Also Reviews Summary Of 2021’s with Focus on Test Marketing of Doc Wylder’s

Waterloo, Ontario, January 20, 2022, 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 growing its proprietary brands focused in the Alcohol, Functional Beverage, and Hemp Sectors is pleased to provide an operational update and focus for 2022.

Myles Bartholomew, CEO of SponsorsOne, said, “Last year, we launched Doc Wylder’s in several test markets to establish product-market fit with major retailers like Costco and Ralphs. The table is now set to scale Doc Wylders in the USA and Internationally.”

IWSR states: “The market for ready-to-drink (RTD) alcohol products continues to show traction and demand from consumers. RTD volumes have been growing faster than any other major drinks category since 2018 and are expected to significantly outperform the wider beverage alcohol market over the next five years, increasing their market share to 8% by 2025 (from about 4% share in 2020) in top RTD markets.”

2021 Review – Summary

  1. Doc Wylder’s product line was introduced and adopted by regional and national distributors. Costco and Ralph’s test-marketed the product, and in both retailers, we exceeded the minimum sales required for additional purchasing.
  2. We introduced the Smithville, 4 Corners, and Riverview spirits products to test market demand among retailers and distributors.
  3. We created a new product division to focus on CBD Hemp Smokes and secured large-scale production capacity. Discussion among distribution and retailers helped us refine the launch strategy for 2022.
  4. 2021 Revenues represented the sample orders placed in retailers and our online ecommerce platform
  5. The SponsorCoin platform was upgraded with a new software language to provide the scaling capability for security and reliability.

2022 Outlook – Summary

  1. SponsorsOne’s capital structure and markets will be a priority in 2022, focusing on shifting the shareholder narrative to operational execution with visibility of financial metrics to map and track the Company’s progress. The narrative in 2021 was about the build as we entered the Brand creation market.
  2. We are focusing on the distribution channels and regions that proved successful. In large national grocery, we are expanding our market coverage with Ralph/Krogers through the relationship with RNDC. In the national club channels, we are working towards a larger regional program with Costco. In the specialty channel, Doc Wylder’s expects to replicate the success at Lee’s Liquors in Nevada in high growth markets like California and Arizona.
  3. Debt versus Equity will focus on financing purchase orders and inventory. In 2021 we used equity to finance start-up inventory. As our client base grows and revenue becomes predictable, we can transition to debt financing (Purchase Order and Invoice Financing), which is much less costly than equity.
  4. New co-packer relationships are being developed that can more efficiently handle the bottling and packaging of the Doc Wylder’s product.
  5. Some packaging design changes have occurred, allowing for higher production capacity and maintaining the re-sealable lid on Doc Wylder’s.
  6. The Spirits business will move to a control label strategy whereby we will sell the spirits Brands to distributors or influencers. Discussions are ongoing around the sale of the Smithville, 4 Corners and Riverview Brands. The sale includes all the inventory, brand design, goodwill, and our support to continue to supply the Brand owner with the product.
  7. With Hemp Smokes, we expect distribution agreements in place in the first half of 2022 and will use 2022 to scale up production, marketing, and general market acceptance of the three brands we created. Both USA and International distribution discussions are making progress.
  8. The SponsorCoin platform is intended to beta test around the Doc Wylders Brand this year, validating the community commerce model of digital engagement. We are seeing the shift of the influencer to the authentic community, which supports the idea of decentralization away from large, centralized influence. The data generated will allow us to tune messaging and engagement leading to increased sales.

In summary, 2022 will be a transition year from development to growth. With COVID issues still present and taxing the supply chain, our management team will continue to balance the inventory levels to ensure quick order turnaround while managing the On-Demand supply chain, reducing the need for internal capital. It will be a challenging year for us, but the groundwork achieved in 2021 sets SponsorsOne up for a successful 2022.

 About SponsorsOne Inc.

SponsorsOne is the leader in the next evolution of brand creation and 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 the 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 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. 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 and manages the influencer communities for each Brand.  For making the Brand big, our wholly-owned subsidiary S1 Brands Inc., builds wholesale/retail distribution channels 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.  Premier Beverage Consortium LLC, is a wholly-owned subsidiary and is brand building for the global spirits market with its flagship “Ready to Drink” product called Doc Wylder’s.  HS Brands Inc. is a wholly-owned subsidiary and is brand building for the global Hemp Smokes market with the launch of multiple premium products such as Primero Hemp Smokes and Suede Hemp Smokes.  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

Contact: info@sponsorsone.com

ON BEHALF OF THE BOARD

Gary Bartholomew, Executive Chairman

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