Replies to post #197266 on Minerco Inc (MINE)

[King Leonidas of OTC]

I dont see how anyone can question that MINE is at a wonderful PPS for an investment and/or a trade. Chart says oversold, Company undervalued, last set of financials showing zero revenues just came out, subsequent events show all but two convertible notes are done! This whole time MINE longs have been accumulating shares and know exactly what they hold is very valuable. Time is running out before everyone knows! Nothing negative left to stand in the way. MINE is about to run

[Crazy Dave]

Can you please explain a strong turd

[Taurus69]

Nothing to fear here. Buy

[Taurus69]

I heard this will go up next week.

[Linedrive]

***MINE IS A STRONG BUY*** PLEASE READ

this excellent post:

investorshub.advfn.com/boards/read_msg.aspx?message_id=107880602

$MINE In one month 6 major events and some are clamoring for more????
Chairman/CEO Scott Vanis has never shied from the fact, the SHAREHOLDERS come first, EXCEPT where the company is concerned.

Nov. 5, 2014 VitaminFIZZ(R) to Cross the Pond to the United Kingdom.
Minerco's Level 5 Finalizes Distribution Deal With London Based JD's Food Group.
finance.yahoo.com/news/vitaminfizz-r-cross-pond-united-181249730.html

Nov. 4, 2014 Minerco's Level 5 Confirms Formulations of Vitamin Creamer(R)
finance.yahoo.com/news/minercos-level-5-confirms-formulations-190000960.html

Nov. 3, 2014 MINERCO RESOURCES, INC. Files SEC form 8-K, Entry into a Material Definitive Agreement with JD's Food Group
http://biz.yahoo.com/e/141105/mine8-k.html

Oct. 27, 2014 Minerco's Level 5 Acquires Specialty Beverage Distributor, Avanzar
finance.yahoo.com/news/minercos-level-5-acquires-specialty-131500932.html

October 24, 2014 Material Agreement_Avanzar Sales and Distribution, LLC
biz.yahoo.com/e/141027/mine8-k.html

Oct. 6, 2014 Minerco/Level 5 Schedule Rush Production Run to Meet Consumer Demand
Amazon Sells Out of Most Popular VitaminFIZZ Flavor
finance.yahoo.com/news/amazon-sells-most-popular-vitaminfizz-133000915.htm




MINE!

[Linedrive]

Awww, c'mon we all know that MINE just needs a little





NEXT!

[Future2016]

$MINE Crash Course:

VitaminFIZZ Original Slide Show: http://www.slideshare.net/PowerBrands/vitamin-fizz-introduction1

Darin Ezra from the Conference Call in April, 2014:

I've been in the beverage industry and consumer product industry for my whole career. I started off importing into Southern Africa all the top American brands, Celestial Seasonings herbal teas, which was the largest selling herbal tea in the world at the time. I believe it's number two today to Bigelow.

I moved my operation to the United States almost 15 years ago, where I started manufacturing my own beverage brands to compete in the then lucrative Red Bull market. We could call it the energy drink market, but essentially, it was Red Bull standalone with a multibillion dollar market, and I was one of the few entrepreneurs who successfully competed and has a national brand still on the market today. The brand's called Go Girl energy drink. It was acquired by Nor-Cal Beverages, which is the largest contract manufacturer of beverage in the Western United States. They produce over $300 million of product for Coca-Cola, Arizona, and other similar companies. I still have the privilege of a very close personal relationship with their CEO and management and access to their system.

My last 15 years was spent building beverage brands. Our Company, Power Brands, is the most prolific beverage development Company in the United States. We believe it is the most prolific in the world, but we focus primarily on the US, Europe, and Asia. So, you know, there might be another company somewhere we've never heard of that's similar, but as far as we know, no other company in the world has developed over 600 beverage brands and taken dozens of them to market, some of which have become global brands. Neuro (ph), for example, was one of the brands we worked on. It's now distributed by Pepsi, Dr. Pepper Snapple Group and produces tens of millions of units nationally and globally. Street King, which is another brand we worked on, was the—is now the second-largest selling energy shot in America. We helped to develop and launch that brand, and there's several other products similar to that.

