NewAge Inc (fka NBEVQ) (NBEVQ)

[NewJerichoMan]

Marley Yerba Mate Post 1

"We are happy to announce the new news, that a major national convenience chain with almost 10,000 stores in the US alone, has just agreed to take on Marley Mate, and shipping to the customer begins August 28th. As many of you know, New Age has always never really has any national distribution, and had most of its strength regionally in the West. Now, with the national presence of Coco-Libre, and Marley – that is changing quickly, and they pull the other brands from a retailer penetration standpoint. Worst case, we expect an average of $1,000 per store per year for Marley Mate, so the new product will have a material impact as it rolls out nationally between now and the remainder of 2017. And that is just the first customer, but this is what we mean when we say revenue synergy, and how we derive value from our acquisitions with new products within their platforms."

Almost 10K stores in the US alone means 7-11, which has historically been 80% franchise-owned. This means there are a lot of doors to knock out to get 100% penetration into 7-11. Franchisees get recommendations as what to carry but they can, and do, carry what they want. 50% penetration out of the gate would be a big win. That's what Celsius got out of the gate and that's a superior product to any Yerbe Mate IMO.

4,500 stores * $1,000 per store on average = $4.5M net revenues per year.