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Bud Light 'Fan Can' Brewing Up Trouble
Posted Sep 03, 2009 4:51PM By Kevin Blackistone (RSS feed)
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In the afterglow of a Super Bowl victory by my hometown NFL team, way back when it was a Super Bowl-caliber franchise and I wasn't a sportswriter who had to feign objectivity, a particular bottle of wine in a package store caught my eye. It wasn't the vintage of wine that struck me; it was the label on the bottle celebrating my guys. So I bought half a case of Redskins wine. I'm sure a bunch of other Skins fans did the same. "Brilliant," those two Guinness cartoon figures would say of such marketing.
The folks who make and market Bud understand as much. With college football kicking off this week, they've unveiled a similar strategy to sell their flagship brew. They call it the Fan Can, a can of Bud Light festooned in the colors of a couple dozen or so major college football teams like Texas, Kansas, Michigan (it's still a major program), Boston College and Maryland, where I teach part-time.
I'm sure a bunch of Longhorns, Jayhawks and Terps fans will all but blindly snap up Bud Light cans dressed in their favorite school's colors just like I did Redskins wine. I'm sure the Bud people want and expect that to happen.
There's just one little problem: Redskins wine was aimed at fanatical NFL fans who happened to be adults that acted like idiot kids; the Fan Can is aimed at fanatical college football fans who happen to be mostly kids that want to act like idiot adults. The drinking age in this country is 21. The majority of people on most college campuses in this country are younger.
This is like the tobacco industry using stylish lifestyle images to hawk its carcinogens on the public.
I don't mean to sound Pollyannish. I drank alcohol in college on a campus in a city, Evanston, Ill., that at the time was dry and home to the Women's Christian Temperance Union that spearheaded Prohibition in the '20s. And when I get done with this column I'm going to meet some friends at a fine establishment in downtown D.C. to celebrate a birthday with fine food and alcoholic beverage. But this isn't about me. It's about a multi-billion dollar company having some modicum of respect for our nation's laws if not our nation's youth. Sure, they're going to drink. But do you have to lead them to water?
What does Anheuser-Busch, the Bud Light brewer, care, though? Bud Light isn't just its leading brand; it is the nation's top brand. And like most everything else with a price on it these days, Bud Light sales are in the bottom of the barrel. Some beer industry prognosticators have predicted Bud Light is heading to its first sales decline in over a quarter century. So let's get those kids to boost sales!
"We called them [Anheuser-Busch]," Janet Evans, a senior attorney for the Federal Trade Commission, which oversees alcohol advertising, told me Thursday. "When you're dealing with college campuses, you're dealing with an unusually high underage population. And you've got a high level of binge drinking. It's a question of responsibility. We asked them to stop."
Bud Light's makers said, sure. If a college complains, it will cease its campaign in that community. Maryland has complained. So have a bunch of other universities.
The Associated Press reported last week that Boston College was among several schools that sent letters objecting to the use of its colors -- maroon and gold at BC -- on Bud Light cans. It sent letters on its own and through its athletic conference, the Atlantic Coast Conference.
The AP said the college pointed to trademark infringement but was most concerned about the message the advertising sent about drinking and was concerned others would think the university was helping conduct the campaign.
"We think it's an ill-conceived and inappropriate campaign that runs counter to our collective efforts to combat underage drinking," the AP quoted BC spokesman Jack Dunn.
Anheuser-Busch's response: The AP said the brewer informed BC that it had a right to market its product using colors associated with the school.
"Nonetheless, in order to avoid a dispute over the concerns raised by your letter, Anheuser-Busch has decided not to proceed with Fan Cans in such color combinations in your community at this time," the brewer said in a letter to BC that BC shared with the AP.
That shouldn't have been a difficult to reach conclusion for Anheuser-Busch. Like other makers of beer and spirits in this country, it has agreed to FTC guidelines, the FTC lawyer said, not to market to sports with a population base that isn't at least 70 percent at or above the drinking age.
"I think they made a mistake," Evans said.
I think they stuck a wet finger in the air and decided the wind was blowing their way.