Through these decades of success in the beverage industry, we have a global network of manufacturers and distributors. We work with over 300 suppliers on a global basis, most of which are in the United States, which gives us the ability to scale up any liquid product or powder product on a global scale with a very short lead time. We have similar relationships with distributors, so we have our own distribution in Los Angeles and New York, covering California, Nevada, Arizona, and covering the whole of the Northeast through our own sales force, which is in-house. We have key accounts management on a national basis, so the ability to deal with all major retailers internally to our own Company. On top of that, we have influence in the largest beverage distributors in the country. So provided the product's right and the marketing plan's right, we can get bi-coastal distribution to up to 100,000 stores within a relatively short period of time. With some of the other brands we've recently launched, in one case, we got up to 40,000 locations within a six-month period.

We have brands currently listed in most major retail outlets in the country. In other words, brands we've developed and launched are available in Walmart, Target, CVS, Walgreens, Rite-Aid, you name it; pretty much any major retailer you can think of carries one or more of our brands. In California, for example, it's hard to go into a store and not see two, three, four, five, or more of our products in almost every retail location.

Level 5 was very fortuitous for us, as we'd always wanted to be involved in a company that was public, because we feel our results speak for themselves. If investors could see how well we do as a Company, we're a Company that has never raised any capital, not even one penny. We're the little, tiny Company, started a long time ago with a small budget that was built into a multimillion dollar company with no loans, no investors. But we've always felt if we took on outside capital, we could grow our brands tenfold, and the timing was right when I met Scott. He told me what he was trying to achieve with his public vehicle, and it just seemed like a natural fit and that's how we started this process.

The Coffee Boost, which we feel is extremely promising, can be paired with another brand we're in negotiation with right now. It's a brand that Nestlé is currently testing, and WhiteWave, which is a part of Dean Foods—it's a $2 billion division of Dean Foods, Silk soy milk, and International Delight coffee creamers—they're busy testing one of the derivatives of Coffee Boost, its intellectual property we've acquired from a third party, which would be a breakthrough in the coffee creamer industry.

That brings us to the VitaminFizz product. I've been working, as I said, in the industry for 20 years. My team of five business development people, one based in Hong Kong for many years, another one based in England for many years, and several in the United States field up to 4,000 inquiries for new beverage every year. We only take on about a hundred of those brands and turn them into products, and then we only launch about 10 of those brands every year and then really get behind one brand every year or two.

VitaminFizz has been the standout for the last decade. In the last 10 years, since we've started developing beverages and have now, as I've said, developed over 600 brands and reviewed somewhere in the region of 5,000 products, VitaminFizz by a long stretch is the standout brand with—so far the testing has shown more consumer feedback on the favorable side than any other brand we've ever tested; the same reaction from the manufacturers and from the distributors. For this reason, I've been able to align our Company with some of the biggest CEOs and beverage companies in America to help launch this new breakthrough product.

The VitaminFizz launch coincides with the unprecedented growth in the Sparkling ICE brand. It's a brand of sparkling—low-calorie sparkling beverage which has grown from $10 million to—we believe it might reach a half a billion dollars this year, but it's over $300 million after two years of growth. Obviously, this is all on the Internet, for anyone that's interested in researching it. We feel our product delivers better flavor. The packaging is—you can't even compare the packaging. Our packaging, which will be introduced to the public within the next few weeks, is on a whole different level to their packaging. Then to top that off, which I'll discuss in a few minutes, we've aligned ourselves with some of the largest distribution systems in America to bring the product to the market.

We're also currently in negotiation with CAA, that's Creative Artists Agency; it's the largest talent agency in the world, to secure one of the top celebrities on the planet. I can't tell you who it is, but let's just say that they have the most online following of all celebrities, and we are currently in negotiation on terms on a deal to that effect.

The product itself has zero calories, like the competitor we're going up against. It has 100% of your daily Vitamin C, which the competitors do not have. Also, the VitaminFizz trademark, which is a registered trademark now, took years and lots of investment to secure the trademark, plays right off the vitamin water category. So vitamin water meets Coca-Cola; carbonated vitamin water to compete with Sparkling ICE, which is the fastest-growing beverage in the country at the moment.

