Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Caution, you REALLY got me playing this now. I mean, think about it. Conglomerates worldwide are spinning off and divesting core bands to raise cash and do deals, or finalize deals. Kenny did Olifant with no capital raise whatsoever. Sure, it was small potatoes in comparison. We knew a year ago at this time about the share raise from 100 mil to 200 mil with the financing then. And that should be folding in now. But here he comes in "The Letter" telling us all about why a capital raise could come from 100 mil to 500 mil. He still insists they don't need cash and have already shown warrant conversion to raise cash during our most difficult recessionary period in 16 years let alone the past 34 years. But this share raise is monumental. AND, and a bigger AND, look at the wording in that paragraph again. It is very succinct. He could have easily said we wanted to raise the authorized to be ready for any situation that might come along. He could have said that they will look at any possibilities that come along to expand the business. But he was VERY specific about HOW and WHY it makes sense to be in acquisition mode at this time. A dramatic authorized share raise at this time allows the company to issue up to a billion dollars of warrants if they want to. He said it again that they will be a billion dollar company. That alone is a far cry from $20 million+ in sales after four years. No, he has something dramatic up his sleeve. These deals are going on with a fervor right now. 100 mil to 200 mil is required. 100 mil to 300 mil is anticipatory. 100 mil to 400 mil is ambitious. 100 mil to 500 mil is telling everyone he is ready to do a deal of major proportions. What better way to get to a billion dollar company than to just go buy one doing as close to that in sales as possible. Then just hold on to it for a couple years, make it grander and better, and with the economy fully recovered, sell it at 10 times the price.
Nahhh, uw. We will get it there.PK already gave up the fact that those warrants cleared some major overhang for the company. Alot of those warrants were priced at $2.00 a long while back. I can virtually assure you with the deals floating around out there for the taking, it will BE VERY EASY to price $1 - $5 warrants for shares given the sheer magnitude of what they would mean for a small company like this. Many venture capital guys cream at the though of 2-3 times their money let alone 5-10 times their money for this one once the buyout offers come on the back end. Kenny is telling you why nobody has ever sold a single share now more than ever.
But deals are being done every day it seems. We learned from the DBI website that Svedka and RAIN got taken out this year. Then there was that monster, biggest of all, AB/InBev deal, and now this one finally gets done from back in July. Of course, there was a little company Olifant got gobbled up for nothing.
I don't think we're anywhere close to seeing the consolidation we're going to see in this sector. And now is the time to strike while the iron is hot and the prices are very, very cool.
No, but it shows us a couple of things. That Absolut Vodka buyout commanded a major premium at $8 billion. Plus, it's the second such one of these in exactly a month where officials are forcing big conglomerates to divest portions of their business in order for big mergers to go through. That makes very good selling brands available at fire sale prices.
Pernod Ricard divests a number of products today.
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSB45014720081218
Acquisitions everywhere and these guys having to sell brands like crazy for nothing.
Patrick? Santa coming your way? He definitiely is on my nice list!
YW, now here is something even more important. While all our questions are important, our questions are taken and resolved as they should be. The company is evolving and the plan is in front of you now. That DOES NOT mean yesterday's letter spawns another 100 questions in its interpretation. Let's let our company do the work they need to do. If we are getting 50 Cent, we will get 50 Cent and I will draw reference to that distinct possibility. If I say 50 Cent, it doesn't mean 50 people call him and ask him if we have 50 Cent. HE, PK will tell us what he is going to tell us when there is a PR. If it clearly states in the Letter THAT DRINKS BRANDS INTERNATIONAL IS NOT AFFILIATED WITH, OR A SUBSIDIARY, OR AN OWNER, OR A COMPANY DKAM OWNS, then it is what it says it is. Once again, no reason to start calling. If it says 300%+ growth and a billion dollar beverage company is being created, that means a company that is doing $5 million a quarter for the next four quarters. That is simple math. Putting together numbers from that simple math is not misleading investors. It is NOT a reason to call or write the CEO whining that this person or that person on some blog is putting words in PK's mouth by interpreting what he said by a natural progression of order. The same with a billion dollar beverage company. It becomes so WHEN YOU BUY BRANDS DOING $50 MILLION OR $100 MILLION IN ANNUAL SALES. It gets THAT EXPONENTIAL GROWTH HE SPOKE OF THROUGH INTELLECTUAL PROPERTY GATHERING THAT ONLY COMES HAND OVER FIST THROUGH ACQUIRING THE DIVESTITURE OF EXISTING BRANDS. It is NOT, I repeat NOT wrong to assume, direct, portray, conceive, implicate that these things are coming. It is as I said the natural order of things that they ARE COMING AND THEY WILL HAPPEN. And every day any one of us calls the CEO questioning the validity of something someone says here it will only be one of these days before our CEO finally tells one of you to read what he said and make your own assumptions. And at that point, just maybe the lot of you will stop the need for babysitting and stop the need to stare at your account balance and just maybe put the effort required into doing whatever small part you can to get this story in front of the REAL money that can make a difference in how well your investment ultimately performs. Because I can tell you for sure. There isn't a single one of you pestering the CEO by mail or by phone that doubled your position by what he told you. You were only looking for guidance and a reason NOT to sell. And if that is the way you treat this investment, then you might just as well move along now so someone else can enjoy the success of this investment and leave management to the task they laid out for us without interruption.
It is incredibly remarkable. These same trash penny plays running again today with a few new issues joining the crowd.
Not one of them putting out the kind of news and insight into their growth going forward. And those that had news will be posting many losses for the foreseeable future.
Stunning to say the least. This one should be over a dollar right now in comparison.
Why isn't it? Because the traders out there are looking for it to be up 100%-200% in a day to know it is safe to play it.
I have never heard of a sorrier excuse for being a trader or an investor in my life. Well, expect for the one where we'll wait for the CEO to tell us it is a $12 stock. He only said it was a billion dollar company he is building. We went ahead and divided a billion dollars by $80 million shares and got $12. How could we have ever made such a mistake to put words like that into our CEO's mouth?
No wonder this stock isn't flying. The shareholders can do their mathamadition.
Caution, that I would have to look up. The main thing to know is even 3 years after the buyout of $2.3 billion and all that money spent on advertising, Grey Goose only did $57 mil in annual sales in 2007.
So, do the math. $57 mil 3 years after the fact on a $2.3 billion buyout.
Kenny does $20+ mil this year, or a third of that. That makes us worth a third of that buyout figure, or $700 mil or about $8 a share.
But what if. Just what if one of those "strategic acquisitions" comes through? Let's say it's a $100 mil a year business. Now we're doing double what Grey Goose is doing, and almost double what Vitamin Water is doing.
Hard to deny us the same opportunity at a $4 bil buyout like the others when we are doing, and will be doing so much more.
For everyone tuning in for the first time.
There is a contingent here that fully believes the measure of this particular investment CAN ONLY be derived from what has come in the past. Anything that is said as upcoming cannot be relied upon until it is in the past. If the CEO is conservative and guides for 300% growth, then they will contend it is unfair to anyone to prove out 500% growth. It is unfair to you to tie pieces of a puzzle together and tie together the CEO's clues to what is coming.
So, I will help you out here. Always remember you are solely responsible for whether you trade or invest and for those decisions. There are those of us who have been buried in due diligence for thousands of hours and those who have only one form of due diligence. That being to stare at the stock price and their account balance and that is the SOLE merit of what is real and what is not. It is the only thing they can rely on as fact.
This stock is no different than many others. It had its run on the euphoria of how huge their first worldwide product introduction would be. As with any start up, there came those growing pains on that initial growth phase. That time has passed. Now the company is utilizing that two years of building the business to reap an untold amount of upside as critical mass has been created to be unleashed over the next 12-18 months.
They will be slow to turn off their two years of negativity and perhaps only after the third or fourth quarter in a row of record growth for the company will come to believe the plan is actually working.
The CEO was very detailed in his letter yesterday. He has set up a business that is self sustaining now just in two CONTRACTS, not agreements, but CONTRACTS that solidify a break even period for the company for the next 15 years. Then comes all these new products and further global expansion that insures the company's profitability going forward.
Additionally, he was very detailed in his disccusion several time of growth through acquisition. This board will not allow you to believe these artists will lend their names to products and those products will get bought out until it actually happens. By then, it is old news. They won't let you believe a hedge fund or analysts will show up at any time to run this stock to untold levels. Even though it is going to happen. And finally, they wouldn't even think of entertaining the unthinkable, which every day is a distinct reality. That being the CEO being in the middle of any deal coming down the pike. He could easily announce tomorrow he is buying a brand selling a million cases a year as he said "from companies divesting to insure the further success of their core portfolios." He could easily announce purchasing a brand doing $50 million or $100 million or $500 million a year in sales and nice profits. This a a very real and VERY distinct possibility as he grows this company now every day.
So remember that you are in the driver's seat as to the success of this investment. The past two years taught 800 people this stock is going nowhere and they will never reap the benefit of waiting that long to enjoy the success of this stock getting bought out for $30. You however, have it all laid out for you in one simple letter yesterday that crams one of the best growth stories in the market today into the next 12-18 months.
Enjoy the ride and as always, share the benefit of your good fortune in this due diligence and this winning investment with everyone you know. They will thank you over and over for it.
Well my friends, look at the DBI-uk website and most will be able to put the pieces together. The company is being run by a director from Pernod Ricard. There is that Coca Cola again huh?
Coach? I have posted it on and on before. I'll lay it out again just for you.
Violator Management is owned in majority by Chris Lighty who is in Forbes 40 Entrepreneurs Under 40. He works in cooperation with an unnamed entity for now that is responsible for marrying the likes of Madonna with Motorola, Jessica Simpson with Pepsi, and of course, his own artist under management 50 Cent with Glaceau Vitamin Waters for his Formula 50. That deal alone led to a $4.1 billion buyout of that company by Coca Cola. He also married 50 Cent with Reebok AND his new cologne line amongst another 6 branding opportunities.
