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Important Changes at Liquid Nutrition

MONTREAL, QUEBEC -- (Marketwired) -- 05/14/14 -- Founders assume leadership - new business and product strategy

poises company for growth in burgeoning functional beverage sector.

The major business strategy and product enhancements implemented since the Liquid Nutrition Group Inc.'s (TSX VENTURE: LQD) founders, Chantal and Greg Chamandy, re-established leadership of the Montreal based health and nutrition company have positioned the company to be a North American leader in the burgeoning functional beverage and health food sector.

The first major change by the entrepreneurial management team was to terminate existing area development franchise agreements in Canada, which were hampering growth. As such, the company will be focusing on selling franchise stores which will be opened within the same 12 month period in which they were sold. To support its franchise recruitment strategy the company will be opening 5 corporate stores to be located in those markets where they can serve as a flagship store to sell the brand experience, and to support the company's franchise sales initiatives.

An important US launch is planned for California, initially beginning with a flagship store which is currently under construction, in the heart of Beverly Hills. International expansion will continue to be organized under Master Franchise Agreements on a country by country basis.

Liquid Nutrition is also introducing an important new product line to its offering. The product line is a proprietary program of Liquid Nutrition branded Cold Pressed Juices, a new and rapidly growing beverage category. They will be introduced in the Liquid Nutrition stores this year during the back-to-school time period. The popularity of cold pressed juices has surged in North America with sales in 2013 of $200 million, and with 2015 projected sales forecasted to be $1 billion.

Cold Pressed Juice is 100% organic and pure juice which will be bottled and offered for sale in 6 unique flavors. Liquid Nutrition plans to initially market its Cold Pressed Juice line in its stores, but it also plans to offer them through its online store. Liquid Nutrition believes that its Cold Pressed Juice program will attract a new customer group for its brand. People who consume Cold Pressed Juices are typically doing one, three, or five day detoxification cleanses, as well as consuming them on a daily basis as part of a healthy lifestyle. This take home and online product offering should generate new business for Liquid Nutrition.

Other major improvements have also been made in the company's product line up with a view to having an entirely plant based, vegan product offering. Liquid Nutrition's principal protein powder supplement is now a unique proprietary product that is entirely plant based. Plant based protein has been found to offer more health benefits than whey protein, including more fiber, nutrients, and antioxidants which help to reduce inflammation. A proprietary version of the company's most consumed ingredient, almond mylk, has also been created. It is unique in that it is entirely organic and made without carrageenan, a binding agent found in most almond beverages, and which recent medical research has found to have possible harmful effects to people's health. Additionally, the company has replaced honey as a sweetener in its drinks with its own proprietary organic, extra light, maple syrup. The Liquid Nutrition organic extra light maple syrup has the benefit of acting as a sweetener when desired but with the benefit of having natural minerals such as calcium, vitamin B, zinc, potassium, and magnesium. Maple syrup is also widely regarded for its anti-inflammatory, anti-cancer, and antioxidant properties. In addition to using these new improved products in its recipes, the company will also be making these unique and proprietary products available for sale in its stores and through its online store. These aforementioned new products will be sold under the Liquid Nutrition brand name.

Chantal Chamandy, the company's President and Chief Marketing Officer, stated the following:

"The last 8 months has been a period in which a great deal of time and energy have been spent by myself, Greg, our new management team, and our new Board of Directors to correct the past mis-steps of the previous management team. As the Founders of this company, we are wholeheartedly committed to building a successful company and to creating shareholder value, Chantal Chamandy, the company's President and Chief Marketing Officer said.

"I am very excited about the initiatives and strategies that we have put in place in order to re-invigorate the growth momentum for the Liquid Nutrition brand. By introducing Corporate Stores into our business strategy to serve as Market Development Units, we will be able to better control the execution and evolution of the Liquid Nutrition franchise recruitment strategy, experience, and brand.

Our new proprietary Liquid Nutrition branded products such as Plant Based Protein, Organic Carrageenan Free Almond Mylk, and Organic Extra Light Maple Syrup will allow the company to be 100% plant-based, and they will serve to help further differentiate our products and brand experience in the marketplace, and at the same time also help our franchisees to achieve improved margins.

The introduction of Cold Pressed Juices as part of our product offering will allow us to leverage our company's extensive expertise in juicing and functional beverages into a take-away format that will help our stores increase their sales and which will also provide us with a take-away functional beverage offering that we can sell online to those consumers who reside in areas where there is not currently a Liquid Nutrition store. I and my family have been avid juicers for years and it gives me great pleasure to share my knowledge of the benefits of these amazing, organic, beautiful, raw juices."

While developing its core North American business, Liquid Nutrition plans to continue to pursue Master Franchises for the International markets and, will be launching this initiative this June at the International Franchise Expo in New York City.

"Liquid Nutrition's mission is to share information and knowledge with our clients. The more our clients learn about each product, and the benefits that these products have on their well-being, the more it makes them want to come to our stores," she added. "Our stores are meant to serve as a hub of information and an important resource for each community neighborhood. Knowledge is power, and knowledge is the key to becoming healthy, no matter how old you are. With the high rate of obesity and diabetes in children today, we also need to help parents teach themselves and their kids how to get on the right path to a healthy lifestyle as early as possible in life."

ABOUT LIQUID NUTRITION GROUP INC.

Liquid Nutrition Group Inc. (TSX VENTURE: LQD) is a growing, hybrid retailer of functional beverages, fresh pressed juices, vitamins and supplements. Liquid Nutrition is committed to building a global brand in the health and wellness industry by bringing its healthy and delicious product offering to communities around the world. Through its wholly owned subsidiary, Liquid Nutrition Franchising Corporation, LNGI currently has signed franchise agreements for 14 stores in Canada and the USA, as well as license agreements in the Bahamas and the Middle East. For store locations, business opportunities or more information, visit www.liquidnutrition.com.

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