This was good reason why Bud Light's brewers acted as if they wouldn't encounter much if any blowback from their goofy new campaign replete with a screaming head television commercial that was likely to make all of us go batty. For starters, there is already a lot of beer -- and who knows what other mind-dulling potions -- on college campuses, and always has been. (I was part of a student government campaign at Northwestern that convinced the city and administration to allow a rathskeller in the student union building based on the argument it would cut down on alcoholism because so many kids were hoarding alcohol illegally and, as a result, were more likely to binge drink. They bought it!)
On top of that, take a peek at your cupboard or bar holding drinking glasses. See a beer stein with your alma mater's mascot on it or shot glasses with your alma mater's seal? I bet you do. They are readily available at most any campus bookstore or, if you're out of town, conveniently had online.
I asked FTC lawyer Evans about that apparently disingenuous message from universities now crying foul.
"I can't answer that," she said.
We're all in cahoots.
Actually, I stand corrected. The kegs are already on the stage with Kid with Jim Beam there. At :27 in the clip you can see them on the stage and again at :54 at The New York State Fair on Saturday.
OK, NEW KEG LABELS! APPARENTLY THERE IS NO PARTY WE CANNOT HANDLE!
Great find Skillito! That should tell you that anything Kid does from here forward outside of his Red Stag contracted promotion will feature his own Badass brew on every stage.
Rheingold alone BUD already offered $5 million for. The company didn't sell because it is worth alot more.
The value of everything else is exponentially higher than the market cap of the company. IT HAS ABSOLUTELY NOTHING TO DO WITH SALES FOR DKAM BUT WHAT ANOTHER COMPANY CAN DO WITH THE SALES!!!!!!!!!!!!!!!!
What part of this scenario is so difficult to understand?
Even without considering intrinsic value, taking out Rheingold, the company is currently trading less than 2 times sales, an all time low for the company. The chart technicals indicate severely oversold. The stock is trading a fraction of 2010 sales.
But let's sit here and make up more reasons why this company differs from what the entire market trades on...future value.
And that is why DKAM is at .09. Pure and blatant manipulation. The only saving grace is those who are getting the shares know exactly what they will do when everybody gets done handing them their shares.
You have seen me make all sorts of analogies of how DKAM is the ONLY stock in the known universe that the world is ignoring future growth in lieu of what has happened or what might happen or whatever misconception can be attached to the CEO's resume today. While everyone tries to compare this company to every $100 stock out there in the slightest hint of bad news being the end of the world there are hundreds of other stocks that go up on far worse news. It's just the way the market works.
But since we're so intent on comparing apples to apples let's take a look at one in particular. I've just been made aware of this EHMI. I'm not advocating the stock. I could care less about it. But here is what is fascinating.
Two years ago, the stock had $318K in annual sales. Those sales have declined to 90K in the past year. The last three quarters? Sales of $9000, $3000, and $5000. You gotta like that huh baby? A 71% decrease in sales versus a 63% decrease for DKAM.
Two years ago, the Outstanding Shares were 39 mil. The OS shares now? Oh, just 77 million. Virtually a 100% dilution rate.
Profits? Yeah right. Losses from 18 cents down to 8 cents. Yeah! Because they doubled the shares!
Sales outlook. None.
Cash? $25K and only $46K in assets.
Oh, just one more thing.
The stock came off an all time low 5 months ago of 3 cents and is right now setting 52 week highs at .27. The market cap is now MORE THAN DOUBLE that of DKAM.
This therefore in my opinion completely negates any of the negative comments here that this price on DKAM is going nowhere. The deals they've done have killed the company. The sales will never be enough. And on and on.
An 800% move on this other one proves that it doesn't matter how bad things get, the stock can always go higher for absolutely no reason. And that NO reason event is coming for Drinks for all the right reasons.
The bootlegging has begun! I love it!
OK so let me make your day! We called a location in MI today to inquire about a mass purchase of bottles. Talked to the owner of the ONLY retail location that is currently offering kegs for retail sale. They are also slated to be the FIRST location to have the bottles in the next few days...first delivery...all 22's.
So we asked him about updating his website to show the availability of Badass and his exact response was...