In 2007, Chris Lighty formed a new venture with Warner Music in his new Brand Asset Management division that would further marry and match artists at Warner Music with brand endorsement deals. It is my 100% contention that this is what led to the immediate deal with Kid Rock WHILE negotiations were still ongoing with Violator. I mean think about it. We have a deal with Universal Interscope and their stable of artists. Then all of a sudden out of nowhere we get a deal with Kid Rock of Atlantic Records who is under Warner Music's umbrella where we have no deal of any kind with Warner Music. Kid Rock was shopping a beer introduction AND his own beer company with multiple beers to introduce and Lighty and our unnamed entity put Rock in Kenny's office. It's just that simple.
Going back to Violator, we will see as I've shown from the labeling on the Leyrat that is going out to distributors now that Violator is Violator Imports LLC. It will be a division spin off just as Violator Entertainment and Brand Asset Management was. 50 Cent and Lighty formed their own movie company last year as partners. Violator the parent is jointly owned by Chris Lighty and Mona Scott with a 25% interest held by none other than 50 Cent. James Cruz also has a small portion as the man that gets the deals done all the way around.
When you sign Violator, or should I say, when they sign us, we get the whole team. Now it is obvious to this point that the Leyrat initial cognac phase is going out with its standard label to get the foothold of the product and brand acceptance into the marketplace surrounding these artists albums. However, we have not seen the complete lay out on "Glory" as to what and who will be the icon associated with that product. We also haven't seen anything on the total of a dozen other planned beverages under the Violator umbrella.
The final point is OUR cognac will be a Dre and Violator and 50 Cent and perhaps an Eminem promoted cognac as "the preferred cognac of the rap community." What better way to promote it than by ALL the artists rather than just a Dre. Get ready for the whole advertising smear called "Guily Pleasures" with the hot ladies, the sex, and all that stuff that makes you warm and fuzzy.
When it comes down to buyout, the mass appeal and ultimately the price tag is accentuated by not whose face is on the label but rather whose fan base will buy the product and continue to do so for many years to come. And at this point, I'd rather have 5 artists all in love with one product instead of just one that will sell and move on to his next deal.
Current quarter shows first PROFITABLE quarter.
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 prepaid shipped to Israel = $1,000,000
10000 cases of add’l Trump prepaid 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. 72000 cases of Trump Israel AND 35000 cases of Trump Germany.
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.
Sure got back a heck of alot more than we asked for!!!
Somehow it seems our questions aren't quite as significant as we thought. It appears they've been doing just fine without our whining.
Minor bloks and phantoms up here. These are the other side of the buys that were sitting down there looking for cheapies. They will disappear VERY quickly
Monster "Holy Crap" news DKAM
DKAM Shareholder news out they sign 50 Cent to mega deal and guides for 300%+. 50 Cent's last big deal was with Violator and got a mega endorse deal with Glaceau which then was immediately sold to Coke for over $4 billion. This could be huge. Very huge.
Letter to Drinks Americas’ Shareholders
Dear Shareholder,
Drinks Americas will conduct its quarterly earnings call this coming Friday, December 19, 2008. In advance of that conference call, I wanted to take the opportunity to update you on our progress and some of the management challenges we have met. On October 8, we conducted a conference call where we outlined for shareholders some bold measures for dramatic growth through 2009. In this difficult economic environment, there are always many questions to be asked of management as to how we are going to accomplish specific short and long term objectives, as well as specific milestones we have targeted for the Company. There are a variety of accomplishments at Drinks and, while we try to address and update each matter in the conference call, it is still a limited amount of time to address the shareholders' questions as a whole.
We have taken the broad outline of questions and inquiries we receive at info@drinksamericas.com and converted it into a FAQ Summary contained herein that we know will be helpful in understanding the Company's progress to date and future brand and global expansion plans. From this, we have crafted this very first shareholder letter, which we will both mail to each of our shareholders, and at the appropriate time, post on our web site. I hope the information and overview we provide you in this first shareholder letter is helpful and informative.
We have eliminated questions that would take us beyond the boundaries of appropriate disclosure. We value the enthusiasm that our shareholders bring to these questions, as it indicates they share the same passion we do for the success of Drinks. The subject matter of all the questions we receive rarely questions the strategy, but generally they inquire about the time frame of the execution of our strategy. It is fair to say we wish some developments had unfolded faster and come to fruition sooner. Like any business, we have managed our way through a variety of challenges, not the least has been the recent economic turmoil. The second most asked question has been if the current economic downturn will affect our business. I think every business in today’s world has been impacted. I am also comfortable, however, that our Iconic strategy will allow us to prevail where other companies can only hope to weigh in with additional high dollar cost media spending. We fully believe that our business model and iconic marketing strategy places Drinks at a distinct advantage over other companies and their brands. Since many of our products are or will be new to the consumer, we will continue to drive revenue growth from new product introductions. Our distribution footprint is not anywhere near a saturation point. All our brands have room for dramatic growth even in this economy.
We recently announced our Trump Vodka program to support Hospitalized Veterans at Walter Reed Hospital, whereby we are contributing a dollar for every bottle sold toward hospitalized veterans at Walter Reed Hospital. In addition, Willie Nelson's Old Whiskey River Barbecue program, the sheer anticipation of the Interscope and Dre partnered Cognac and Sparkling Vodkas, as well as, the Kid Rock Beer introduction, will greatly assist in growing our existing brands. The Iconic strategy continues to prove out in international markets selling Trump Vodka.
Finally, a question that has been asked repeatedly relates to new products or acquisitions beyond what we have disclosed. The following can be said. Drinks Americas has a distribution and management infrastructure and has already proven to have access to venture capital when needed. There are a variety of single brand owners and strategic brand owners with non core brands that over time may make sense for Drinks to review as opportunities to scale its own growth. In addition, there is the tendency of Global Brand companies to divest of significant brands to focus on their core portfolios in this type of economy. We think the strength of Drinks is to be able to grow as a Company and, in the near or long term, be prepared to take advantage of one or more of these situations should they arise.
The following questions are provided with our best and most reasonable response at this time. We hope they are helpful to you our shareholders as our business moves forward:
1. You have indicated in the past that there would be a need to raise the Authorized shares from 100 million to 200 million. However, the recent filing indicates the shareholders should approve a raise from 100 million to 500 million Authorized shares. This is indicative of a company that is planning a major expansion, or at the least, any number of major acquisitions. Are you at liberty to discuss anything that prompted such a dramatic change of course at this time?
As long as a year ago, we indicated that Drinks would be raising our “Authorized” share count. As a Company, we are extremely optimistic that our future will include both major expansion and, over time, a number of acquisitions. Since we are, at this point in time, raising the “Authorized” share count as we are required to do so from our financing a year ago, I recommended to the Board, and they agreed, that we should simply reflect this view of the future in the increase of “Authorized” shares. From time to time, we have to remind investors that authorized and outstanding shares do not result in dilution, but having authorized shares available to us should a substantial opportunity arise, is better managed now than under a time constraint in the future.
2. Have you in fact begun shipping Israel on December 1, 2008 as forecasted? Can you say the exact amount of that order for this current quarter and the sales numbers/shipments currently being readied to ship again?
Our Israeli distributor H. Pixel’s contract calls for them to pay for Drinks' products on a "cash in advance" basis. We are in receipt of both cash and letters of credit that have enabled us to begin Israeli specific production and the production of the first cases are underway. We have received funds and Letters of Credit for the first 10,000 cases and additional glass is shipping from China for the second 10,000 case production phase. We are very pleased with the Israeli project. It is unique for a Company of Drinks' size to be able to effectively gear up and provide the financial resources for 75,000 cases of product and mobilize the first 20,000 of those cases in a matter of weeks.
3. With the wealth of trademarks and advance orders you have spoken to before now, can you give us some detail on where Q3, the current quarter, stands at this moment? Are you ahead of Q2 being released this week, and the Q3 of the previous year? How has the current credit crunch and financial markets impacted Drinks?
In this last quarter, given the tough economic climate, it was difficult to get our bank to provide access to our asset based credit facility. Several of our key suppliers, who had provided Drinks terms, also illustrated the tightening of credit in their dealings with us. Everything slowed down and business became very difficult. This is why we were very aggressive, converted warrants outstanding to cash for the Company in a favorable way for all parties, and we are now back to uninterrupted business. We endured the challenges that all companies face in a tough economic climate where suppliers face difficulties and customers pay in a slower fashion. Our years as a start up, however, have made us very comfortable operating in a "how do we get it done environment", and that is just what we did during that difficult time period.
It is a fair criticism that new products should have shipped sooner and inventory supply should not have been disrupted. However, we did not have any window to the economic downturn that has occurred at all levels, thus impacting our business, as well as the time in which our customers paid us, and the tightening of creditor’s terms. We did however respond quickly and successfully as was seen in the warrant conversion that supplied us with cash to proceed.
Now, for the current quarter. If, as we anticipate, Israel and Germany ship on time, Cognac and Sparkling Vodkas meet our deadlines, our core brands continue to grow, and Olifant comes into our fold on time, then the results should mark a very favorable quarter. The combination of the Company's current business, our international expansion, and our new products should be fully reflected in our sales growth as we move into Q4 commencing on Feb. 1, 2009. It is management's contention that our strategy for exponential growth will be fully implemented at that time to the great satisfaction of shareholders.
4. If you'll recall, you said in August you anticipated the Dre product release within 60 days. Can you say today with confidence when those products will be on the shelf?
Our agreement with Interscope Geffen A&M Records partnered us directly with Dr. Dre and many of their other artists further resulting in more iconic product introductions, as well as the talent of the marketing machine that will be at the heart of these iconic product introductions as a whole. Without going into exact specifics on additional partners we are adding, I will tell you the following: Cognac is shipping today against the first 1000 cases in sales. The first market for introduction will receive our Leyrat trademarked Cognac in the third or fourth week of December. Four more markets will launch in January. Leyrat Glory, will begin to ship in January and February. Leyrat and Leyrat Glory, will have significant support from our alliance with Interscope Geffen A&M Records and other various artists.
