Branded Legacy Inc (BLEG)

[Rick_Sanchez]

The most recent PR from the 10th gives us a good opportunity to see the types of volume VATE is doing.

In the brewing world - a quick google search would tell you that, on average, a pallet can hold 100 cases of 12floz product. Each case is defined as 24 cans. So let's do some quick math on that:

100 cases x 24 cans = 2,400 cans.

2,400 cans x 12oz = 28,800 total fluid ounces per pallet.

Now VATE's CBD Iced Tea product comes in 16.9floz bottles and in 12 packs, so let's back into that as best we can.

28,800 total fluid ounce full pallet / 16.9floz = 1704 bottles~

1704 bottles / 12 packs = 142 cases of 12pack VATE Iced Tea per pallet.

Now of course this is all a rough estimate, the size (read height) of the bottles I'm sure also play a factor -- but for argument's sake, let's just say each pallet does indeed have 142 cases.

Outwest505 was at 5 pallets a month - so they were purchasing about 710 VATE CBD Iced Tea cases per month (5 pallets x 142 cases).

Now on the retail side (for folks like you or I) each case costs $51.50 for the consumer -- so that's a steady monthly purchase of $36,565 Teas (710 cases x $51.50 per case). Or broken out another way, if you or I would get a pallet delivered to our house, it would cost $7,313.

Now clearly, this is not what Outwest505 or any other of VATE's distributing partners are paying. As they clearly get a wholesale discount when purchasing their cases / pallets. For anyone who has a better understanding of what the wholesaling process is like:

If the retail consumer would pay $7,313 per pallet, what would a distributor like Outwest505 be paying?