway, all of which are in our NYC tristate home market and have far fewer stores than Kroger or Publix, we can sample in a cost-effective way with our own sampling team. The most meaningful emotional connection to the consumer is made through sampling combined with the Soupman's personal in-store appearances supported by regional media appearances and localized social media outreach. At ShopRite we have invested significantly in sampling to drive sales because on a per store basis, we have experienced the highest case sales/store per month at this account. We have robust selling on a per store basis at Costco Midwest (30 of 82 stores) and Costco Northwest (20 of 65 stores) this past Fall and we utilized sampling to gain trial at this account too.
Our efforts over the past year have been geared to driving Tetra Pak sales by building points of distribution. Now that we have approximately 6,500 points of distribution, our efforts will focus on driving sales in those existing stores. That means we intend to spend considerably less on slotting to add new accounts and more on specific initiatives as discussed above to drive inventory turns at existing accounts. Our efforts have been and must continue to be devoted to increasing inventory turns at all existing accounts, establishing new points of distribution and creating consumer awareness of the product availability and quality. We believe, therefore, it would be too early to measure return on capital unless and until those efforts generate sufficient annual topline of at least $6 million. Further to the point, we are a young growth brand and micro category leader and as such top line sales and repeat sales/turns at the store level are the most important measure of the business. Our lobster bisque in a short time has become the # 1 selling lobster bisque in the country at all our accounts surpassing or replacing brands that have been on shelf for many years. We intend to remain the leader in the premium seafood soup category and build on this success with other unique varieties that we make with intentions to continue to bring innovation to the dreary soup aisle nationwide.
On a forward-looking basis, we cannot provide guidance for Q2 2017 as we have 6 weeks to go. Our Tetra Pak sales for the month of December 2016 are up over 300% vs. December 2015 on an unaudited basis. In general terms, for our next fiscal quarter, expect a meaningful increase in Tetra Pak sales, a decrease in non-marketing and promotional related cash operating expenses and a decrease in overall gross margin to the extent selling is significant at Costco since Costco gross margins are typically in the 20% range compared to approximately 30% gross margin at other accounts, however, since the marketing spend required at Costco is less, it equates to a similar net margin. Gross margins will improve in 2017 with sales increases based on economies of scale with larger volume ingredient purchases. Nonetheless, the operating burn has decreased over the past 12 months and will continue to do so, notwithstanding greater marketing and promotional spending, and we project positive operating income in 2017.
Given the further reductions to operating expenses implemented in January 2017, including payroll reductions, and based upon our current sales trends, we reasonably believe that the current stock price does not reflect quarter over quarter positive sales increases or other positive developments, nor does it reflect in our opinion, fair value.
Please email any thoughts, questions or comments you may have to me at jamie@originalsoupman.com. I will continue to provide these business updates on a monthly basis and look forward to your feedback. Thank you.
This letter may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include statements regarding our plan for 2017, general expectations for Q2 2017 and ability to continue to grow Soupman's brand presence. All forward-looking statements in this letter are made as of the date of this letter, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to implement our plan for 2017, accounting adjustments to be made in connection with the Q2 review, our ability to continue to grow our brand presence and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/jamieson-karson-ceo-letter-to-shareholders-300394244.html
SOURCE Soupman, Inc.
News Provided by PR Newswire via QuoteMedia
NEW YORK, Dec. 15, 2016 /PRNewswire/ -- Soupman, Inc. (OTCQB:"SOUP"
, makers of fabulous gourmet soup made famous on "Seinfeld", today published a letter to shareholders from its Chairman and CEO, Jamie Karson. The letter sets forth the Company's plan for 2017 and for the first time in the Company's history, announces revenue guidance for the next fiscal quarter. Jamie Karson, Soupman's Chairman and CEO, stated, "This letter is the first of many in which I will be communicating directly with our shareholders on a monthly basis so that they may have total visibility into the business. Our year over year Tetra Pak sales are up 92%, and as set forth in my letter, are projected to be up 117% in our next fiscal quarter which will be filed by January 14, 2017. In this past year we focused on re-establishing our presence in the grocery channel. Now that we have made progress there and are currently selling product in 6,500 stores, as we transition into 2017, we will focus on reducing our operating expenses while driving revenues. We are thankful to all of our shareholders for their support."