Topless, our new Sparkling Vodka introduction, will start to ship in January. On a VIP basis, we will start delivering the product to a very exclusive audience in January. There will be nothing like it in the industry. We are including a copy of the label and artwork for the written shareholder letter recipients. This coming summer, we are planning on sponsoring up to 30 Topless Sparkling Vodka Outdoor Concerts through our music partnerships.
While both these products have taken time from announcement to a product on the market, our management experience teaches us there is nothing that replaces proceeding with the right product in the right amount of time and preparation. We will not settle with putting an inferior product on the market or acting out of concert with the business or personal issues of an Iconic partner to satisfy non existent time parameters on a quarter to quarter basis when the plan is for these brands to succeed for years and years into the future. So my view is that the only issue our shareholders have had to “endure” is that the management team has taken the time to insure these brands’ overall success.
5. What does the partnership with Leyrat have to do with the Interscope Cognac deal? Why is it so important and what is the market missing?
Cognac, unlike most spirits is an aged product, made from grapes not unlike wine. The supply and quality of supply dictates a cognac brand’s ultimate success. Drinks and our partners are now owners of the distribution rights of a 200 year old brand and a seamless and bountiful supply of the highest quality cognacs that is Leyrat and our partnership with Francis Abecassis. Unlike vodka, where we could go out and make the world's finest vodka, we had to go out and find an existing supply of the finest cognacs and that supply had to be enough to allow for how successful this brand is going to be. Our Glory Cognac will have been in Oak barrels before Drinks was a Company and some of the really great cognac products we are bringing to market might even have been put in a cask prior to our Icons having a platinum album. In other words, the Cognac went Oak before the artist went Platinum! So, when we partnered with Francis Abecassis, this was an incredible and valuable partnership for Drinks. Francis has contributed invaluable cognac stocks to our business and we have hit the ground running. This partnership is worth many millions when you see this relationship from the inside as it legitimizes the success we will enjoy from this product as a result of the long term supply of premium cognac we have at our disposal.
Drinks demonstrated with the award winning success of Trump Super Premium Vodka and now, the track record of Old Whiskey River Bourbon, the capacity to build a business around Icon marketing. This successful model ultimately creates long term production and supply, financial infrastructure, and a superb Iconic marketing foundation for Drinks.
5a. There have been rumors and references in some trade press that other artists will be joining in the Iconic marketing umbrella around Leyrat and the Cognac introduction. Can you comment?
Yes, I am pleased to disclose that we have just entered into an agreement that will have Drinks partner with Violator Management to assist us in marketing and moving our Leyrat Cognac and Topless Sparkling Vodka brands into the center of the most successful artists and entertainers in urban music today. I invite you to go to the web site of Violator Management (www.violator.com) and see the success of Chris Lighty and his team. Chris Lighty’s most notable achievement to date was in signing the artist 50 Cent to a brand endorsement deal with Glaceau Vitamin Waters which was subsequently sold to Coca Cola through that endorsement for $4.1 billion. This partnership with Drinks Americas, across a broad spectrum of resources we jointly have available, is anticipated to have as much impact as any relationship we have today.
Equally as important is building on our Iconic brand knowledge and success thus far. Our Leyrat Cognac and Topless Sparkling Vodkas will be marketed very differently. We intend on making these new product brands a seamless addition to the lifestyles of a range of our Icon partners from Interscope. With Violator’s involvement, we can expand on those relationships and solidify the brand’s acceptance over a protracted period of time. We can do this because, in the case of the Leyrat brand, we start with, and bring total legitimacy to, the story of the source, the quality, and the fame of the brand to start with. We can do this on Topless because the brand is so “out of the box” new, exciting and tasteful.
Again, Leyrat Cognac is shipping now. Topless, will be produced in both Holland and the United States beginning in January, and will start to ship then as well.
6. Can you tell us where we stand on securing a brewery for Kid Rock's Beer and do you have more insight as to an exact introduction date?
Drinks stated when we announced the brand that we would introduce Kid Rock Beer in the spring of '09. That is just the right time to introduce any beer. We have selected a brewery and have developed a strategy which we fully believe is the right approach to the market. We will build a beer company around the multiple beers we launch with Kid Rock. We can emphatically state now, we will build distribution in a measured pace from the Midwest out to both coasts and plan to target Kid Rock's demographic right from the start. We are tremendously excited about this entry. The focus group work we are doing has consumers screaming for a Kid Rock product. They know exactly what he stands for and what product matches us to his Iconic status.
7. Is the Olifant deal closed and when can we expect to know that the distribution and accretive earnings are currently working for us?
Olifant will close prior to the end of the 2008 calendar year. By the terms and conditions of the sale, and the way everything has fallen into place, all the Olifant shipments from November forward will actually accrue to Drinks. Therefore, instantly upon closing this purchase, Olifant will ship several containers that will be immediately accretive to Drinks. Our Israel agreement also calls for 12,000 cases of Olifant which is almost a 25% increase in the brand volume from our purchase base.
8. You filed a recent trademark in Purple Label. Can you elaborate on which artist that is going to have a product of that name with and what type of beverage?
Purple Label will be attributed to the Topless Sparkling Grape Vodka. Purple is a color of luxury. Topless will come to define luxury sparkling vodka consumption.
9. You indicated on the last call we had a Scotch coming with Classic Golf Partners. Can you tell us where that deal presently stands?
We have two Iconic brands on the drawing board for 2010. We are in the preliminary stages of working on them both now. I can tell you that we continue discussions with a golf partner who would like to form a brand relationship with us to introduce an upscale Scotch brand. We will release more exacting details of this partnership, as well as one or two additional partnerships, once we get the Leyrat Cognac and Topless Vodkas underway in a significant fashion.
10. You previously indicated further expansion into Russia, as well as global subsidiary expansion in China and India. Can you tell us where those exact expansion plans sit at this moment?
To date, we have enjoyed success selling our products in Russia, Canada, and the Bahamas. We did not anticipate the deals of magnitude with Israel, the UK, or Germany, each of which has aggressively moved to market our Iconic brands in significant numbers of cases.
Russia proved to us that at a tremendous price premium, Iconic brands will sell. The Trump Vodka brand continues to sell in Moscow. Our distribution partner, Recolte, appears to be economically challenged in the new business and credit crunch in Moscow, but the brand works with the consumer there.
Israel continues our global penetration with production underway to fill the first 10,000 cases of those orders. We have just announced a partnership in Germany. That market already has ordered 2400 cases and should continue to grow. We should add that all these markets pay us cash in advance before any product is shipped and or provide Letters of Credit to underwrite production.
Drinks Americas has entered a Memorandum of Understanding with Drinks Brands International, an unrelated entity, to begin development of Drinks' brands in the UK. Our intention is to proceed with this as a joint venture that may be separately funded in the coming year.
We have also been in discussion with, and identified, our partners in both China and India. Our Indian partners are approaching a deal of significance. With the still unsettled international financial markets and the aggressive start we have seen in other markets, our focus remains on gaining a presence in additional evolving expansion markets. We are refining our initial plans to create large avenues of sales growth in India and China as we complete our earlier objectives and get a firm footing in our international expansion prior to these massive undertakings.
11. In the past two months you have announced $120 million in distribution deals just from two distributors in Israel and Germany. As CEO and the largest holder of Drinks stock, can you comment how at the beginning of the largest growth phase in Company history is resulting in the stock sitting on all time lows?
I think our stock is considerably undervalued. In the long term, I believe we will prevail with that viewpoint. Perhaps our story is misunderstood by the market. I draw reference particularly to the Israel Agreement as a case in point. This is not a distribution contract but rather a contract obligating our partner to purchase a minimum of 72,000 cases of Trump, 12,000 cases of Olifant, and 2400 cases of other Drinks' brands on an annual basis.
12. Credit is a major concern in our economy as everyone faces tough challenges. Your decision to invoke such a dramatic raise in the Authorized shares suggests you have lost your line of credit. Can you remark on your current "street credit" status and why we are not utilizing our line of credit?
We have explained above the sound basis of the decision to increase the authorized share count for the Company. The Company continues to have and utilizes an asset based credit facility from Sovereign Bank. The share authorization bears no connection to the credit facility. On an asset basis, we can access up to $10 million from BACC Sovereign bank. In the coming year, we would like to enhance or expand the flexibility of our credit facility but today our credit is exactly what it was a year ago. The disruption we experienced was in timing and administratively driven at the height of the credit crunch. We fought our way through that impasse.
13. Twenty-four months now without a new product line on the shelves. Yes, the introduction of Trump Flavors was a solid and natural extension of that brand introduction. Can you give us an exact time line for product introduction and iconic structure now for the immediate, as well as into 2009?
Cognac Leyrat is now shipping. First market release December. Sequence of markets to launch from there into 2009 monthly.
Topless being produced in Holland as we speak. Will ship in December to VIP outlets that will receive product in January, with shipments continuing from there. Summer concert tour 25 markets.
Kid Rock Beer brewery selected. Samples in December, Manufacture in January. Sales commence February & March as projected.
We intend to introduce Trump New York Vanilla Cream (new product) to begin shipping in March.
Olifant Vodka closing December. Shipments forward from November accrue to Drinks immediately.
Following the introduction of Trump Vodka, the Company embarked on a clear strategy which we have kept focus on with an amazing degree of discipline. With The Board's approval, we laid out the strategy that we would focus our efforts on:
Expanding Trump Vodka's base of distribution and consumer acceptance
Introduce Trump Flavors to insure an increased brand presence and consumer trial
Expand our portfolio of brand and strategic partners beyond Trump Vodka (Interscope, Dre, Violator, Kid Rock all in line)
Explore and establish an international Iconic brand strategy
Grow the balance of the portfolio
Prepare the Company for exponential growth through acquisition
Our objectives also included a prerequisite for success that we would not enter into unreasonable or substantial debt, add a substantial amount of headcount or overhead expenses, and we would not expand with brands that did not meet our Iconic criteria for maximum success.