We have strategic partnerships with Big Red, which is in the top 10 largest beverage companies in America. They have a company that's almost a hundred years old. They have over a hundred brands. They're a household name in many parts of the country and with revenues I believe approaching around $200 million a year. They're taking an ownership interest in the Company, and we've also—we're fortunate enough to align ourselves with Dan Ginsberg. Dan was the former CEO of Red Bull North America. Dan helped grow what some consider to be the most important brand in beverage, and some say the most important brand in the world, across all categories in the last 25 years. Red Bull changed the way consumers drink beverages. It changed the price point, changed the whole way that beverage companies market beverage, and Dan was responsible for more of the growth of Red Bull in North America than any other CEO since or before him. He was the CEO for six years. Prior to that, Dan was the CEO of—oh sorry, the Chief Marketing Officer of Hardee's, which was a—is a $2 billion fast food company. He was brought in to restructure the company.

Currently, Dan is the CEO of Dermalogica, which is a close to a billion dollars, or it may have passed a billion now, with him as the leader, but it's in that range. So Dan runs multibillion dollar companies. He doesn't get involved with anything unless it's very serious. Dan is a shareholder in VitaminFizz, and I've asked him to share a few words with us. He directed the statements at me, almost in the form of a conversation that we had, and directly after my discussion now we will be playing a recording that Dan prepared for us.

Anyway, overall the best opportunity, I believe, is not only groundbreaking for Minerco as the major shareholder in Level 5 Beverages, but I believe this is an opportunity that could essentially reshape the beverage industry again. With the support of the CEOs of Red Bull, the CEOs of Big Red, and many other similar national and global strategic partnerships that Power Brands have established over the decade that we've been working in this industry successfully, we believe that this could be the next billion dollar brand.

I'd like to thank everyone today for joining us on this call, and without further ado I'd like to play a few words from Dan Ginsberg, the former CEO of Red Bull himself, in a recording to me as recently as this past weekend. Thank you.

Dan Ginsberg: Darin, as you likely know, as the former CEO of Red Bull North America, I’m presented with new beverage ideas every week, sometimes several times per week. And although some are intriguing, rarely do I see one that has the consumer appeal to do the heavy lifting that’s required in the crowded and lucrative market.

I do believe, though, VitaminFizz may be one of those contenders because sliding in between water, all be it sparkling water, and the vitamin enhanced products, VitaminFizz is a great tasting product that features a price point that’s attractive to any level of consumer and a margin that affords you promotional flexibility, which is totally required in this day and age. So further, I think it can follow on the heels of the amazingly successful Sparkling Ice brand and the imposters who try to follow it. This one may just have the right stuff to do it.

So although there’s no guarantee in this business, we both know that, it appears to me that VitaminFizz has a very good shot of making it happen. And I’m glad to be a part of team.
Investor David Ferraro: Hi, Darin and Scott. You know, I just wanted to talk about quality for a minute. Quality products are the long-term driving factor of a great company, and I'd like to know more about the quality of the ingredients in your products, from coffee beans to the vitamins to the potency of the herbs in the THC collection.

Darin Ezra: I'll talk to the VitaminFizz and the Coffee Boost. The Herbal Collection, or THC products, are not something that I deal with. Scott has another team on that at the moment.

As far as VitaminFizz and Coffee Boost is concerned, and I'm assuming this would lead into The Herbal Collection product as well, the vendors that we use, the people that—our suppliers are—many of them are multibillion dollar companies. So as far as the integrity of the ingredients is concerned, the company that supply us supply the biggest brands in America. They supply Coke and Pepsi and Arizona Iced Tea and Monster and—so the quality of ingredients is unquestionable. They obviously have big reputations themselves, and the—you know, if they supply any ingredients that are not 100% quality, they're going to lose very lucrative and very long-term contracts.

As far as the grades of material are concerned, in a product like Coffee Boost and a product like VitaminFizz, because of the very advanced state of the beverage industry, as you can imagine, it's a—the total global industry is worth—I believe it's in the $600 billion range, or that's with the last numbers I looked at. So the companies that are the leaders in this sector in supplying the ingredients, our vendors, they have such advanced—highly advanced systems for extracting the coffee essence, and the sweetness systems are typically multibillion dollar brands themselves, things like Splenda, which is a sucralose product. Flavor is also a extremely advanced industry today. We have machines that can—you put a little poker in and orange and put it through a machine that will read the DNA of the flavors of the orange, and we can mimic it naturally.

