Sorry about the delay, guys.
This afternoon I gave Elmira a call to try and do some digging. I live about four hours away from their warehouse, so I've been thinking about taking a trip out there next week with a friend of mine who also holds a decent amount of shares, but I wanted to first confirm that this place was real, operational, etc.
I called, dialed 0 for the operator and explained that I was a shareholder in a company that mentioned their company in a recent PR and that I had a few questions for someone who was familiar with the deal or had been working with Hall of Fame. I got bounced around a little bit, but finally reached someone who told me the following:
- Confirmation that HFBG was working with Elmira -- "very excited about it."
- Has not received shipment yet, but expects it at the beginning of the week.
- Could not confirm order size "without Hall of Fame's permission," I asked if it was an order of cases that was over five figures and he said I was "in the right ballpark." (10k+ cases!)
- He said there are two different distributors--one in the east and one in the west. He didn't know the name of the west coast distributor. From the PR, it sounds like they will be shipping to stores direct from Florida to the west coast... who knows.
- Primary focus would be in supermarkets and grocery stores (focus on mid-size regionals), with excess inventory going to Sam's and BJ's. Distribution timetable: 2-3 weeks. Elmira does not actively work with 7-11, gas stations or convenience stores--he thinks that is the approach on the west coast but not in Elmira.
- "Standard" type of distribution deal from a business aspect--he wouldn't share specifics, but said that a 35-50% discount on the retail price is generally what the company would sell to him for.
I left my name and number and he said he would check with HFBG about some of the questions I asked that he didn't feel comfortable answering--he also said he would call when product has arrived so that I can swing by.
Quick numbers: if you've got 24 bottles in a case, at approximately $1 each, over 10k cases, it sounds like we are looking at a quarter-million dollar order (at least) for this first batch of Sweet Tea!
I realize a lot of these details are general, but just the fact that they were able to confirm the partnership and talk about how excited they were to be working with Hall of Fame made me excited... I've picked up more shares. Anyone who is selling at this level really doesn't get it and will regret it when product is on shelves and we're out of "triple zero" land.
AI