Keeping a perspective on these stated values, the last 24 months has seen Drinks Americas introduce the most successful premium vodka entry on record, added four new flavors of that vodka, kept distribution in all fifty states, established Trump Super Premium Vodka as a permanent item on the spirits beverage landscape, and, just as of last week, had Trump Grape Vodka named at the World Beverage Contest as the finest flavored Vodka in the world.
Our Old Whiskey River Bourbon, Aquila Tequila, and Damiana Liqueur business has all demonstrated growth ahead of market figures. Drinks is currently doing business in several international markets with the prospect of adding up to five new markets this year. In addition to this growth, we are now set to do business with Interscope Geffen A&M Records and Dr. Dre with our cognac and sparkling vodka entries, have added the immense talents of Chris Lighty at Violator Management, and Kid Rock beer will launch in the spring. We are very satisfied with the last 24 months and are excited at our prospects moving forward. We think any major beverage Company and their shareholders, would be pleased to enjoy this new product and progress front, and could only hope to replicate what we have done here.
This is an exciting time for us at Drinks Americas. On October 8, I highlighted the various metrics that will lead to anticipated 300%+ growth for the Company over the next 12-18 months. I also told you for the first time we were on the road to becoming what we feel will be a billion dollar beverage Company which is growing through the early years faster than Grey Goose and Hansen’s. I am here today reiterating my enthusiasm that our stated goals will be achieved and ultimately will result in our number one stated goal... to maximize shareholder value.
Wishing You the Very Best of Holidays,
J. Patrick Kenny
CEO, Drinks Americas
Funny you posted awhile ago all the things you were looking for to load up more! And poof! There is most of them.
It tells me 50 Cent is directly(endorsement) and indirectly(ownership)involved. There will undoubtedly be a very detailed PR to follow on the magnitude of this deal.
For Coach's benefit since it wasn't included I did just find out our products are sitting on the pallets in Dubai as we speak awaiting some special authorizations. Anyone is welcome to address this further on Friday.
At this point, there shouldn't be much to talk about. It's all out there now.
PROFIT PROFIT PROFIT PROFIT PROFIT PROFIT PROFIT PROFIT
Just cannot say it enough!
Holy Moly! DKAM Shareholder news out they sign 50 Cent to mega deal and guides for 300%+. 50 Cent's last big deal was with Violator and got a mega endorse deal with Glaceau which then was immediately sold to Coke for over $4 billion. This could be huge. Very huge.
Letter to Drinks Americas’ Shareholders
Dear Shareholder,
Drinks Americas will conduct its quarterly earnings call this coming Friday, December 19, 2008. In advance of that conference call, I wanted to take the opportunity to update you on our progress and some of the management challenges we have met. On October 8, we conducted a conference call where we outlined for shareholders some bold measures for dramatic growth through 2009. In this difficult economic environment, there are always many questions to be asked of management as to how we are going to accomplish specific short and long term objectives, as well as specific milestones we have targeted for the Company. There are a variety of accomplishments at Drinks and, while we try to address and update each matter in the conference call, it is still a limited amount of time to address the shareholders' questions as a whole.
We have taken the broad outline of questions and inquiries we receive at info@drinksamericas.com and converted it into a FAQ Summary contained herein that we know will be helpful in understanding the Company's progress to date and future brand and global expansion plans. From this, we have crafted this very first shareholder letter, which we will both mail to each of our shareholders, and at the appropriate time, post on our web site. I hope the information and overview we provide you in this first shareholder letter is helpful and informative.
We have eliminated questions that would take us beyond the boundaries of appropriate disclosure. We value the enthusiasm that our shareholders bring to these questions, as it indicates they share the same passion we do for the success of Drinks. The subject matter of all the questions we receive rarely questions the strategy, but generally they inquire about the time frame of the execution of our strategy. It is fair to say we wish some developments had unfolded faster and come to fruition sooner. Like any business, we have managed our way through a variety of challenges, not the least has been the recent economic turmoil. The second most asked question has been if the current economic downturn will affect our business. I think every business in today’s world has been impacted. I am also comfortable, however, that our Iconic strategy will allow us to prevail where other companies can only hope to weigh in with additional high dollar cost media spending. We fully believe that our business model and iconic marketing strategy places Drinks at a distinct advantage over other companies and their brands. Since many of our products are or will be new to the consumer, we will continue to drive revenue growth from new product introductions. Our distribution footprint is not anywhere near a saturation point. All our brands have room for dramatic growth even in this economy.
We recently announced our Trump Vodka program to support Hospitalized Veterans at Walter Reed Hospital, whereby we are contributing a dollar for every bottle sold toward hospitalized veterans at Walter Reed Hospital. In addition, Willie Nelson's Old Whiskey River Barbecue program, the sheer anticipation of the Interscope and Dre partnered Cognac and Sparkling Vodkas, as well as, the Kid Rock Beer introduction, will greatly assist in growing our existing brands. The Iconic strategy continues to prove out in international markets selling Trump Vodka.
Finally, a question that has been asked repeatedly relates to new products or acquisitions beyond what we have disclosed. The following can be said. Drinks Americas has a distribution and management infrastructure and has already proven to have access to venture capital when needed. There are a variety of single brand owners and strategic brand owners with non core brands that over time may make sense for Drinks to review as opportunities to scale its own growth. In addition, there is the tendency of Global Brand companies to divest of significant brands to focus on their core portfolios in this type of economy. We think the strength of Drinks is to be able to grow as a Company and, in the near or long term, be prepared to take advantage of one or more of these situations should they arise.
The following questions are provided with our best and most reasonable response at this time. We hope they are helpful to you our shareholders as our business moves forward:
1. You have indicated in the past that there would be a need to raise the Authorized shares from 100 million to 200 million. However, the recent filing indicates the shareholders should approve a raise from 100 million to 500 million Authorized shares. This is indicative of a company that is planning a major expansion, or at the least, any number of major acquisitions. Are you at liberty to discuss anything that prompted such a dramatic change of course at this time?
As long as a year ago, we indicated that Drinks would be raising our “Authorized” share count. As a Company, we are extremely optimistic that our future will include both major expansion and, over time, a number of acquisitions. Since we are, at this point in time, raising the “Authorized” share count as we are required to do so from our financing a year ago, I recommended to the Board, and they agreed, that we should simply reflect this view of the future in the increase of “Authorized” shares. From time to time, we have to remind investors that authorized and outstanding shares do not result in dilution, but having authorized shares available to us should a substantial opportunity arise, is better managed now than under a time constraint in the future.
2. Have you in fact begun shipping Israel on December 1, 2008 as forecasted? Can you say the exact amount of that order for this current quarter and the sales numbers/shipments currently being readied to ship again?
Our Israeli distributor H. Pixel’s contract calls for them to pay for Drinks' products on a "cash in advance" basis. We are in receipt of both cash and letters of credit that have enabled us to begin Israeli specific production and the production of the first cases are underway. We have received funds and Letters of Credit for the first 10,000 cases and additional glass is shipping from China for the second 10,000 case production phase. We are very pleased with the Israeli project. It is unique for a Company of Drinks' size to be able to effectively gear up and provide the financial resources for 75,000 cases of product and mobilize the first 20,000 of those cases in a matter of weeks.
3. With the wealth of trademarks and advance orders you have spoken to before now, can you give us some detail on where Q3, the current quarter, stands at this moment? Are you ahead of Q2 being released this week, and the Q3 of the previous year? How has the current credit crunch and financial markets impacted Drinks?
In this last quarter, given the tough economic climate, it was difficult to get our bank to provide access to our asset based credit facility. Several of our key suppliers, who had provided Drinks terms, also illustrated the tightening of credit in their dealings with us. Everything slowed down and business became very difficult. This is why we were very aggressive, converted warrants outstanding to cash for the Company in a favorable way for all parties, and we are now back to uninterrupted business. We endured the challenges that all companies face in a tough economic climate where suppliers face difficulties and customers pay in a slower fashion. Our years as a start up, however, have made us very comfortable operating in a "how do we get it done environment", and that is just what we did during that difficult time period.
It is a fair criticism that new products should have shipped sooner and inventory supply should not have been disrupted. However, we did not have any window to the economic downturn that has occurred at all levels, thus impacting our business, as well as the time in which our customers paid us, and the tightening of creditor’s terms. We did however respond quickly and successfully as was seen in the warrant conversion that supplied us with cash to proceed.
Now, for the current quarter. If, as we anticipate, Israel and Germany ship on time, Cognac and Sparkling Vodkas meet our deadlines, our core brands continue to grow, and Olifant comes into our fold on time, then the results should mark a very favorable quarter. The combination of the Company's current business, our international expansion, and our new products should be fully reflected in our sales growth as we move into Q4 commencing on Feb. 1, 2009. It is management's contention that our strategy for exponential growth will be fully implemented at that time to the great satisfaction of shareholders.
4. If you'll recall, you said in August you anticipated the Dre product release within 60 days. Can you say today with confidence when those products will be on the shelf?
Our agreement with Interscope Geffen A&M Records partnered us directly with Dr. Dre and many of their other artists further resulting in more iconic product introductions, as well as the talent of the marketing machine that will be at the heart of these iconic product introductions as a whole. Without going into exact specifics on additional partners we are adding, I will tell you the following: Cognac is shipping today against the first 1000 cases in sales. The first market for introduction will receive our Leyrat trademarked Cognac in the third or fourth week of December. Four more markets will launch in January. Leyrat Glory, will begin to ship in January and February. Leyrat and Leyrat Glory, will have significant support from our alliance with Interscope Geffen A&M Records and other various artists.
Topless, our new Sparkling Vodka introduction, will start to ship in January. On a VIP basis, we will start delivering the product to a very exclusive audience in January. There will be nothing like it in the industry. We are including a copy of the label and artwork for the written shareholder letter recipients. This coming summer, we are planning on sponsoring up to 30 Topless Sparkling Vodka Outdoor Concerts through our music partnerships.
