Pulse Beverage: Looking Attractive As Expansion Continues Feb.11.13 | About: The Pulse (PLSB)
Pulse Beverage (OTCPK:PLSB) has seen a big increase in shareholder interest over the past two months as the company continues to work towards making an expansion push for its product despite facing heavy competition from beverage giants like Coca-Cola (NYSE:KO) and Pepsico (NYSE:PEP).
Pulse is a new company to the public markets and was formed just about 2 years ago as a result of a reverse merger with Darlington Mines, an exploration stage company. The company completed a share exchange and then subsequently changed its name to Pulse Beverage.
Pulse, the beverage company, was formed in 2010 by senior beverage industry veterans for the purpose of exploiting niche markets in the beverage industry. The Pulse brand of beverages contains functional ingredients that have been shown to promote health. Pulse beverages are unique in that they were scientifically developed and contain effective ingredients that are widely considered to be critical to adult health using liposome nanotechnology that introduces the ingredients into the beverage in a format that allows the body to absorb the nutrients.
The company has an interesting history and the Pulse brand of beverages was actually initially developed by Baxter (NYSE:BAX), the $38 billion healthcare giant, and actually was the first brand of dietary supplements of the type to be developed and marketed by an established, global healthcare company. Keep in mind, before the new management took over the brand, Baxter invested in excess of $10 million developing and initially marketing the brand.
The market opportunity for Pulse's products looks promising. Non-alcoholic beverages are among the most widely distributed food products in the world and are being sold through more than 400,000 retailers in the United States. The United States has more than 2,600 beverage companies and 500 bottlers of beverage products. Collectively they account for more than $100 billion in annual sales. Carbonated beverage sales are slipping, while non-carbonated beverage sales are growing. Experts predict that beverage companies that only offer carbonated beverages will have to work hard to offset flagging demand. Industry watchers believe that growth will be largely confined to non-carbonated beverages and will chiefly affect functional drinks. Functional, sports and energy drinks are expected to be the principal beneficiaries of this trend.
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