DALLAS, Jan. 03, 2018 (GLOBE NEWSWIRE) -- Rocky Mountain High Brands, Inc. (OTCQB:RMHB), a fully reporting consumer goods company specializing in brand development of health conscious, hemp-infused food and beverage products and a naturally high alkaline spring water, is pleased today to issue the following Chairman’s open letter to Shareholders from Michael Welch, Chairman, President and Chief Executive Officer of Rocky Mountain High Brands.
Dear RMHB Shareholders:
We are thrilled to mark the end of a challenging 2017 that ended on a very successful high note and are excited about our prospects for the coming year. This new year marks the start of our new, bold business strategy. It is our goal to transform Rocky Mountain High Brands to be the leader in the hemp-infused industry. We want to build on our legacy as one of the few publicly-traded, pure play hemp-infused brand companies in the U.S.
Our vision for Rocky Mountain High Brands is to become a major growth company by bringing healthy products to consumers that can improve the quality of their life and add value for our shareholders.
2017 Achievements:
Leadership. During 2017 our executive team identified a new burgeoning, fast-growing market: hemp-derived CBD products. To assist with the strategy and launch of this initiative, Rocky Mountain High Brands successfully recruited former Coca-Cola executive, John Blackington to lead the rollout of the new CBD products, and to oversee the strategic direction of the Company. John joined the Company in the fall of 2017 as Chief Commercialization Officer. The Company also recruited Michelle Krebsbach as its Director of Marketing. Mrs. Krebsbach has over twenty years of experience in marketing and advertising and has been involved in creating several brands from concept to shelf. Earlier in the year, noted beverage leader, Gerry David and serial marketer extraordinaire Kevin Harrington joined the Company as Consultants to the Board of Directors to advise us on this new CBD line, as well as general corporate and business matters.
Record Contract. In December 2017, Rocky Mountain High Brands announced a private label relationship that, upon completion, serves as the largest contract in our Company history. The Company entered into a three-year Master Manufacturer Agreement with CBD Alimentos SA de CV (“CBD”), a food and beverage distributor based in Mexico. During the term of the agreement, CBD has the exclusive right to distribute in Mexico the Company’s energy and soft drinks with hemp seed extract. In return, CBD will utilize the Company as its exclusive supplier of its hemp-infused drinks.
According to Reuters Health News on December 20, 2017, Mexico will legalize marijuana-based product sales in early 2018, which will pave the way for our products to be distributed and sold in Mexico (https://www.reuters.com/article/us-mexico-marijuana/mexico-to-legalize-marijuana-based-product-sales-next-year-idUSKBN1EF022.)
CBD’s initial purchase order will be 8,000,000 cans, worth up to an estimated $3,600,000 in revenue for the Company during late first quarter or early second quarter of 2018. The 2018 volume requirement is 16,000,000 cans including the initial purchase order. This translates to revenue for RMHB of up to an estimated $7,200,000 in 2018 under this contract.
Goals for 2018:
Rocky Mountain High Brands’ leadership team has outlined goals in four categories for 2018:
1. Products.
The Company plans to end 2018 with meaningful market share in the hemp-infused beverage and hemp-derived CBD product categories. With up to 16 million cans expected to be shipped to Mexico and a reformulation of our flagship energy drinks in the second quarter to improve on an already popular beverage offering, shareholders can expect 2018 to be a banner year for this segment.
New CBD Product Line
Leveraging our well-regarded brand, history, customer base, and channels, Rocky Mountain High Brands plans to release a series of hemp-derived CBD products that will carry our label and a CBD-focused name. Initial products include CBD-infused water, tinctures and other popular products. As confirmed by major organizations such as the National Institute of Health and World Health Organization, CBDs have been demonstrated to be useful to treat a number of major diseases and serious conditions while simultaneously having been found to be safe for use by consumers. Total hemp based sales in the U.S. are expected to grow from $1.0 billion in 2017 to over $1.8 billion by the end of 2020 – over $800 million in growth in just 3 years. We want Rocky Mountain High Brands to capture a significant part of this growth (https://www.hempbizjournal.com/market-size-hemp-industry-sales-grow-to-688-million-in-2016/.)
Eagle Spirit Water
The Company is implementing a new commercialization plan for Eagle Spirit Spring Water with the goal of having it placed in 250 major stores in Texas by the end of 2018. We want to make Eagle Spirit a strong part of our portfolio due to the continued growth of the water category, and Texas, our backyard, is a great place to start.
2. Financial Improvement
On the heels of the private label contract and new CBD offerings, the Company anticipates record revenue for calendar year 2018. In addition, management plans to work with CBD Alimentos SA de CV on a 2019 volume requirement to ensure meaningful quantities and sales beyond the initial contract. Additionally, shareholders will be pleased to learn that management has begun a debt reduction program in the first quarter of 2018 in order to improve the Company’s balance sheet. It should also be noted that effective as of January 1, 2018, Rocky Mountain High Brands has changed its fiscal year to a calendar year which will foster reporting that is more reflective of most publicly traded companies.
3. Business Development Execution
Management feels very confident in the prospects for 2018 and beyond. We believe that the Company is in a unique position to grow both organically and through strategic partnerships and acquisitions. We may, from time to time, explore opportunities that mesh with our short-term and long-term strategies and are potentially accretive to our financials. There is no assurance any transaction or agreement will be consummated, but we believe many favorable opportunities exist for the Company.
4. Investor Relations
Rocky Mountain High Brands plans to commence an investor visibility campaign in order to engage in broad-based investor awareness that we hope will result in the maximization of shareholder value. We believe that we have a great story to tell and we plan to keep you, our shareholders, apprised as we strive to achieve market leadership status in the hemp-based product market.
In Closing
On behalf of all of us at Rocky Mountain High Brands, I appreciate your investment in Rocky Mountain High Brands and your confidence in management. We recognize that your support is one of the primary reasons for our success to date and in the future. We feel great about our plan and prospects for growth this year and beyond.
Sincerely,
Michael R. Welch
Chairman, President and Chief Executive Officer
Rocky Mountain High Brands, Inc.
About Rocky Mountain High Brands:
ROCKY MOUNTAIN HIGH BRANDS, INC., (RMHB) is a publicly-traded brand management company. RMHB specializes in developing, manufacturing, marketing, and distributing high-quality, health conscious, hemp-infused products that span various “good for you categories”. The Company currently markets a lineup of four naturally flavored hemp-infused functional beverages (Citrus Energy, Black Tea, Mango Energy and Lemonade) and a low-calorie Coconut Lime Energy drink. In addition, the Company offers hemp-infused 2oz. Mango Energy Shots and Mixed Berry Energy Shots. RMHB also bottles and distributes a naturally high alkaline spring water under the name Eagle Spirit Spring Water. In 2018, the Company is expanding its product line to include CBD-infused waters and functional beverages, hemp and CBD-infused foods, a skin care line and nutraceuticals both containing CBD. The Company plans to expand its CBD offerings as new products are developed.
For corporate information please visit: RockyMountainHighBrands.com
For ordering information please visit: LiveRockyMountainHigh.com
For information on our high alkaline water visit: EagleSpiritWater.com
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Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
Contact:
Michael Welch, Chairman, President and Chief Executive Officer
michael@rockymountainhighbrands.com
Investor Relations:
Stuart T. Smith, CEO & President
SmallCapVoice.Com, Inc.
Phone: (512) 267-2430
Fax: (512) 267-2530
ssmith@smallcapvoice.com
Jack Eversull, President
The Eversull Group, Inc.
Phone: (972) 571-1624
Fax: (214) 469-2361
jack@theeversullgroup.com