"Not going to happen anytime soon. The demand for the beer currently is SO HIGH that there is no way the brewery can keep up with the demand as it is. If we put it on the website with our traffic it is just going to make matters that much worse. It's all I can do to handle the massive amount of orders coming in now and make sure the brewery can give me all they can produce."
And still the stock is under a dime. Staggering.
I have no idea. I do know for a fact that TTB WILL NOT allow a beer to say "Born In Michigan" on its label if it is being produced in another state. In the beer biz, Born In is synonomous with Manufactured In and NOT Created In.
It would also be wise to wait to see what the FINAL labels will be as I am expecting perhaps some adjustments. Let's just see what the final product will be.
Personally, it doesn't make a rat's arse difference if the guy in Precott Arizona is drinking fro m a slightly different label than the guy in Port Huron MI. Please stop the madness!
OK first off, when I put up a post after doing hard work, it is NOT meant for everybody who has access to a phone to pick it up and harass hard working people who have a heck of alot more important things to do than to talk to a bunch of people all asking the same thing.
In this particular case, you would have been wise if you had made such a call to verify that they were in fact doing business with Lion Brewery. The list I posted was from THEIR website of their current distribution list. So, these distributors carry THEIR products as they become available. Same thing held true when Badass went into production in MI. It was only AFTER folks got a visit and contracts were signed that those distributors became well aware of Badass. I fully expect the same thing is occurring at Lion, and the other contract brewers as it should be. It's all part of a process and it just slows things down when people get on the phone doing things perhaps a day or a week or whatever in advance of things happening as they should and will.
In retrospect, I didn't pick up the phone and verify you sold half your shares at .19 on this stock when you sold them and I doubt anybody else did either. So from here, I'll more than likely just keep these things I'm finding to myself and let somebody else deal with the nonsense that pervades when people get in the middle of analysis paralysis.
12 oz. bottles just approved for Wilkes Barre...
K, D, C, P, and B
You fill in the rest. Pretty obvious! :)
Actually, look at the pics again and I could easily reel off the names of who is at that party...including "Mom."
And since we're on the topic of economics and demographics and how much beer we're gonna sell and when and to whom and in what size.....
Let us all be reminded of one thing.
They ONLY ask for ID when buying Badass Beer and not IQ.
Therefore, Badass and Drinks will do just fine as we have hit our demographic pretty much everywhere!
See what I mean?
Once again...simple. Economics. Glass issue. Cost. MBC has and is contracted for many 22's already. We slide in. LBC is contracted for many 24's already. We slide in.
Two different breweries. Two different product labels. Same beer. Both will not be sold in the same market together.
Then here's the best way to resolve your dilemna all the way around. Just load up the stock at all time lows and don't think. Can't help it but it is what it is.
I think rather than get ahead of ourselves, I'd be more worried about the holes popping up thus far. Like who is going to be servicing the entire state of NY OUTSIDE of NYC. You know, the part that houses about a million more percent Kid Rock fans than the city itself.
There are two things in this world that qualify as "slow" and they are the slowest thing in the world to occur. Anything to do with a distributor is slow. Getting them to return phone calls or do anything proactive unless it is putting money in their hands this very moment. Distributors do not file for label approvals until they are ready to sell product. They aren't going to put in a label for approval now on a product that is 6 months away. Mason did the same thing at MBC. They knew they were doing the beer almost a year ago, and the approvals came less than a week before the Born on the Fourth of July production.
Oh, the other thing that is the slowest? Waiting on some fidget to update a bar or restaurant website. Good luck on that one.