While both these products have taken time from announcement to a product on the market, our management experience teaches us there is nothing that replaces proceeding with the right product in the right amount of time and preparation. We will not settle with putting an inferior product on the market or acting out of concert with the business or personal issues of an Iconic partner to satisfy non existent time parameters on a quarter to quarter basis when the plan is for these brands to succeed for years and years into the future. So my view is that the only issue our shareholders have had to “endure” is that the management team has taken the time to insure these brands’ overall success.
5. What does the partnership with Leyrat have to do with the Interscope Cognac deal? Why is it so important and what is the market missing?
Cognac, unlike most spirits is an aged product, made from grapes not unlike wine. The supply and quality of supply dictates a cognac brand’s ultimate success. Drinks and our partners are now owners of the distribution rights of a 200 year old brand and a seamless and bountiful supply of the highest quality cognacs that is Leyrat and our partnership with Francis Abecassis. Unlike vodka, where we could go out and make the world's finest vodka, we had to go out and find an existing supply of the finest cognacs and that supply had to be enough to allow for how successful this brand is going to be. Our Glory Cognac will have been in Oak barrels before Drinks was a Company and some of the really great cognac products we are bringing to market might even have been put in a cask prior to our Icons having a platinum album. In other words, the Cognac went Oak before the artist went Platinum! So, when we partnered with Francis Abecassis, this was an incredible and valuable partnership for Drinks. Francis has contributed invaluable cognac stocks to our business and we have hit the ground running. This partnership is worth many millions when you see this relationship from the inside as it legitimizes the success we will enjoy from this product as a result of the long term supply of premium cognac we have at our disposal.
Drinks demonstrated with the award winning success of Trump Super Premium Vodka and now, the track record of Old Whiskey River Bourbon, the capacity to build a business around Icon marketing. This successful model ultimately creates long term production and supply, financial infrastructure, and a superb Iconic marketing foundation for Drinks.
5a. There have been rumors and references in some trade press that other artists will be joining in the Iconic marketing umbrella around Leyrat and the Cognac introduction. Can you comment?
Yes, I am pleased to disclose that we have just entered into an agreement that will have Drinks partner with Violator Management to assist us in marketing and moving our Leyrat Cognac and Topless Sparkling Vodka brands into the center of the most successful artists and entertainers in urban music today. I invite you to go to the web site of Violator Management (www.violator.com) and see the success of Chris Lighty and his team. Chris Lighty’s most notable achievement to date was in signing the artist 50 Cent to a brand endorsement deal with Glaceau Vitamin Waters which was subsequently sold to Coca Cola through that endorsement for $4.1 billion. This partnership with Drinks Americas, across a broad spectrum of resources we jointly have available, is anticipated to have as much impact as any relationship we have today.
Equally as important is building on our Iconic brand knowledge and success thus far. Our Leyrat Cognac and Topless Sparkling Vodkas will be marketed very differently. We intend on making these new product brands a seamless addition to the lifestyles of a range of our Icon partners from Interscope. With Violator’s involvement, we can expand on those relationships and solidify the brand’s acceptance over a protracted period of time. We can do this because, in the case of the Leyrat brand, we start with, and bring total legitimacy to, the story of the source, the quality, and the fame of the brand to start with. We can do this on Topless because the brand is so “out of the box” new, exciting and tasteful.
Again, Leyrat Cognac is shipping now. Topless, will be produced in both Holland and the United States beginning in January, and will start to ship then as well.
6. Can you tell us where we stand on securing a brewery for Kid Rock's Beer and do you have more insight as to an exact introduction date?
Drinks stated when we announced the brand that we would introduce Kid Rock Beer in the spring of '09. That is just the right time to introduce any beer. We have selected a brewery and have developed a strategy which we fully believe is the right approach to the market. We will build a beer company around the multiple beers we launch with Kid Rock. We can emphatically state now, we will build distribution in a measured pace from the Midwest out to both coasts and plan to target Kid Rock's demographic right from the start. We are tremendously excited about this entry. The focus group work we are doing has consumers screaming for a Kid Rock product. They know exactly what he stands for and what product matches us to his Iconic status.
7. Is the Olifant deal closed and when can we expect to know that the distribution and accretive earnings are currently working for us?
Olifant will close prior to the end of the 2008 calendar year. By the terms and conditions of the sale, and the way everything has fallen into place, all the Olifant shipments from November forward will actually accrue to Drinks. Therefore, instantly upon closing this purchase, Olifant will ship several containers that will be immediately accretive to Drinks. Our Israel agreement also calls for 12,000 cases of Olifant which is almost a 25% increase in the brand volume from our purchase base.
8. You filed a recent trademark in Purple Label. Can you elaborate on which artist that is going to have a product of that name with and what type of beverage?
Purple Label will be attributed to the Topless Sparkling Grape Vodka. Purple is a color of luxury. Topless will come to define luxury sparkling vodka consumption.
9. You indicated on the last call we had a Scotch coming with Classic Golf Partners. Can you tell us where that deal presently stands?
We have two Iconic brands on the drawing board for 2010. We are in the preliminary stages of working on them both now. I can tell you that we continue discussions with a golf partner who would like to form a brand relationship with us to introduce an upscale Scotch brand. We will release more exacting details of this partnership, as well as one or two additional partnerships, once we get the Leyrat Cognac and Topless Vodkas underway in a significant fashion.
10. You previously indicated further expansion into Russia, as well as global subsidiary expansion in China and India. Can you tell us where those exact expansion plans sit at this moment?
To date, we have enjoyed success selling our products in Russia, Canada, and the Bahamas. We did not anticipate the deals of magnitude with Israel, the UK, or Germany, each of which has aggressively moved to market our Iconic brands in significant numbers of cases.
Russia proved to us that at a tremendous price premium, Iconic brands will sell. The Trump Vodka brand continues to sell in Moscow. Our distribution partner, Recolte, appears to be economically challenged in the new business and credit crunch in Moscow, but the brand works with the consumer there.
Israel continues our global penetration with production underway to fill the first 10,000 cases of those orders. We have just announced a partnership in Germany. That market already has ordered 2400 cases and should continue to grow. We should add that all these markets pay us cash in advance before any product is shipped and or provide Letters of Credit to underwrite production.
Drinks Americas has entered a Memorandum of Understanding with Drinks Brands International, an unrelated entity, to begin development of Drinks' brands in the UK. Our intention is to proceed with this as a joint venture that may be separately funded in the coming year.
We have also been in discussion with, and identified, our partners in both China and India. Our Indian partners are approaching a deal of significance. With the still unsettled international financial markets and the aggressive start we have seen in other markets, our focus remains on gaining a presence in additional evolving expansion markets. We are refining our initial plans to create large avenues of sales growth in India and China as we complete our earlier objectives and get a firm footing in our international expansion prior to these massive undertakings.
11. In the past two months you have announced $120 million in distribution deals just from two distributors in Israel and Germany. As CEO and the largest holder of Drinks stock, can you comment how at the beginning of the largest growth phase in Company history is resulting in the stock sitting on all time lows?
I think our stock is considerably undervalued. In the long term, I believe we will prevail with that viewpoint. Perhaps our story is misunderstood by the market. I draw reference particularly to the Israel Agreement as a case in point. This is not a distribution contract but rather a contract obligating our partner to purchase a minimum of 72,000 cases of Trump, 12,000 cases of Olifant, and 2400 cases of other Drinks' brands on an annual basis.
12. Credit is a major concern in our economy as everyone faces tough challenges. Your decision to invoke such a dramatic raise in the Authorized shares suggests you have lost your line of credit. Can you remark on your current "street credit" status and why we are not utilizing our line of credit?
We have explained above the sound basis of the decision to increase the authorized share count for the Company. The Company continues to have and utilizes an asset based credit facility from Sovereign Bank. The share authorization bears no connection to the credit facility. On an asset basis, we can access up to $10 million from BACC Sovereign bank. In the coming year, we would like to enhance or expand the flexibility of our credit facility but today our credit is exactly what it was a year ago. The disruption we experienced was in timing and administratively driven at the height of the credit crunch. We fought our way through that impasse.
13. Twenty-four months now without a new product line on the shelves. Yes, the introduction of Trump Flavors was a solid and natural extension of that brand introduction. Can you give us an exact time line for product introduction and iconic structure now for the immediate, as well as into 2009?
Cognac Leyrat is now shipping. First market release December. Sequence of markets to launch from there into 2009 monthly.
Topless being produced in Holland as we speak. Will ship in December to VIP outlets that will receive product in January, with shipments continuing from there. Summer concert tour 25 markets.
Kid Rock Beer brewery selected. Samples in December, Manufacture in January. Sales commence February & March as projected.
We intend to introduce Trump New York Vanilla Cream (new product) to begin shipping in March.
Olifant Vodka closing December. Shipments forward from November accrue to Drinks immediately.
Following the introduction of Trump Vodka, the Company embarked on a clear strategy which we have kept focus on with an amazing degree of discipline. With The Board's approval, we laid out the strategy that we would focus our efforts on:
Expanding Trump Vodka's base of distribution and consumer acceptance
Introduce Trump Flavors to insure an increased brand presence and consumer trial
Expand our portfolio of brand and strategic partners beyond Trump Vodka (Interscope, Dre, Violator, Kid Rock all in line)
Explore and establish an international Iconic brand strategy
Grow the balance of the portfolio
Prepare the Company for exponential growth through acquisition
Our objectives also included a prerequisite for success that we would not enter into unreasonable or substantial debt, add a substantial amount of headcount or overhead expenses, and we would not expand with brands that did not meet our Iconic criteria for maximum success.
Keeping a perspective on these stated values, the last 24 months has seen Drinks Americas introduce the most successful premium vodka entry on record, added four new flavors of that vodka, kept distribution in all fifty states, established Trump Super Premium Vodka as a permanent item on the spirits beverage landscape, and, just as of last week, had Trump Grape Vodka named at the World Beverage Contest as the finest flavored Vodka in the world.
