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Well there you go. Like I said 1.2 million shares separates this stock from 1.20. Seems we know where they are now.
Way too many people working way too hard on forums and offshore to make sure this stock, and perhaps this company go nowhere.
Once Kenny sees this, he'll spend any amount of money to find them and have them put out of commission...permanently!
He'll go buy Labatt AND Wild Turkey just to see who fires up the printing press first.
Strange how they just couldn't allow this stock to go up on Trump without breaking the law and couldn't do the PIPE back then without breaking the law.
Since then, every day they just do it as though it is their birth right. Now it will be their death wish.
This has to be said because it is more than obvious. The transcript shows that Kenny took an inordinate amount of time to answer those two questions, particularly the Labatt question. He clued us in to "investing partners" as venture capital for acquisitions where previously we have had none. That means we have graduated from private placement to growing the company.
But more than that, for these two deals to be out there, Kenny had to know what the price tags are. Even though there are no published price tags. These are "like" the deals they would want to participate in. Between the two they total $300 mil a year in revenues.
Therefore, it is only a matter of time before he does pick up any number of companies totaling this same price range.
Like we said, his answer to both questions could and should have been "No" if he wasn't remotely involved.
Even if we don't get either deal, the stock could easily take off when the market finds out they were able to bid either or both deals. A hedge or two will quickly figure out as we have that some very large deals are coming our way.
MERI tax seller gone for today. With a little bit of forethought and proactive adding, we could havve .20 very easily on the bid. That would be a chart buy signal.
Here's something you thought you'd never see!
Front page of Yahoo Finance:
Community Sentiment
Top stocks creating buzz on Yahoo! Finance message boards
Bullish
Minefinders Corp. Ltd. (MFN)
Xcel Energy Inc. (XEL)
Drinks Americas Holdings, Ltd. (DKAM.OB)
Transcript of Labatt and Wild Turkey purchase Q&A:
Caller: Hi Pat. I would like to say first of all congratulations on surviving this quarter while having to deal with the same credit limitations that the largest companies in the country and the world have had to deal with. And I appreciate mightily how you have set Drinks up to be lean and mean towards profitability in the coming growth in the next couple of quarters and beyond.
I have two questions. This is probably one of the greatest periods of consolidation we've ever seen in the beverage industry. Many opportunities out there for alot of different reasons of companies divesting and consolidating. In the wake of the InBev/Anheuser Busch merger one of the stipulations by the Dept. of Justice for that merger to go through was that InBev divest of the American portion of Labatts brewery. I heard from some sources that those proceedings are moving along towards a fairly swift conclusion. Is there any chance that Drinks might be one of the bidders in the mix there?
PK: Drinks wouldn't comment if it could or if it...we're not in a position to comment on that question whether we would be bidders or not bidders. We wouldn't offer comment. What I would generally say is that Drinks is in a position to be an acquirer for opportunities "generally like that" and in speculation in the press there's everything from parts of the major global companies up for sale in this economic environment through to something you just reviewed. So, Drinks obviously we have the management capacity; we have the ability to source capital to do transactions beyond well in advance of the size of the current company; and certainly has the management skill base with Jeff Daub, Fred Schulman, and Jason Lazo to "agressively" size up and move against any opportunities that do come on the market. We wouldn't comment on this particular question but we would point our shareholders to say that we believe we're positioned for growth both through internal brand development; growth of the brands we do have and acquisition both small and large. Olifant drew something that would be as big as something like what we're talking about. Drinks has the capacity to do that. We think that's a large part of the value. What was the other question?
Caller: Pat just one more quickie. Not sure whether you can comment or not. Another franchise that I have found out is available right now potentially would look awfully attractive in your product mix is Wild Turkey. Could you; would that be something you might be interested in?
PK: "Yeah"; I mean we consider The Turkey a qualified icon but you know again our formal position has to be no comment and any brands like that would ultimately be attractive to Drinks and within our capacity to move forward on given our access to equity with our partners; our investing partners. But, our official position obviously is no comment.
Now my friends. We have already highlighted that if PK's official position is "No Comment", then why all the talk about how these acquisitions could be done? Why did he immediately say "Yeah" to the Wild Turkey deal? That is the way you would respond to a situation you were familiar with. How would PK know that The Turkey was an attractive brand to Drinks without know ing the price tag already? And the biggest of all....
