TORONTO, ON--(Marketwired - Sep 4, 2014) - Axxess Pharma Inc. (PINKSHEETS: AXXE), a specialty pharmaceutical and nutritional supplements company through its wholly-owned subsidiary, AllStar Health Brands Inc., is pleased to provide a shareholder update.
During the first quarter of 2014, AllStar Health Brands introduced their globally branded all-natural TapouT line of products to North America. Retailers immediately began placing orders. Within the first 30 days, AllStar Health Brands received reorders from the retailers. The quick rate of reorders is a strong predictor of sales growth when introducing new products.
In Q2, AllStar Health Brands and Acosta were able to secure orders from the Army Air Force Exchange Service (AAFES). Within 30 days, AAFES, initiated several reorders for the pain relief products only, as the supplements which were introduced after the sales cycle began will be added through their ordering system over the next few months.
As reorders were increasing at an accelerated rate, AllStar Health Brands continued to expand their customer market share by adding several online retailers. The additional online retailers have a strong customer base within the health and wellness industry. Within a short amount of time, revenues increased almost 10-fold to approximately $50,000. This revenue can be considered residual, as reorders of products remain strong.
Axxess expects growth to continue at an even faster pace through three main mechanisms:
1.) As marketing resources are added, the current product line will continue to experience accelerated month over month and quarter over quarter revenue growth.
2.) More importantly, based on market analysis, Axxess also expects a much larger jump in sales from the introduction of several high-demand TapouT-branded products. These products are a 2 lb. protein powder tub, a line of Ready to Drink protein meal replacement products, an omega-3 fish oil, and an all-natural testosterone booster.
3.) Finally, as overseas sales orders begin arrive from New Zealand, South Korea, Indonesia and Australia, Axxess believes the globally recognized name of TapouT, along with new product availability will begin to be a significant growth component in company revenues.
Dr. Daniel Bagi, President of Axxess Pharma, stated, "We are extremely pleased that all of our initial retailers in the US, have reordered products. Re-orders fuel strong residual growth. Our current demand from the US military, other retailers, distributors and soon to be global customers, are telling us we are on the right track. We have barely scratched the surface of where we believe our sales can go in the US and overseas. This is really just the beginning for us. Axxess Pharma believes the launch of our latest products, some of which will be first sampled at the Mr. Olympia event in Las Vegas later this month, will add significantly to its revenue growth for the second half of 2014."
Dr. Bagi further stated, "We are also very confident that the introduction of our 2 lb. protein tub will coincide with some US mass retail orders and sales, the timing of which will be adjusted with each of the chain's planograms. In short we are extremely pleased with the pace of our growth, and we expect to see the fruits of our labor bear strong results over the second half of the year."
About Axxess Pharma Inc.:
Axxess Pharma Inc. is a Nevada Corporation operating through its wholly owned Canadian Subsidiary: Axxess Pharma Canada Inc., headquartered in Toronto. Axxess is a specialty Health Care Products Company dedicated to improving health and quality of life by offering select medicines, nutritional supplements and over the counter remedies all across the Americas. Axxess's goal is to bring additional products to the market and provide new, innovative options for better health spanning areas such as high cholesterol, blood pressure, acute pain -- to optimal health management through improved nutritional supplements. To learn more about our new products TapouT Extreme Muscle Growth and TapouT Muscle Recovery, please visit: http://buytapoutme.com and http://www.tapoutmusclerecovery.com.
For more information, please visit www.axxesspharmainc.com, or contact Investor Relations at (973) 351-3868.
TapouT is a lifestyle brand that has been at the forefront of Mixed Martial Arts since its inception in 1997. The label is rapidly growing into other sports and categories, offering merchandise for men, women and kids. TapouT has endorsed high-profile professional athletes who compete in sports such as basketball, football, baseball, stock car racing, and most famously, MMA. TapouT is sold in sporting goods stores, specialty retailers and online. For updates and more information, please visit TapouT.com. TapouT is a Trademark of ABG TapouT, LLC.
Safe Harbor Statement
Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby.
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