Our Old Whiskey River Bourbon, Aquila Tequila, and Damiana Liqueur business has all demonstrated growth ahead of market figures. Drinks is currently doing business in several international markets with the prospect of adding up to five new markets this year. In addition to this growth, we are now set to do business with Interscope Geffen A&M Records and Dr. Dre with our cognac and sparkling vodka entries, have added the immense talents of Chris Lighty at Violator Management, and Kid Rock beer will launch in the spring. We are very satisfied with the last 24 months and are excited at our prospects moving forward. We think any major beverage Company and their shareholders, would be pleased to enjoy this new product and progress front, and could only hope to replicate what we have done here.
This is an exciting time for us at Drinks Americas. On October 8, I highlighted the various metrics that will lead to anticipated 300%+ growth for the Company over the next 12-18 months. I also told you for the first time we were on the road to becoming what we feel will be a billion dollar beverage Company which is growing through the early years faster than Grey Goose and Hansen’s. I am here today reiterating my enthusiasm that our stated goals will be achieved and ultimately will result in our number one stated goal... to maximize shareholder value.
Wishing You the Very Best of Holidays,
J. Patrick Kenny
CEO, Drinks Americas
This is incredible news for DKAM. Violator, Leyrat shipping, 50 Cent, Germany shipping, Israel shipping, Trump New York Vanilla Creme, Topless producing, UK deal Drinks Brands International, Kid Rock brewery selected.
Company just went profitbale in this quarter on all the revenues they clue in to in the letter.
Stunning news out from DKAM
Dear Shareholder,
Drinks Americas will conduct its quarterly earnings call this coming Friday, January 19, 2008. In advance of that conference call, I wanted to take the opportunity to update you on our progress and some of the management challenges we have met. On October 8, we conducted a conference call where we outlined for shareholders some bold measures for dramatic growth through 2009. In this difficult economic environment, there are always many questions to be asked of management as to how we are going to accomplish specific short and long term objectives, as well as specific milestones we have targeted for the Company. There are a variety of accomplishments at Drinks and, while we try to address and update each matter in the conference call, it is still a limited amount of time to address the shareholders' questions as a whole.
We have taken the broad outline of questions and inquiries we receive at info@drinksamericas.com and converted it into a FAQ Summary contained herein that we know will be helpful in understanding the Company's progress to date and future brand and global expansion plans. From this, we have crafted this very first shareholder letter, which we will both mail to each of our shareholders, and at the appropriate time, post on our web site. I hope the information and overview we provide you in this first shareholder letter is helpful and informative.
We have eliminated questions that would take us beyond the boundaries of appropriate disclosure. We value the enthusiasm that our shareholders bring to these questions, as it indicates they share the same passion we do for the success of Drinks. The subject matter of all the questions we receive rarely questions the strategy, but generally they inquire about the time frame of the execution of our strategy. It is fair to say we wish some developments had unfolded faster and come to fruition sooner. Like any business, we have managed our way through a variety of challenges, not the least has been the recent economic turmoil. The second most asked question has been if the current economic downturn will affect our business. I think every business in today’s world has been impacted. I am also comfortable, however, that our Iconic strategy will allow us to prevail where other companies can only hope to weigh in with additional high dollar cost media spending. We fully believe that our business model and iconic marketing strategy places Drinks at a distinct advantage over other companies and their brands. Since many of our products are or will be new to the consumer, we will continue to drive revenue growth from new product introductions. Our distribution footprint is not anywhere near a saturation point. All our brands have room for dramatic growth even in this economy.
We recently announced our Trump Vodka program to support Hospitalized Veterans at Walter Reed Hospital, whereby we are contributing a dollar for every bottle sold toward hospitalized veterans at Walter Reed Hospital. In addition, Willie Nelson's Old Whiskey River Barbecue program, the sheer anticipation of the Interscope and Dre partnered Cognac and Sparkling Vodkas, as well as, the Kid Rock Beer introduction, will greatly assist in growing our existing brands. The Iconic strategy continues to prove out in international markets selling Trump Vodka.
Finally, a question that has been asked repeatedly relates to new products or acquisitions beyond what we have disclosed. The following can be said. Drinks Americas has a distribution and management infrastructure and has already proven to have access to venture capital when needed. There are a variety of single brand owners and strategic brand owners with non core brands that over time may make sense for Drinks to review as opportunities to scale its own growth. In addition, there is the tendency of Global Brand companies to divest of significant brands to focus on their core portfolios in this type of economy. We think the strength of Drinks is to be able to grow as a Company and, in the near or long term, be prepared to take advantage of one or more of these situations should they arise.
The following questions are provided with our best and most reasonable response at this time. We hope they are helpful to you our shareholders as our business moves forward:
1. You have indicated in the past that there would be a need to raise the Authorized shares from 100 million to 200 million. However, the recent filing indicates the shareholders should approve a raise from 100 million to 500 million Authorized shares. This is indicative of a company that is planning a major expansion, or at the least, any number of major acquisitions. Are you at liberty to discuss anything that prompted such a dramatic change of course at this time?
As long as a year ago, we indicated that Drinks would be raising our “Authorized” share count. As a Company, we are extremely optimistic that our future will include both major expansion and, over time, a number of acquisitions. Since we are, at this point in time, raising the “Authorized” share count as we are required to do so from our financing a year ago, I recommended to the Board, and they agreed, that we should simply reflect this view of the future in the increase of “Authorized” shares. From time to time, we have to remind investors that authorized and outstanding shares do not result in dilution, but having authorized shares available to us should a substantial opportunity arise, is better managed now than under a time constraint in the future.
2. Have you in fact begun shipping Israel on December 1, 2008 as forecasted? Can you say the exact amount of that order for this current quarter and the sales numbers/shipments currently being readied to ship again?
Our Israeli distributor H. Pixel’s contract calls for them to pay for Drinks' products on a "cash in advance" basis. We are in receipt of both cash and letters of credit that have enabled us to begin Israeli specific production and the production of the first cases are underway. We have received funds and Letters of Credit for the first 10,000 cases and additional glass is shipping from China for the second 10,000 case production phase. We are very pleased with the Israeli project. It is unique for a Company of Drinks' size to be able to effectively gear up and provide the financial resources for 75,000 cases of product and mobilize the first 20,000 of those cases in a matter of weeks.
3. With the wealth of trademarks and advance orders you have spoken to before now, can you give us some detail on where Q3, the current quarter, stands at this moment? Are you ahead of Q2 being released this week, and the Q3 of the previous year? How has the current credit crunch and financial markets impacted Drinks?
In this last quarter, given the tough economic climate, it was difficult to get our bank to provide access to our asset based credit facility. Several of our key suppliers, who had provided Drinks terms, also illustrated the tightening of credit in their dealings with us. Everything slowed down and business became very difficult. This is why we were very aggressive, converted warrants outstanding to cash for the Company in a favorable way for all parties, and we are now back to uninterrupted business. We endured the challenges that all companies face in a tough economic climate where suppliers face difficulties and customers pay in a slower fashion. Our years as a start up, however, have made us very comfortable operating in a "how do we get it done environment", and that is just what we did during that difficult time period.
It is a fair criticism that new products should have shipped sooner and inventory supply should not have been disrupted. However, we did not have any window to the economic downturn that has occurred at all levels, thus impacting our business, as well as the time in which our customers paid us, and the tightening of creditor’s terms. We did however respond quickly and successfully as was seen in the warrant conversion that supplied us with cash to proceed.
Now, for the current quarter. If, as we anticipate, Israel and Germany ship on time, Cognac and Sparkling Vodkas meet our deadlines, our core brands continue to grow, and Olifant comes into our fold on time, then the results should mark a very favorable quarter. The combination of the Company's current business, our international expansion, and our new products should be fully reflected in our sales growth as we move into Q4 commencing on Feb. 1, 2009. It is management's contention that our strategy for exponential growth will be fully implemented at that time to the great satisfaction of shareholders.
4. If you'll recall, you said in August you anticipated the Dre product release within 60 days. Can you say today with confidence when those products will be on the shelf?
Our agreement with Interscope Geffen A&M Records partnered us directly with Dr. Dre and many of their other artists further resulting in more iconic product introductions, as well as the talent of the marketing machine that will be at the heart of these iconic product introductions as a whole. Without going into exact specifics on additional partners we are adding, I will tell you the following: Cognac is shipping today against the first 1000 cases in sales. The first market for introduction will receive our Leyrat trademarked Cognac in the third or fourth week of December. Four more markets will launch in January. Leyrat Glory, will begin to ship in January and February. Leyrat and Leyrat Glory, will have significant support from our alliance with Interscope Geffen A&M Records and other various artists.
Topless, our new Sparkling Vodka introduction, will start to ship in January. On a VIP basis, we will start delivering the product to a very exclusive audience in January. There will be nothing like it in the industry. We are including a copy of the label and artwork for the written shareholder letter recipients. This coming summer, we are planning on sponsoring up to 30 Topless Sparkling Vodka Outdoor Concerts through our music partnerships.
While both these products have taken time from announcement to a product on the market, our management experience teaches us there is nothing that replaces proceeding with the right product in the right amount of time and preparation. We will not settle with putting an inferior product on the market or acting out of concert with the business or personal issues of an Iconic partner to satisfy non existent time parameters on a quarter to quarter basis when the plan is for these brands to succeed for years and years into the future. So my view is that the only issue our shareholders have had to “endure” is that the management team has taken the time to insure these brands’ overall success.
5. What does the partnership with Leyrat have to do with the Interscope Cognac deal? Why is it so important and what is the market missing?
