Business Services Industry
Message to Seawright Holdings, Inc. Stockholders
Business Wire, July 10, 2007
STAUNTON, Va. -- Seawright Holdings, Inc. (OTC BB:SWRI), producer of Seawright Springs Premium Natural Spring Water, has achieved a number of significant milestones in the last two quarters and desires to describe these accomplishments to its stockholders.
Seawright Springs is a major East Coast source for the exceptionally high-quality natural spring water located in the Shenandoah Valley of Virginia, approximately 135 miles from the Washington DC Metro area. Seawright acquired this prolific natural resource and its surrounding 145 acres of protected woodland in 2003 because of four important factors. The first is its extremely high, drought impervious volume output of 1.5 million gallons per day. Secondly, is its strategic location within 8 hours of 50 million consumers in dense urban centers including the highly coveted Mid-Atlantic and Northeast demographic. Thirdly, because of the consistently high quality and purity of the water, and its unique balanced mineral content. And lastly, because of the Seawright Spring's rich history including direct connection to the English Colonies and other historical events during America's beginnings.
Seawright has a two-fold vision for growth. The first is to bring this high-quality water to the public as a luxury brand in the fast growing small package bottled water market using its stylish 500ml and 1000ml proprietary bottle design. Secondly, to seek out partners in the spring water industry that specialize in large package bottled spring water including 1 gallon, 1.5 gallon, 3.5 gallon and 5 gallon sizes. These packaging sizes address the expanding home and office delivery markets as well as big box and grocery markets. Supporting these markets through partnerships will leverage the balance of the 300 plus million gallons per year generated by the spring. Additionally, these Seawright co-branding opportunities will enable established producers a faster time-to-market with significantly reduced transportation costs.
Seawright's achievements fall into two primary categories, operational milestones, and sales and marketing milestones.
Operational milestones: Seawright has finished the final phase of its facility modernization program. This included the demolition of an aging structure that previously protected the water retention reservoir. As the water flows from the earth at approximately 1.5 million gallons per day, a 32,000 gallon concrete reservoir and concrete structure had been fashioned years ago to collect the water for extraction as excess water flowed into a nearby stream. The modernization project involved custom building a 32,000 gallon stainless steel liner for the reservoir and replacing the old concrete structure with a modern powder-coated steel building complete with environmental controls and fully automated systems.
Additionally, Seawright installed a customized, high-capacity ultraviolet light as a secondary disinfection system to ensure only the highest quality water is provided to our customers. This system was built specifically for Seawright and contains computerized controls to ensure fault-free operation.
Another significant milestone is the introduction of nitrogen injection - an inert, colorless, and odorless gas - into the bottle just before capping, a relatively new technology that provides the bottle with more rigidity after filling. This increased rigidity will enable a reduction in the amount of plastic resin used in bottle production thus reducing manufacturing costs while retaining package integrity. This is a continuation of Seawright's commitment to limit the impact of its product on the environment and has a direct beneficial effect due to a reduction of petroleum content for each bottle and lower energy consumption to produce. Seawright also continues to monitor advances in biodegradable bottle production as they come available, and is committed to implementing this beneficial technology.
Joel Sens, the CEO of Seawright Holdings said "This modernization of our facilities enables us to meet the growing demand of our distributors, retailers, and consumers. As we continue to expand and create a larger foot print for our product, these state-of-the-art advances will ensure a high-quality product with reduced operational and material costs, aiding future expansion."
Sales and Marketing milestones: In support of rolling out Seawright's small package 500ml and 1000ml product, Seawright has secured an initial beverage distributor, Shurfire Distributing, in the Baltimore-Washington metropolitan marketplace to begin distributing Seawright's bottled spring water. Mr. Sens said "This regional marketplace is characterized by 5.2 million residents with highly desirable demographics and a major market for luxury brands consistent with Seawright's high quality and distinctive packaging."
Last quarter Seawright retained the services of an experienced beverage sales and marketing professional who is adept in all aspects of the beverage industry, including the coveted health and nutrition channels. This team member is fully engaged in the execution of Seawright's sales and marketing strategy.
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