Castle Brands Board (ROX)

[FUNMAN]

Smallcapinvestor & JNUBZ - Fear not. The full line of Jeffersons will eventually be coming to a liquor store near you.

003MPS, investing in the inventory is probably more important at this point in time. The two examples I am responding to above are not unique. In fact, it's really common.

I only can cover a smidgen of territory when I travel; stopping in a half dozen or so liquor stores wherever I go. It's better when I am on my own. When my wife sees me wandering in a supermarket with liquor or a liquor store, she says, "I know what you're doing; you're looking for ROX brands". It's almost said like I'm trying to sneak around with another woman.

It seems to me ROX is handcuffed with the supply side of the equation versus demand ... which exceeds supply. All of the managers I had a chance to speak with it, heard of Jeffersons. Some knew nothing about it other than by name because they were never exposed to it. Others just couldn't get it, but were not screaming for it either.

At least the big liquor chains reliably have it.

I believe in "rounded" numbers, each of the last 3 major bourbon expenditures starting at about $2 million were doubled, and then doubled again.

If the $10 million secondary is going towards increasing the bourbon and whiskey inventories, it would NOT surprise me one bit if 100% of it is going there.

Sometimes you need to take the path of least resistance. If you see the demand already exists, you don't have to do anything more to pump it up, you have to do whatever you can to meet that demand.

You don't turn advertising on and off like a light switch. You can blow through an annual budget in a heartbeat when your advertising appetite is bigger than your wallet. Then what?

The worst thing they can do is disappoint and under deliver; generate demand and then let people forget about it.

As for gorilla marketing, it's an awesome endeavor when done right. It is sustainable in the long term, can be repeated in many markets, it can build deep seated name recognition, and it affordably builds better long term loyalty.

You may not recognize it. Often times it doesn't even resemble advertising.

An ad in a major magazine might pump up demand everywhere (or in a regional issue), but it needs to be followed up with consistent and repetitive ads; a costly traditional campaign so to speak. It also needs to be in several "outlets", not just one to reach the entire market.

Does ROX direct their available inventory JUST to the area with all of the advertising is being run? The answer is no.

They cannot just magically increase inventory. Demand is already outpacing supply.

Your interest is right in the sweet spot of my career and business. I've seen this kind of problem 100's of times and dealt with it first hand. I think ROX is doing a great job, and Max is digging up the proof. He is certainly missing a great deal of it. He isn't our full-time ROX detective.

Advertising has to be sustainable. "Your" campaign needs to build top of the mind awareness. You cannot disappear.

I can affordably create more calls and business for some of my small(er) customers then they can handle. They constantly talk to me about slowing down, because they can't hire and train people fast enough.

There is a sustainable pace to growth that matches the financial and operational capabilities that I think Mr. Frost et al have a firm handle on.