New Leaf Brands has outlined a series of new cost cutting initiatives and reiterated plans to expand business operations via the acquisition of “brands, distributors and co-packers in our industry,” as part of its restructuring and turnaround efforts. While the company continues to face an upward struggle toward profitability, CEO David Fuselier stated that the company is “exploring various strategic alternatives, including business combinations and private placements of debt and or equity securities to raise capital.”
In a delayed financial statement for the second quarter of 2012, New Leaf, which markets a line of tea and juice drinks and now refers to itself as a “diversified beverage holding company,” announced that net sales totaled $174,104, as compared to $658,527 for the same period in 2011. New Leaf blamed the decline in sales on capital constraints that led to production delays and order fulfillment.
However, Fuselier noted that within that timeframe, the company was in it the midst of launching its turnaround program and is “pleased with our financial results for the period.” In moving forward, Fuselier indicated that the company would narrow its distribution to focus on the Northeast Corridor from Maine to Maryland, attempt to reduce supply chain and corporate operating costs, and new strategic partnerships.
“We continue to move forward in exploring various strategic alternatives, including business combinations and private placements of debt and or equity securities to raise capital to grow our Company,” Fuselier said.