$KEGS..Interesting article about this company..I think this one can really make a go of it!>>>> 1812 Brewing Co. Inc. (OTC US:KEGS) bills itself as an operator of and investor in companies in the craft beer industry. The company expanded its production capacity significantly over recent quarters after moving its original equipment and making additions to its capacity, driving an 83% expansion in production potential. It also took advantage of underpricing in the industry during the pandemic to acquire a second brewing system that was more than 4.2x larger than its original system and added additional fermentation tanks, driving its capacity another 1,000% higher.
From 2005 to 2021 the Craft Beer industry grew by more than 300%. The Craft Beer industry continues to grow faster than the economy with growth anticipated to outpace US economic growth by 100% over the next five years. The beer industry writ-large is extremely recession-resistant, as per capita alcohol consumption rarely abates and has even increased during difficult economic times. The Craft Beer industry is highly fragmented, with over 8,000 craft breweries nation-wide. Any players looking to consolidate the industry will have that opportunity. (7)
1812 Brewing Co. Inc. (OTC US:KEGS) just put out an interesting shareholder update: “I am pleased to address shareholders at this critical time to take inventory of our progress and accomplishments to date, as well as look forward towards what we hope to accomplish.
KEGS is an operator of and investor in companies in the craft beer industry. The Company seeks to build a nation-wide network of craft breweries to develop and foster respective brand growth at the local, regional, and national level. KEGS looks to build a network wherein certain economies of scale can be shared across it such as production, distribution expansion, inter-member contract brewing, new product development, sharing of best brewery practices and scale logistics and transportation. The network is to be built through investment by 1812 Brewing Company while maintaining the members’ respective local and regional uniqueness, brand autonomy and direct involvement with its consumers. The Company seeks to be an “incubator” of growth for its holdings in the industry.” (8)
Key catalysts include: KEGS recently acquired a high speed bottle labeling and filling station that is now producing at a rate of 1,500 bottles per hour. The company expects productivity to increase by another 100%, with progress dialing into the equipment’s maximum output that is progressing well. According to its release, continued progress will be the key to releasing other bottled products in its portfolio.
KEGS will also aggressively pursue restructuring the Notes of KEGS’ two largest convertible note holders. Management is committed to eliminating these Notes. As stated previously, KEGS is seeking a major acquisition or series of acquisitions. To help accomplish this, KEGS engaged Tully & Holland, a highly regarded Mergers and Acquisitions investment bank specializing in advising consumer products companies such as breweries.
KEGS has also begun early-stage discussions with a number of breweries – both small and large – for potential acquisition and/or investment. Management hopes to consummate a transaction in the coming weeks. That could be huge news for the stock.
1812 Brewing Co. Inc. (OTC US:KEGS) Chairman and CEO, Tom Scozzafava, continued on to state, “Our desire is to up-list KEGS to NASDAQ. The most likely scenario under which this would happen is through the acquisition of a significantly larger microbrewery and a simultaneous NASDAQ up-listing. We will aggressively pursue this strategy.”
