"She ain't getting rich..." What is the reasonable math that supports such? Have you ever attempted to follow the MRIB money and cash flow so to speak or confirm the expenses? And there's that nagging issue of where $32 million went. Reasonable math tells me given the confirmable expenses, someone made a lot of money and probably continues to do so.
And let's look at those expenses. NY advertising? I assure you the cost of that program was no more than a couple thousand dollars at most. All the other "marketing" such as events? Most likely free in return for some product and then her questionable involvement and relationship with Zodiac Brands and almost all of the events piggy backed with same brings into question what the real deal is/was.
Bottles, vodka, caps and product related expenses? Well there's a big question mark. As there has been no proof that the Wine Plant of Eraskh actually exists other than a rapidly dispatched web site when the topic came up. Further clouding the issue were the inconsistencies and obvious fabrications on said web site administered through Glendale, CA and hosted in Brooklyn, NY. Furthermore, of the "partners" on the site most are supply companies in Armenia (glass, caps, labels, etc.) that appear to be elusive as the Wine Plant of Eraskh. Compounding all of this is payment for the product doesn't seem to match up with the financials in either cash or inventory which begs the questions who bought it, who owns it and who got paid for it and most importantly, how much did it ultimately cost? The last and most damning issue is the question of why Margrit purchased more product that she didn't need in December and also did the same thing in 2010 with a HUGE order (4000 cases) when MRIB had already let their licenses expire and wouldn't have a single license in place for the next three years?
Let me run a theoretical by you. What if... Wine Plant was just a front? Maybe even owned by Margrit in some way, shape or form and maybe the supply companies as well. Take a million dollars. Put aside $100K in MRIB funds. Pay Wine Plant of Eraskh and the other shell company suppliers the balance of $900K for a container of vodka (1400 cases) but it's never actually produced. Follow so far? Ok, next find a contract distiller/rectifier and contract out the job turnkey, bottles, labels, vodka, caps... Finished packaged goods. Go to that $100K set aside and pay the distiller for the whole job which would be around $6 a bottle at the going rate or $50K. Ship the product to a warehouse in Irwindale and there it sits with someone sitting on $950K of net, net, net cash. God forbid that money gets expensed by Wine Plant of Eraskh and any others, goes untaxed and then the proceeds find their way back to the U.S. entirely under the radar of US tax authorities. Let's not get into that one right now.
Next, time for another cash withdrawal. Come end of the year MRIB orders another container which they clearly don't need having over $150K in inventory sitting in Irwindale. That's ok, the warehouse storage is cheap. Same order goes to the Wine Plant of Eraskh and the same process produces another container. Two shipments, $1.9 million in free cash and expenses of $100K. Add to that, three $200K salaries for management a pile of stock options, perks, travel and personal expenses and you're well over $3 million or more just for the year on virtually no sales of product by MRIB. Now one could see how MRIB might be able to blow through $30 million plus. The fact remains that there is little other explanation as to where the money went.
As for the other expenses like legal, shipping, professional services, etc., chump change. Bodie suit probably cost less than $10K. Shipping a container from Central Europe which is the most expensive rate in the world is no more than $2K, so $4K for two containers. There was no advertising or marketing expenses, no capital expenditures, a tiny amount of rent which given the four or five companies at the exact same address and suite number is probably shared... Sorry, just no operating expenses to speak of other than salaries and employee related expenditures. I would venture to guess that the biggest expense for MRIB is with Pacific Wine for storage of all that unsold vodka.
All of this could also be peanuts compared to following the money from stock tranactions, convertible debt and subsequent conversions. We already know of significant conflicts with ECO Investments and most likely other "unnamed" lenders. What if Margrit is benefitting in some way from those conversions? And are we to believe that Margrit has never sold a share of her holdings in MRIB? Get real, yet not a single SEC filing for such. Another reason to remain unreporting.
Bottom line is there was $30 million plus out the MRIB doors and virtually no justification of how it was spent and where it went other than product and salaries. You can say Margrit ain't making millions but if not I'd love to hear where you think all that dough went.