So the ingredients—fortunately, today it's a very different environment than what it was 20 years ago when I started. It was very difficult to have functional products that tasted good. Hence, the Red Bull flavor profile is not very good. Today they could make it different, but it's obviously—you can't change a brand 20 years in. So the quality that we're dealing with in all these products are world-class, and there is no quality ingredient—there are no ingredients that are higher quality that are available, as far as I know, and we deal with top 10 global suppliers of beverage ingredients on a day-to-day basis.

Operator: Thank you. As a reminder, ladies and gentlemen, if you would like to ask a question at this time, please press star, one, on your telephone keypad.
While we're polling for questions, we do have a few questions that have come in online. Our first question is, what part of the business is causing you the most trouble?

V. Scott Vanis: First of all, let me say now you guys—all of the investors out there, you understand why I let Darin run our business for us? Man, he's a beverage expert and obviously is just a pro.

But to answer the question, the part of the business that causes us the most trouble is honestly the fast and rapid growth of our business and the beverage business in general, and with that growth the financing of that growth and how to best deploy our capital and dollars spent. There's a million different places to spend money, to deploy the capital and different million ways to raise that capital. The biggest challenge that we face on a daily basis is to responsibly grow our business without—and putting the best dollars behind the best investment, and that has been and always probably will be our greatest challenge here at Minerco and at Level 5. So, thank you for the question.

Operator: Thank you. Our next question from online is, what products appear most promising and will be advertised first?

V. Scott Vanis: Darin, I'll let you take that one.

Darin Ezra: Well, that is—I think we've answered that extensively already. VitaminFizz is not only the product we feel is the most promising for Level 5 Beverage Company, but internally to Power Brands with many, many other brands under management, as well as dozens of brands under development. VitaminFizz is—we feel is the most promising brand we've handled for a long time period.

Operator: Thank you. Our next question is also coming from the web. It states, what are expected sales, revenue projections for 2014?

Darin Ezra: So as far as—if we're talking about the Level 5—if we're talking about Coffee Boost and Level 5, as we said, the first six months of a roll-out is a very conservative roll-out to gauge feedback from the market. So we're not really—the aim isn't specifically top line revenue, although, of course, that's always important to any business. We strive to make—bring in as much money as we can and make as much of that revenue into profit as possible. We do that every day, and if anyone looks into the background of our other operations under our management, they are very profitable.

But when you're launching a brand for the first time, especially when it's a relatively new company, like Level 5, you want to focus on quality and not just volume, because launching a beverage company is fairly capital-intensive, and getting sales costs money. So we try to refine the process and then ramp it up. But we should hope to pass the—we should get it past the seven figures in 2014, if everything goes according to plan.

Operator: Thank you, and for 2015?

Darin Ezra: I think it's too early to say. I would put a number on it—I'll put a guesstimate on it. I mean, we hope to get over eight figures in 2015, but we will be able to give you a more accurate number by the end of this year. If we get picked up by Coke or Pepsi or one of the big guys, it could be any number, but to be responsible I'd rather reserve that estimate for a couple of months into the launch of the product.

Operator: Thank you. What are the challenges you see short- and long-term going forward?

V. Scott Vanis: From Minerco's standpoint, the short-term challenges that we really always have are, like I mentioned earlier, controlling and managing our growth and not overextending ourselves. We could do a lot of things and do none of them very well, and we really try to focus on doing a few things and doing them perfect; like Darin is always talking about, quality over quantity. Long-term is the—really the same management of our growth and not overextending ourselves, but also long-term is how we continue to really grow our business, not only responsibly, but also we're going to be moving on to bigger markets, bigger brands, bigger all of this, and how do we effectively manage all of that, and that will just be something we have to take step-by-step and day-by-day. But quite honestly, with Darin and people like Dan and Gary Smith (ph) helping to run the business, I'm confident we'll have no problem in doing it.

Conference Call: http://www.minercoresources.com/news.php?p=55

So from that conference call, Darin mentioned that Nestle was working on a brand that was going to be purchased by Minerco at a later date. Let’s fast forward:
HOUSTON, TX--(Marketwired - Jun 25, 2014) - Level 5 Beverage Company, Inc., a Minerco Resources, Inc. (OTCQB: MINE) company (the "Company"), a specialty beverage company which develops, produces, markets and distributes a diversified portfolio of all-natural and highly functional brands, acquires the Vitamin Creamer(R) Brand, including the Vitamin Creamer(R) trademark, registration number 4404886, and all associated intellectual property.
Vitamin Creamer(R) is an excellent standalone product, yet it is a perfect match for the next generation of Coffee Boost(TM). Fitting perfectly inside the Level 5 umbrella of Brands, Vitamin Creamer(R) is an all-natural, vitamin enhanced product that has attracted the attention of many famous coffee creamer companies.