Cognac, unlike most spirits is an aged product, made from grapes not unlike wine. The supply and quality of supply dictates a cognac brand’s ultimate success. Drinks and our partners are now owners of the distribution rights of a 200 year old brand and a seamless and bountiful supply of the highest quality cognacs that is Leyrat and our partnership with Francis Abecassis. Unlike vodka, where we could go out and make the world's finest vodka, we had to go out and find an existing supply of the finest cognacs and that supply had to be enough to allow for how successful this brand is going to be. Our Glory Cognac will have been in Oak barrels before Drinks was a Company and some of the really great cognac products we are bringing to market might even have been put in a cask prior to our Icons having a platinum album. In other words, the Cognac went Oak before the artist went Platinum! So, when we partnered with Francis Abecassis, this was an incredible and valuable partnership for Drinks. Francis has contributed invaluable cognac stocks to our business and we have hit the ground running. This partnership is worth many millions when you see this relationship from the inside as it legitimizes the success we will enjoy from this product as a result of the long term supply of premium cognac we have at our disposal.
Drinks demonstrated with the award winning success of Trump Super Premium Vodka and now, the track record of Old Whiskey River Bourbon, the capacity to build a business around Icon marketing. This successful model ultimately creates long term production and supply, financial infrastructure, and a superb Iconic marketing foundation for Drinks.
5a. There have been rumors and references in some trade press that other artists will be joining in the Iconic marketing umbrella around Leyrat and the Cognac introduction. Can you comment?
Yes, I am pleased to disclose that we have just entered into an agreement that will have Drinks partner with Violator Management to assist us in marketing and moving our Leyrat Cognac and Topless Sparkling Vodka brands into the center of the most successful artists and entertainers in urban music today. I invite you to go to the web site of Violator Management (www.violator.com) and see the success of Chris Lighty and his team. Chris Lighty’s most notable achievement to date was in signing the artist 50 Cent to a brand endorsement deal with Glaceau Vitamin Waters which was subsequently sold to Coca Cola through that endorsement for $4.1 billion. This partnership with Drinks Americas, across a broad spectrum of resources we jointly have available, is anticipated to have as much impact as any relationship we have today.
Equally as important is building on our Iconic brand knowledge and success thus far. Our Leyrat Cognac and Topless Sparkling Vodkas will be marketed very differently. We intend on making these new product brands a seamless addition to the lifestyles of a range of our Icon partners from Interscope. With Violator’s involvement, we can expand on those relationships and solidify the brand’s acceptance over a protracted period of time. We can do this because, in the case of the Leyrat brand, we start with, and bring total legitimacy to, the story of the source, the quality, and the fame of the brand to start with. We can do this on Topless because the brand is so “out of the box” new, exciting and tasteful.
Again, Leyrat Cognac is shipping now. Topless, will be produced in both Holland and the United States beginning in January, and will start to ship then as well.
6. Can you tell us where we stand on securing a brewery for Kid Rock's Beer and do you have more insight as to an exact introduction date?
Drinks stated when we announced the brand that we would introduce Kid Rock Beer in the spring of '09. That is just the right time to introduce any beer. We have selected a brewery and have developed a strategy which we fully believe is the right approach to the market. We will build a beer company around the multiple beers we launch with Kid Rock. We can emphatically state now, we will build distribution in a measured pace from the Midwest out to both coasts and plan to target Kid Rock's demographic right from the start. We are tremendously excited about this entry. The focus group work we are doing has consumers screaming for a Kid Rock product. They know exactly what he stands for and what product matches us to his Iconic status.
7. Is the Olifant deal closed and when can we expect to know that the distribution and accretive earnings are currently working for us?
Olifant will close prior to the end of the 2008 calendar year. By the terms and conditions of the sale, and the way everything has fallen into place, all the Olifant shipments from November forward will actually accrue to Drinks. Therefore, instantly upon closing this purchase, Olifant will ship several containers that will be immediately accretive to Drinks. Our Israel agreement also calls for 12,000 cases of Olifant which is almost a 25% increase in the brand volume from our purchase base.
8. You filed a recent trademark in Purple Label. Can you elaborate on which artist that is going to have a product of that name with and what type of beverage?
Purple Label will be attributed to the Topless Sparkling Grape Vodka. Purple is a color of luxury. Topless will come to define luxury sparkling vodka consumption.
9. You indicated on the last call we had a Scotch coming with Classic Golf Partners. Can you tell us where that deal presently stands?
We have two Iconic brands on the drawing board for 2010. We are in the preliminary stages of working on them both now. I can tell you that we continue discussions with a golf partner who would like to form a brand relationship with us to introduce an upscale Scotch brand. We will release more exacting details of this partnership, as well as one or two additional partnerships, once we get the Leyrat Cognac and Topless Vodkas underway in a significant fashion.
10. You previously indicated further expansion into Russia, as well as global subsidiary expansion in China and India. Can you tell us where those exact expansion plans sit at this moment?
To date, we have enjoyed success selling our products in Russia, Canada, and the Bahamas. We did not anticipate the deals of magnitude with Israel, the UK, or Germany, each of which has aggressively moved to market our Iconic brands in significant numbers of cases.
Russia proved to us that at a tremendous price premium, Iconic brands will sell. The Trump Vodka brand continues to sell in Moscow. Our distribution partner, Recolte, appears to be economically challenged in the new business and credit crunch in Moscow, but the brand works with the consumer there.
Israel continues our global penetration with production underway to fill the first 10,000 cases of those orders. We have just announced a partnership in Germany. That market already has ordered 2400 cases and should continue to grow. We should add that all these markets pay us cash in advance before any product is shipped and or provide Letters of Credit to underwrite production.
Drinks Americas has entered a Memorandum of Understanding with Drinks Brands International, an unrelated entity, to begin development of Drinks' brands in the UK. Our intention is to proceed with this as a joint venture that may be separately funded in the coming year.
We have also been in discussion with, and identified, our partners in both China and India. Our Indian partners are approaching a deal of significance. With the still unsettled international financial markets and the aggressive start we have seen in other markets, our focus remains on gaining a presence in additional evolving expansion markets. We are refining our initial plans to create large avenues of sales growth in India and China as we complete our earlier objectives and get a firm footing in our international expansion prior to these massive undertakings.
11. In the past two months you have announced $120 million in distribution deals just from two distributors in Israel and Germany. As CEO and the largest holder of Drinks stock, can you comment how at the beginning of the largest growth phase in Company history is resulting in the stock sitting on all time lows?
I think our stock is considerably undervalued. In the long term, I believe we will prevail with that viewpoint. Perhaps our story is misunderstood by the market. I draw reference particularly to the Israel Agreement as a case in point. This is not a distribution contract but rather a contract obligating our partner to purchase a minimum of 72,000 cases of Trump, 12,000 cases of Olifant, and 2400 cases of other Drinks' brands on an annual basis.
12. Credit is a major concern in our economy as everyone faces tough challenges. Your decision to invoke such a dramatic raise in the Authorized shares suggests you have lost your line of credit. Can you remark on your current "street credit" status and why we are not utilizing our line of credit?
We have explained above the sound basis of the decision to increase the authorized share count for the Company. The Company continues to have and utilizes an asset based credit facility from Sovereign Bank. The share authorization bears no connection to the credit facility. On an asset basis, we can access up to $10 million from BACC Sovereign bank. In the coming year, we would like to enhance or expand the flexibility of our credit facility but today our credit is exactly what it was a year ago. The disruption we experienced was in timing and administratively driven at the height of the credit crunch. We fought our way through that impasse.
13. Twenty-four months now without a new product line on the shelves. Yes, the introduction of Trump Flavors was a solid and natural extension of that brand introduction. Can you give us an exact time line for product introduction and iconic structure now for the immediate, as well as into 2009?
Cognac Leyrat is now shipping. First market release December. Sequence of markets to launch from there into 2009 monthly.
Topless being produced in Holland as we speak. Will ship in December to VIP outlets that will receive product in January, with shipments continuing from there. Summer concert tour 25 markets.
Kid Rock Beer brewery selected. Samples in December, Manufacture in January. Sales commence February & March as projected.
We intend to introduce Trump New York Vanilla Cream (new product) to begin shipping in March.
Olifant Vodka closing December. Shipments forward from November accrue to Drinks immediately.
Following the introduction of Trump Vodka, the Company embarked on a clear strategy which we have kept focus on with an amazing degree of discipline. With The Board's approval, we laid out the strategy that we would focus our efforts on:
Expanding Trump Vodka's base of distribution and consumer acceptance
Introduce Trump Flavors to insure an increased brand presence and consumer trial
Expand our portfolio of brand and strategic partners beyond Trump Vodka (Interscope, Dre, Violator, Kid Rock all in line)
Explore and establish an international Iconic brand strategy
Grow the balance of the portfolio
Prepare the Company for exponential growth through acquisition
Our objectives also included a prerequisite for success that we would not enter into unreasonable or substantial debt, add a substantial amount of headcount or overhead expenses, and we would not expand with brands that did not meet our Iconic criteria for maximum success.
Keeping a perspective on these stated values, the last 24 months has seen Drinks Americas introduce the most successful premium vodka entry on record, added four new flavors of that vodka, kept distribution in all fifty states, established Trump Super Premium Vodka as a permanent item on the spirits beverage landscape, and, just as of last week, had Trump Grape Vodka named at the World Beverage Contest as the finest flavored Vodka in the world.
Our Old Whiskey River Bourbon, Aquila Tequila, and Damiana Liqueur business has all demonstrated growth ahead of market figures. Drinks is currently doing business in several international markets with the prospect of adding up to five new markets this year. In addition to this growth, we are now set to do business with Interscope Geffen A&M Records and Dr. Dre with our cognac and sparkling vodka entries, have added the immense talents of Chris Lighty at Violator Management, and Kid Rock beer will launch in the spring. We are very satisfied with the last 24 months and are excited at our prospects moving forward. We think any major beverage Company and their shareholders, would be pleased to enjoy this new product and progress front, and could only hope to replicate what we have done here.
This is an exciting time for us at Drinks Americas. On October 8, I highlighted the various metrics that will lead to anticipated 300%+ growth for the Company over the next 12-18 months. I also told you for the first time we were on the road to becoming what we feel will be a billion dollar beverage Company which is growing through the early years faster than Grey Goose and Hansen’s. I am here today reiterating my enthusiasm that our stated goals will be achieved and ultimately will result in our number one stated goal... to maximize shareholder value.
