Replies to post #15209 on DNA Brands Inc (DNAX)

[Ed the Trader]

"Don’t get into toxic financing at ½ basis point conversions. Sell shares at current prices and into price decline if such happens..."

Someone has to agree to purchase enough of the new shares of stock to provide an adequate level of funding to support that company's ability to grow the company's revenue through additional marketing and advertising. If you organize enough shareholders to cough up a large sum of cash to invest in the company, then DNA management will not need to resort to toxic financiers. However, if you cannot find enough people to put up enough cash, and be willing to hold their new shares for one year, then DNA management will have no choice but to use financiers with big pockets who will not much care about the current shareholders.

"...retaining enough to keep control."

The new Preferred shares that they created on 8/18 will allow them to keep control of the company.

"The business plan could be expanded to sell direct using Amazon. Perhaps a sales call to offer taste tests to Wal Mart execs could be achieved."

Perhaps, you could invest some time in our company, and find out EXACTLY how to do those things, document what you have learned, and provide a briefing to Melvin Leiner. That way, he does not have to be distracted chasing down new ideas when he already has his hands full with their current business plan.

"The current distributors that carry known in question competition should be checked to insure they are putting forth reasonable efforts to place product."

I have personally confirmed that 8 out of 114 QT stores in the Dallas/Fort Worth Metroplex are fully stocked with the five flavors of DNA Energy drinks that they stock. My friend bought at a ninth store, and Moneymade's partner confirmed at a tenth store. I will continue to check other stores as I encounter them. I encourage everyone else to do the same.

"This product is better than the big competitors’ product(s). I’m thinking it’s time to move forward to supply the nation with this fine product!"

Nope... there are not funds yet for that. What DNA management should be doing is figuring out how to expand (or even begin) advertising in markets where they already have sales channels in place. It does not help the business to have product in stores but not moving because no one knows what it is or that it is available. Has anyone seen a TV ad for DNA (not counting the old ones on YouTube)? Has anyone heard a radio commercial for DNA? Has anyone seen a billboard advertising DNA? Has anyone seen a mass transit bus covered with a DNA "skin"? The answer is probably "No". That MUST change or DNA will die even though its product placement makes them primed to skyrocket. If no one knows you are on the launch pad, you never get to light the rocket to go into orbit.

"Can folks promote it where there aren’t distributors carrying it?"

There are lots of ways to promote a product. I've been giving cans of DNA to friends. I've directed friends to the exact place in a specific cooler at a specific store so they can buy DNA when they had never heard of it. I've written about DNA on social media.

If you wanted to take things to a higher level, you could become a distributor. Just get a distributor agreement with DNA management so that you can buy their product at wholesale prices, and then take samples to retail stores and attempt to get store managers to give you some shelf space. Realize that this might work well for one-off independent stores. For chain stores, there is probably a central buyer who buys for all stores, and there is a good chance that distributors have to pay for shelf space in these chains. However, it is still possible for someone start from scratch and become a distributor.

"Can individuals try to influence distributors in their areas?"

There is nothing to stop you from taking some sample cans to a distributor, and offering them to a manager to attempt to generate interest. I expect that DNA management likely already knows about all of the beverage distributors in the U.S., but that does not mean that they have time to ACTIVELY consider more than they currently have. Your assistance in that area could turn out to be very helpful to the company.

"Get this on the shelf and it will sell. Keep quality control, provide supply (looks like we have a bunch but must keep ready to fill increased demands), get the shelf space and GO DNAX!!!"

It is erroneous to think that just because DNA gets product on store shelves that it will sell, let alone sell well. At a QuikTrip store, there are THREE coolers full of energy drinks. Each cooler contains NINE shelves and each shelf contains TEN slots for cans or bottles. So, each cooler holds 90 energy drink slots, and with THREE coolers, that is 270 energy drink slots. DNA has FIVE of those 270 slots. What makes someone who has never heard of DNA choose it instead of something else. The answer is advertising, and that is why DNA needs more funding. Without more funding, they cannot afford more advertising. Without more advertising, DNA products stay cool on their shelves but do not get sold.