FACT Corporation CEO Provides Retrospective Overview and Comments on Future Direction
With a complete line of products designed to support a healthy lifestyle, and a focus on high fiber/reduced carbohydrates and low or no sugar, FACT stands ready to make a sizeable impact on today’s baked-goods market in North America.
16/10/08 FACT Corporation, a specialty provider of nutrition-focused, multi-functional ingredient mixes to the North American baked-goods industry, offered a retrospective overview of products and operations, a current progress update, and insight as to corporate plans for fiscal 2009.
CEO Jacqueline Danforth commented, “It’s been an interesting road for FACT Corporation since securing our first product sale in fiscal 2002, albeit a road with some unexpected twists and turns as well as a few nasty potholes. We’ve come a long way, accomplished much, and look forward to doing much more.
As we enter the fourth quarter of our sixth year of operations, I am pleased to report that since opening our first sales and development office in Freehold, NJ in the summer of 2002, our product portfolio has more than tripled, growing from nine initial commercialized product offerings over thirty as of today’s date. And we have further improvements and product line extensions being added to our arsenal each quarter, including organic offerings that provide options for a variety of manufacturers seeking to serve customers in that market category. With a complete line of products designed to support a healthy lifestyle, and a focus on high fiber/reduced carbohydrates and low or no sugar, FACT stands ready to make a sizeable impact on today’s baked-goods market in North America.
Getting to where we are today is the result of persistence and innovation. Even though we experienced tremendous revenue growth during our first five years, we also experienced disappointment. After growing rapidly from 2002 thru 2004, we faced a major setback in early 2005 with the collapse of the “low-carb” craze. This change in the consumer mindset led to the failure of many large low-carb enterprises. FACT saw a commensurate decline in customers, resulting in a decrease in gross revenue by the close of fiscal 2005. Quick to recover, we moved forward by presenting new and improved product offerings. These improvements delivered increased sales and product distribution. Fiscal 2006 and 2007 were banner years for FACT, with gross revenue actually doubling year over year to a total of $3.4 million for fiscal 2007.
Fiscal 2008 brought new adversity to our overall market, with transportation costs and commodity prices sky-rocketing industry-wide. Unfortunately, these issues have negatively impacted FACT’s business for the entire current year. Our early-year revenue projections of $5 million for fiscal 2008 will not be achieved, and in fact, we expect to close out the year with gross sales of approximately half our targeted numbers. While certain of our customer base have excelled during this difficult time, even increasing product sales as much as 25% over 2007 totals, other customers have seen dramatic declines due to sharply increased costs and distribution charges.”
Danforth concluded, “We expect to dramatically turn things around for fiscal 2009. While we intend to continue growing our sales to regional bakeries and manufacturing facilities, we also have a much larger plan for implementation during the second half of 2009. This plan includes entering an entirely new market category, with a new segment of ready-to-eat and ready-to-bake product offerings. Over the coming weeks, we expect to share more of our plan with the investment community, including some specifics that may provide a better picture of what the FACT of 2012 could look like. We are excited about our future!”
