DENVER, Aug. 14, 2014 /PRNewswire/ -- The Pulse
Beverage Corporation (OTCQB: PLSB), makers of Natural Cabana®
Lemonades, Limeades and Coconut Waters, and PULSE® Heart & Body
Health functional beverages, today issued the following letter to
shareholders from Bob Yates, Chief
Executive Officer.
Dear Fellow Shareholders:
I would like to take this opportunity to share the progress we
have made thus far and provide a detailed layout of our near term
objectives.
In the United States the first
quarter was one of the coldest, harshest winters in many decades,
expectedly impacting sales of lemonade and retailers across the
country as delivery trucks throughout the Northeast and Midwest
were literally frozen in their tracks. Despite the environmental
challenges endured by the overall industry, we remained focused on
our planned strategies and spent the second quarter catching up on
sales and expanding our growth in Natural Cabana® Coconut Water
domestically and set the groundwork to expand into Mexico. In addition, we made a very strategic
move to elevate our branding and sales efforts by entering into the
multi-billion dollar food service industry.
We achieved significant operational progress during the second
quarter that we believe establishes a stronger foundation for the
remainder of the year and into 2015. Leading into the very hot
summer months, we are seeing a vast improvement in sales across all
of our beverage lines. Our lemonades and limeades are
performing well and are now being sold in more than 20,000
stores.
Based on the success of our Natural Cabana® Coconut Water
roll-out in the U.S. and the lack of premium, reasonably priced
coconut water available in Mexico,
Pulse is establishing a wholly-owned subsidiary in Mexico. Pulse's Mexican venture will be headed
by Carlos Villarreal and his team of
representatives, collectively Borrega Consulting Inc. ("Borrega").
Borrega is a San Diego based
international business development consulting and brokerage firm
with expertise in Latin American business development for over 16
years. Mr. Villarreal was responsible for the Mexico introduction and distribution of
Monster Energy Drink® in 2004 and led the expansion across all of
Mexico up until June 2010. He has worked with leading brands such
as Dr. Pepper, Snapple and Miller, among others, in their
entry/distribution strategies. He has also served as a Director for
Anheuser-Busch and for Grupo Modelo
(Corona) in the U.S. and Mexico.
Pulse will be offering our Natural Cabana® Coconut Water in both
Natural and Pineapple in 520ml containers for convenience stores
and both flavors in smaller 320ml containers for large grocery
chains.
We are extremely excited to have Borrega Consulting lead our
roll-out into the Mexican beverage market. Their track record in
Latin America and the successful
roll out of Monster Energy Drink® throughout Mexico provides us with an experienced team
and valuable relationships which we believe will help to quickly
secure key accounts for coconut water and pave the way for
expanding our lemonades and limeades into Mexico. We plan to aggressively pursue this
opportunity by securing accounts with large national chain stores
including Wal-Mart, Costco and Soriana (totaling more than 3,000
stores) and large national convenience stores such as OXXO and
7-Eleven (totaling more than 13,000 stores).
Earlier this month, we announced our partnership with
Smashburger®, the rapidly expanding "better burger" restaurant
concept, to sell our Natural Cabana® Lemonade to Smashburger®
customers at all 265 Smashburger® locations nationwide. It has been
reported by Smashburger® representatives that our lemonade is
outselling all other beverages offered. As part of this
collaboration, Smashburger® will now be one of Pulse's top food
service accounts. This expansion will help accelerate our growth
and bolster our presence in a rapidly growing industry with one of
the top companies from the "better-burger" category. This
demonstrates our ability to not only identify opportunities but
also participate in the consumer trends driving the industry, thus
generating meaningful value for our shareholders. Deliveries to
Smashburger® will be made through SYSCO and The Sygma Network which
represent a new channel of distribution into the multi-billion
dollar food service industry.
We continued the introduction of what we believe will be an
extraordinarily successful new product line, Natural Cabana®
Coconut Water, which made its debut in March and is already
featured in more than 5,000 stores. This product has been met with
outstanding reception and has extremely high potential given that
coconut water in the beverage sector has doubled each year since
2005, according to the Wall Street Journal.
