SAN ANTONIO, March 27, 2006 (PRIMEZONE) -- Sweet Success Enterprises (Pink Sheets:SWTS) updated and corrected the following Letter to Shareholders today:
Dear Shareholders,
While we have been highly focused on the re-launch of Sweet Success during the past few months, I wanted to take some time to update you on our team's accomplishments and on our strategy to support further growth of the company.
Our plans to re-launch the brand have been focused on building distribution and providing our customers with a full line of Fuel for Health(TM) nutritional beverages that taste great and are ultra healthy. These activities are resulting in the Company developing an exciting line of non-dairy/non-soy shakes and new formulas for healthy shakes with such formulations as Power Blend, Immunity Infusion, Glucasafe, Ultra Greens and Brain Power, among others. In total, we have four accepted formulas, three of which have launched, and an additional eight products in formulation.
In December, Sweet Success established production schedules for eight of the twelve beverages, so that the Company would be in a position to meet the demands of customers. We also finalized several vendor agreements including Kehe Foods and Southern Wine & Spirits, two highly successful food and beverage product distributors. Approximately one month later, we shipped 2,100 cases to Southern in Florida and began to penetrate the Midwest by stocking 129 stores in a 30 day period that are part of the Value Merchandisers plan-o-gram which includes potential space in 2,000 stores throughout Texas and the Midwest. In the last two months, we packed 9,500 cases of Power Blend and 4,000 cases of Chocolate and Vanilla healthy shakes. The company's website www.sweetsuccess.com should be accepting web purchases of all available Sweet Success products by the end of the month.
In order to ensure that we had the expertise to meet the strong demand we anticipate, we appointed Jim Haworth to our Board of Directors. Mr. Haworth is the former Chief Operating Officer of Wal-Mart and his experience in retail and marketing should prove invaluable as we continue our growth. The company has also hired Thomas Colbourn, a former Manager at Frito-Lay to our team and Dr. Sekhar Mallangi, the original Nestle Sweet Success formulator. Dr. Mallangi is also the formulator of many Nestle and other major branded products.
There are many exciting developments that we think will contribute to significant growth in sales and raise the profile of the company among consumers. We are launching a video shortly where we were interviewed by the national cable show First Look, airing in April over an extended period of time. Lastly, we are preparing for a possible fall season "Mark Burnett Productions" one hour prime time show, which would feature the Sweet Success Power Blend product as the focus of the episode. Other Burnett shows of this type indicate that once the show airs significant sales growth occurs.
As disclosed in the recent Form 10SB filing, we continue working on raising additional funds through debt or equity financing to cover our working capital needs over the next year. The Company thinks it is important for shareholders to know that there are currently approximately 13.7 million shares outstanding. Many of you have asked about Sweet Success obtaining a listing on the Over-The-Counter Bulletin Board (OTCBB). Let me assure you that we are working diligently to ensure that this occurs as quickly as possible. The company filed to become fully reporting with the SEC on September 27, 2005. In conversations with the NASD, they have indicated that we must file our form 10-KSB and clear all SEC comments on the Form 10SB to become application eligible for a listing on the OTCBB. Although we may receive additional comments from the SEC, we have updated our 10SB filing to include current financial results. The 10-KSB is currently in process. In addition, we are presently working with a market maker who has agreed assist us in becoming listed on the OTCBB.
Finally, the entire management team would like to thank you for your support. We are working tirelessly to reestablish the Sweet Success brand to the luster it had as the number two meal replacement shake in the USA. Since then, traditional beverages have been losing market share, while our types of nutritional beverages have grown 25% in the last twelve months.
Sincerely,
The Sweet Success Team
The Private Securities Litigation Reform Act of 1995 (the "Act") provides a safe harbor for forward-looking statements made by the Company or on its behalf. All statements which address actual results could differ materially from those expressed or implied in forward-looking statements. Important factors that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to, the Company's operating performance, events, or developments that the Company expects or anticipates may occur in the future are forward-looking statements. These statements are made on the basis of management's views and assumptions. As a result, there can be no assurance that management's expectations will necessarily come to pass. Management cautions that the ability to attract clients and generate business; a decline in the Company's financial ratings; the competitive environment; the Company's ability to raise sufficient capital to meet the collateral requirements associated with its current business and to fund the Company's continuing operations; and changes in market conditions.