DNA Brands Inc (DNAX)

[Ed the Trader]

DNA Energy has saturated the Dallas/Fort Worth Metroplex market

DNA Energy is currently a sub-penny stock, and I have never seen anything at this level with SO much potential to become a stock trading in DOLLARS. I will continue to perform further DD research on this company, and report what I find.

However, in this message, I want to concentrate solely on what is happening in the Dallas/Fort Worth Metroplex.

First, you have to know that the D/FW Metroplex is the FOURTH largest metropolitan area in the country behind only New York City, Los Angeles and Chicago. There are roughly 7 million people who live in the D/FW Metroplex so it is a huge market.

To put this further into prospective, the entire state of Florida, where DNA Energy was started, has almost 20 million people. If DNA Energy had complete market coverage of the entire state of Florida, adding the D/FW Metroplex would represent a 30% increase in revenue potential over what DNA Energy could achieve from the whole state of Florida!

On November 26, 2013, DNA Energy released a press release to announce that they signed a new distributor agreement with Kimball Distributing in Texas.

DNA Brands Announces Texas Expansion with Premier Distributor

Kimball Distributing Agreement Covers 25 Counties Surroundng the Dallas Area - November 26, 2013

BOCA RATON, FL—January 15, 2014 (BUSINESS WIRE)--DNA Brands, Inc. (OTCQM:”DNAX”) makers of DNA Energy Drink, the winner of the 2010 and 2012 “World’s Best Tasting Energy Drink” title and DNA energy coffee announced that Kimball Distributing Inc., based out of Grand Prairie, Texas has agreed to distribute the Company’s full line of energy drinks and coffee drinks to retailers in the Dallas, Texas and surrounding areas.

“We couldn’t be more excited than to be able to announce the addition of Kimball Distributing to our rapidly expanding portfolio of quality distributors. Kimball affords us the opportunity for major growth in a market that is crucial for our success. Texas is among the top three states in convenience store sales,” said Eric Fowler, Vice President of Sales and Marketing for DNA. “Due to Kimball’s excellent relationships we were able to secure placement for our energy and coffee drinks at 108 Quik Trip (“QT”) convenience stores in their service area. QT is among the nation’s leaders in energy drink sales,” concluded Fowler.

John Cook Vice President and General Manager of Kimball Distributing, Inc., said, “We are extremely excited to have added DNA’s products to our portfolio and look forward to offering their award winning drinks to our extensive network of retailers.”

(Reference: http://www.dnaenergydrink.com/DNAenergy/index.php?option=com_content&view=article&id=471:dna-brands-announces-texas-expansion-with-premier-distributor&catid=57:news&Itemid=116)

At the time, there was not much tracking of DNAX on iHub, so it seems that almost no one noticed. The only mention of this event was Post #1033 on iHub:

Massive news out for DNAX! The next few days will be interesting.

minus thanksgiving day. cause the markets closed. lol

This one is def heading up ---pennystockeyes

(Reference: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94458039)

Kimball Distributing, Inc. has been in business since 2006, and they supply products to 25 counties in North and Central Texas:


(Reference: http://kimballdistributinginc.com/about/distribution-area)

You can clearly see from their web site that Kimball distributes DNA Energy products: http://kimballdistributinginc.com/products.

The press release from last November states that Kimball distributes DNA Energy into all of the 108 QuikTrip stores in the D/FW Metroplex. Since then, QT has added additional stores so that there are now 114 in the D/FW Metroplex area:


(Reference: http://www.quiktrip.com/Locations)

For those not familar with the QuikTrip (aka: “QT”) convenience store chain, QT is a chain of convenience stores in 12 major markets across the United States from Phoenix and Tucson in the west to Charlotte in the east, Omaha and Des Moines in the north to Dallas in the south.



Every QT convenience store has about 16 covered fuel pumps in front of the store. The smallest QT store is still larger than the biggest 7-11 stores (if you are familiar with 7-11). So, these stores are large for convenience stores, and they see massive amounts of traffic and being open 24/7/365, they see that traffic around the clock.



In the D/FW Metroplex, there are basically 6 groups of retail stores where people buy gasoline:

1) the brand name gas stations (ex: Shell, Exxon)
2) the one-off independent stores
3) QuikTrip
4) RaceTrac
5) 7-11 (although many have recently had the fuel pumps removed)
6) Valero

Although one can shop around for low gas prices, or use something like GasBuddy.com, the prices at QT are consistently low enough that one will average lower fuel prices by just buying all of your fuel there, and lots of people do.

