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Today

 > Introductions

 > Bluegrass Overview

 > Distribution and Decorating Services

 > Marketing Plan

 > Management & Staffing Plan

 > The Bluegrass Way

 > Questions
Introductions

 > Fred Parker – Co-founder, CEO & President

 > Dave Claunch – Executive VP Sales

 > Billy Booe – VP Business Development

 > Rick Mouty – President & CEO, ProFill Holdings

 > Chip Dumstorf – President, Bisig Impact Group
Bluegrass Overview
> Founded in 1995, headquartered in CHARLOTTE with market
  coverage in:

           ATLANTA – CHICAGO – COLUMBUS – DALLAS – DENVER
          GRAND RAPIDS – GREENVILLE – HOUSTON – LOUISVILLE
          NEW YORK – RALEIGH - SAN JOSE – SEATTLE – ST. LOUIS

> Bluegrass has been recognized by ASI as one of the FASTEST
 GROWING companies in the industry

> Recognized in 2008, 2009 and 2010 by ASI as one of the
  BEST PLACES TO WORK within the promotional products industry

> Bluegrass is perennially recognized for OUTSTANDING CREATIVITY
 by the key promotional product industry organizations PPAI and ASI
Bluegrass Experience Overview
> Exceptional experience with Fortune 1000's,
  consistently delivering Best In Class programs
  to key clientele which include:
Value Alliances



      “Make your back
       office, someone
     else’s front office.”
                  - Jack Welch
The Bluegrass Business Model

 > Our success revolves around a unique “Game Changing”
   business model which SUBSTANTIALLY CUTS OVERHEAD and
   passes these savings directly to Remington

 > At the core of this business model is a progressive outsourcing
  and cost containment strategy which builds VALUE ALLIANCES in
  the areas of:

    -   BRANDING / MARKETING
    -   WEB STORES / TECHNOLOGY
    -   FULFILLMENT / DISTRIBUTION
    -   GLOBAL SOURCING / PRODUCT ACQUISITION

 > These VALUE ALLIANCES make Bluegrass Promotional Marketing
   THE value source for Remington
Distribution and
Decorating Services
Fulfillment & Distribution

> Bluegrass has developed an industry leading relationship
  with ProFill Holdings greatly REDUCING THE COST of
  inventory and distribution to Remington:

   - Owns and operates three state-of-the-art warehousing
     and distribution centers across the US (400,000 sq ft)

   - Finances inventory and invoices upon consumption

   - Staffs in-house screen printing & high-end embroidery,
     reducing lead time and costs

   - Integral cog in the apparel supply chain that requires high
     volume fulfillment expertise
ProFill’s ERP Software:
Integrated System
  Inventory Management                                                         Financial Management
  Inventory Accounting                                                                                           Accounts Payable
  Inventory Management & Planning                                                                             Accounts Receivable
                                                            E-commerce                                              General Ledger
  Purchasing
  Customer Consignment                                                                                               Sales Analysis

                                         e
  Bill of Material                                                                                             Electronic Payments
  Value Added Services                enc




                                                                                              Sale mation
                                                                                                             International Currency
                                   tellig




                                                         ic r
                                                      rv m e




                                                                       Fi ag




                                                                                               Auto
                                                                       M

                                                                         na em
                                                                          an
  Demand Planning



                                                           e
                                                    Se sto




                                                                           nc e




                                                                                                  s Fo
                                                       u
                                   s In




                                                                             ia nt
                                                     C




                                                                               l
                               ines




                                                                                                       rce
                                                                 AS/400
                                                                  Open
                           Bu s




  E-commerce                                                     Systems                                           Warehouse
                                                                                                                    Logistics

                                                                            em use
                                                  In ag




  Mail Server
                                                   M




                                                                                 t
                                                    ve e




                                                                              en
                                                     an




                                                                          ag ho
                                                      n t me




                                                                       a n re
  web@work
                                                         or n




                                                                                                              Warehouse Management
                                                                           a
                                                           y t




  Commerce Catalog                                                       W
                                            Co                             M                                   Shipment Management
  Commerce Gateway                               ns                                          on
                                                   ult                                 ati                          Radio Frequency
  EDI                                                 ing                            uc
                                                                                Ed
  CoreXpand