"given access to equity with our partners; our investing partners."
Since when have we had investing partners??
This Q&A was conducted just like a job interview and PK had some ears listening from big boy land. He wanted folks to know he has big deals without saying it. He wanted his Damiama contact from Mexico to call in as it will be a natural transition to blend Mesa in San Diego as Labatts leading distributor to our business in SA. He wanted that global touch on the call and the global reach of this company.
It seems we have company. Nice to see!
http://investorshub.advfn.com/boards/most_read.aspx
Wow! What a difference. Last week when passing through NY it was $17.99 for a 30 pack of Blue Light with a $4.00 holiday rebate coupon.
Here, I'll make it easy for you Ore. Many here would do well to pay attention to how the big boys think in the real world.
http://www.moneyweek.com/investment-advice/how-to-invest/how-to-value-rock-solid-world-beating-stocks-03793.aspx
Exactly. Drinks will not issue a single share if they buy Labatts OR Wild Turkey. They have to utilize investing partners and these are all cash deals. The only way Drinks stays in the mix to is to pay these investors through warrants at a premium to the current price that PK feels would be attainable. So, in either case, both purchases would be completely non dilutive as both companies are earning great profit with awesome EBITDA numbers and powerful cash flow.
By the way. Find the article where beer transacts at 30 times cash flow. Labatt is $30 mil in cash flow. That makes it worth $900 mil just on that basis alone.
Kenny adds Rock and his line of beers and Rheingold. Suddenly cash flow goes over $40 mil; or $1.2 billion.
Dern, there is that "B" word again.
Listen closely and you'll shall hear? The heck with Santa and 8 tiny reindeer. I hear a freight train. All aboard!!!!!!!!!!!
Caller: Hi Pat. I would like to say first of all congratulations on surviving this quarter while having to deal with the same credit limitations that the largest companies in the country and the world have had to deal with. And I appreciate mightily how you have set Drinks up to be lean and mean towards profitability in the coming growth in the next couple of quarters and beyond.
I have two questions. This is probably one of the greatest periods of consolidation we've ever seen in the beverage industry. Many opportunities out there for alot of different reasons of companies divesting and consolidating. In the wake of the InBev/Anheuser Busch merger one of the stipulations by the Dept. of Justice for that merger to go through was that InBev divest of the American portion of Labatts brewery. I heard from some sources that those proceedings are moving along towards a fairly swift conclusion. Is there any chance that Drinks might be one of the bidders in the mix there?
PK: Drinks wouldn't comment if it could or if it...we're not in a position to comment on that question whether we would be bidders or not bidders. We wouldn't offer comment. What I would generally say is that Drinks is in a position to be an acquirer for opportunities "generally like that" and in speculation in the press there's everything from parts of the major global companies up for sale in this economic environment through to something you just reviewed. So, Drinks obviously we have the management capacity; we have the ability to source capital to do transactions beyond well in advance of the size of the current company; and certainly has the management skill base with Jeff Daub, Fred Schulman, and Jason Lazo to "agressively" size up and move against any opportunities that do come on the market. We wouldn't comment on this particular question but we would point our shareholders to say that we believe we're positioned for growth both through internal brand development; growth of the brands we do have and acquisition both small and large. Olifant drew something that would be as big as something like what we're talking about. Drinks has the capacity to do that. We think that's a large part of the value. What was the other question?
Caller: Pat just one more quickie. Not sure whether you can comment or not. Another franchise that I have found out is available right now potentially would look awfully attractive in your product mix is Wild Turkey. Could you; would that be something you might be interested in?
PK: "Yeah"; I mean we consider The Turkey a qualified icon but you know again our formal position has to be no comment and any brands like that would ultimately be attractive to Drinks and within our capacity to move forward on given our access to equity with our partners; our investing partners. But, our official position obviously is no comment.
Now my friends. We have already highlighted that if PK's official position is "No Comment", then why all the talk about how these acquisitions could be done? Why did he immediately say "Yeah" to the Wild Turkey deal? That is the way you would respond to a situation you were familiar with. How would PK know that The Turkey was an attractive brand to Drinks without know ing the price tag already? And the biggest of all....
"given access to equity with our partners; our investing partners."
Since when have we had investing partners??
