Koios Beverage Corp (FITSF)

[TheVeteran]

$KBEVF With continued demand for the Company’s beverage products, the formation of Bevcreation is a strategic decision which could improve the Company’s supply chain efficiency, product quality, and profitability. With a greater degree of control over how its products are made, the Company can adapt to an “agile” manufacturing model in which production can be adjusted in direct response to demand from distributors, retailers, and customers. Improved visibility into each step of the production line enables the Company to closely monitor for consistency and overall product quality. Additionally, the ability to manufacture KOIOS™ and Fit Soda™ on an “at cost” basis could allow for more desirable gross margins. Moreover, the Company intends to use the Bevcreation canning facility to produce experimental new beverage products, both within the Koios family of canned beverages, as well as for clients for whom Bevcreation carries out contract manufacturing. Subject to regulatory authorization, experimental products could include carbonated alcoholic beverages such as a “hard seltzer” variant of Fit Soda™, a beverage category for which consumption is expected to triple between mid-2020 and 2023.