Wishing You the Very Best of Holidays,
J. Patrick Kenny
CEO, Drinks Americas
We just went profitable! 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 prepaid shipped to Israel = $1,000,000
10000 cases of add’l Trump prepaid 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. 72000 cases of Trump Israel AND 35000 cases of Trump Germany.
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.
Holy Crap! This is incredible news for us. Violator, Leyrat shipping, 50 Cent, Germany shipping, Israel shipping, Trump New York Vanilla Creme, Topless producing, UK deal Drinks Brands International, Kid Rock brewery selected.
There is an incredible lesson to be learned today and this week. We have monster runners appearing everywhere as the hedges stake their claim to some oversold issues with either news OR THE IMPLICATION OF GOOD GROWTH GOING FORWARD.
Now don't chase that POS DVAX or ANSV. They have had their runs. But it draws to complete clarity what I've been saying that these stocks like DKAM are so oversold and there is no liquidity to the upside. 300K takes DKAM to .40 and 700K takes it to .70. 1.2 million shares makes it print 1.20.
It is just that simple. Sure, you can wait to add shares. But where? You might not have the chance.
What are you doing?
Earnings are Friday.
DKAM: Looks like they signed 50 Cent to a deal. Remember, he signed with Glaceau Vitamin Waters for Formula 50 and a few months later was bought out by Coke for $4.1 Billion.
These are the same guys, Violator, that manage 50 and Lighty got him the deal with Glaceau. DKAM already selling the products and it hasn't been PR's yet. Expecting news on it at any time.
Kid Rock Deploys to the Combat Zones
Mullen Readies USO Tour to Central, European Command Areas
By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 15, 2008 – Musician Kid Rock and comedian Lewis Black have signed up for another hitch. The two entertainers will headline a United Service Organizations tour to bases in the Central Command and European Command areas of operations.
The men will accompany Navy Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, on the trip, leaving tonight. Officials cannot release the exact schedule because of security concerns.
The pair made a similar USO trip last year that went from the sands of Baghdad to the snows of Afghanistan.
This is Kid Rock's third trip to the combat zone. He is a versatile entertainer who started with rap music and has branched into rock, blues and country music. Black is a stand-up comedian, playwright and actor who entertained service members during last year's shows. This is his second trip to the region.
Kellie Pickler, a country singer who shot to fame on the TV reality show "American Idol," also is along on the trip. A North Carolina native, Pickler has performed for troops in Iraq before.
Stand-up comedian Kathleen Madigan also joins the troupe. She has appeared on the late-night shows, HBO and Comedy Central.
Also participating are Tichina Arnold, an actress who appeared on the TV comedies "Martin" and "Everybody Hates Chris," and John Bowman, a comedian and actor who has performed with Black.
United Service Organizations
And Rilo can tell his wife the family's hard earned money is going to advance the career of a hooker he is all too familiar with.
LMAO!
50 Cent website says album in stores today.
http://www.thisis50.com/#
Looks like we have Ashley Dupre. Client #9??
http://www.theimproper.com/Template_Article.aspx?IssueId=8&ArticleId=2773
Everyone needs to make a personal commitment to themselves. The trading of this stock over the past year, and actually two years dictates that everyone's frame of reference has been skewed. You are liable to take the first sign of strength as a chance to move on. That is your choice as with any stock.
However, at this time next week there is every chance that this stock will be well over a dollar. If you take ANY shares off, you owe it to yourself as being a long time shareholder to be back on the bids buying those shares back should there be any retrace of any kind. Of course, you need to realize now that when it does take off, the move will only be limited by any of us that jump up that feel they can time the move and buy back cheaper. Every sell order that appears can only be coming from retail and that order limits where the stock will go. These guys will get their shares and will pay up to do so.
The only question that remains is how cheaply you are willing to let them have them because I can assure you, you will not have the chance to buy them back cheaper. The days of being a penny stock is now hours and minutes.
I've never been more sure or more emphatic of anything before.
LMAO! Maybe Coke will discover Trump Vodka or Leyrat Cognac dismisses all side effects of Stevia. At lease we don't need FDA approval for any drinks. Just a defibrillator
http://www.bloggingstocks.com/2008/12/15/cokes-new-drink-may-be-unveiled-without-fda-approval/?icid=200100125x1215293512x1201014447
Only one of 11000 stocks sitting on all time lows and the only one of 11000 stocks sporting an announced 300%+ growth rate now and through the next four quarters minimum. Never has such a thing occurred in any market at any time. Ever. 13000 hedge funds all scouring the countryside looking for that one play to ride into 2009 to make up for all their horrible "safe" investments of the past year, let alone five years.
Oh yeah, I'm poised on the sell button. Yeah right!
In fact, this stock spent the majority of the past 36 months sitting on an average price to sales ratio between 3-5. And for very good reason. The average buyout of a company like this is 10 times sales.
I did some figuring today. The current price represents a price to sales ratio of roughly one half of one. That means it can go up 1000% from here and be fairly valued compared to its trading range of the past three years compared to its fundamentals.
One sad difference this time for the bad guys. They will be doing it with profit dollars this time.
You guys wanted your questions answered. You ready?
I'll take that one. You all asked. This week everyone's questions will be answered. If anyone still has questions after this week, it better be how quickly can you hit the sell button and be gone to never be heard from again. Everyone else will be contacting and telling everyone they know to load up with everything they have.
You are exactly right. The #1 per capita consumption of cognac in the world is in Detroit Michigan. Strange how it is that 50, Eminem, and Dre are finishing their prosepctive albums for immediate release at Dre's studio in Detroit.
So, let's dwell on OS shares and products not on the shelf for Christmas.
Nobody drinks at just the holidays.
It is all year round and even stronger when an idol is drinking twice year round.
Uh duh. Casa Bo Margo and Cohete Gold Rum
Great find Ore
Well everybody forgot one important component of the warrant process. It works in two directions. Credit is tight and hedges are going belly up everywhere. Most of them have lost their asses on derivative transactions and very bad deals. Even I told everyone the day oil hit $147 that the high was in and straight down it would go. Just like the finnies. Just like housing. It was yet another bubble. These guys wouldn't listen. They look at you like you're speaking a foreign language. I even told Cramer and of course no response.
Now they pay the price and huge. They give up warrants and convert on us. They tax loss sell on others. All to have some saving grace of pennies on the dollar for being ridculously stupid.
Now maybe Kenny can fill the coffers with hedge money and players who know how to stake a position and left and right hand it to much, much higher prices.
He deserves that at the very least. Everyone give him at least until Friday and I truly believe there will be much clarity for everyone. By the way, my list of questions has been submitted. You guys will be the first to know if he responds beforehand or if he chooses to go for an all out update on the CC in advance of Q and A.
Let's try this another way that maybe will make sense. You borrow $50000 to buy a franchise license and another $50000 for start up costs. You are $100000 in debt. Do you file bankrptcy now? After all, you weren't $100000 in debt yesterday. No, you put your plan into effect. After a year, and another year, and another year, you finally pay back the $100000 you owe. But that means your plan is working and you decide to expand. The success of your business and plan thus far dictates you just go ahead and go all out. This time you borrow $400000 more. This time the profits start coming in faster and you feel the business is almost actually creating itself now.
This is where we stand with Drinks. Now c'mon, think about it. Kenny has put the plan in place for four years and did so with 100 mil OS. Now please. Do you really think he is preparing for the next 16 years with 400 mil more? Remember, you can only do OS raises at the annual meeting.
He is doing equity partnerships with icons. That involves warrants at $1.20 or $1.00 or whatever. It is much higher prices. Given what we have learned about these warrants thus far, there are no more warrants at 25 cents or 50 cents. This means Kenny is preparing for warrants that even at the very least woud be $1.00 per share. They will probably be higher, but for now let's just say they are $1.00. That means he is preparing for one, or two scenarios, and ONLY one or two scenarios. That is all it can be. Nothing else.
Scenario One is he is allowing for $400 million in warrants to be doled out. Those are performance warrants to these icons that are paid on the back end for sales milestones. Given the fact none of these icons are being given shares, then they have to EARN them in their own right by actively participating in the promotion and success of their own products. If they are 50-50 equity splits, then these performance warrants usually go out on a bonus basis at about 20% of the sales base. So, in order for them ALL to be used up,the company would have to do about $2 billion in sales.
Scenario Two is acquisition based warrant placements. Again, they are premium priced at no less than a dollar. This means they have $400 million to spend that based on Kenny's track record, could easily be for anything up to $400 mil a year in sales. $400 mil a year in sales at 40% gm, and roughly 22% np margin, then the company will be booking $88 mil a year in net profit off these purchases. Their cash flow will move well above 20 million and ALL of the products sitting in the pipeline will be released one on top of the other. That will easily move net profit abve $100 mil a year, and with no less than 20-28 active products on the shelf, would easily give the company a value of $2.5-$3.5 billion on the low end.
So, it takes money to make money. I fail to see the dilution factor here. In fact, when you take an action to create another positive action for the company, and that leads to increased sales and follow on increased profits, thenlisten to me now. There is no such thing as dilution. You hear me? There is no such thing as dilution.
In fact, when that filing popped up, if any beverage analysts had seen it and knew even 1/10 of this story, the stock should have tripled in 30 minutes. The ONLY reason somebody like Kenny would even make such a move is because he has something of such intense magnitude up his sleeve, it needs to be done now to accommodate it.
But, I already told you that. Bigger than coke in Coke.
The "people" I refer to are the cast of characters that are in this stock that have a host of past OTC pipe dreams and failure to their credit.
In other words, they never even give Kenny a chance.
Correct. I did include it s a question BECAUSE it is a very real order of intense magnitude that sets a precedence for very real distribution agreements now, and going forward, in other countries. He told us a ship and pay by Dec. 1 and since it wasn't PRd as part of the day to day business of doing what they need to do, then he can highlight it for everyone on the call.