This Q&A was conducted just like a job interview and PK had some ears listening from big boy land. He wanted folks to know he has big deals without saying it. He wanted his Damiama contact from Mexico to call in as it will be a natural transition to blend Mesa in San Diego as Labatts leading distributor to our business in SA. He wanted that global touch on the call and the global reach of this company.
Rudolph just showed up and the light is shining brightly!
Labatt USA imports and distributes beer in America. The company offers brands, such as Labatt Blue, Labatt Blue Light, Rolling Rock, Belle Vue, Bohemia, Boddington's, Haake-Beck, Löwenbräu, Rolling Rock, Rock Green Light, and St.Pauli Girl. In addition, it offers global brands, such as Beck’s, Stella Artois, Hoegaarden, Leffe, Bass, and Staropramen. The company also supplies imported draught beer to bars and restaurants. Labatt USA was formerly known as InBev USA and changed its name in January 2007. The company was founded in 2004 by the merger between Labatt USA Inc. and Beck’s North America. The company is headquartered in Buffalo, New York. Labatt USA operates as a subsidiary of InBev SA.
It will be interesting to see if this license ends up falling specifically to a Labatt only product for a three year license. AB bought Rolling Rock from InBev in 2006 and now InBev owns it again. Rolling Rock alone had sales of $132 mil in 2001.
Would be rather tough to take on the license to distribute ONLY Labatt products through the divestiture when they are also getting the Corporate Headquarters in Buffalo that is responsible for distributing all these other brands.
I guess who ever gets it is the boss over all these people who are still selling for InBev?
Over a dollar this week? Only four and a half trading days. Ya know what? I won't say whether it will or not because at this point I would prefer not to give anyone any clues on what is coming. Everyone just slams anything positive we have to say. I'm going to join the group that can get such good inside info to know what Drinks is up to like bidding Labatts or Wild Turkey. These are also the same guys who will know exactly when it is going to take off.
You are correct Boston and you win the prize! A deal like this one demands an up front cash payment. That means in order for it to happen, Kenny has to go get a hedge fund or two to lay out the venture capital. Then they will issue warrants of let's say 100 mil at $1.00. Then those one or two hedges start buying up stock on the open market and run it up to $5 or $10 or more to catch up to the street value of the company. Then they will take their converted warrants and cash those. Of course, then comes the Nasdaq listing and all sorts of beverage analysts in love with the stock. Let's say they get Labatt. They booked $25 mil in profit last year. Should we go to 185 mil outstanding, and the other business sales, we'll give them EPS of 15 cents. HANS had a PE avg of around 60-70 on its run. We'll give DKAM a 40 to be safe and that is $6.00. They will hold their core position for three years because as a hedge Kenny can tell them exactly who is making buyout offers and when. And then off we go again.
Heathcliff? I would suggest loading and letting others know to load. Stock is within a fraction of all time lows. About 350K gets it to $.40. 750K takes it to $.70; 1.2 mil to $1.20 is all it would take. Been no resistance for many months. Coiled spring. There is just too much going on and with them sitting on a record quarter now with their first ever profit that alone will send it to new highs(52wh). Plus the sheer implication of a $200 mil a year deal for Labatt or $100 mil a year deal for Wild Turkey or an announcement at any time for a whopper deal with 50 Cent just oozes that a couple of hedges will come in and run it up to meet its intrinsic value. Stock is sitting at .7 of 2009 sales when it has always maintained a P/S ratio of 3-5.
It's gonna happen. It's just a question of whether people are in it and smiling or chasing it and hoping.
Hey?? Who sang Blue Christmas?? Rather ironic huh?
With Labatt you pick up the following:
With an unmatched portfolio of high-quality beers, Labatt USA is one of America’s leading specialty beer companies. While much of the American domestic beer market has seen little or no growth in recent years, Labatt USA has enjoyed double-digit sales growth every year for the past 15 years.
Labatt Blue
Labatt Blue Light
Labatt Genuine Draft (world's first draft beer in a bottle)
Labatt Ice (world's first Ice Brewed beer)
Labatt Boomerang
Labatt Dry
Labatt Extra Dry
Labatt Sterling
Labatt Crystal
Labatt 50 (Anyboy thinking what I'm thinking?) :)
Labatt Genuine Lager
Labatt Genuine Honey Lager
Labatt Nordic
Labatt Wildcat
Labatt Max Ice
Labatt USA brands include Rolling Rock, one of the fastest-growing domestic specialty beers in the United States. With its unique painted label and longneck green bottle, Rolling Rock generates U.S. sales of more than 1 million barrels a year.
