ChampionLyte to go upmarket
is to reposition its sugar free sports drink as an upscale niche
product, the company said, announcing a comprehensive restructuring
to accompany the move.
ChampionLyte Products is to reposition its sugar free sports drink as an upscale niche product, the company said, announcing a comprehensive restructuring to accompany the move.
Acting chief operating officer Marshall Kanner said there would be a total overhaul of the entire company and its previous direction, a move designed to remedy some of the company's current financial difficulties. Strategic changes may include changing the name of the public company and seeking acquisitions, said Kanner.
"We've begun the process of fine tuning all aspects of ChampionLyte and are looking at the company from a shareholder's perspective. Given the tenuous nature of the company's present financial position, we started by addressing the company's vendors and creditors."
The company will also re-position ChampionLyte as an upscale, niche product and abandon any plans to go head-to-head with the other dominant companies in the market.
"It's unrealistic to think that we can compete directly with such industry giants like Gatorade, which is a unit of Pepsico," Kanner emphasized. "They own over 80 per cent of the nearly $3 billion dollar isotonic market. While we don't have the financial resources to compete on that level, we feel we can be very competitive as a niche player in the sugar-free category."Kanner also said the company is currently searching for one or more industry veterans to fill key management positions and to assist with the restructuring and re-launch.
"We are negotiating with several companies to manufacture the product through co-packing agreements. We're also in discussion with a number of firms concerning distribution," added Kanner.
