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Re: common_cents post# 242007

Monday, 05/11/2015 6:40:27 AM

Monday, May 11, 2015 6:40:27 AM

Post# of 347753
Darin Ezra: Okay, great. Well, when you roll out a beverage brand in the US, in particular, there's a very scientific formula that's followed. Any person that's been in the beverage for long—beverage industry for long enough would understand that the way to do it is to first, roll out slowly—we call it a soft launch—to get feedback, because the VitaminFizz range has several different varieties of flavors. We even test different forms of labels to see which ones sell the best. So we spend the first six months really getting consumer feedback and seeing the things they prefer and expanding on those before we go into more of a national launch.

On a national scale, you have to, first of all, set up production in various points around the country, because obviously to keep shipping efficient. We have Power Brands which supports Minerco's efforts, or Level 5's efforts, in this case. We have a full team of production and manufacturing specialists in-house who set up all the production logistics, and we have a marketing team and creative marketing plans for both the East and West Coast markets, New York and Los Angeles, to start, and all the surrounding markets. Once we feel that we have enough consumer feedback on the soft roll-out, then we ramp it up and we start expanding from Southern California to Northern California, then Arizona, Nevada, Oregon. We then go from New York City, we expand into the Tri-State area and then start moving all the way up to Maine, so eventually covering all of the Northeast.

That would typically cover your first 12 months to 24 months, depending on how quickly the product grows and depending on your marketing budget, how much return on investment you get on your marketing budgets, followed by the Southeast and then filling in the rest of the country in year three, year four. That's if we don't get a national deal before then. If we get picked up after a year or two by Pepsi or Dr. Pepper Snapple Group or someone like that, which has happened in the past with some beverages. Then, of course, the roll-out is much quicker than that.