Labatt brands such as Labatt Blue, Labatt Blue Light, Labatt Ice, Labatt Canadian Ale and Kokanee are also popular in the U.S. Labatt Blue is now the number one Canadian beer in the United States and the number three imported beer, behind only Corona and Heineken.
Other Labatt USA offerings include Löwenbräu, which Labatt recently restored to its original Münich formula; Boddingtons Pub Ale Draught from England; and several of the world’s leading Belgian beers including Stella Artois, Hoegaarden, Leffe and Belle-Vue.
Imported brands from Mexico are also distributed through Labatt USA, including Tecate, which recently became the number four import into the U.S. The company’s other popular Mexican brands include Dos Equis Amber and Dos Equis Special Lager, Sol, Carta Blanca and Bohemia.
It is a very simple order to take on the business of distribution and outsource the contract for manufacturing on a perpetual license.
Correct. The terms of the deal require that the company headquarters remain in Buffalo with its 55 employees. That was the plea from Sen. Schumer as well. Odd that the former headquarters before Buffalo was just around the corner from PK until 2007.
Wild Turkey needs to be sold and the wording is just like we've been hearing.
http://chuckcowdery.blogspot.com/2008/12/wild-turkey-for-sale.html
And this tells you it is OK to put pieces of a puzzle together:
http://blog.maltadvocate.com/2008/12/14/pernod-selling-wild-turkey/
Phils I'm going with what I originally saw on an article for Labatts that seems to have been yanked. Yes, the article did say 50% of Labatt USA for the overall Labatt sales base instead of 15%.
But no matter. Here's the deal. More bogus info out there. A couple sites claiming Labatt sales for 2007 to be $291 million. But that is impossible. Labatt Canada produced and sold 9.8 million hectoliters in 2007, or 115 million cases of beer. 1.7 hectoliters went to Labatt USA. That means they sold them to Labatt USA for distribution. 115 mil cases sold for $291 mil? Where in the world can a beer company sell a case of beer for less than $3 per case? NO WHERE!!!!!!!!!!!
Labatt USA sold 19.95 mil cases of beer in 2007. That is the conversion rate on 1.7 mil hectoliters. You decide since a lot of that beer went out in kegs and packaged in other ways. I'm very inclined to believe that this beer would leave Kenny's hand at $10 a case for $200 mil a year in sales.
OK Phils? We went through this yesterday. No licensee was selected on Nov. 14. ABIB satisfied the DOJ's request to sell Labatt USA to a third party licensee. That is all. Otherwise, why would Schumer be writing those three companies 10 days later? Why would the licensee not be named in press all over the world? How could they already have a licensee when they were informed the very same day by the DOJ that they needed to sell Labatt USA?
Shhhhh! Don't tell anybody!
In 1995, InBev paid $2.7 billion for Labatt and it was doing less than $300 mil a year on just the beer sales portion of the business. Then, the company was into some communications owning some TV and radio stations as well as majority owner in the Toronto Blue Jays and the Skydome. Now they are primarily beer and the entire company is doing $400 million a year in sales. Labatt USA comprises exactly half of the entire company's sales, or $200 million a year.
13 years later and 40% higher sales? Wow! Whoever picks up this license is golden. It is perpetual and the brewery to make the beer must be decided after three years. Still, that license for a company that 13 years ago was valued at $1 billion all by itself because none of those other items Labatt was in to was in the US. Remember Kenny said beer transacts at $100 to $500/case depending on if there is a brewery involved? In 2007, Labatt USA sold 1.7 million hectoliters OR 19.95 million cases of Labatt USA products. Even at a bare minimum of $100 per case, that values Labatt USA at $1.95 billion. Wouldn't you think it would be worth buying for a couple hundred million if it is immediately valued for at least a $billion if not $2 billion on the very low end? Like we said, fire sale prices now. Three years from now, 10 times the money.
1995 Buyout of Labatt:
http://www.thecanadianencyclopedia.com/index.cfm?PgNm=TCE&Params=M1ARTM0010436
Current DOJ Order:
http://www.zimbio.com/Anheuser+Busch+Companies+Company+Info/articles/102/Inbev+Anheuser+Busch+Deal+Approved+DOJ
More on the inner workings of the ABIB Labatt Divestiture:
http://www.tradingmarkets.com/.site/news/TOP%20STORY/2032995/
OK, PKG and everybody? Let's try this on for size.