           Customer Service                                                      Business
                               Order Entry                                     Intelligence
                       Price Maintenance                                             data@work
                              Fax Support                                  Workflow Management
                             forms@work
                                     POS
             IBM iSeries Reliability, Using Infor Global Systems Software
High Volume Global Sourcing




                                   Pakistan/India         Shanghai to
                                   to Charleston          Los Angeles

                          Central America
                          to Charleston
                                                    Pakistan/India to
  Shanghai to                                       Singapore to
                    Central America to Houston      Los Angeles
  Central America
Fulfillment & Distribution
                             > Over 30 brand names,
                                 500 styles and 15,000
                                 SKU’s

                             > Over $35 million in
                                 inventory

                             > Over 300,000 fulfillment
                                 transactions per year/
                                 over 1250 per day

                             >   99.5% Accuracy rating

                             > 97% of all orders ship
                                 within one business day

                             >    85% of all orders ship
                                 the same day order
                                 received
Next Gen Decorating Services
Next Gen Decorating Services
Screen Printing
> Can handle orders as small as 12 items on manual
  presses as easily as 50,000-piece four-color process
  jobs on state-of-the-art automatic presses

> One of the largest screen printers in the country,
  producing over 7.5 million imprints annually


Embroidery Services
> Designs from 1,000 to 100,000 stitches are easily
  created by skilled professionals

> In-house digitizing

> Produces over 500,000 pieces a year

> Every order is hand-checked
Robust Program Design Process
                                         DEFINE…project scope, objectives, resources
                                         and constraints

                                         MEASURE…critical customer requirements,
 Define Opportunities                    identify customers’ needs using Voice of the
                                         Customer methods
   Measure Program Needs

    Explore Design Alternatives          EXPLORE…develop design concepts and high-
                                         level design
         Develop Detailed Design

             Implement Detailed Design   DEVELOP…detailed product or service design and
                                         control plan

                                         IMPLEMENT…test design with pilot and expanding
                                         to full scale implementation
Program Mechanics
Program Mechanics

 > Gun Parts – Owned by Remington and Fulfilled by Bluegrass
   with Consignment Fee

 > Retail Promotional Products for Country Store – Owned and
   Fulfilled by Bluegrass with Royalty to Remington

 > Dealer Program – Special Dealer Cost Promotional Items Sold
   Through Co-op Program – Royalty to Remington

 > Literature Program – Combination of Items Owned by
   Remington and Distributed by Bluegrass (Consignment Fee) and
   Some Items Produced and Owned/Distributed by Bluegrass –
   Royalty to Remington
Remington P&L
Remington P&L

                            Proposed Remington P&L with Bluegrass

                                         Bluegrass      Remington                                       Total
                                      Consignment Fee   Revenue on    Remington Royalty     COGS      Remington
                         Sales             (25%)           Parts     on Logo Merch (10%)   on Parts    Revenue
Country Store

Parts                      $667,958      $166,990        $500,969                          $333,979   $166,990

Logo Merch                 $500,000                                        $50,000                     $50,000

Total                    $1,167,958
Co-op Logo Merchandise

Co-op Logo Merch Sales     $750,000                                        $75,000                     $75,000


Grand Total              $1,917,958      $166,990                         $125,000         $333,979   $291,990
Advantages Of Proposal

 > Simplify Fee Structure – Eliminate Fees for Warehousing,
  Receiving, Order Processing, Fulfillment, Account
  Management, Customer Service, IT Development


 > Aligned Incentive to Grow Logo Merchandise Sales
   Through Royalty Program

 > Focus on Driving Sales
Marketing and Promotion
Branding/Marketing Relationship

  > Bluegrass’ unique AGENCY RELATIONSHIP with Bisig Impact
    Group maximizes the branding effect while minimizing
    the cost of Best In Class BRANDING / MARKETING

     - INCREASED CAPABILITIES of a full-service
       advertising/production company

     - Additional EXPERIENCE with major brands

     - VALUE ALLIANCE means Remington only “pays” for
       what it uses/needs

     - VALUE ALLIANCE means creative rates are extremely low
Initial Remington Marketing Thoughts
  > While Bluegrass’ process of a Promotional Marketing “LAB”
    will provide a solid foundation for a successful strategy and plan.
    Some preliminary concepts include:

       - DRIVING CONSUMER BUSINESS by refining and promoting
         the Remington web store currently known as the “Country
         Store”

       - Continue / elevate MARKETING PLANNERS which connects
         products to seasons / other consumer equity and allows the
         development / sourcing of several high value promotional
         “sales triggers”

       - Leverage SOCIAL MEDIA PLATFORMS (FB,YT)

       - Leverage PART BUYERS, and other Remington marketing
         stakeholder groups (retail, broadcast, corporate)
Refining and Promoting the
     Country Store
Store Brand Refinement/Renaming
Potential Benefits:

  > Opportunity to Elevate and Align Store Brand and Products

  > Promotional Rallying Point to Energize Internal, Social & Retail

  > Potentially Improved SEO / SEM

  > More?
Promotional Marketing Planners
Promotional Marketing Planners

  > Continue Seasonal / Brand / Consumer Equity Alignment

  > Improve Dynamic / Retail Urgency

  > Improve the Communication Channels (Social And B2B)

  > Utilize Product Procurement Lead Times to Create a Series of
   MUST HAVE, Ultra-high Value “Remington Selects”
Dynamic Merchandising

         Q1                      Q2                    Q3                     Q4

Core Products
High demand products           Mix of blank import items        Eliminates re-launching




Limited Offers                 Limited Offers                 Limited Offers
While supplies last            Custom import items            Seasonal Buys




Sale/Clearance
Core Products         Limited Offers       Vendor Closeouts            Client Excess
Sample Marketing Calendar
Social Media Leverage
Social Media Leverage (LHF?)

     > facebook.com/remingtonarmscompany:
       Over 171,000 Fans



     > @RemingtonArms: 7,000 Followers




     > youtube.com/remingtonarmscompany:
      1200 Subscribers and almost 800,000 Views
YouTube Pre-Roll or Tag
YouTube Pre-Roll or Tag
YouTube Pre-Roll or Tag
YouTube Pre-Roll or Tag
Other Marketing Starting Points
 > E-mail / Direct Mail to Parts Buyers
     • Harvest CRM content from the large number of online PARTS
       customers, deliver special “Remington Selects” via e-mail,
       direct mail or in package.

 > Retail (POP) Promotions & Additive Packaging
     •   QR codes, cross promotions at retail and additive graphics on existing
         packaging are all potentially good opportunities for PRO SHOP awareness
         and engagement. Obviously these initiatives would take considerable time
         and resources to implement.

 > Broadcast / Online “Stingers”
     •   Some brands that are doing broadcast media are utilizing the final (5)
         seconds or a small portion of their online media buys to promote sites
         such as the Remington PRO SHOP. Again, much discussion and
         coordination would have to occur and these concepts may require
         relativity long lead times.
Bluegrass Marketing Lab
 > First step for all long-range, strategic planning

      ● Full day session hosted by Bluegrass with key Remington
        stakeholders

      ● Situation / Goal Review
         - review current communications environment
         - develop specific, trackable strategies, tactics and goals

      ● Finalize Strategies / Tactics
         - finalize strategies, tactics and creative adaptations to meet
           marketing objectives and create a sustainable, measurable
           plan of action.

      ● Finalized Budget
         - accurate, contained budgets for all proposed marketing
           activities

      ● Deliverable from Lab is Communications Plan
         - situation review
         - key strategies & tactic
         - projected budget
         - program timing
Account Management
Account Management
 > Billy Booe – VP Business Development
    • Industry veteran of 29+ years
    • Large national account experience: Bojangle’s, Premier, C.C. Dickson,
      TransAmerica, Aegon, IDEX Mutual Funds
    • Accountable for the performance of the entire relationship


 > Amanda Ballinger
    • Account Executive
    • Industry veteran of 10+ years
    • Works closely with Billy on day-to-day service of Remington


 > Sales Support
    • Mark Hansen – Sales Support Manager
    • Sales Support Coordinators – Corinn Boyna, Tina Hull, Jenny Pregge,
     Shannon Smith
Customer Service
> Normalization to Customer Service

   ● Candice Walker, Customer Service Coordinator

   ● National Coverage in (4) Time Zones

   ● Twelve-person Customer Service Team

   ● Powered by VoIP Phone System with Intelligent Call
     Routing

   ● Live Chat Feature
Desktop View - Agents
Reporting / Service Level
Agreements

 > Standard internal reports include:

