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Happy New Year, I hope this finds you well. It was an honor to step into the role of CEO of The Blinc Group in December 2023.

The company’s path over the past two years has proven that we are a resilient, profitable, and sustainable business with a truly engaged team across functions and continents. With everyone rowing in the same direction, I am confident that our growing team, our most valuable asset, will continue to do great things.

When I joined in 2022, we faced significant challenges with our sales strategy and operations that required us to re-envision the way we conducted business. This re-envisioning was focused on building a long-term sustainable and profitable business, and not just solely focused on the immediate term (as can often happen during challenging periods). With long-term growth and relevance in a fast-changing business at the top of our minds, we deconstructed existing processes. We started with the rebuilding of the Sales team, empowering them with greater visibility into what our clients actually wanted. Turns out that listening intently to one’s clients pays off: the company saw a 60+% increase in sales in a world where downward pressure on revenue was a daily reality.  We rebuilt Operations with better upstream control of our supply chains and improved processes, resulting in on-time production rates 95% week after week, month after month. 

As we reassembled the building blocks of our operations we gained efficiencies and economies of scale that allowed us to reduce our pricing by more than 30% – a savings that we passed onto our clients. Simultaneously, the robust controls we put in place helped us achieve a non-conformance rate of less than 0.5% across our products.

We had to significantly cut our marketing budget, yet discovered innovative ways of promoting our products and services. In my assessment, the marketing team are  unsung heroes within our company. They have worked round the clock with very limited budgets to drive some of the most creative and engaging campaigns within our industry. 

Our management team accepted voluntary reductions in compensation;  most did not leave, but rather, dug in and did the hard work. Our entire team, across continents, REALLY came together. Our investors rallied and stuck by us, steadfast in the belief that our plan would work. We disassembled the entire company foundation to make it stronger, knowing that we would spend 2023 rebuilding and strengthening the business, pushing it towards its full potential; which is clearly demonstrated in our financial results.

Understanding our strengths and weaknesses allowed us to identify and launch new products and value-added services. Just over 67% of our new clients in 2023 originated from the launch of new products like our AiO Simpl. Our SNPL program contributed to 20% of our revenues while our VMI program has contributed significantly to bookings and revenue, both of which give our clients the ability to increase working capital with modest to no cost. We added a number of clients to our list of leading contributors, each responsible for over $1 million in sales.

In 2024, having clearly demonstrated our ability to scale and execute, we turn our sights to growth by continuing to launch new and innovative products. We are adding value to products through the use of sustainable materials and easy-to-recycle designs. Listening to the voices of our clients, we will continue evolving our Scale Now, Pay Later and Vendor Managed Inventory  (VMI) programs to better suit their needs and address their “pain points.”. 

We will continue adding to our growing IP portfolio through a combination of organic development and acquisitions, which will contribute key value-adds to our product portfolio in 2024. We are already working on strategic initiatives that will bring with them IP that we plan to leverage into innovative, game-changing products and services. 

Rising above the noise, we successfully defined and implemented Blinc’s proprietary  Failure Mode and Effects Analysis (FMEA) program. This strategic initiative has not only reduced non-conformances with existing products but has also enabled us to proactively address and mitigate potential issues in the pre-launch phase of new products. The FMEA program not only improves the quality of our products but also strengthens our commitment to excellence. In 2023, we launched two new vape hardware products. In 2024 we have scheduled new product launches early in the first quarter, with a full pipeline of new products that will see us through the year and into 2025.

Adding value to every client interaction and bucking the continuing inflationary trend, we began the year with a further price reduction on 510 cartridges and All-in-One devices (AiO). Leveraging additional economies of scale and manufacturing efficiencies, we will continue driving costs down while improving the quality and consistency of our products.

Continuing our rich history as trendsetters in the vape hardware industry, we will leverage our team’s expertise to positively impact regulatory compliance and policy initiatives.

Through our Finance team’s tireless efforts, we begin 2024 with a mission to restructure our balance sheet and strengthen the financial core of Blinc allowing us to further fuel  the company’s growth.

Personally wishing for 36 hours in a day instead of 24, we undoubtedly have a long road to travel. With a proven and motivated team, a robust plan, and a goal of serving our customers’ needs while providing exceptional quality and value – opportunities are ours for the taking. I would like to thank each and every one of our clients, The Board of Directors, our investors, our team, and well-wishers for your continued support.

Excelsior aude!
Gurpreet (Pete) Sahani
Chief Executive Officer

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