This appears to be the initial locations of Badass Beer through Lion Brewery:
Kentucky
Beer House
726 East 9th Street
Newport, KY 41071
(859) 431- 6618 (p)
(859) 431- 6870 (f)
Counties – all counties and municipalities in the state of Kentucky
Massachusetts
L. Knife & Son
P.O. Box K
Kingston, MA 02364
(978) 777-5525 (p)
(978) 774-6066 (f)
Counties – all counties and municipalities in the state of Massachusetts
New Jersey
Kohler Distributing
150 Wagaraw Road
PO Box 643
Hawthorne, NJ 07506
(973) 423-2307 (p)
(973) 423-4049 (f)
Counties – Sussex, Passaic, Bergen, Morris, Essex, Hudson, Union
Kramer Beverage
161 South Second Road
PO Box 470
Hammonton, NJ 08037
(609) 704-7000 (p)
(609) 704-7100 (f)
Counties – Camden, Gloucester, Salem, Cumberland, Cap May, Atlantic
New York
Union Beer
1213 Grand St.
Brooklyn, NY 11211
(718) 487-2407 (p)
Counties – Kings, New York, Queens, Richmond, Bronx, Westchester, Suffolk, Nassau, Rockland, Putnam, Dutchess, Orange, Ulster, Sullivan
Ohio
Cavalier Distributing
11316 Tamarco Drive
Blue Ash, OH 45242
(513) 247-9222 (p)
(513) 247-9212 (f)
Counties – all counties and municipalities in the state of Ohio
Oklahoma
Paragon Brands
4200 S.E. 59th
Oklahoma City, OK 73135
(405) 261-0308
Counties – all counties and municipalities in the state of Oklahoma
Pennsylvania
All Star
PO Box 14264
Reading, PA 19612
(610) 670-2337 (p)
(610) 670-2992 (f)
Counties – Northampton, Lancaster, Lebanon, Lehigh, Berks
Ace Beer
3800 East Market Street
York, PA 17402
(717) 755-0774 (p)
(717) 840-1698 (f)
Counties – Adams, York, Franklin, Fulton
Fuhrer
3100 East Carson St.
Pittsburgh, PA 15203
(412) 488-8844 (p)
Counties – Allegheny, Armstrong, Beaver, Butler, Fayette, Indiana, Jefferson, Lawrence, Washington, Westmoreland
Mid-State Beverage
1805 East 3rd Street
Williamsport, PA 17701
(570) 322-7859 (p)
(570) 322-9823 (f)
Counties – Clinton, Tioga, Lycoming, Sullivan, Bradford, Union, Potter
Muller
2800 Grant Ave
Philadelphia, PA 19114
(215) 676-7575 (p)
(215) 698-0414 (f)
Counties – Philadelphia, Bucks, Montgomery, Delaware, Chester
Pletcher
330 West Aaron Drive
State College, PA 16805
(814) 235-0899 (p)
Counties – Bedford, Blair, Centre, Huntingdon, Juniata, Mifflin, Clearfield
Sacco
523-25 West 2nd Street
Berwick, PA 18603
(570) 752-5921 (p)
(570) 752-7335 (f)
Counties – Synder, Columbia, Northumberland, Lower Luzerne, Schuykill, Carbon
LT Verrastro
375 North 7th Ave
Scranton, PA 18503
(570) 343-2454 (p)
(570) 343-7418 (f)
Counties – Lackawanna, Luzerne, Pike, Wayne, Susquehanna, Monroe, Wyoming
W & L Sales Company
4050 Industrial Road
Harrisburg, PA 17110
(717) 441-7991 (p)
Counties – Cumberland, Perry, Dauphin
Virginia
Specialty Beverage
1400 Commerce Road
Richmond , VA 23224
(804) 233-9801 (p)
(804) 233-9803 (f)
Counties – all counties and municipalities in the state of Virginia
I saw that! And if you remember Kid's comments. Catch the buzz and done! LOL
In answer to another question maybe Shuttle? Most definitely. We've already posted that Lion is handling 8 major markets in the east. I would expect at least two other contracted co packers for Badass. One to handle Texas and the South. Another to handle the almost 50 mil people in California and the West.
All four corners will then be covered.
This might prove beneficial in assessing Rheingold:
http://www.brandadvisors.com/experience/Rheingold/Rheingold_Case_Brand_Revitalization.pdf
http://www.nytimes.com/2003/02/12/business/media-business-advertising-rheingold-hopes-rekindle-romance-between-beer-new.html
http://www.silive.com/columnists/index.ssf?/base/opinion/1249111814126370.xml&coll=1
It's important to note with "nostalgia" coming back into the fold once again, and especially from the likes of Schlitz being resurrected, that New Yorkers will undoubtedly find a passion for Rheingold, and the Miss Rheingold Contest yet again.
