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DNA Launches Company-Owned Distribution Division to Service South Florida Retailers


Grass Roots Beverage Company to Provide a Vital Function Filling South Florida's Distribution Void

BOCA RATON, Fla., May 19, 2008 (BUSINESS WIRE) -- DNA Beverage Corporation (Pink Sheets:DNAB), makers of DNA(R) Energy Drink, the new and great-tasting favorite of the action sports community and its fans, today announced it has launched its own distribution operation. After 6 months of testing the waters, the Company has formed a wholly-owned subsidiary, Grass Roots Beverage ("GRB") in order to provide a more efficient delivery mechanism to the 750 accounts already carrying its energy drinks in South Florida. South Florida has a population of over 5 million residents. GRB's 6 fully-branded delivery vehicles, 4 sample teams and 2 action sports reps will be fully operational by month's end and will target the area's convenience store market. According to several industry reports, c-stores are responsible for 85% of all energy drink sales.
"South Florida, unlike many other regions, offers very little distribution opportunities for new beverage lines like ours. Larger players such as Monster, Rock Star, Red Bull, Full Throttle and Amp are either owned by or controlled by the major distributors such as Coke, Pepsi and Anheuser-Busch, leaving only pockets of distribution for the rest of us," said Mel Leiner, the Company's Executive Vice-President and co-founder. Leiner added, "Having our own distribution capability gives us immediate access to thousands of locations that otherwise would be out of our reach and has already spurred interest from other non-competing beverage producers seeking to fill our trucks with additional revenue producing products."

DNA's Vice-President of Operations, Ralph Sabella said, "We have always found the retail community receptive to our brand because of our great taste profile, unparalleled marketing support and a large built-in following of action sports fans." Sabella added, "Finding quality distribution when there isn't enough to go around has always been the problem until now. We are confident that as the operation continues to grow, the number of accounts carrying DNA will reach more than 3,000 by year end."