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Royal Pet Meals is positioned to emerge as a leading company in the $34+
billion booming pet industry with its high quality, natural, organic and historic pet
foods, exceptional management team, and strong distribution network
Retail Distribution
Pet Products
(RYPM-Pink Sheets)
Royal Pet Meals, Inc.
1001 Bridgeway, Suite 727
Sausalito,
CA 94965
Phone: (866) 66 ROYAL - (866) 667-6925
Michael Schlosser
Chief Executive Officer
Interview conducted by:
Lynn Fosse, Senior Editor
CEOCFOinterviews.com
June 30, 2005
BIO:
Mr. Michael Schlosser is Chairman of the Board, and Chief Executive Officer of Royal Pet
Meals, Inc. He is involved in providing strategic planning, product marketing and the
leadership framework for Royal Pet Meals, Inc.; prior to this, Mr. Schlosser has held a
series of senior leadership positions for various companies. From 1980 – 1986, he
held the CEO position with Pinnacle Financial Group in Redmond, Washington, a (RIA)
Registered Investment Advisory firm. From 1985 – 1987, he participated as one of the
original founders of Redmond National Bank in Redmond, Washington, completing an IPO and
creating (as of 4/2005) a National Bank with $100 Million in assets. From 1983 –
1996, he held the position as CEO of Washington Training Institute, specializing in State
mandated education and licensing programs for Real Estate, Insurance, and Securities
licensing. Since 1996 - 2003, Mr. Schlosser held senior executive marketing & sales
positions at Buffalo Capital Investment Advisory Firm, whose clients included Bank of
America, Merrill Lynch, The State of California Department of Corporations, etc. He has
authored several books, over 50 training courses and written articles, all on Financial
Services topics. He has more than 30 years of experience in the financial services
industry in Seattle, Boston and San Francisco. Mr. Schlosser holds a Bachelor of Science
Degree from the University of Wisconsin-Stevens Point. He served three years with the U.S.
Army, seeing combat service in Vietnam with the 82nt Airborne Infantry during 1969. In
total, he has over 30 years experience in management, marketing, sales and practical
experience working with start up companies in the financial services industry.
Company Profile:
Royal Pet Meals, Inc. (OTC: RYPM) is uniquely positioned to emerge as a leading
company in the multi-billion dollar, booming pet industry. Today, more money
is spent on pet sales than in the toy and baby food industries combined! Royal
Pet Meals, Inc. will capitalize on this huge market with their high quality, natural,
organic, healthy pet food and niche services. Changing demographics, new lifestyle trends,
and a shift in American attitudes towards pets have led to a significant increase in
consumer expenditures during the past five years. In fact, in 2004, American pet owners
spent approximately $34.3 billion on their pets, with much of the food sold
containing materials unfit for human consumption. Even with all of the money that
Americans spend on their beloved pets, it is a sad fact that most cats and dogs die
between 13 to 15 years old; even though animal experts estimate that, their maximum life
span should be 25 to 30 years! Royal Pet Meals, Inc. will capitalize on this
huge market with their high quality, natural, organic,
HEALTHY pet foods and niche services.
The Company expects to rapidly gain market
dominance by making synergistic acquisitions, and through the use of advanced marketing
strategies, such as network marketing, infomercials, product branding, Internet exposure,
and major retail store sales.
Clearly, Royal Pet Meals, Inc.
has enormous growth potential! As pet owners become educated about the health
dangers of almost all Supermarket pet food products, they will DEMAND quality,
all-natural, healthy foods for their prized animals. The Company is using marketing
methods (infomercials, network marketing) that could literally grow revenues at an
exponential rate. Management believes that it would be entirely realistic for the Company
to capture at least one percent of the market each year for its first five
years in the business. This would equate to revenues growing from $200 million in its
first year of operations to in excess of $1 billion annually (just 5% of market share)
five years out! Shareholders should be highly rewarded!
CEOCFO: Mr.
Schlosser, will you give us some background on Royal Pet Meals?
Mr. Schlosser: “It is a fact that more money is spent on
pet sales than in the toy and baby food industries combined. Last year that figure was
$34.3 billion! In the United States, there are more pets than people; 378 million pets
versus 290 million people! Even with all of the money that Americans spend on their pets,
it is a sad fact that most cats and dogs die between 13 to 15 years old. Animal experts
estimate that their maximum life span should be 25 to 30 years! The truth is that their
lives are being cut short by the unhealthy food they eat. Therefore, we saw an enormous
opportunity and decided to specialize in the pet products area, with initial emphasis on
natural, healthy, organic pet food. The growth numbers are truly staggering. Royal Pet
Meals is specializing in natural, organic, high quality, healthy food products for pets.
Studies have shown that as people in the United States become healthy while focusing on
continuously eating right, they tend to shift that same emphasis and focus on their
beloved pets the same way. We have unique premium lines of wild game products, historic in
nature, such as, pheasant, rabbit, duck, and buffalo, which are not only delicious for
dogs, but are also extremely healthy.”
CEOCFO: What
types of pets are you focusing on?
Mr. Schlosser: “At this time, our primary focus is on
dogs, as there are more than 70 million dogs in the United States. Cats are also a focus
and we certainly expect to be entering that market in the near future.”
