I sometime look at this board and know that I have the great advantage of being in beverages since 1979. I started at my fathers side and I took over the company after being out of college a few years from my dad. This company HJOE is a bit over a year old. They went public in July of 2012. They only raised about 700k and in the year of being public they knocked down tons of national authorizations they have had no real money and sometime I wonder how they done what they did with no money. Core-Mart, Mclane, 7-11, GNC, regional chains and beer distributors, grocery chains and drug chains and national brokers all have come on in this first year. This was really amazing guys this just don't happen there are companies that have been out there for years trying to do this to get DSD and authorizations. Here is what is unique none of these guys ever had been in beverage so no one ever told them they couldn't do this. There are very much what I would call mavericks. This is a good thing and its a bad thing. It takes tons of money to build a beverage company and brand. The start up cost are huge legal, license fees they have and trademarks, sleeves and boxing and then the whole process of putting it into a meaningful system for distribution. They have made displays, signage so much goes just into what we call the point of sale aspect printing graphics etc. Folks this cost lots of money. This is a start up that is in a very hot new emerging category. Then they catch tons of press righ out the gate in the beverage magazine. They then go do tons and I mean lots of trade shows in my opinion way to may for the fist year and in to many categories like candy, general merchandise no one told them hey slow done they are gun ho as heck. They are at all the regional Mclane and Core Mart shows, beer shows, candy and cigarette shows etc. I mean they are all over the place spending again tons of money and gaining attention and press in year one. The NACS show, Bevnet show, The Bar & Night club show some the big shoes and even small shows out in Texas a buddy of mine saw them out in Oklahoma at a real small show. This all leads to more and more growth. Then they are out promoting at events from The Super Bowl to Rock on the Range and the Kentucky Derby, Fest in New Orleans to Vegas. There in Time Square and 5 other cities with grown teams sampling product on New Years Eve. I myself even told them a few time Promoting is key but you cannot grow to fast. They get into all these stores then they run into problems of out growing that factory in Atlanta and have to then re tool move to the old 5hr plant this was first sign to me that they were moving in a good direction but it was all very fast. They take on customers in Australia and Canada and ship containers overseas. See I have see this all before not many times but I have been distributing brands for quite a few years. I was the first distributor in the mid south to take on Vitamin Water. Many have said quite using that as an example. Well before what they are today they had problems like you cannot believe. They grew fast and to fast to many stores even more promotion that Hangover Joes and they got so back I myself thought they never come out of it. The did a big deal with 50 cent the rapper and he put money in and that started the turn around. They were also so under capitalized. The product sold and in the early days they only had a one flavor etc. They could not supply because of capital problems in a different time when money was easier to get but investors were skeptical as hell who is going to buy water with vitamins so they couldn't raise capital they had massive problems. Well finally only after 3 years did they get funded they were so over a few times but they didn't give up and we know the rest of that story but there a few similar. We also had another drink some of you might of heard of called NOS energy. I was one of the first guys to bring it into the mid south. There story is different than Hangover Joes but its worth mentioning. This was stared by a few guys who also were not beverage guys but they worked there buts off and did tons of shows and they got some steam going under it. They grew but not like Hangover Joes at first I mean like all at once and they didn't have major branding or a media buzz going for them. Hangover Joes because of the Warner backing and branding made it jump on the scene from the start. NOS grew steady but ran into the same problems they didn't have the best placements and they were the bad step brother to 5hr but they wouldn't go away. They got a good DSD system going like Hangover Joes did but they also were so under capitalized and ran out of money and almost went under a few times. They couldn't fill lots of stores they didn't sample or have as strong a following as Hangover Joes but they were that product that keep hanging in there and well Coke went to them because they had survived by hard work and energy and at the same time you had Monster trying to do a energy shot against 5hr it was called Monster Hit Man it failed. Then Red Bull enter the market with and energy shot they failed. Coke decided they needed to get in the game and bought out NOS for tons of money it was a huge deal I cannot remember the number now but it was massive take out. NOS had survived 3 years or so and Coke took them out. NOS is still out there but Coke don't push it big time its one of tons of products they have and its still in distribution. My point being this is so early in the game and you who think if the number are not there this Q they are done are so lost in know how this beverage game works. What going to happen as this category is real and growing and they have been the only real player to get national distribution ,someone will come along and fund this company. I sell it and it moves its a big sleeper and they have strong share of mind, strong social media and they have spent a fortune maybe because they are a bit of mavericks on promoting it and there is a big following of the brand. I can tell you its like building a tribe in the C'stores. I have seen when we are out the store manager ask or calls because he says we got 25 to 30 guys who ask for it every week or so. They built a following its not 5hr and its not Vitamin Water and its not energy its very much its own thing hangover and its new and its unique and it works. I have said I don't expect good numbers they are way under funded and have huge debit and its a capital crunch. This sets up a few thing I think. The laws have just change for companies like them to raise money and I expect will see them move forward on some front and I also predict maybe another beverage company coming in and funding the company might also happen. In this early stage its way to early to say that if the number are not there its over. It's far from over, see I think its really about ready to start in the next year the category is picking up and more companies coming to the table which is a good thing. They have proven that they can get placement, they have proven it sells and they have proven they can brand and market. I don't see another brand touching there branding. The hangover brand has a billion dollars behind it in branding with the movies merchandise etc. There will be someone jump up and get behind this company and brand,I think in 2014. I am also hearing this from people in the media side of the beverage world they also believe there will be funding to the company. So I wanted to lay out to you from what I seen in this business how I view the company from the eyes of dealing in the past with start up hot brands. They have done a lot of things actually very good but yet the same thing that makes them mavericks also hurts them in as they have inexperience not knowing you got to crawl and then walk and then run. Team Hangover Joes has to learn this and that might be the best thing and it might be the worst, time will be the teller. I have said since day one of coming on the board its a Marathon its going to take a lot of money it's not a sprint. In the beverage work they have only been a public company for 15 or 16 months this is a start up and an underfunded one. I am in for the Marathon with Hangover Joes.
