Celsius Holdings Inc (CELH)

[Altitrade Partners]

NJM, saw you article on slotting fees over on the NBEV board.

http://qz.com/807723/inside-the-secret-backroom-deals-big-brands-make-to-vie-for-control-over-grocery-stores/

This is exactly what got CELH in trouble under the prior management team. They raised $14.5 million in a secondary offering in February of 2010, and blew through almost the entire amount in short order. A big chunk of that money was spent on slotting fees and "pay-to-play" type costs. As a result the company reported a FY 2010 loss of $19.5 million on $8.3 million in sales. These costs can overwhelm small players in the beverage industry.

Gerry David, has curtailed these ridiculous expenditures, and has managed to turn things around at CELH. He has created tremendous awareness of the Celsius brand without having to rely heavily to these pay-to-play tactics. In fact, Celsius has retailers coming to them, UNSOLICITED, to carry the brand on their shelves.

The 7-Eleven relationship is a good example.