CEOCFO: What has
been involved in testing the food and the decisions on what to produce?
Mr. Schlosser: “There are specific requirements for
organic pet food. We have a food manufacturer and the manufacturer is making all their
organic products subject to the stringent standards of the Organic Foods Production Act.
We are also private labeling some of their products as well as working on some of our
own.”
CEOCFO: How do
you sell Royal Pet products?
Mr. Schlosser: “We are implementing a number of
marketing strategies to ensure rapid revenue growth, including infomercials, Internet
sales, network marketing, and using retail brokers to get our lines into large pet chains.
Also, we have established a major distribution center in the United States, and are also
looking at distribution in Canada.”
CEOCFO: Where are these sold?
Mr. Schlosser: “Initially, we are in specialty pet
product stores. Our main goal is to acquire a company that has access to PETsMart (NASDAQ:
PETM) and PETCO Animal Supplies, Inc (NASDAQ: PETC). Being a publicly traded company
presents many opportunities for complementary acquisitions. Once we acquire a company that
is already marketing to one of the major chains, our numbers will grow dramatically.”
CEOCFO: Will you
tell us about your decision to become a public company and how that has changed Royal Pet
Meals?
Mr. Schlosser: “The defining reason for becoming public
was that one of the most immediate and effective ways to raise capital is through equity
financing. If you are a small private company, you may have a difficult process in raising
capital. We are on a high growth trend and having the ability to raise necessary expansion
capital through stock sales or use stock for profitable acquisitions, gives us a strong
competitive edge and accelerates our corporate growth!”
CEOCFO: Do you
have funding now for immediate development?
Mr. Schlosser: “We are set for now. We are always
looking for synergistic acquisitions, which would accelerate our growth plans and augment
our profitability. We want to not only produce and market top-quality, natural, organic,
health food products for pets, but to continually increase our revenue potential with
complementary products.”
CEOCFO: Is there
much competition in the organic pet food area?
Mr. Schlosser: “Obviously, in today’s global
economy, there is competition in everything. However, in the pet industry, I think what we
are seeing is a lot of small companies with one product or, in some cases, products that
are made at home. It is a highly fragmented industry and many companies just do not have
the ability or capital to grow. This presents an enormous opportunity for Royal Pet Meals
to consolidate the industry and enjoy rapid growth. I think that the key to this
marketplace is to get into some of the mass distribution chains, whether it is PETsMart,
PETCO, WAL-MART (NYSE: WMT), or TARGET (NYSE: TGT). You have to have a top-quality product
that consumers will demand, and secondly, you have to find a way into those distribution
channels. That is how you compete in this industry and that is the path that we are
taking.”
CEOCFO: Will you
tell us about the background of the management at Royal Pet, which will allow you to do
that?
Mr. Schlosser: “My background is thirty years in all
different areas in the securities industry. I have been involved with taking companies
public. There was a group of twenty of us in the mid-eighties, which created a bank that
we started from scratch, Redmond National Bank in Redmond, Washington, which today is over
a $100 million dollar bank. In fact, it was just acquired by another bank. I have been in
the business and around the business for over thirty years. I am experienced with the
entire operation. Experience is valuable and I have many contacts in the business. We have
several good people working with us and it is a great operation.”
CEOCFO: What is
different about getting into Canada? Are there unique challenges?Mr.
Schlosser: “One of the reasons we are looking at Canada is that we ran across
a distribution center up there that would allow us to get our products into the Canadian
marketplace very quickly. We see it as a marketing bonanza. It was an ideal
situation.”
CEOCFO: Are
people using Royal Pet Meals now?
Mr. Schlosser: “Absolutely, and we are constantly
receiving many positive testimonials from pet owners as to their dogs’ love of the
food.”
CEOCFO: What
kind of products would you like to add?
Mr. Schlosser: “We are close to completing an
acquisition for flavored pet water. People are buying water by the bottle for themselves
and they are very interested in buying water for their pets. This is an area where we see
tremendous opportunity. We will make the announcement shortly on that. Another area where
I think there is big potential is pet electronics. We are seeing a number of new products
on the market that are microchip oriented and based on GPS technology. These
state-of-the-art products would alert you if your pet had left your property lines and/or
locate your pets if they should become lost. Also, we are looking into marketing pet
insurance, which is the third largest expenditure in the $34+ billion marketplace.”
CEOCFO: Do you
have pets, and if so will you tell us about them?
Mr. Schlosser: “Yes I have a German Shepherd. I had
German Shepherds since I was a kid and I love them. They are the dog for me.”
CEOCFO: Why is
this a good time for potential investors to look at Royal Pet Meals, and what should they
know that they may not realize about the company?
Mr. Schlosser: “We would certainly always welcome new
shareholders and will be working diligently to maximize share valuations. We feel that we
have a very strong business model, an exceptional management team, and excellent products
that will be in major demand. We clearly believe that we are positioned for major revenue
growth in the coming months and years. Timing is always important for investment success.
We are very positive about our future, since we address a huge proven market. I certainly
think that if you invest in our company at this early stage where it is starting to grow,
you have significant appreciation potential.”
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