I would also like to note that we expect the roll-out of our
newly designed and reformulated PULSE® Heart and Body Health
functional beverages in September 2014. PULSE® Heart &
Body Health is an effective nutritional supplement for those
seeking a healthy lifestyle. It is a natural beverage product that
is high in antioxidants, selenium, Vitamin C and fiber. It is
bottled without preservatives and comes in an eye popping 500ml
glass bottle package in three naturally sweetened great tasting
flavors: Pomegranate/Blackberry, Pear/Peach and
Strawberry/Grapefruit. Pulse® Heart & Body Health contains
effective levels of important ingredients to support the health of
our heart and cardiovascular and immune system.
All that being said, compared to our 1st quarter, total case
sales for our 2nd quarter increased by more than 70,000
cases to more than 125,000 cases, including increasing our coconut
water case sales to more than 21,000 cases. We showed stronger
growth during May and June and we are now set for a strong second
half of 2014. We expect steady growth for our lemonades, limeades
and coconut waters during the 3rd quarter as we continue
to fulfill orders during the very hot summer months. Full financial
results may be accessed in our Form 10Q, filed with the Securities
and Exchange Commission at
http://www.pulsebeverage.com/sec-filings.
Our net losses to date, for the most part, continues to be the
result of a concentrated effort to establish and increase brand
awareness; and establish and improve upon our extensive nationwide
and international distribution systems. Our net losses are also due
to the initial development of our brands including: Natural Cabana®
Lemonade and Limeade and Coconut Waters and to secure distribution
and chain store listings. We also have spent a great deal of time
and incurred a great deal of expense to finish the initial
development and then the re-formatting of Pulse® Heart and Body
Health functional beverages which is due to be launched this
year.
In only a few years since the Company was founded, Pulse is
quickly becoming a leader in the beverage industry with excellent
tasting products, a highly experienced and skilled management team
and a strong distribution network that continues to grow.
With a clear, detailed business plan, we are confident in the
delivery and execution of our product launch, continued sales and
marketing strategies. As we diversify within the industry, we will
continue to strive to be market leaders in the development and
marketing of great tasting nutritional beverages.
I thank you for your ongoing support and look forward to
updating you in the future. Be sure to try our Natural Cabana®
Lemonades and Limeades and our Natural Cabana® Coconut Waters!
Sincerely,
Bob Yates, Chief Executive
Officer
About The Pulse Beverage Corporation
Pulse Beverage
Corporation is an emerging beverage company that offers a line of
great tasting, refreshing, low-calorie natural drinks, including
Natural Cabana® Lemonade and Limeade, Natural Cabana® Coconut Water
and Pineapple Coconut Water, and PULSE® Heart and Body Health
functional beverages. Combining all-natural ingredients,
essential vitamins and minerals, Pulse's line of beverages provides
consumers with high-quality, healthy alternatives at a reasonable
price. For more information, please visit:
www.pulsebeverage.com or email info@pulsebeverage.com.
Follow Pulse Beverage on Twitter
at https://twitter.com/drinkpulsebev.
Become
a Pulse Beverage Facebook Fan Page at
https://www.facebook.com/PulseBeverageCorporation.
Forward-Looking Statements
This news release
contains "forward-looking statements" as that term is defined in
Section 27A of the United States Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934, as amended.
Statements in this press release which are not purely historical
are forward-looking statements, including, but not limited to,
introducing the re-formulated Pulse brand of functional drinks by
mid-year, the successful rollout of the new coconut water line and
any statements regarding beliefs, plans, expectations or intentions
regarding the future. Actual results could differ from those
projected in any forward-looking statements due to numerous
factors. Such factors include, among others, the inherent
uncertainties associated with new projects and development stage
companies. These forward-looking statements are made as of the date
of this news release, and the company assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those projected in the
forward-looking statements. Although management believes that any
beliefs, plans, expectations and intentions contained in this press
release are reasonable, there can be no assurance that any such
beliefs, plans, expectations or intentions will prove to be
accurate. Investors should consult all of the information set forth
herein and should also refer to the risk factors disclosure
outlined in the company's annual report on Form 10-K for the most
recent fiscal year, quarterly reports on Form 10-Q and other
periodic reports filed from time-to-time with the Securities and
Exchange Commission.
Investor Contact:
IRTH Communications
Robert Haag
lsb@irthcommunications.com
866-976-4784
SOURCE The Pulse Beverage Corporation