PKG says he bases the future on the past.
This economy was sailing along just fine. Suddenly it falls flat on its face. What does that say about the past? Oil saw its biggest rise in history? What does it say about the past? Oil hits $147 in July and falls off a cliff with the largest % drop in history over 5 months to $36. What does that say about the past? Companies are reporting $billions upon $billions in losses that they WILL NEVER BE ABLE TO MOVE OFF THEIR BALANCE SHEETS IN OUR LIFETIME. Yet they are valued and hundreds of multiples to Drinks even at this stage. What does that say about the past?
Drinks wasn't even a company four years ago and now it is. What does that say about the past?
Many people contended Drinks would be out of business by now yet they are not. What does that say about the past?
Drinks has seen its loss per share move from -16 cents to -5 cents. What does that say about the past?
Drinks came to market with Swiss Tea, Aguila, Cohete, Newmans, and WNOWR. They introduce Trump Vodka as the single largest vodka introduction on record. What does that say about the past?
Trump Grape Vodka on the market less than seven months and now the World's Best tasting Flavored Vodka. A year ago, they had no flavored vodkas. What does that say about the past?
A year ago Trump Vodka was featured on the finale of The Apprentice. Now they will be in EVERY episode of the upcoming season. What does that say about the past?
A year ago, the company had no 15 year CONTRACTS in Israel and Germany assuring Trump is a 100,000 case minimum seller for the next 15 years. What does that say about the past?
A year ago the company had no agreement with Violator Management that houses 50 Cent as their lead endorsement horse and now they do. What does that say about the past?
Four years ago Drinks had no agreement with Platinum Rye that pairs the likes of mega stars to mega endoresement deals and will lead to a continuation of a pipeline of artists and stars for Drinks for many years. What does that say about the past?
A year ago Drinks had no agreement with DBI in the UK for distribution in Europe. What does that say about the past?
Three months ago Drinks did not own Olifant Vodka. What does that say about the past?
A year ago Drinks did not have Topless Sparkling Vodka and Purple Label. What does that say about the past?
Three months ago Drinks did not own the perpetual US distribution rights to Leyrat Cognac nor did it OWN its own proprietary cognac called Glory. What does that say about the past?
A year ago Drinks did not have a deal with Kid Rock to develop his own beer company with multiple beers called American Bad Ass Beer Company. What does that say about the past?
A year ago Drinks did not have Anheuser Busch calling to acquire Rheingold Beer. What does that say about the past?
A year ago Drinks did not contemplate raising the Authorized shares to 500 mil from 100 mil so they would be prime for a major acquisition at any time. What does that say about the past?
A year ago Drinks did not have venture capital available to make major acquisitions. What does that say about the past?
Three months ago the contemplation of owning Labatt USA and Wild Turkey bringing in $300+ million a year in revenues never crossed anyone's mind. What does that say about the past?
Three months ago this company never even mentioned 300%+ growth and becoming a billion dollar company. What does that say about the past?
THIS IS MY LIST, NOW SHOW EVERYONE YOUR LIST AGAIN AND TELL US EXACTLY WHY THE PAST IS SUCH A PERFECT INDICATOR OF WHERE THIS COMPANY IS GOING.
Thank you! Now at least somebody can see the forest through the trees with me. Nothing is for certain but just like Kid and Violator, when the coincidences keep piling up it is hard to have any other outcome.
The awesome thing is if it happens, it will happen quickly. I am amazed that the caller said "a rumor going around" or "a growing rumor" and he was very specific about the exact details of the deal.
This board is and shall be a wealth of information beyond any other out there and for that rumor to have escaped us makes me entirely convinced it is coming from within the acquisition trail at some point in the food chain.
I've been able to ascertain that this deal takes on several stages. There is the DOJ decision on 11/14. There is a bid acceptance phase that given the haste to get this done by 12/31 might last a month at most. Then the potential acquirers are narrowed down and the best offers are given a due diligence period to investigate all aspects of Labatt. Then if all goes well, they shake hands and exchange some money. Then they go back to the DOJ and make sure there are no further anti trust issues. The final step is to close the deal and off you go.
It truly would change the face of Drinks forever. Just the sheer notion that it might be happening is excitement enough and will allow alot of people to start thinking outside the box with PK.