The CEO's letter to shareholders stated:
Dear Fellow Shareholders
When I joined the Company in July, 2015, I came to realize that despite making some of the best soups in the world, it appeared that a re-set of the Company was in order. Over the past year we compiled and analyzed selling data down to the individual store level at certain accounts. This led us to simplify our distribution model to focus on our wholesale Tetra Pak business and increase our marketing and promotional efforts at certain key wholesale accounts such as Kroger. Our analysis further suggested that we increase our product offerings in Tetra Pak, thus leading to the development of our new Shrimp Bisque. In our view, the ready-to-serve soup category lacked sufficient seafood varieties and we are filling that void with Lobster Bisque, Crab Corn Chowder, Jambalaya and Shrimp Bisque. Currently, we now have 7 varieties of our soup in grocery stores with more to come in 2017.
As a result of these efforts over the past year, we have gained increased acceptance of our brand and product in more grocery chains and stores than ever before. Presently, we are selling our soups in 17 ounce Tetra Pak cartons in 6,500 grocery stores. It is quite extraordinary for a company of our size to be in as many grocery locations as we are, including such prestigious national retailers as Kroger, Costco, Safeway, Albertson's, Publix, Wegman's, HEB, Shoprite, Acme, Shaw's, and Winn Dixie and fine regional chains including Heinen's, Fairway and Big Y. In 2017, we expect to add additional national and regional chains and as I mention below, add additional channels of distribution.
Establishing a broader base of retailers is only the first step in generating higher revenues. Increased marketing and promotional efforts has led to faster inventory turns which has led to more product on the shelf. As you know, we compete for shelf space at grocery against the largest companies in the industry with much larger marketing budgets than ours, yet we are gaining shelf space around the country because of increased brand awareness on the part of the consumer, the quality, consistency and taste of our product, and the greater variety of product offerings that we are selling now versus 18 months ago. All of this has resulted in a 92% increase in our wholesale Tetra Pak revenues year over the prior year.
By analyzing selling metrics at key accounts across the country, we plan to further increase our core product offerings and add other related products to our lineup, such as bone broths in 2017. We believe bone broths are a natural extension of our brand and will be well-received by consumers, especially millennials, as this category is trending positively on sites such as Amazon and ThriveMarket.com. Keep in mind that new product development is costly and we must always weigh the potential benefit of new products against the development and placement costs. Nonetheless, since we have repositioned our company over the past 12 months through re-setting our business model and raising capital, we are able to judiciously develop new core products and line extension products for distribution in 2017.
Another key initiative for 2017 is to expand our channels of distribution to include convenience stores. Currently, there are approximately 150,000 convenience stores in the country. Many of them sell grocery items including soup and several chains also sell hot soup in kettles. This represents a fresh opportunity for us which we are actively pursuing in conjunction with a Madison, Wisconsin-based fixturing company, Food Concepts Inc. (www.foodconcepts.com). FCI designs and manufactures fixtures for many of the largest convenience store chains in the country including Circle K. We have jointly developed a new branded "Soupman" display fixture to feature our best sellers in new 10 ounce single-serve Tetra cartons. The display will also house new, proprietary, custom "Soupman" cups so that our soups can be eaten without a spoon and will fit in a car cup holder. We have reformulated some of our soups so that they are drinkable and may be consumed easily in a cup/lid format. This past October, we met with some of the largest national and regional distributors and convenience store operators at the NACS show in Atlanta and our product and brand were well received. The demand from the industry for our product in this format is strong and we will be shipping our first orders in early 2017.
In addition, in 2017 we intend to actively pursue distribution of our product in bulk packaging to national restaurant chains, college campuses, stadiums and other food service venues. This has been an under-exploited channel for us and represents future growth. Early tests in this channel, particularly in a certain national restaurant chain, have been very successful and we expect to expand this test in the near future.
When I started at the Company 15 months ago, our quarter over quarter revenues were downward trending. I am pleased to report that over the past four quarters we have reversed that trend and our revenues are comping up by an average of 92% per quarter over the same quarter last year and by 57% over the quarter immediately preceding. We believe that this positive trend is primarily due to three factors: (i) utilizing targeted marketing and promotions, including the actor, Larry Thomas, who played the "Soupman" on "Seinfeld", to raise our brand's awareness and drive increased order demand; (ii) increasing our distribution in the past 12-16 months to add Kroger, Costco, Shoprite, Winn Dixie, Acme, Shaws, Heinens and Fairway, all of whom have placed our product front and center in the soup aisle next to Campbells and Progresso; and (iii) adding new product varieties into the mix that have performed well at retail such as Shrimp Bisque. It is our belief that if we continue to aggressively expand our product offerings and correlate price and value, coupled with effective, targeted marketing and promotions, we will achieve positive operating margins in 2017.
