A Message From The President

March 5, 2009  

Dear Shareholders:

Almost six months have passed since I joined your Company as President and General Manager, and what an eventful time it has been.

The transition from my position as President and General Manager of billionaire Jimmy Pattison's privately held Buy-Low Foods Group (Buy Low Foods, Westcoast Produce, Associated Grocers, Van-Whole Produce, and Nesters Markets), to managing President of a young publicly-traded spice company was dramatic and exciting to say the least, but what was so compelling and attractive about the opportunity to help 'hands-on' grow The Spice Depot, proved even more so in the doing.

The abundance of opportunity available to the company and its extraordinarily talented management group is apparent with each day that passes and with each milestone we reach -- and there have been many.   These past months represent a concentration of efforts to take stock both literally and figuratively, to tie-up loose ends, open new doors, and refine a strong and demonstrable long-term business plan.

As you know, the consolidation and structural changes that took place more than one year ago paved the way for a concentration of formidable growth and impressive new retail listings for Spice Depot, both in Canada, and coast-to-coast in the United States (see Where To Buy on the company website).  Soon after I joined the company, we turned much of our attention to the refinement of administrative systems, issues of compliance, and the expansion of our global sales division.  As a team, we've made important and substantive progress.  

I am pleased to report to you today that the company's consolidated financial statements for year's ending 2007 and 2008 are complete and have been audited by the chartered accounting firm of Davidson & Company LLP.  This consolidated audit is available for review on our website, in the Company News section of the Media Center.                      


Another significant step we undertook in regard to compliance was to register SDEO as a reporting issuer with the BCSC (British Columbia Securities Commission).  Effective October 31, 2008, the company began filing Quarterly Reports and MD&A's (Management Discussions and Analysis) with SEDAR in Canada -- this, in addition to filing with EDGAR in the United States.   These changes were made as part of a greater effort by management to increase corporate transparency, communicate more effectively and easily with our shareholders and to exceed compliance requirements.    Quarterly Reports and MD&A's can be reviewed on SEDAR by visiting their website at http://www.sedar.com or by visiting the Company News pages of our website.  You can also download PDFs for review, from either site.   

We expanded our International Sales and Innovations marketing team with the addition of four incredibly talented senior executives, namely Barbara Brown, Rodney Northern, Roger Cunningham, and Cheryl Pegram, all of whom work together with John Ryan, our President of Retail Development Worldwide (Global Sourcing) and John Marquez in our new global sales office located in Bentonville, Arkansas.  For biographical information about Barbara, Rodney, Roger and Cheryl, visit the Management pages of our website.

Under the experienced guidance of our Vice President Sales, Kevin Coft, we've sourced and secured additional organic and all-natural grower and supplier relationships worldwide.  Before joining the company, Kevin was known as a grocery industry organics advocate and innovator. His extensive network and loyalties have contributed significantly to our ability to deliver even more of the genuine, all-natural article (without fillers, artificial colors or flavors, trans fat, preservatives etc), and, to remain mindful of our commitment to minimize our carbon footprint.

These milestones are few among the many planned for your company this year.   We are re-doubling efforts to broaden the base of retail and institutional interest in the company, grow our sales beyond our and your expectations, and to make The Spice Depot a household name.

The economic downturn posed a challenge for many companies, but because of our low operating costs, lean business model and experienced management team, the company grew during these most challenging of times.  We added instead of subtracted, we moved forward instead of back.  We exceeded our sales projections across the board, and customer satisfaction levels are even higher than anticipated.

We will continue this forward momentum and make each and every decision with the best interest of our shareholders in mind.  Along the way, I ask that you check in with us often to see what is new and exciting and delicious, and spend more time in the kitchen with family and friends.

In closing, I thank you sincerely for this opportunity and for the support I have been given.  In return, I promise my continued commitment and dedication to the company and to its shareholders.



Sincerely,
 


About the Company
The Spice Depot is a provider of all-natural spices and spice blend products and organic herbs to the supermarket and grocery, retail, wholesale and food services industries. The Company is best known for their grinder-top glass bottles of premium spices and spice blends grown primarily by boutique farmers on the spice islands but also Southern Asia, Africa and North America and packaged on-site in the company’s organic-certified processing and packaging facility in Indonesia.   A relative newcomer to the spice industry, The Spice Depot remains singularly focused on the USD $17 billion global spice market.

For further information contact The Spice Depot President & General Manager, Ric Laidlaw at 1.800.960.2341 or visit www.thespicedepot.com

Forward Looking Statements:
This release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements". Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur.

................................................................

August, 2008

First let me thank all Spice Depot shareholders for the confidence they shared with me these past many months as the company underwent an intense period of re-organization and re-structuring.

Our extraordinary board of directors and our management team have worked diligently to re-build our business plan and stabilize our capital structure.

The many executive level changes we undertook opened doors for the company and cleared the way for unprecedented growth. During that growth it was a challenge keeping all the balls in the air while we created a new infrastructure to support them.

But support them we did and we've emerged on the other side of the balance sheet, stronger and wiser and more than ready to take on the $17 billion global spice market in a sector that shows no signs of slowing down, rather growing exponentially over the coming years.

Already, our grinder-top spice blend bottles are available coast-to-coast in the United States and throughout Canada - in every province and in every state. Our dried organic herbs are available in major US and Canadian markets, and our Signature Spice Blends are licensed to products sold in Costco stores throughout Canada. That's no small feat for our small company that was.

Today, thanks to each and every one of you, our market cap exceeds USD$15 million. In the scheme of possibility, that's a small drop in the bucket.

By all accounts we are headed in the right direction and we have the very best people in place to gain market share and make life more delicious for our shareholders and our customers.

I know for a fact that, if we could hand-pick talent and build a dream team of executives to lead our company through an intense period of growth and increased capitalization, we couldn't find better people than we have on-board and in the wings currently. If you have any doubt at all, visit the Management and Directors & Officers pages of this website.

Our people joined us at the peak of their careers. They certainly didn't need the work, the long hours, or yet another award or milestone. But they shared the vision and saw the potential and like me, are sleepless with enthusiasm about the future.

In closing I thank you again and ask you to renew your confidence in The Spice Depot family and our shared future. Hang on tight and watch us grow!

Yours most sincerely,

Danny Ferraro, President
THE SPICE DEPOT, INC.