Splash Beverage Group, Inc. (NYSE American: SBEV)
(“SBEV”) may be under the radar to some. Still, you can bet that
beverage industry competitors are taking notice, especially after
SBEV inked a potentially transformative distribution deal in China
earlier this month that added to six other significant agreements
already in place. Already, the combined power of these agreements
is enough to drive substantial growth in the back half of this
year. However, with SBEV in a state of hyper-growth, expect much
more. And that could be great news for shareholders.
Moreover, that disconnect is more pronounced factoring in that
SBEV management may be one of the top teams in the sector, with
some members responsible for helping take Red Bull energy drink
from zero to billions in sales. Proof of their expertise is front
and center, with the group closing several distribution deals,
successfully uplisting the stock to the NYSE-American, raising $24
million since February, and eliminating all convertible debt from
its balance sheet.
And while those events indeed put SBEV in its best operating
position in history, no one at the company is shying away from
having bullish ambitions. In fact, while its deal with China-based
American Software Capital (ASC) alone opens up an estimated $69
billion market opportunity, its growth in the US markets is
positioning the company to take advantage of the billions available
here. Better still, SBEV isn't getting just one of its
best-in-class products signed to distribution deals; they are
getting all of them signed, bringing enormous revenue-generating
potential from worldwide markets.
Its distribution with Great Bay distributors, one of Florida's
largest Anheuser Busch (NYSE: BUD)
distributors, is its latest.
Broadening Distribution Of Product
Portfolio
Better still, inclusive of its recent deal with Great Bay, SBEV
already has distribution deals in place with large companies like
Golden Beverage Company, Anheuser Busch distributor, Bernie Little,
Johnson Brothers, and divisions of Gulf Distributing Holdings, LLC.
Further, SBEV announced a significant expansion into Walmart, Inc.
(NYSE: WMT) owned Sam's Club, where its SALT Citrus flavored
tequila is now available in 42 stores.
The better news is that the Sam's Club deal could lead to a
potential national agreement with Walmart stores to distribute some
of its products on a national scale. If that happens, valuations at
SBEV will surge, especially with the industry applying roughly 5X
revenue multiples for brand valuations. Chances of that happening?
Extremely high.
Of course, it takes excellent products to maximize those
distribution opportunities. And SBEV has that corner covered with a
product lineup that features several of the most compelling brands
in their respective sectors. Better still, the company could add
several more in the coming quarters.
Keep in mind that growth in any (or all) of its brands will add
to already exponential growth.
A 2058% Q1 Revenue Surge
In fact, SBEV posted a massive 2058% surge in comparative
revenues last quarter, led by high-value brands Copa Di Vino wine,
Pulpoloco Sangria, TapouT performance drink, and SALT Naturally
Flavored Tequila. Better still, those revenues came with a
momentum-generating tailwind that is expected to push Q2 revenues
higher again. With several of its new distribution agreements
coming at the end of its last quarter, that's likely.
That means that while the 2058% surge in revenues on a
comparative Q1 basis is an excellent accomplishment, SBEV is better
positioned to potentially deliver multiples of that number by
year-end. And with the capital to manage growth and a willingness
to add brands that can be immediately accretive to its business
model, investors would be wise to consider the near and long-term
value opportunity in play with SBEV stock. Better still, with only
about 31 million shares outstanding, no convertible debt, and an
improving global economy, there are few, if any, headwinds
preventing the shares from running higher.
And keep in mind, SBEV is already expected to exceed
expectations.
Premium Revenue-Generating Portfolio
Leading that growth is four brands that target billion-dollar
markets- Copa Di Vino, Pulpoloco sangria, SALT flavored tequila,
and hydration and recovery drink TapouT. All have substantial
opportunities to earn national big-box distribution. Thus, while
its regional deals are driving growth today, a contract with a
national retailer would be a revenue-generating game-changer for
the company.
Copa Di Vino, its single-serve wine product that earned national
attention from being the only product featured twice on the popular
investment show Shark Tank, could be the first product to make that
happen. However, it's important to note that ALL of its products
share the same opportunity. Still, as the leader in packaging
technology, quality, and brand recognition in the sector, Copa Di
Vino could earn quick interest.
Even better, its state-of-the-art sealing technology could open
additional revenue-generating opportunities through licensing
agreements. Unlike competing shelved wine products, Copa Di Vino
can remain fresh for up to a year. Other brands have a sell-by date
in months, and sometimes only days. Better still, its packaging,
branding, and wine quality make this brand stand out from the
crowd, even earning the distinction as Oregon's Winery Of The
Year.
While Copa is a standout product, other SBEV brands are
compelling as well and would also fit nicely into a national
big-box distribution program.