    •   Response Time
    •   Accuracy
    •   On-Time Shipments
    •   System Up Time

 > Embrace/Promote SLAs

 > Offer Multiple Standardized Reports

 > Capability to create reports to support Key Performance
   Indicators (KPIs)
Why Bluegrass?
The Bluegrass Way…
The direction and management of the Remington account will be
derived from five important principals as follows:

> Create Something that Endures. Bluegrass is looking at this
 opportunity as a challenge to bring more efficiency and profitability to
 the Remington promotional services program.

> Drive the Business. Bluegrass realizes the uniqueness of the
 opportunity to service an organization such as Remington and
 recognizes the growth potential and mutual benefits of a successful
 business relationship.

> Create Value. Value is the perfect balance between Quality of
  Product, Level of Service, On-Target Pricing, and Imaginative
  Creativity.

> Service from a Global Perspective. Bluegrass has a partnering
 network that allows us to distribute and source around the world.

> Complete disclosure. We see ourselves as a partner not a peddler.
Q&A
Remington Presentation

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Remington Presentation

  • 1.
  • 2. Today > Introductions > Bluegrass Overview > Distribution and Decorating Services > Marketing Plan > Management & Staffing Plan > The Bluegrass Way > Questions
  • 3. Introductions > Fred Parker – Co-founder, CEO & President > Dave Claunch – Executive VP Sales > Billy Booe – VP Business Development > Rick Mouty – President & CEO, ProFill Holdings > Chip Dumstorf – President, Bisig Impact Group
  • 4. Bluegrass Overview > Founded in 1995, headquartered in CHARLOTTE with market coverage in: ATLANTA – CHICAGO – COLUMBUS – DALLAS – DENVER GRAND RAPIDS – GREENVILLE – HOUSTON – LOUISVILLE NEW YORK – RALEIGH - SAN JOSE – SEATTLE – ST. LOUIS > Bluegrass has been recognized by ASI as one of the FASTEST GROWING companies in the industry > Recognized in 2008, 2009 and 2010 by ASI as one of the BEST PLACES TO WORK within the promotional products industry > Bluegrass is perennially recognized for OUTSTANDING CREATIVITY by the key promotional product industry organizations PPAI and ASI
  • 5. Bluegrass Experience Overview > Exceptional experience with Fortune 1000's, consistently delivering Best In Class programs to key clientele which include:
  • 6. Value Alliances “Make your back office, someone else’s front office.” - Jack Welch
  • 7.
  • 8. The Bluegrass Business Model > Our success revolves around a unique “Game Changing” business model which SUBSTANTIALLY CUTS OVERHEAD and passes these savings directly to Remington > At the core of this business model is a progressive outsourcing and cost containment strategy which builds VALUE ALLIANCES in the areas of: - BRANDING / MARKETING - WEB STORES / TECHNOLOGY - FULFILLMENT / DISTRIBUTION - GLOBAL SOURCING / PRODUCT ACQUISITION > These VALUE ALLIANCES make Bluegrass Promotional Marketing THE value source for Remington
  • 10. Fulfillment & Distribution > Bluegrass has developed an industry leading relationship with ProFill Holdings greatly REDUCING THE COST of inventory and distribution to Remington: - Owns and operates three state-of-the-art warehousing and distribution centers across the US (400,000 sq ft) - Finances inventory and invoices upon consumption - Staffs in-house screen printing & high-end embroidery, reducing lead time and costs - Integral cog in the apparel supply chain that requires high volume fulfillment expertise
  • 11. ProFill’s ERP Software: Integrated System Inventory Management Financial Management Inventory Accounting Accounts Payable Inventory Management & Planning Accounts Receivable E-commerce General Ledger Purchasing Customer Consignment Sales Analysis e Bill of Material Electronic Payments Value Added Services enc Sale mation International Currency tellig ic r rv m e Fi ag Auto M na em an Demand Planning e Se sto nc e s Fo u s In ia nt C l ines rce AS/400 Open Bu s E-commerce Systems Warehouse Logistics em use In ag Mail Server M t ve e en an ag ho n t me a n re web@work or n Warehouse Management a y t Commerce Catalog W Co M Shipment Management Commerce Gateway ns on ult ati Radio Frequency EDI ing uc Ed CoreXpand Customer Service Business Order Entry Intelligence Price Maintenance data@work Fax Support Workflow Management forms@work POS IBM iSeries Reliability, Using Infor Global Systems Software