Oh! I'm gonna like this company!
Listen to this if you don't listen to anything else I say.
Somebody called in today and mentioned a company for most that Drinks could be, or is rumored to be acquiring. People, that just doesn't happen. He could have called in on the last call and said we were rumored to buy Svedka or Rain on this Pernod deal. Nope, did not happen. But today of all days, somebody calls in when ABIB is 10 days from having to have a suitor for Labatt USA selected to appease the DOJ.
Now, follow along with me. Patrick already told us that Anheuser Busch wanted to buy the Rheingold Brand and reintroduce it with the Rheingold Girls on a nationwide basis. They obviously have an open communication line with Drinks, and with Patrick Kenny. That negotiation process alone clearly proves the largest beer company in the world has something YOU have and they want. It clearly shows they recognize you as a player in their dominant space. That process alone to buy Rheingold makes the stock worth at least 50 cents that AB wants to do business with DKAM in some fashion.
Now, the sheer fact that Kenny did not just outright deny the Labatt rumor, just like the Kid Rock rumor tells me something is up. So, let's assume that it is for now. Once the DOJ determined this "divestiture" needed to take place within InBev, it was written about in the paper that the largest beverage deal in world history was contingent on the sale of this brand Labatt USA. It would also be for sale at fire sale prices the articles said to insure a deal would get done immediately. Now, given the fact the door was already opened to doing a deal with Anheuser Busch already, and it was stopped when the InBev acquisition of AB came about, that same door was still open to doing business with DKAM. InBev is in the process of selecting WHO THEY WANT TO BUY THE BRAND. This would not be an open process of accepting resumes persay. They would should and could contact the companies they want to see take over their brand who they felt would do it the most justice. You have to remember, ABIB DOES NOT WANT TO DO THIS AND WILL WANT TO BUY LABATT BACK IN THREE YEARS. So, you have to think anyone who is putting in bids was contacted by either AB or InBev to see if they are interested.
This says that the largest beer company in the world and now the second largest beverage company in the world may just have contacted Kenny to have him consider putting in a bid. That alone says these two major conglomerates recognize Kenny and Drinks as a player in their space. That alone says the company is valued at least at a dollar or more because at the same time they are considered, they are always an acquisition target as well. Now why do this? Because DKAM is a brand incubator. They are not entrenched in their huge core brands like these other beer specific companies are. They have no competitive products coming up against Labatt. They are the ONLY company going through a growth phase presently. The only one that has iconic representation. They are more than a logical candidate to take over this product.
To be rumored to have put in a bid or being a part of the final selection process says that they would have to have secured the financing to pull it off. Look at the details of the Labatt sale that is out there. It is like these others out there, an all cash deal. So, no financing. All cash. Did you notice today how Kenny virtually read verbatim his exact words from the Shareholder Letter about divesting core brands in this economy and "already proven access to venture capital." it is literally like a script. Like he is bound to what he can say. The same way he would be bound if he was in contractual negotiations.
But beyond that, a cash deal like this says you have to do some quick money things and do them quickly. Just to submit a bid in this economic environment where it was written by several that finding a buyer might be difficult because "cash is not readily available." If that was done to substantiate the caller's "rumor" that a bid was put in, it clearly shows our CEO went out from Nov. 14 until those bids were due and raised the CASH to make this sort of thing happen. That is testament to the company Drinks, the CEO, the team, and the company they are building. That alone if even a bid were accepted under these conditions, says DKAM stock is worth at least $2.00 a share that they can raise capital that quickly for major acquisitions.
Let's say it all comes down the pike and they do get the deal to buy Labatt USA. They would get more than $200 million a year in sales. From what I'm reading, InBev is selling the license for three years, so DKAM would not be producing beer, Labatt would still be making it during that time. Then they have to have a brewery selected. They pick up more than $30 million in cash flow. The sales and cash flow alone INSTANTLY overnight transforms the company into a midsized beverage company. It meets all the standards for Nasdaq or Amex listing barring the price. You have every beverage analyst out there wanting shares to initiate coverage. You have EXACTLY another FRPT or CKXE play where the company moves from OTC to Nasdaq or better. Straight over $5.00 they go with it. You pick up what I'm assuming is 400-600 distribution outlets that become your instant distribution outlets for Kid Rock beer and Rheingold, as well as Drinks' other products. That then gets expanded dramatically as Kid Rock beer goes nationwide. Then the leverage you create immediately allows you to buy the likes of a Wild Turkey also for sale. We'll keep the details of that one to ourselves for awhile. It certainly lends a lot of credibility to an authorized raise of 100 mil to 500 mil shares for warrants on the back end.
