FAT CATS

[Thirsty Tiger]

DKAM - Trump Premium Vodka (Pump)

O/S 68,197,291 as of 12/13/06
Float: 17.63M
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"A great friend of mine was a founder of Grey Goose. And what we're going to do is top it. I want to top them just because it's fun to top my friends."

-Donald Trump on Larry King Live

Grey Goose was sold for $2.2 billon. Trump Vodka could be bigger.

http://www.gawker.com/news/donald-trump/trump-launches-super-premium-ultra-fantastic-vodka-139895.ph...


So far by all reports, Trump Vodka is already a monster hit just in the first 4 states they released it in.

Will be in all 50 within a month.

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$2 million in sales for October. $6 million runrate for a mere 4 states. Let's be insanely conservative and ASSume the other 46 states it is a total flop and it only continues to sell at $6 million per quarter.

$6 million sales, 50% margins, $3 mil gross, SG&A $1 mil....
$2 million net income. And that leaves $2 mil wiggle room for increased whatever.

I expect the runrate, of course, to be much bigger than the mere sales of the first 4 states. The Trump properties alone are good for a ton of sales

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A publication of
WACHOVIA CAPITAL MARKETS, LLC
December 08, 2006

In Time for the Holidays -- Trump Vodka Continues Trend Towards Super-Premium Spirits. In our view, October's launch of Trump Super Premium Vodka by Drinks Americas (DKAM) (not covered) underscores consumers' growing interest in high-end alcoholic beverages. Produced in Holland and initially rolled-out across the East Coast, national distribution is expected in January 2007 and an international rollout is set to follow (care of Kendall-Jackson). Pricing is targeted at a slight premium to Grey Goose, and leveraging the Donald Trump name, early sales are well-ahead of forecast -- in fact, projected first-year sales (through October 2007) are forecast at roughly 150,000 cases and would easily eclipse the 17,000 cases distributed by Grey Goose during its first year. While the brand extends celebrities’ growing association with spirits, including the lyrics of 50 Cent (Bacardi), Busta Rhymes (Courvoisier) and Dr. Dre (Tanqueray), the Trump branding elevates this to a new level.

Under the leadership of CEO Patrick Kenny (eight years of worldwide carbonated soft drinks management responsibility at Seagram’s), Trump vodka is the company’s latest celebrity-inspired offering -- “Old Whiskey River” (Willie Nelson) is already on the market and the “Newman’s Own” label is set to launch sparkling waters and fruit teas in spring 2007. Given the food and beverage industry’s focus on identifying growth niches, we believe Drinks Americas’(DKAM) growing success in leveraging celebrity recognition at premium price points underscores consumers’ desire to trade up -- and reinforces efforts to move up market, currently being made by global alcoholic beverage names (particularly Constellation Brands).