  • 12. High Volume Global Sourcing Pakistan/India Shanghai to to Charleston Los Angeles Central America to Charleston Pakistan/India to Shanghai to Singapore to Central America to Houston Los Angeles Central America
  • 13. Fulfillment & Distribution > Over 30 brand names, 500 styles and 15,000 SKU’s > Over $35 million in inventory > Over 300,000 fulfillment transactions per year/ over 1250 per day > 99.5% Accuracy rating > 97% of all orders ship within one business day > 85% of all orders ship the same day order received
  • 15. Next Gen Decorating Services Screen Printing > Can handle orders as small as 12 items on manual presses as easily as 50,000-piece four-color process jobs on state-of-the-art automatic presses > One of the largest screen printers in the country, producing over 7.5 million imprints annually Embroidery Services > Designs from 1,000 to 100,000 stitches are easily created by skilled professionals > In-house digitizing > Produces over 500,000 pieces a year > Every order is hand-checked
  • 16. Robust Program Design Process DEFINE…project scope, objectives, resources and constraints MEASURE…critical customer requirements, Define Opportunities identify customers’ needs using Voice of the Customer methods Measure Program Needs Explore Design Alternatives EXPLORE…develop design concepts and high- level design Develop Detailed Design Implement Detailed Design DEVELOP…detailed product or service design and control plan IMPLEMENT…test design with pilot and expanding to full scale implementation
  • 18. Program Mechanics > Gun Parts – Owned by Remington and Fulfilled by Bluegrass with Consignment Fee > Retail Promotional Products for Country Store – Owned and Fulfilled by Bluegrass with Royalty to Remington > Dealer Program – Special Dealer Cost Promotional Items Sold Through Co-op Program – Royalty to Remington > Literature Program – Combination of Items Owned by Remington and Distributed by Bluegrass (Consignment Fee) and Some Items Produced and Owned/Distributed by Bluegrass – Royalty to Remington
  • 20. Remington P&L Proposed Remington P&L with Bluegrass Bluegrass Remington Total Consignment Fee Revenue on Remington Royalty COGS Remington Sales (25%) Parts on Logo Merch (10%) on Parts Revenue Country Store Parts $667,958 $166,990 $500,969 $333,979 $166,990 Logo Merch $500,000 $50,000 $50,000 Total $1,167,958 Co-op Logo Merchandise Co-op Logo Merch Sales $750,000 $75,000 $75,000 Grand Total $1,917,958 $166,990 $125,000 $333,979 $291,990
  • 21. Advantages Of Proposal > Simplify Fee Structure – Eliminate Fees for Warehousing, Receiving, Order Processing, Fulfillment, Account Management, Customer Service, IT Development > Aligned Incentive to Grow Logo Merchandise Sales Through Royalty Program > Focus on Driving Sales
  • 23. Branding/Marketing Relationship > Bluegrass’ unique AGENCY RELATIONSHIP with Bisig Impact Group maximizes the branding effect while minimizing the cost of Best In Class BRANDING / MARKETING - INCREASED CAPABILITIES of a full-service advertising/production company - Additional EXPERIENCE with major brands - VALUE ALLIANCE means Remington only “pays” for what it uses/needs - VALUE ALLIANCE means creative rates are extremely low
  • 24. Initial Remington Marketing Thoughts > While Bluegrass’ process of a Promotional Marketing “LAB” will provide a solid foundation for a successful strategy and plan. Some preliminary concepts include: - DRIVING CONSUMER BUSINESS by refining and promoting the Remington web store currently known as the “Country Store” - Continue / elevate MARKETING PLANNERS which connects products to seasons / other consumer equity and allows the development / sourcing of several high value promotional “sales triggers” - Leverage SOCIAL MEDIA PLATFORMS (FB,YT) - Leverage PART BUYERS, and other Remington marketing stakeholder groups (retail, broadcast, corporate)
  • 25. Refining and Promoting the Country Store
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  • 31. Store Brand Refinement/Renaming Potential Benefits: > Opportunity to Elevate and Align Store Brand and Products > Promotional Rallying Point to Energize Internal, Social & Retail > Potentially Improved SEO / SEM > More?
