DNA Brands Inc (DNAX)

[Ed the Trader]

"Expects clerks to know the history of the drinks they carry. My clerks are only required to know prices."

So, you think that your clerks have no memory?

Do you think that if a customer put a bottle of 5 Hour Energy on the counter that they would know what that is?

Do you think that if a customer put a Hershey chocolate bar on the counter that they would know what that is?

Do you think that if a customer put a bottle of Dr. Pepper on the counter that they would know what that is?

Of course you would because even if there is some chance that they had not personally consumed each of those products, they see customers put them on the counter every single day.

I did a sample of more than 10% of the stores that sold DNA energy drinks in the FOURTH LARGEST METROPOLITAN AREA IN THE COUNTRY, and 75% of the cashiers did not know their stores carried DNA and had not ever seen a can of DNA before I put my cans on the counter to purchase.

If you think that a representative sample of the FOURTH LARGEST METROPOLITAN AREA IN THE COUNTRY could possibly be representative of what happened everywhere, go look at the revenue for the company:

http://www.otcmarkets.com/stock/DNAX/financials

See that second row there that says "Total Revenue"?

Do you see how DNA never had more than 1.2 million dollars of revenue for any year?

$1,200,000 is peanuts for beverage company.

Why did the company sell so little of its products?

Really, really, really simple. Because they were highly effective (for a small beverage company) at getting amazing distribution deals to put their products on store shelves, and then as corporate strategy, they hoped that people would somehow notice the products and buy them without spending any funds (which they freely admitted they did not have) for advertising those products.

As a result, they got their butts handed to them and the company collapsed.

Sure, the CEO who intentionally sabotaged the company certainly helped kill the company, but in a highly competitive market, you simply cannot expect to be successful without advertising.