XStream Beverage Group, Inc. Acquires Mid-Atlantic Beverage Distributor
July 19 2004 - 8:30AM
PR Newswire (US)
XStream Beverage Group, Inc. Acquires Mid-Atlantic Beverage
Distributor Acquisition of Atlantic Beverage Company Will More Than
Double Company's Revenues -- Expands Beverage Network Concept FORT
LAUDERDALE, Fla., July 19 /PRNewswire-FirstCall/ -- XStream
Beverage Group, Inc. (OTC:XSBV) (BULLETIN BOARD: XSBV) a rapidly
growing player in the national beverage industry, today announced
it has completed, through its wholly owned subsidiary, Beverage
Network of Maryland, Inc. the acquisition of substantially all of
the assets and certain liabilities of Master Distributors Inc. (dba
Atlantic Beverage Company.), a mid-Atlantic distributor of non-
alcoholic beverages serving Washington, D.C., Virginia and
Maryland. With un-audited 2003 revenues in excess of $7 million and
un-audited sales of $3.9 million for the six months ended June 30,
2004, the addition will more than double XStream's revenues, which
recently reported un-audited record sales of $1.9 million for the
six-months ended June 30, 2004. Atlantic Beverage, which operates
under the corporate entity of Master Distributors, Inc., has a
leased warehouse in Jessup, Maryland just outside of Baltimore. The
company, which has 31 employees, distributes such high profile
brands as Welch's, Clearly Canadian, Hansen's, Fiji water, Tazo Tea
and certain non-alcoholic products produced by Guinness. Beverage
Network of Maryland will immediately distribute XStream's
proprietary energy drink, Yohimbe, while its Maui Juice products
and the Squeeze soda brand will be distributed in the near future.
"Atlantic Beverage is one of the premier, independent beverage
distributors on the east coast and represents the ideal profile of
the type of distributors we want to acquire in key markets around
the country while concurrently introducing our own proprietary
brands though those distributors," said XStream Beverage Group CEO
Jerry Pearring. "Owner Morris Stodard is a beverage industry
veteran who has truly embraced our Beverage Network concept. His
experience and expertise will be a valued addition to our senior
management team." Atlantic Beverage Company will conduct business
as Beverage Network of Maryland, Inc. expanding the Company's
Beverage Network concept along the east coast. The Company recently
acquired Ayer Beverage in Massachusetts giving XStream Beverage
contiguous geographic coverage from Boston through the entire state
of Connecticut by joining forces with Beverage Network of
Connecticut, XStream's previous New England acquisition. XStream
also owns and operates Beverage Network of South Florida that
covers Miami-Dade, Broward and Palm Beach Counties. Pearring said
that Stodard would continue as general manager of Beverage Network
of Maryland, Inc. through the end of 2004 and has been appointed to
the Advisory Board of XStream Beverage Group, Inc. In addition to
his role on the Advisory Board, Stodard will take on additional
duties with XStream beginning in January 2005. "I've been in the
beverage industry for more than four decades and I'm very impressed
with XStream Beverage Group's growth strategies," said Stodard.
"With the additional resources provided by XStream we can take an
even more aggressive approach to our sales and marketing to expand
our customer base." The consideration and terms of the acquisition
were 1,923,077 shares of XSBV restricted common stock, $1,219,321
in cash delivered at closing, a promissory note for $2,000,000
payable in 60 equal monthly payments and bearing 6% interest and a
separate $250,000 payment to be made in 12 equal weekly
installments. The $1,219,321 cash portion of the acquisition was
provided by Laurus Master Funds, Ltd. ("Laurus Funds") through
their May 14, 2004 financing agreement with XStream Beverage Group.
This arrangement with Laurus Funds for a total of $3 million in
financing was made possible through an investment banking
relationship with H.C. Wainwright & Co., Inc. XStream Beverage
Brands As part of its brand acquisition strategy, XStream recently
acquired the Maui Juice Company and the historic Squeeze soda
brand, its first entry in the "retro" gourmet soda category. The
Company has begun the expansion of the Maui brand on the Island of
Hawaii and anticipates bringing the product to the mainland within
the next three months. Squeeze is currently being reformulated and
repackaged and the Company anticipates introducing the product
before the end of this year. Just over a year ago, the Company
introduced its proprietary energy drink, Yohimbe. Since its
introduction in March 2003, sales of the product have grown
consistently in both on-premise clubs and through its company owned
distributors. About XStream Beverage Group, Inc. XStream Beverage
Group, Inc., http://www.xbev.com/, is a beverage brand owner and
distributor and is rapidly becoming a key player in the new age
beverage category. The company plans to continue acquiring small-
to medium- sized beverage distributors, developing brands under its
own label or through acquisition and leveraging those brands
through its current and future distribution channels. The company
is a fully reporting, public entity trading on the OTC Bulletin
Board, ticker symbol XSBV. This press release includes
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause actual results, performance or achievements
of the Company to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include failure to
complete successfully the development of new or enhanced products,
the Company's future capital needs, the success of competitive
products, fluctuations in costs, changes in consumer preferences
and other items described in the Company's Securities and Exchange
Commission filings. The Company undertakes no obligation to update
any statements in this press release. For further information,
contact: Peter Nasca Peter Nasca Associates, Inc. Chicago:
312-421-0723 Miami: 305-937-1711 For Investor Relations Bob
Giordano 212-495-0200 extension 10 DATASOURCE: XStream Beverage
Group, Inc. CONTACT: Peter Nasca of Peter Nasca Associates, Inc.,
+1-312-421-0723 or +1-305-937-1711, or , for XStream Beverage
Group, Inc.; or investor relations, Bob Giordano for XStream
Beverage Group, Inc., +1-212-495-0200, ext. 10 Web site:
http://www.xbev.com/
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