Vitamin Creamer(R) is the first and only coffee creamer that delivers a high dose of vitamins using creamer as a delivery system. Featuring Hazelnut and Vanilla flavors, so far, in a stylish contemporary package, Vitamin Creamer(R) fits in well while standing out in the cooler box and on the shelf.

As discussed in the Investor Update Call, on April 29, 2014, we have been talking to the principals at Vitamin Creamer, LP for more than 6 months about this tactical acquisition. Vitamin Creamer(R), and the breakthrough it represents in the coffee creamer industry, has been put in front of some beverage giants and has generated a buzz within the industry. We will be collaborating with them to further develop, in formulation and packaging, Vitamin Creamer(R) over the coming weeks and months. http://www.minercoresources.com/news.php?p=60

November 4, 2014, Categories: Minerco, Power Brands, Level 5, Coffee Boost,
Maker of VitaminFIZZ® and Coffee Boost™ Develops First Nutritionally Enhanced Coffee Creamer

Minerco Resources, Inc. (OTC: MINE), parent company of Level 5 Beverage Company, Inc., the makers of VitaminFIZZ® and Coffee Boost™, announced that development is moving forward on Vitamin Creamer®, the world’s first nutritionally enhanced and functional coffee creamer. The company confirms the formulations of the creamer line have been approved, and that Level 5 is currently developing packaging concepts and distribution strategy.

“We are all very excited with the potential of Vitamin Creamer,” said V. Scott Vanis, Minerco's Chairman and CEO. “Not only will it be the first nutritionally enhanced and functional coffee creamer on the market, it gives us greater product depth and strengthens our ‘good for you’ value proposition.”

Vitamin Creamer, formulated by Power Brands for Level 5, is the first and only coffee creamer that delivers a high dose of vitamins, including 100% of daily Vitamin B and Vitamin C, using creamer as a delivery system. The varieties will include Vitamin Creamer, Vitamin Creamer Boost, and Vitamin Creamer Relax.

All three varieties will include a fortification of Vitamins B and C. In addition to the vitamins, Vitamin Creamer Boost will also receive an infusion of caffeine from the addition of Level 5's Coffee Boost formula. Vitamin Creamer Relax will be fortified with additional nutrients shown to reduce stress, relieve anxiety and calm nervousness. Variety in the Vitamin Creamer product line provides an option perfect for each level of coffee drinker.

The Vitamin Creamer product line will include at least two packaging sizes: Single-serve (2 oz.) for on-the-go consumers and take home size (12 oz.) for daily home and/or office consumers. The line will also include multiple flavors, initially Original, French Vanilla and Hazelnut (with more flavors to follow). Level 5 Beverage is planning to test market Vitamin Creamer in the NYC area and So Cal, the most prolific consumer testing grounds in the country. While exact specifications and dates are to be determined, the company expects to have all 18 sku’s in front of identified potential partners and consumer panels in Spring 2015.

VitaminFIZZ

Peter Strahm gets first dibs: HOUSTON, TX -- August 14, 2014 -- Level 5 Beverage Company, Inc., a subsidiary of Minerco Resources, Inc. (OTCQB: MINE), has received its initial commercial purchase order from Drink King Distributing to supply the new zero-calorie formula of VitaminFIZZ®, in sleek 17 ounce bottles, in the New York Market. http://www.minercoresources.com/news.php?p=70

HOUSTON, Sept. 3, 2014 (GLOBE NEWSWIRE) — Level 5 Beverage Company, Inc., a subsidiary of Minerco Resources, Inc. (OTCQB:MINE), has received its initial commercial purchase order from Avanzar Sales and Distribution to supply the new zero-calorie formula of VitaminFIZZ® in the Southern California and Arizona retail marketplace. Consumers should expect to see VitaminFIZZ on retailers’ shelves throughout Southern California in September. http://www.minercoresources.com/news.php?p=73

HOUSTON, Sept. 17, 2014 (GLOBE NEWSWIRE) -- Level 5 Beverage Company, Inc., a subsidiary ofMinerco Resources, Inc. (OTCQB:MINE), has scheduled delivery of its functional sparkling water line, VitaminFIZZ(R), to Walgreens stores in Southern California, starting the week of September 29, 2014. Walgreens has approximately 300 locations in the Southern California region. Currently, VitaminFIZZ, the only sparkling water that offers 100% of the Recommended Daily Intake of Vitamin C, Vitamin B6 and Vitamin B12, can be found in the NYC metro and Southern California markets and online at Amazon.com.

