New Leaf Brands, Inc. (fka NLEF)

[tnzalu]

After doing some research yesterday on the distribution agreement for North Carolina, I entered NLEF at .79 yesterday afternoon.

NLEF's launch of their new 'Sweet Tea' product ties very well to the North Carolina strategy. My family recently relocated to North Carolina, and I can tell you (as anyone who lives here can as well) that 'Sweet Tea' is the Carolina's beverage of choice. If you have never been to the Carolinas, you may underestimate how much is consumed. I spoke with the manager at a local fatz cafe restaurant (small town, pop ~20,000 folks) who explained how his staff has to brew 50 gallons every day at 6 am.

The Macdonalds by my house says the best selling drink behind Coke is Sweet Tea. Macdonalds advertises its Sweet Tea here on freeway billboards.

The introduction of the Sweet Tea product to the Carolinas has potential, even for a yankee outfit from New York.

But what seems to sets NLEF apart is their pricing strategy. The Carolinian NLEF Sweet Tea drinker will be the blue collar worker who does not have time or money to sit down in a restaurant. The mini marts and convenience stores do a large business in rural North Carolina both at breakfast and the lunch hour.

NLEF's 'affordable high quality' pricing strategy is correct for this market, and I'm in.