Do you still want to focus on last quarter's sales?
Oh, I might have forgot to mention one little thing.
Remember me talking about the trademarks? How one of them was worth $30 all by itself?
Think all you want about Kid Rock beer and the trademarks of Rock Red, White, and Blue.
Try this on for size.
Kenny filed the name "Blue" as a trademark and it is still Live. The only other company out there that can oppose it is Labatt USA. It is still Live as I said with no opposition.
You know, Labatt Blue and Blue Light?
Have A Merry Christmas!
It all makes perfect sense now. If you're going to introduce the American Bad Ass beer Company and a LINE of beers under Kid Rock, you would want to have an established nationwide distribution that Labatt USA has. The largest selling regional beer in the US. Most have not had it. It is a superior and great quality beer. Go to YouTube and watch the ad videos. Go to Google and pull it up from the Nov. 14 DOJ decisions on "divesting the brand from its core portfolio" so as not to create price fixing in the Buffalo, Rochester, and Syracuse areas; which represents 60% of the brands sales from these three metropolitan areas. DKAM can fold Kid in under this brand, grow the brand, and it makes a logical acquisition within three years without ever producing a drop of beer.
Plus, if it matters, it is the Official Beer of the Buffalo Sabres and the Buffalo Bills as of this year. If they ever start winning, sales double! LOL
Dream a little dream with me. In less than three months we could be sitting on:
**$200 mil a year in sales of Labatt USA with $30+ mil in cash flow and the main offices in Buffalo with 55 people all focused on growing Drinks in addition to the Labatt portfolio
**1 mil cases a year of Wild Turkey which is in excess of $100 mil a year in sales and a foothold at the Kentucky Mfg facility
**Violator/50 Cent Leyrat and Leyrat Glory and Guilty Pleasures program in full swing
**Topless Sparkling Vodka with Dre and Universal in full swing
**Trump Vodkas celebrating the firing of every episode of The Apprentice this coming season with a toast to Trump Vodka
**The introduction of Kid Rock's American Bad Ass Beer Company and his LINE of beers.
**The continuation of a new crop of icon representations coming from the star of the stars Ryan Schinman at Platinum Rye.
**The continuation of 10000 cases shipped per month to Israel. The continuation of 4500 cases per month shipped to Germany. The announcement of India and China as subsidiaries to DKAM and further five digit monthly case shipments.
**The full subsdiary integration of Drinks Brands Intl into a European wide ditribution network stemming from the largest distribution base thus far in the UK.
**Celebrating first quarter of profit
Pick one and do all you can to eliminate it. Go ahead. Tell me why you know for a fact it will not happen. C'mon, I know you can do it. Then when you're done, tell me which part of this represents a .17 price?? Pick one part and then tell me what the rest represents.
I'll give a little hint. $350 mil times 10.
Yep, he would have said no if he wasn't the least bit interested.
Last word I had from news clippings and beverage insiders was it was Miller Coors, Constellation, Genesee(High Falls), City Brewing, Heineken, Diageo and one other company you may or may not have heard of.
Needs to be done by 12/31.
OMG!!! It's all going out there now! Wild Turkey is for sale and could be bought with $400 mil in warrants.
1000000 a year in cases sold in the fall of 2007 and now doing $100 million a year. The Kentucky facility just doubled its manufacturing capability. The number one selling whiskey in South Africa followed by Australia and Japan.
Ask me how I know this people?
$200 mil a year in sales from Labatt and another $100 mil a year from Wild Turkey.
Two established brands folks! It's already there AND for sale.
I believe PK off to buy a house in Buffalo!
Check it out, you'll know what I mean.
Read on about Platinum Rye gang. Ryan Schinman is the man and he is cooking ALL the deals for Patrick.
http://www.parkplacemag.com/Features/invisibleman.htm
Whoops! Now that would be some Coke in Coca Cola huh?
Enjoy your Christmas boyz! $200 mil in revenues and $30 mil in cash flow.
If he wasn't in on the Labatts deal with ABIB, he would have said "NO!"