Don't forget something else very important.
Lion Brewery will also be handling the reintroduction of Rheingold for 2010.
Well Corp. It is pretty amazing. Most stocks out there anybody is scraping and digging to find a crumb, or some kind of edge to know when news is coming before anyone else. So, they can load up and be "in" before a stock takes off on news. But nooooooooooooooooooope. Not here.
Today we uncovered that very news in finding that Drinks has contracted Lion Brewing before ANYBODY else knows about it. Before a press release is issued where anybody paying attention would realize the magnitude of the news. Wanna know why so important?
These labels are approved RIGHT BEFORE the beer goes into production. These guys are ramped and ready to go and just waiting for the word that they have approval to package and go with approved print.
As it stands, MI has a populus of right at 10 million. NY alone picks up almost double that at 19.5 million. The total populus of these 8 additional states that Lion Brewing services is 74.2 million. When you factor in that MA Distribution crosses state lines in the Northeast, then as expected, these 8 states are like adding 8 additional Michigans to the mix at about 80 million people. Heck, NY, PA, and OH alone are 44 million people. These are staggering to grab early on in the process.
JPK already indicated that MI in year one is expected to do at or above $10 million and at or above $20 million in year two. Any other 5 Kid Rock states are estimated again to do $20 million in first year sales. So, for the sake of argument, any state could easily do $4 million on average. BUT! And a big BUT! The states of CA, NY, NJ, OH, PA, TX, for instance, are expected to do far beyond that in perhaps the $10-$20 million area per state for sales right off the bat. Heck, take the NY State Fair as I mentioned before at 1.2 million visitors. The beer could easily do $1 million in sales just from this singular event with 50000-60000 fans having 2-3 beers a piece. Some more, some less. That "event" is 200 miles away from 15 million people in NYC who haven't even had a drop of beer yet. Of course, a heavy Kid Rock state where country is king outside of the city.
So it's pretty easy to see where an average of $4 million per state and adding 8 more states would ordinarily be expected to add $32 million to sales can now add upwards of $50 million in sales on top of MI's $10-$20 million in sales.
Many "assumed" Drinks would be strapped by saturating MI first and then moving on to nationwide distribution afterwards. That is no longer the case with Lion on board. In fact, I see no reason why Drinks can't be sitting on an easy $70-$80 million in sales just from these 9 states going out 12-18 months tops. After all, I believe Lion can or is pushing out 750,000 bottles per day. That equates to 11.4 million cases a year, or roughly $180-$190 million in sales. So, we are easily accomodated here.
As far as these numbers go, they ARE actually a shade low for now. If anyone recalls, JPK said he expected at least a 2% market share in MI alone from the beer sales. That was expected to increase in the next 12 months. The remainder of the country should see numbers in the 1-2% market share range on average. Last year, those 9 states Drinks has manufacturing and distribution in consumed over 610,000,000 cases of beer. The numbers I used break down to right about 5 million cases sold in Badass for the 9 states.
That means we pick up 8/10ths of 1% market share overall when JPK already said 2-4% in MI alone. That means these numbers equate to roughly 1/2 of 1% market share, or, 1/2 of what they will be.
Nashville MusicFest was on Jun 14 and filmed for broadcast tonight. In Times Like These wasn't even finished yet and the beer hadn't been released. It's like a remember when? Funny, it was less than 3 months ago.
Lion Brewery currently services these states:
Kentucky
Massachusetts
New Jersey
New York
Ohio
Oklahoma
Pennsylvania
Virginia
Boston and Ore, it's a comin' quick!
That would answer why the 22 oz. Staggerbomb is gaining such preliminary popularity in MI. A 22 oz. Badass Beer with a shot or two of Red Stag mixed. No Yagerbomb here! But for sure a "Bomber" and true to Kid's two biggest loves.
I cannot. But for now I will go with the most obvious. So far, there has been a clear cut demand for the 22 oz. bottles moreso than the 12 oz bottles. But we all know people inherently buy beer in 6 pack 12 oz. bottles.
