New Wholesale Distribution Pacts Provide Hannover House with Direct Access to Major Retailers
Oct 08, 2014OTC Disclosure & News Service
Bentonville, AR -
Independent entertainment distributor Hannover House, Inc., (OTC: HHSE) has entered into wholesale distribution agreements that will provide the company with more direct access to major retailers including Target Stores, Best Buy, SAM's Clubs, Costco, K-Mart and Barnes & Noble. The wholesale relationships, which were pursued and implemented by Hannover House and Medallion Releasing V.P. of Sales, Tom Sims, will provide greater opportunities to merchandise titles and to participate in retailer promotions, the company said.
Previously, placement of Hannover House DVD and Blu-Ray titles into these accounts was channeled through a network of agents and brokers, resulting in only occasional success. The new structure with direct-vendor wholesalers provides a more efficient conduit to these retail shelves.
Hannover House DVD titles have enjoyed tremendous success through placement at Walmart Stores over the past twelve years since the company added home video products to its publishing line. Redbox, Netflix, Allegro Music and wholesalers servicing schools and libraries have comprised most of the balance of home video sales for Hannover House until recently. The addition of Tom Sims to direct sales activities has enabled the company to open relationships with a wide range of wholesalers and retailers that were previously considered placement challenges. Other accounts added recently by Hannover House and Medallion include Family Video, Harps Foods and Hastings Entertainment.
"Wal-Mart represents nearly half of all the home video sales in the U.S.A.," said Hannover House C.E.O. Eric Parkinson. "But their national market-share for sales of independent movies, comparable to many titles in our catalog and schedule, can often drop to under thirty percent when these other retailers step up with support. Tom has done a superb job of opening new wholesale and retail channels for titles being released by Hannover House and Medallion Releasing, and this will be evidenced by our growing revenues," Parkinson concluded.
Prior to joining the company in June, Tom Sims had worked for thirteen years as the Wal-Mart video buyer for Anderson Merchandisers, and later established multi-studio sales ventures for Allegro Distribution and Vivendi / Universal Music Group. The formation of Medallion Releasing is designed to replicate the successes of the later two ventures, by providing an efficient sales pipeline for independent home video labels to reach major accounts.
Hannover House is a full-service entertainment company, active in all aspects of the industry. In addition to the company's home video distribution activities, Hannover is expanding its theatrical release slate, beginning with the November 7 nationwide launch of "On Any Sunday: The Next Chapter" to over 250 theatres, in a partnership with Redbull Media House, North America, the film division of the Austrian beverage brand. The company recently launched an international sales division, Medallion International Pictures, and has added e-books to its established book-publishing activities. Hannover House is traded on the OTC Markets under the ticker symbol HHSE, and has been profitable for each of the eighteen calendar quarters since becoming publicly traded in January, 2010.
SAFE HARBOR STATEMENT
This press release may contain certain forward-looking statements within the meaning of Sections 27A & 21E of the amended Securities and Exchange Acts of 1933-34, which are intended to be covered by the safe harbors created thereby. Although the company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, there can be no assurance that these statements included in this press release will prove accurate.