SponsorsOne Signs Warehousing, Retailing and Regulatory Technology Solution Agreements For Internet Sales Direct To Consumers Reaching 32 States In The USA

Waterloo, Ontario, February 16, 2021, SponsorsOne Inc., (CSE: SPO) (Frankfurt: 5SO), (OTC:SPONF), a company that utilizes its proprietary platform that combines digital marketing, wholesale and retail distribution, branding, and operational & funding capital, giving it a competitive first-mover advantage in rapidly selling proprietary brands focused in the Alcohol, Functional Beverage and Hemp Sectors, announced today that it has executed warehousing and online retailing agreement (“Direct to Consumer” or “DTC”) with Speakeasy Co. to sell Premier Beverage Consortium’s, Doc Wylder’s Lemonade as our first DTC product.

Myles Bartholomew, CEO of SponsorsOne, said: “In a recent press release a little over a month ago, we said that the Company had planned to open our direct to consumer (“DTC”) sales channel, and now we are entering the $24 Billion DTC Spirits Market. Prohibition-era regulations stifled liquor e-commerce in the U.S. for decades, and the pandemic lockdowns sparked demand almost overnight.  The DTC Spirits market share is now estimated at 5% of the $120 billion market in the USA and expected to grow to 20% by 2026[1] , and we are set up to lead this growth with high-quality products that consumers can buy online”.

On Feb. 2 upstart, Drizly Inc. agreed to sell itself to Uber Technologies Inc.—the ride-hailing company that’s ventured into food delivery— for $1.1 billion, signaling the explosive growth potential of the DTC market.  Delivery is one of the value-add components in the DTC supply chain. Still, the bulk of the margin is in producing high-quality distilled alcohol products like Doc Wylder’s, Smithville, 4 Corners, and Riverview. Under the agreement with Speakeasy Co., we will maintain the Brand website, and Speakeasy Co. maintains the shopping cart for the online purchase. Speakeasy Co. will maintain the warehouse of inventory, which upon purchase, triggers the shipment direct to the customer. Speakeasy Co. adds efficiency by bringing all the regulatory tiers together, making this a seamless consumer experience. Speakeasy was the infrastructure for Telsa’s Tequila[2] brand, which launched direct to


[1] Bloomberg, Covid Brought Booze to Your Door—and Made Delivery Worth Billions, February 10,2021, https://www.bloomberg.com/news/articles/2021-02-10/booze-delivery-online-liquor-sales-are-booming-amid-the-pandemic

[2] https://finance.yahoo.com/news/tesla-unveils-tesla-tequila-250-085412111.html

consumer in November of 2020.  The product was priced at $250.00 and sold out within 4.5 hours totaling 10’s of thousands of bottles across multiple states.  Using social media as the marketing platform, the storefront has millions of hits, driving the sold-out response on this one-time limited offer.   Recent results stated by Speakeasy Co. reinforce the momentum now happening in the DTC market:

Ricardo Camargo, Chief Brand Officer of SponsorsOne Media Inc said: “The biggest change in today’s spirits market is that brand awareness is now happening primarily on digital channels like social media and ambassador collaboration. All PBC brands will focus their marketing efforts on digital tactics to connect with consumers benefiting BOTH retail and direct distribution strategies. Consumer data is also increasingly valuable. It allows our brands to know the exact demographic and location, targeting digital advertising accordingly. Traditional brands and spending billions for In-Store marketing. We are going to be more strategic and more effective with our marketing efforts.”

Currently, we have Doc Wylder’s in the warehouse ready and working on launching the DTC infrastructure with Speakeasy in late Q1 2021.

For more information, the following link is provided:

https://www.premierbeverageconsortium.com/

About Speakeasy Co.

Speakeasy Co. is a technology company and e-commerce platform for the Wine & Spirits industry that ships beverage alcohol brands directly to consumers. The platform enables brands to sell directly to consumers from their respective websites without disrupting the three-tier system, allowing these brands to own their own user experience from beginning to end, in addition to owning their data and analytics of their target customer.

For more information, the following link is provided:

https://www.speakeasyco.com/

About SponsorsOne Inc.:

SponsorsOne is the leader in the next evolution of digital marketing through influencer marketing, storytelling, and digital-commerce with the SponsorCoin platform and its highly scalable – smart contract-based digital-currency. Combined, this allows brands to build and manage exclusive and highly engaged communities of influencers (from pro to micro-influencers) within the social realm. The SponsorCoin platform provides for data-driven marketing campaigns that will change the way brands connect with their customers. SponsorCoin is a tool for brands to inspire real movements around their products and services in which their most valuable customers become their best salespeople, producing far higher ROI than current social media advertising methods. SponsorsOne, through its wholly-owned subsidiary, SponsorsOne Media Inc., provides full creative and Brand building/management services to all our Brands as well as manages the influencer communities for each Brand. If the Brand wants to get big – fast, our wholly-owned subsidiary S1 Brands Inc., will build a wholesale/retail distribution channel for the Brand acting as a master distributor. S1 Brands provides sales and marketing on behalf of the Brand to its vast network of national wholesalers and retailers and provides purchase order financing to assist the Brand in fulfilling every order. Ownership of the Brand combined with distribution, digital marketing innovation, and capital is the winning formula to build the next billion-dollar brand. To learn more, please visit www.sponsorsone.com

ON BEHALF OF THE BOARD

Gary Bartholomew, Executive Chairman 

To learn more or inquire please visit www.sponsorsone.com/

The Canadian Securities Exchange (“CSE”) has neither approved nor disapproved the contents of this Press Release.

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¹ https://www.marketwatch.com/press-release/craft-spirits-market-size-to-grow-at-a-cagr-of-2533-during-the- forecast-period-20202025-2020-09-16
² https://www.grandviewresearch.com/press-release/global-rtd-high-strength-premixes-market