Still, I would almost bet that this facility has, or has access to, a crapload of 24 ounce bottles. Just perhaps, JPK got a much better deal to move the product through an available crapload of 24 oz. bottles instead of ramping up and waiting for the glass on 22's.
And we all know from Kid's mouth to our ears....
"We're gonna sell a crapload of beer."
Did you look closely at the NEW 24 ounce label?
It's already a done deal.
DKAM website has been switched over to Media Temple. The same folks doing the AmericanBadassBeer website. So we know it will be rockin and full of flash.
They are the second largest brewery in the state and largest in No. PA.
Their 2007 volume was 6 million cases.
http://www.beverageworld.com/content/view/33295/
So I guess now whoever the dunce was that was going on and on about MBC not being able to produce enough beer to do anything for DKAM or that they wouldn't have enough capacity or waiting until capacity was reached before outsourcing can now quietly cower to a corner. For the life of me, I cannot remember who that was nor do I care!
Correct. This is the first outsourcing brewery for the beer to handle 24 ounce bottles at first. I would expect 12 ounce bottles also.
I guess that part about Iron City Beer doing 20 million cases and Wilkes Barre and all that on the conference call was just a big old Kenny hint that it was done...like he said it was.
OK...TIME FOR THE STOCK TO FLY
Look closely at the applicant and you'll figure it out.
24 ounce bottles
https://www.ttbonline.gov/colasonline/viewColaDetails.do?action=publicFormDisplay&ttbid=09236001000240
http://lionbrewery.com/home/brewery/home/
Ahhhhhhhhhhhhh yes. I am reminded of one CKX Entertainment, or CKXE, and one Robert Sillerman, that in 2004 changed from Sports Marketing to CKX Entertainment:
Additionally, Mr. Sillerman said, "Artists and entertainers will realize tremendous benefits and opportunities through CKX. We intend to establish a new and different standard in the entertainment industry, whereby -- for the first time ever -- creators and artists will fairly share in the upside of their work."
http://www.elvis.com/news/full_story.asp?id=754
Now why in the world would this prove to be so relevant?
Well, up until 2002, CKX had around $5 million in sales. Then they had ZERO sales for two years and were losing 2 cents EPS. Declining sales over a FOUR year period. The stock was 10 cents and in the span of 3 months, went to $30 upon this announcement and the resulting upsurge in sales.
As for the stock? 94 million shares outstanding. As for the sales? They shot straight to $120 million. As for the profits? None. A loss of 35 cents EPS. Now, 4 years later? Sales of almost $300 million and earnings of 12 cents per share.
As for the exchange? OTC and then moved to Nasdaq
Sure, absolutely the stock came back down to $6. In the meantime, we will all decide where we sell DKAM at or near $30 because we know it will back down eventually. That will be OUR problem to resolve and not that of those that think otherwise.
Do you think we're going to sell some beer?
What would happen if Kid had an autograph signing party in each state the beer is introduced in???
This.....
Would you like a refill? :)
Here's a simple in a nutshell way to describe DKAM to all your friends and relatives. Just like should be done and is the case for every other company out there. Nobody gives a rat's arse about what was when you are talking about WHAT ISSSSSS. Just one problem. There IS NOT a single company out there can can come anywhere close to making this statement:
"I know of a company that is only being valued at just 1/3 to 1/2 of the sales being generated just in one state alone from one product, and likely to be now worth a paltry 1/100th of its value on nationwide sales. That is room for 10000% growth. The company owns the worldwide licensing and distribution rights to the product and it is perhaps the hottest product to be introduced in its sector in the past two decades. The stock currently is trading at all time lows. Would you be interested in knowing what it is."
I can tell you right now. If the first words out of their mouth are not, "Holy sh*t! You must be kidding me!" then move on. If they say something like, "Yeah but...." Then tell them to have a nice day and don't waste your breath. That has been the problem for too long. Too many people with too much time to ignore the current and future and focus on the past.
