Hall of Fame Beverages, Inc (HFBG)

[Stock Girl]

So I did some research on all the companies that are selling beverages to Wal-Mart. Why Walmart? You need big national distribution to get your product there.

It seems like the majority of those companies are the big companies. The big companies sell -- Pepsi- stock price- $62.69, Coke- $52 and the Dr. Pepper Snapple Company- $36.83. The smallest company I saw sell to Wal-mart was Cotts Beverages which is currently selling at $6.46 stock price . However, even that company was at $25 at one time or another. So these are all big companies selling these products. And usually brands with smaller names end up being sold by the big companies. Example== Squirt, RC Cola, Schweppes, and Diet Rite are sold by the Dr. Pepper Snapple company. Nestea is a Coke product. Cotts Beverages sells Sam’s Cola which is a private label brand.

Cotts Beverage has 1 billion in sales each year. For 2010 January til April 3 sold 263 million dollars in revenues in North America and 152 million cases of 8 oz beverage in North America. Now I’m not saying HFBG is going to be the next Cotts Beverages but when you have national distribution, that is what the small companies sell. Here is a link to the financials of Cotts. http://www.cott.com/content/en/investors/news/linkedDocuments/COTT REPORTS

So from my research it doesn’t seem likely that HFBG will have national distribution without being bought out by one of the four or five main beverage companies. And if it doesn’t get bought out, you better believe the price is going to be more then you could have imagined. Either way, in the long run this is a good situation for investors.