MONTHLY 10000 CASE ORDERS TO ISRAEL!!!!!!!!!!!!
Also, on every episode of The Apprentice to celebrate the end of each episode.
Halcyon? Kenny already told you what this quarter is going to be. Read the letter and put the numbers together! These are not projections. They are what he has done or is doing and will have done by quarter end.
While Patrick did not give exact numbers, he actually did tell us exactly where the company stands in the current quarter on sales.
10000 cases of Trump shipped to Israel = $1,000,000
10000 cases of add’l Trump being produced for ship this quarter to Israel = $1,000,000
1000 cases Leyrat advance orders prepaid and shipped = $300,000
2400 cases Trump prepaid and shipped to Germany= $240,000
12000 cases of Olifant shipped to Israel prepaid by end of year upon Olifant Closing = $600,000
4800 cases of Nov. & Dec. Olifant accretive to Drinks upon closing = $240,000
Current domestic sales mix for the quarter = $500,000
Additional two “Grape Only” Trump containers shipped from Monday PR = $200,000
Total sales for Q3 at 7 week mark: $4,080,000
This represents the best quarter in the company’s history and also represents the company’s FIRST profitable quarter.
Let’s see how it breaks out:
Gross Sales: $4,080,000
CGS: $2,348,000
Net Sales: $1,732,000
SG&A: $1,280,000
Interest/Payments(Olifant): $420,000
Net Profit: $32,000
You can sit there and whine all you want that it isn’t some astronomical number. However, this company is going profitable in 4 years where it took Hansens 7 years to post a profit.
This company went profitable WITHOUT introducing a single new product aside from Trump. They did it through global expansion.
But the most important thing of all is the company has now proven that their Israel and Germany contracts combined represent a break even number every quarter for the next 15 years. Everything else the company does is creating profit for the company.
And…
Trump Vodka is now a sustained 100000 case a year brand for the next 15 years because of those contracts.
Remember what the man from Coke said? Coke couldn’t introduce a brand for less than $150 million?
Enjoy the ride downhill guys. It is only going to get better from here.
Lowest loss in company history. As if it matters.
* Selling and marketing costs were reduced by 60% and are beginning to reach "normalized" per case selling and marketing spending. Selling and marketing expenses aggregated $0.4 million for the second quarter fiscal 2009 compared to $1.0 million second quarter fiscal 2008, a decrease of 60 percent. Marketing spend will continue to decrease as our Icon partners deliver the majority of our marketing support for introductions of new products.
While everyone screams horrible and jump ship and all the crap of the past 3 or 6 months, might I once again remind everyone he told you two days ago it was ugly as it has been for everyone. The Shareholder Letter takes precedence as it is current and the best indicator of what this company is doing today and for the next year at the least.
We can sit here again for the next three months and dwell on the the potholes we hit looking in the rearview mirror. I for one, along with a few hundred NEW shareholders will be enjoying the worldwide countryside and especially our icons going full force. Both of these things we did not have 3 and 6 months ago.
Nothing would make for a merrier Christmas than to see these people sell once and for all only to see their shares get taken up by somebody else 100 fold.
And net sales for this current quarter are at $4 million and increasing. What is your point?
And there is your SGA at 1.08 mil. Exactly what I told you would happen and half of what it was last year. So, the loss per share is less and cash is up.
No Adis. Olifant is it's own special blend and it has proven out to be sustainable. However, it would not surprise me to put an iconic tag on it. Kenny's goal right now is to move annual sales up 50%-200% just in global distribution. And that is happening as Israel already stepped up their initial ANNUAL order by 25%. Obviously, they want more of the "affordable" stuff in this economic environment also.
Topless is it's own blend. It will be as Kenny said, unique, flavorful, and something the young affluent crowd can take and make their own. Of course, with an iconic backing to sustain the demographic. That is why the CEO of O2 jumped up the instant it was announced screaming that what Kenny was doing would be an inferior product to their "patented" product. These guys actually thought they could hold the world back from the sparkling category by saying Kenny was stepping on their patents. Wake up man! You can patent a process BUT YOU CAN'T PATENT BUBBLES! So they found a way to infuse the vodka with the natural carbonation that will allow us to zoom right by O2. And as Kenny said, awfully hard to listen to somebody selling 5000 cases a year that what they have is some thing nobody else dare go near. If that were the case, there would be no Pepsi, or 5000 other sodas on the shelf.