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20, 2017 /PRNewswire/ -- FROM: SOUPMAN, INC. Q1 2016 on top of the 92% Tetra Pak sales increase for the fiscal year ending August 31, 2016 over the prior year. We are encouraged as this is the fourth consecutive quarter of Tetra Pak sales increases and we exceeded our earlier guidance of 117%. We believe this increase is primarily due to the following factors: (i) increased varieties of soup on shelf per store over last year; (ii) increased case sales per store from an average of 1.5 cases sold per month per store last year to an average of 2.7 cases sold per month per store this year and (iii) increased store count bringing the total number of stores to approximately 6,500 stores. In this month's letter, I have set forth an analysis of our marketing and promotional efforts over the quarter measured against our results. Targeted marketing and promotional efforts including sampling, in-store radio and personal appearances by the "Soupman"at stores and in the media, are the primary reason that we were able to increase market share and increase selling velocity per store per month. We spent $127,000 more on marketing and promotional activity in Q1 2017 versus Q1 2016. A portion of the benefits of the increased spend are realized in the short term and a portion is an investment in the longer term. As this relates to overall quarterly performance, of the total operating loss of $886,000 in Q1 2017, $331,000 was spent on marketing and promotional activity in Q1 and $285,000 was non-cash stock grants to outside third parties and to employees pursuant to contract. Therefore, excluding those non-cash items and the marketing and promotional spending from Q1 2017 vs. Q1 2016 when compared on an apples to apples basis, operating expenses actually decreased by $9,000 in Q1 2017 over Q1 2016.
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