I estimate that roughly one-third of everyone who fills their car with gas also goes into the actual store. The store is filled with snacks, candy, and all of the drink types one would expect to find in such a store.

QT is also well known for having very good “plain old sandwiches” compared to other stores. If all you want is to grab a plain turkey, ham or beef sandwich or sub for lunch and you are pressed for time, you can grab such a sandwich in less time at QT than it would have taken you to make basically the same sandwich at home if you had the meat already in your fridge. The sandwiches are fresh and typically come with tomato and lettuce which many other store’s sandwiches do not have. The QT stores also have a full range of condiment packages to take with you to spruce up your sandwich. It is just a really good way to squeeze a decent lunch into your day when you didn’t have any schedule left to eat lunch at all.

In the topmost row of the energy drink cooler of each QT store, right with the Red Bull and the Monster Beverage, you will find DNA Energy drinks.



I cannot convey what a huge coup it is for a company in this market segment to put their product into all of these QT stores, and it was basically overlooked by iHub posters back in November. This is as significant as if DNA Energy had gotten their products placed into all of the local Walmart stores.

Convenience stores are where you move energy drinks, not grocery/department stores! This is why DNA Energy does not bother with packaging their products in boxes like you would find a typical soda drink like CocaCola or Dr. Pepper packaged.

For comparison, there are 123 local Walmart stores in the D/FW Metroplex, and there are 114 local QuikTrip stores in the same area.

Last Saturday, I visited QT stores in the D/FW Metroplex, and I purchased DNA Energy drinks at two different QT stores. One store was located in the city of Dallas, and the other was located in Tarrant County which is the county where Fort Worth is located.

Around 4:30pm, I drank a can of the Original flavor of DNA Energy. It was designed to be similar to Red Bull, only DNA tastes good. It has an deep amber color that is similar to a darker beer with a consistency of water with no stickiness that one would find with a typical corn syrup-based soft drink like CocaCola. It’s taste comes across as CLEAN more than anything else to the point where you almost wonder where the flavor is. To compare it to a soft drink, it tastes a bit like a 7-Up or Sprite, but also has a slight fruity aftertaste. I had no problem drinking the whole 16 ounce can as the slight flavor was easy to enjoy.



Around 7:30pm, I drank a can of the Cellular Citrus/Zero Sugar flavor of DNA Energy. This variant of DNA Energy is orange in color, and it tastes a bit like a can of carbonated Tang orange drink. I could compare it easily to Orange Crush, but I kept coming back to Tang when I thought about orange flavored drinks. It’s aftertaste was very much like I had just chewed a St. Joseph’s orange flavored baby aspirin. Like the previous flavor, this was also quite good.

Note that each of these 16 ounce cans contains 85mg of caffeine. Also note that I had eaten lunch about 1pm, and by 7:30pm, my stomach was pretty empty so the time I was halfway through the second can, I was getting pretty jittery. I stopped and got a small bag of Lay’s Sour Cream and Onion potato chips (http://www.fritolay.com/our-snacks/lays-sour-cream-onion-chips.html) to get some starch into my system as I finished the second can, and the orange flavor of the drink complimented the taste of the potato surprising well. The potato chips cured the jittery feeling I was getting. However, others did comment that they could tell that my energy level was definitely up as I was clearly and noticeably perky to others around me. That is, of course, the result that one hopes to achieve with an energy drink.

A friend of mine had a can of the Caramel Macchiato flavor of DNA Energy. This is one of the three new coffee-based energy drinks that DNA has released. I tasted it and it definitely tasted like smooth, milky coffee. My friend likes it so much that she is going to some at home and some at work on an ongoing basis for when she needs a pick-me-up.




I called another friend who happens to be another trader and told him to go to a QT store in Garland, TX store on the east side of Dallas so he could buy several cans of DNA Energy. He told me that he gave a can of the citrus flavor to his son so that the son and his friend could split a can and judge it. They both thought it tasted very good, and my friend has now purchased a block of DNAX stock.

Just for naysayers who still believe that somehow this is a scam stock or have any doubts that the product actually exists or is available in stores, I am including a photograph of my two empty cans of DNA Energy in front of my computer screen. You can clearly see the computer window on the left side of the screen has my iHub account (see the “Ed the Trader” name there?) and the right side of the screen contains a window with today’s chart in eTrade for DNA Energy.