2016 was a year in which we focused primarily on driving revenues in our wholesale Tetra business and re-establishing our brand at grocery. As some of you may recall, the Company's revenues had dramatically declined in 2015 from the prior year so the Company's re-set was based upon first, re-establishing and strengthening our relationships with our grocery partners. In 2016 we explored different approaches to marketing, promoting, branding and new product development, discarding the cost-ineffective methodologies and practices along the way and incorporating the positive teachings into our plan for 2017. As we transition into 2017, we plan to aggressively and efficiently market our products to drive brand awareness but in a more cost-effective way, such as in-store radio. We developed a 30 second commercial utilizing our brand heritage to play in grocery stores and the early results across a number of accounts are very encouraging.
Similarly, we also plan to immediately begin significant cost-cutting measures in all areas of the business. We recognize that our goal must be to lower our operating costs at the same time that we are driving revenues.
Generating positive earnings per share is our ultimate goal. While EPS is greatly affected by the number of shares outstanding and the original issue discount associated with that, as well as several other accounting algorithms, as mentioned, we are turning our attention to streamlining our operations while increasing revenues. As revenues increase, gross margins should improve through lower per unit ingredient costs and lower freight expense due to shipping full pallets. Expect a leaner company with higher revenues and improved gross profit in 2017.
Starting immediately with this letter, we are going to provide more transparency into the business than ever before. In that regard, set forth below is our current revenue expectation for our Tetra product at grocery on an unaudited basis for the first fiscal quarter of 2017 compared to the same quarter in 2016. We expect to issue our actual information for the quarter by January 14, 2017.
First Quarter 2017 $925,000 First Quarter 2016 $425,654 Increase - 117%
It is for these reasons that we believe that the current stock price does not adequately reflect fair value.
I joined the Company 15 months ago because, in my view, the opportunity for a company with soup as good as ours was overwhelmingly obvious. That opportunity for our Company to succeed has never been greater than it is today.
I will be communicating with you directly each month through a monthly letter, providing you with our latest updates, both positive and otherwise. I encourage you to contact me directly by email at jamie@originalsoupman.com with any questions or comments you may have. Thank you and looking forward to a great 2017!
Sincerely,
Jamie Karson, Chairman and CEO
About Soupman, Inc.
The Original Soupman® offers over 50 varieties of soups including such famous flavors as Lobster Bisque, Crab Bisque, Chicken Gumbo, Crab Corn Chowder, Mulligatawny, Butternut Squash, Jambalaya, Shrimp Bisque, Italian Sausage, Eggplant Parmigiana, Tomato Basil and many more. The Original Soupman® soups are also available in 6 varieties in 17 ounce Tetra Pak cartons in grocery stores including Publix, Kroger, Ralph's, Vons, Pavilions, HEB and Safeway among many others. The soups can also be ordered online and at Amazon.com. For a store tracker or to order, go to www.originalsoupman.com.
Consumers can visit the Soupman at his original store in NYC on 55 Street & 8th Ave, on soupmobiles at local events throughout the nation and ladling soup for fans at MetLife stadium during the football season.
In 1984, The Original Soupman opened its doors at 55th Street & 8th Avenue in Manhattan and quickly became a worldwide destination. Rated #1 by Zagat and praised by the New York Times as "Art, not Soup," it set the standard for innovation and excellence long before the famous "Seinfeld" episode made it a cultural icon. We sell soup across America in Tetra Pak cartons to grocery stores next to Campbell's and Progresso as well in our franchise restaurants, soupmobiles and through foodservice companies. Jamieson Karson, former CEO of Steven Madden, LTD., is our Chairman and CEO. Steve Madden, Tim Gannon and Reggie Jackson are on our Board of Advisors. Soupman Inc., is a fully reporting public company trading on the OTCQB under the symbol SOUP. For additional information on our company please visit: www.originalsoupman.com, Twitter@OriginalSoupMan and "Like" us on Facebook.
Safe Harbor Statement:
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" or variations of such words are intended to identify such forward-looking statements. The forward-looking statements contained in this press release include, statements regarding our plan for 2017, current revenue expectation for Q1 2017 and ability to continue to grow Soupman's brand presence.. All forward-looking statements in this press release are made as of the date of this press release, and the Company assumes no obligation to update these forward-looking statements other than as required by law. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements such as our ability to implement our plan for 2017, accounting adjustments to be made in connection with the Q1 review, our ability to continue to grow our brand presence and the risk factors discussed in the Business and Management's Discussion and Analysis sections in our Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and Current Reports on Form 8-K.
All trademarks and logos referenced herein belong to their respective companies.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/soupman-chairman-and-ceo-addresses-shareholders-in-letter-300379317.html
SOURCE Soupman, Inc.
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