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  • 39. Promotional Marketing Planners > Continue Seasonal / Brand / Consumer Equity Alignment > Improve Dynamic / Retail Urgency > Improve the Communication Channels (Social And B2B) > Utilize Product Procurement Lead Times to Create a Series of MUST HAVE, Ultra-high Value “Remington Selects”
  • 40. Dynamic Merchandising Q1 Q2 Q3 Q4 Core Products High demand products Mix of blank import items Eliminates re-launching Limited Offers Limited Offers Limited Offers While supplies last Custom import items Seasonal Buys Sale/Clearance Core Products Limited Offers Vendor Closeouts Client Excess
  • 43. Social Media Leverage (LHF?) > facebook.com/remingtonarmscompany: Over 171,000 Fans > @RemingtonArms: 7,000 Followers > youtube.com/remingtonarmscompany: 1200 Subscribers and almost 800,000 Views
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  • 53. Other Marketing Starting Points > E-mail / Direct Mail to Parts Buyers • Harvest CRM content from the large number of online PARTS customers, deliver special “Remington Selects” via e-mail, direct mail or in package. > Retail (POP) Promotions & Additive Packaging • QR codes, cross promotions at retail and additive graphics on existing packaging are all potentially good opportunities for PRO SHOP awareness and engagement. Obviously these initiatives would take considerable time and resources to implement. > Broadcast / Online “Stingers” • Some brands that are doing broadcast media are utilizing the final (5) seconds or a small portion of their online media buys to promote sites such as the Remington PRO SHOP. Again, much discussion and coordination would have to occur and these concepts may require relativity long lead times.
  • 54. Bluegrass Marketing Lab > First step for all long-range, strategic planning ● Full day session hosted by Bluegrass with key Remington stakeholders ● Situation / Goal Review - review current communications environment - develop specific, trackable strategies, tactics and goals ● Finalize Strategies / Tactics - finalize strategies, tactics and creative adaptations to meet marketing objectives and create a sustainable, measurable plan of action. ● Finalized Budget - accurate, contained budgets for all proposed marketing activities ● Deliverable from Lab is Communications Plan - situation review - key strategies & tactic - projected budget - program timing
  • 56. Account Management > Billy Booe – VP Business Development • Industry veteran of 29+ years • Large national account experience: Bojangle’s, Premier, C.C. Dickson, TransAmerica, Aegon, IDEX Mutual Funds • Accountable for the performance of the entire relationship > Amanda Ballinger • Account Executive • Industry veteran of 10+ years • Works closely with Billy on day-to-day service of Remington > Sales Support • Mark Hansen – Sales Support Manager • Sales Support Coordinators – Corinn Boyna, Tina Hull, Jenny Pregge, Shannon Smith
  • 57. Customer Service > Normalization to Customer Service ● Candice Walker, Customer Service Coordinator ● National Coverage in (4) Time Zones ● Twelve-person Customer Service Team ● Powered by VoIP Phone System with Intelligent Call Routing ● Live Chat Feature
  • 58. Desktop View - Agents
  • 59. Reporting / Service Level Agreements > Standard internal reports include: • Response Time • Accuracy • On-Time Shipments • System Up Time > Embrace/Promote SLAs > Offer Multiple Standardized Reports > Capability to create reports to support Key Performance Indicators (KPIs)
  • 61. The Bluegrass Way… The direction and management of the Remington account will be derived from five important principals as follows: > Create Something that Endures. Bluegrass is looking at this opportunity as a challenge to bring more efficiency and profitability to the Remington promotional services program. > Drive the Business. Bluegrass realizes the uniqueness of the opportunity to service an organization such as Remington and recognizes the growth potential and mutual benefits of a successful business relationship. > Create Value. Value is the perfect balance between Quality of Product, Level of Service, On-Target Pricing, and Imaginative Creativity. > Service from a Global Perspective. Bluegrass has a partnering network that allows us to distribute and source around the world. > Complete disclosure. We see ourselves as a partner not a peddler.
  • 62. Q&A