For instance, its Pulpoloco sangria, a made in Madrid, Spain
product, is doing more than bringing authentic tasting and
manufactured sangria to market. They are integrating what many call
the most socially conscious and eco-friendly packaging in the
markets- CartoCan. This innovative packaging technology is 30% more
eco-friendly than aluminum or PET, uses 30% less total raw
materials to create, and the raw materials used come entirely from
renewable raw materials. Further, the packaging only uses wood
fibers from forests managed in an exemplary fashion, giving
CartoCan packages the exclusive right to bear the Forest
Stewardship Council (FSC) label.
Best of all, CartoCan keeps Pulpoloco shelf-stable for at least
a year, keeping the vibrant character of its taste profile
well-protected during that time. However, it's unlikely that
Pulpoloco will ever stay on the shelf that long, making CartoCan an
extra luxury for the product.
Two other brands could also bring national distribution deals to
the table- hydration and recovery brand TapouT Performance and SALT
Naturally Flavored Tequila. Each has billion-dollar market
potential. And while consumers may be familiar with global
potential within the hydration, recovery, and energy drink markets,
few recognize the potential of SALT flavored tequila. Growth in the
tequila sector is surging. And SALT is perfectly positioned to
capitalize on those emerging opportunities.
In fact, SALT is targeting a more than 14% surge in the tequila
markets. Better still, the flavored spirits markets are outselling
unflavored by a 10 to 1 margin. Thus, SALT is in the right market
at the right time. Better still, marketing to an audience that
craves flavor, variety, and life, SALT's lineup of naturally
flavored citrus, berry, and salted-chocolate flavored tequilas
offer the perfect hints of flavor, satisfies even the most
distinguished cravings. Best of all, combining the double-digit
percentage growth rate of annual tequila consumption in the US
markets to the exploding numbers in the Chinese markets, SBEV could
turn its SALT tequila brand into a revenue-generating
juggernaut.
And with more distribution deals expected soon, that growth
could come sooner rather than later.
Decidedly Bullish Sentiment For 2H 2021
Undoubtedly, the convergence of distribution deals combined with
brand quality creates a perfect storm of revenue-generating
opportunities. And with a history of taking brands from zero to
billions, there's an excellent chance that they can deliver maximum
value from planned initiatives. Keep in mind, SBEV has a running
start, with each of its brands already well-known in the markets
they serve. And with massive global markets in play as well and
hoped-for national big-box deals in the discussion, they could make
history repeat.
Better still, for investors, prices at current levels apparently
are neglecting these enormous opportunities. Moreover, current
valuations are not connecting management expertise to the equation,
either. Thus, if there was ever a growth story that was not getting
the attention deserved, SBEV could be it. In fact, the untapped
value in just its four brands presents an opportunity for
exponential growth. But knowing the company would like to have
10-12 brands under management makes the long-term proposition a
most compelling and lucrative investment opportunity.
The bottom line is simple: For investors attracted to 2058%
revenue growth, top-tier management, compelling brands, and massive
distribution deals already in place, SBEV delivers the entire
package. Better still, while they are an excellent company today,
with a business model that can drive global growth, the company a
year from now could be quickly taking substantial shelf space from
industry giants. And when that happens, well...that opens up an
entirely new discussion that could be worth billions more.
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Follow Splash Beverage Group on
Twitter: www.twitter.com/SplashBev
About Splash Beverage Group, Inc.
Splash Beverage Group specializes in
manufacturing, distribution, sales & marketing of various
beverages across multiple channels. SBEV operates in both the
non-alcoholic and alcoholic beverage segments which they believe
leverages efficiencies and dilutes risk.
SBEV believes its business model is unique as it ONLY
develops/accelerates brands it perceives to have highly visible
pre-existing brand awareness or pure category innovation.
Forward-Looking Statement
This press release includes "forward-looking statements" within
the meaning of U.S. federal securities laws. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue" and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause the actual results to
differ materially from the expected results and, consequently, you
should not rely on these forward-looking statements as predictions
of future events. These forward-looking statements and factors that
may cause such differences include, without limitation inability to
enter into a definitive agreement with respect to the proposed
transaction or to complete the transactions contemplated by the
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complete their respective due diligence investigation of the other.
Other factors include the possibility that the proposed transaction
does not close, including due to the failure to receive required
security holder approvals, or the failure of other closing
conditions. The foregoing list of factors is not exclusive. Readers
are cautioned not to place undue reliance upon any forward-looking
statements, which speak only as of the date made.
Contact Information:
Splashbeveragegroup.com
info@splashbeveragegroup.com
954-745-5815
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