[Music] welcome to CEO Insight I'm Marilyn dezman with investing news.com I'm speaking with John cenza founder and CEO of Sizzle brand a health and wellness food and beverage company based in Ontario hello John how you doing thanks for having me yeah good to have you so what major Trends do you see shaping your industry in the future and how are you capitalizing on them education education is the biggest track right so people being more aware more educated on what they're consuming so in our
category um sugar is a Hot Topic right A lot of people have been saying they're doing something about it but no one's really doing anything about it right so sugar would be number one the amount of sugar the type of sugar in products and also packaging um so a lot of negative press out there and rightfully so about plastic bottles PT bottles already being banned in certain parts of the US so definitely education and consumers becoming smarter for like the better term is is is the biggest our industry
right now and speaking of Trends I wonder if you could provide your insights you know as you know Canada and the US are in a looming trade war with President Donald Trump threatening tariffs against Canada and Canada responding that's been put on pause as of yesterday but this might not be over yet as a company that has a presence in both countries how are you preparing for this potential development and what's your forecast on how these tariffs will impact your business yeah so for for us
um it's it's not a worry uh we have manufacturing on both sides of the Border warehousing on both sides of the Border um we have a Canadian Corp a US Corp so uh we're set up perfectly fine it won't have any effect on us and and so can you talk about some specific initiatives that you are currently pursuing to deliver long-term value for your shareholders yeah absolutely so distribution is growing daily um we're very selective about the retailers that we partner with um so we we kept it to a
very finite group of retailers just to start um the velocity that we've gotten out of those retailers been staggering it's really caused an increase in demand so now slowly but surely we're let another retailers take on the product in different areas um so yeah they you can see a lot of retail growth and the product appearing on a lot more shelves here in the near F near future and I think one recent example um you've just recently announced a new partnership with Van ho coffee can you talk a bit
more about that yeah that that's um a very important deal to us so what that does is that allows us for direct store distribution right across Canada so in our business to you know to ship someone three cases of quench we would actually lose money on that right but when you have a DSD service that's already going to these Stores um you're a able to deliver in much smaller quantities so for a lot of our retailers they just don't want to take a skin at the time they want to be able to order five cases
10 cases so it's a huge Advantage for us on that standpoint also from a margin standpoint uh Ben hood has a couple DCS across the country so instead of shipping from our warehouse to the individual retailers these DCs are geographically located in the proper locations to get to those stores a lot easier and last van Hood alone has 30,000 distri points of distribution that they sell coffee to that's now eligible to to purchase quench right off the trucks so it's it's a huge play for
us something that we're very excited about um It's usually the type of deal that you would see for you know a brand that's been in business 10 to 15 years so for us to have that in in our first year of business I definitely speaks to our early success in um going through your website you know I see that you you work with a lot of um uh Personalities in the sports industry um can you talk about that strategy what are your the what are some of the unique value propositions that sets you apart from
your competitor for sure so you can take as an example Nathan McKinnon so Nathan McKinnon is the MVP of the NHL Stanley Cup champion he is fanatic about what he puts in his body right so it's not just pay forplay for him um he was a invol in the development of our products uh he's a shareholder in the business as well so to receive that type of endorsement speaks to the efficacy of our products and who are as a business and also from the influencer standpoint um you know times have changed since since I was I
was growing up drinking sports drinks from marketing standpoint so um a lot of kids these days are looking for these YouTube type influencers as their Heroes right so we brought in people that stand with the same Integrity that we do as a company want to do right by people want to want to educate kids on on better for you products um if you look at as a comparison in the marketplace Prime uh the drink did a very good job with that with Logan Paul and Mr Beast the only difference here is that we're promoting
better for you products as opposed to products that are full of sugars and preservatives and made in plastic bottles and what have you so really just lining ourselves up with people that have the same moral standards um is the start of it and you know you'd be surprised who comes across your desk if you want to stand stand for the right things so what upcoming mileston should investors watch for in the coming months yeah I mean we're we're in the third quarter of our fiscal year um we're
looking to do you 14 to 15 million net sales and first fiscal year with over 60% margins I'm including outbound shipping um but still over 40% with with the outbound shipping in there so um you know those are some PR pretty bold targets that our team set out for first year business and we're well on our way to hitting those so I guess that'd be the most exciting Milestone ahead for sure as we strive towards that so if you're talking to a potential investor right now what would be your core
message about Sizzle Brands what and and why would it be yeah it's just the beginning um you know from an investment standpoint we're still very ripe and and the world's changing right consumers are becoming far smarter right uh I believe that gone are the days of unnecessary Shivers and sports shrinks and excessive pack uh packaging in in in plastic formats and we stand for all those things and we're already taking market share from the biggest players in the game so uh early days for us and
definitely on trend for for what's out there for the days to come we leave it at that thanks again John for taking a time to speak with me I appreciate it thanks for having me thank you for making the time thanks and thanks everyone for watching join us again next time for another edition of CEO insights [Music]
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