Didn't make up a thing. It all comes from the company, the distributors, the industry, the market, and analysts with decades of experience. It would say it is substantially more reliable than oh...let's say...somebody who doesn't own a share....flips a stock for half a penny....and perhaps even those who sit around with little more to do than say anybody else who does any DD is citing things that are improbable and embarassing.
The CMA Music Festival Airs Tonight On ABC
The CMA Music Festival filmed in downtown Nashville, TN on June 11th through 14 airs tonight at 8 p.m. ET on ABC. The special, held at the LP Field, will feature Kid Rock performing “Picture” with country music star Martina Mcbride as part of Country’s Night To Rock. The show will also showcase highlights from the festival. Don’t miss it!
Oh contrare yea of little faith or the capacity thereof to understand or comprehend.
Michigan alone is a $20 -$30 mil sales state for Badass. Everyone knows that when a company sees its sales go from $2 mil to $20 - $30 mil, or well over 1000% growth the stock will take off and fly.
When the bottles roll in the next 10 days, they will be on the shelves by the 15th. Distributor ramps and orders will quickly send those dist in MI from 15000 cases a month to 50000 cases a month because of the bottles. Not because of pie in the sky but because of the natural order of the beer biz. That's $10 mil in initial beer sales that easily doubles by year two. That is only 247000 Badass beer drinkers when 80000 already proved they are Badass drinkers. Easily triple that considering those that couldn't afford to see him but drink beer were not at his concerts. The rest couldn't get in because the shows were sold out or because of distance and expense.
Kid's fans were queried at his concert in MN and NY both on a random sampling. Only 2 out of 10 even know he has a beer. Not because of advertising but because of availability. On asked if they would buy his beer when available, 9 out of 10 said they would. On asked if it was good would they buy more of it and 8 out of 10 said absolutely if it was Kid's beer.
Take any 5 Kid Rock states and those 5 states WILL do a minimum of $20 million in sales to start. Any state only needs 18000 beer drinkers to latch onto Badass. That translates into 18 people at a local pub or grabbing a case at their local convenient store.
Now you have a brand producing an easy $200 million in sales where the company was only producing $2 million in sales, or a 10000% increase in sales. Stocks that see a 10000% increase in sales do go higher, and alot higher because quite frankly it doesn't happen very often and when it does, it's a rocket shot to the upside.
It's quite simple from there, and actually well beforehand, what to do. Ask AIG what they did. They took $180 BILLION from the taxpayers to stay afloat. Money they can NEVER recoup....ever. They REVERSED the stock and since it has been soaring. They bet on the derivatives market and their legalized gambling that led to most other's demise kept them here at all of our expense.
Reverse DKAM at 1 for 10 from here. But by then the stock will be $1 or $2 or $3. Now suddenly those "others" will be forced to shut the h*ll up for good. An OS of 100 mil suddenly becomes 10 mil. $200 mil in sales returns a minimum $60 mil gross profit on an average 30% gross margin. Should DKAM return a MINIMUM, but it will be more, net profit of $20 mil, then the earnings per share will be $2.00 MINIMUM per share. Stocks with a 10000% rate of growth don't support a paltry P/E of 20 or 30. They usually are well over 100. Even HANS, the Granddaddy of them all was averaging between 70-100 P/E on its run.
But for the sake of argument, we'll not get too exuberant and go with a minimum 30 P/E and that takes the stock to $60 on a $2.00 EPS MINIMUM. Perhaps $140 on a 70 PE.
Not so big a reverse? Doesn't matter. 1 for 5 returns the same thing and puts the OS where HANS was. At this point, there still won't be anybody to say a word about the OS and there won't be any more issuing shares. 20 mil OS returns a MINIMUM of $1.00 a share earnings. A $10 share price that is trading well below THE INDUSTRY STANDARD OF A MINIMUM $30 a share 30 PE. But of course, at a growth rate that makes HANS appear like a dwarf, you could easily see $50-$80 a share.
These aren't made up numbers. This is reality. This isn't double talk or pumping. It is what the market does. This is what analysts do. And by then it will have drowned out anybody who has a comment to the contrary...especially those that say never or "What about me? I don't own a share but you simply must listen to me tell everyone why this will never happen." Pretty laughable when it just did.