True 2 Beauty, Inc. (TRTB.PK) Continues Major Expansion
The history of True 2 Beauty has been one of rapid growth, with demand eventually exceeding production capacity. The rise in sales shows no signs of letting up, and, in fact, the rate of growth is expected to increase. But a major new facility, together with purchase of advanced high-volume production equipment, should now give the company the ability to fully meet expanding market requirements.
It all started when Alex Hbaiu, a biochemist working at pharmaceutical giant Eli Lily, began recognizing a huge and largely unmet demand for natural sexual enhancement products. In 2004, Hbaiu used his pharmaceutical and distribution experience to found True 2 Beauty, offering products for both male and female sexual enhancement made of 100% natural ingredients. Within 5 years, the company had developed a distribution network of over 5,000 retail locations. By 2009, sales began to take off, and it soon became clear that operations would have to expand to meet existing needs and to allow further growth.
The company is now in the process of consolidating operations into a new facility in City of Commerce, California, installing machinery to boost productive capacity from 16,000 units per day to 10,000 packages per hour. Additional equipment will be installed in the second quarter of 2011, providing still higher capacity.
With production in hand, True 2 Beauty can expand its marketing efforts, with new product lines and with direct-to-consumer distribution. In conjunction with this, the company is currently in talks with top-line celebrities for product promotion. In addition, the company recently announced a distribution agreement with Kretek International, Inc., a leading distributor to convenience stores and other retail channels in the U.S. and Canada. Kretek President, Mark Cassar, indicated that his company had successfully increased distribution of a competitive sexual enhancement product to over 40,000 retail locations, and that Kretek is no longer distributing that product.
For more information on True 2 Beauty and its products, visit Libigrow.com
Please see disclaimer on QualityStocks website: disclaimer.qualitystocks.net
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.