DEAR FELLOW SHAREHOLDERS:
On September 20, 2004 we are scheduled to present at the Merriman Curhan Ford & Co Investor Summit in San Francisco. It is our intention to use that opportunity to announce two new carbonated beverage products that we have had in development for the past few months. Coincident with that presentation we anticipate issuing a news release describing those new brands, which are designed to supplement and extend our existing portfolio of company-owned products.
We are also working on an exciting new initiative to bring a new healthful product to market that we believe has been simply overlooked by the beverage industry. We see ourselves uniquely positioned to develop and exploit this opportunity in several different channels and markets. Look for more information on this in the coming months.
Colder weather over Central Canada for much of the Summer resulted in some slowdown in plant production towards the end of July and early August for certain of our customers, but all in all we remain far ahead of last year’s pace in both absolute cases and the efficiency with which we filled them.
Although still pretty warm out, it is at this time of year that we turn our attention to our Fall and Winter portfolio of products, primarily crackers and cookies. In that business we represent select US mills in Canada and distribute those products primarily to private label customers, which for us comprise most of the major super market chains in Canada. We also see a significant jump in demand during those seasons for our Caesar and other ‘clamato’ products. We are the second largest producer of those types of cocktails in Canada.
We continue to experience marked improvement in the financial performance of our US distribution operation. Under the guidance of Pat Wilson and Matt Hughes we have benefited from a focus on profitable business and building solid relationships. Our newly-minted arrangements with NSSI and now UNFI, the largest natural and specialty food distributor in North America, provide us a great opportunity to capitalize on the fast growing health sector. We are also going direct to market in a variety of circumstances and are already on our third shipment of Soy20™ to Mexico where every indication is that the product is being well received there.
Thank you for your continued support.
LEADING BRANDS, INC.
Ralph D. McRae
Chairman & CEO
Certain information contained in this press release includes forward-looking statements. Words such as “believe”, “expect,” “will,” or comparable terms, are intended to identify forward-looking statements concerning the Company’s expectations, beliefs, intentions, plans, objectives, future events or performance and other developments. All forward-looking statements included in this press release are based on information available to the Company on the date hereof. Such statements speak only as of the date hereof. Important factors that could cause actual results to differ materially from the Company’s estimations and projections are disclosed in the Company’s securities filings and include, but are not limited to, the following: general economic conditions, weather conditions, changing beverage consumption trends, pricing, availability of raw materials, economic uncertainties (including currency exchange rates), government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other risk factors described from time to time in securities reports filed by Leading Brands, Inc.