"We are delighted to be associated with a quality company such as Walgreens that shares our commitment to offering consumers a healthier option," says V. Scott Vanis, Minerco's Chairman and CEO. "With the addition of the Walgreens locations, we are well on track to meeting our distribution goals of 2014."

Walgreens (www.walgreens.com) is the nation's largest drugstore chain with fiscal 2013 sales of $72 billion and operates 8,200 drugstores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

"I have been doing this for a long time, and this is the first time that I have personally seen major chain placement this early in the process of building a brand," stated Darin Ezra, CEO of Power Brands Consulting and Director of Level 5. "It further proves the validity of both our VitaminFIZZ Brand and our business model."

VitaminFIZZ, distributed by Avanzar Sales and Distribution in this region, will be placed in the cooler section and the dry shelf areas of the approximately 300 Southern California Walgreens stores. All six flavors are also being distributed to locations in New York and Southern California through distributors Drink King and Avanzar, respectively.

Bill Juarez, President of Avanzar Sales and Distribution said, "We couldn't be more pleased with the early response we are seeing on the VitaminFIZZ brand. This product hits the sweet spot in the market perfectly positioned between two of the most successful brands in recent history: Glaceau's Vitamin Water and Talking Rain's Sparkling Ice.” http://www.minercoresources.com/news.php?p=78

HOUSTON, Oct. 27, 2014 (GLOBE NEWSWIRE) -- Minerco Resources, Inc. (OTCQB:MINE), parent company of Level 5 Beverage Company, Inc., the makers of VitaminFIZZ® and Coffee Boost™, announced that Level 5 has acquired controlling interest in Avanzar Sales and Distribution, LLC in California. http://www.minercoresources.com/news.php?p=81

November 5, 2014,
VitaminFIZZ(R), the refreshing functional flavored sparkling water, is crossing the pond, starting in the United Kingdom (UK). Level 5 Beverage Company, Inc., a subsidiary of Minerco Resources, Inc. (MINE), after months of evaluation and negotiation, has selected and approved its exclusive UK distributor, JD's Food Group, to supply VitaminFIZZ(R) in London. Upon meeting preset milestones, JD's Food will earn distribution rights to the entire European Union.

The UK Food Standards Agency (FSA) has different regulations than the United States' Food and Drug Administration; however, Level 5 has finalized the proposed UK formulation and packaging (over the past few months) for VitaminFIZZ. Having executed a contract with our UK Distributor, the UK VitaminFIZZ will be submitted to the UK FSA for approval. During the slower season of the UK winter, they will work with the UK FSA for final approval. Level 5 expects to see VitaminFIZZ in UK stores in Spring of 2015, just in time for summer. http://www.minercoresources.com/news.php?p=95

V. Scott Vanis
Minerco's Chairman and CEO
A Letter from the Chairman
November 7, 2014

Dear Shareholders,
We had a very busy year, and the last 90 days were a blur. I’m sure most of you have been keeping track of Minerco’s recent series of news releases announcing our progress in introducing VitaminFIZZ® to the marketplace. It’s also well publicized that our subsidiary, Level 5 Beverage Company, has purchased controlling interest in Avanzar, one of the leading beverage distributors on the West Coast. On the distribution subject, we are also very excited to partner with JD’s Food Group to be the first enhanced sparkling water in the United Kingdom. Our New York City partner, Drink King, has also been lighting up countless VitaminFIZZ accounts: to the tune of over 300 locations so far. It's an exciting time for Minerco and its shareholders.

I’m writing this letter, and others in the near future, to let you know that I have been paying attention to various concerns many of you have expressed through social media and by directly contacting us. Your concerns are important to the management of our company, and we intend to respond as frequently and openly as we possibly can. After all, you have made a commitment to us, and we will always honor that commitment.

To continue receiving these letters, as well as well as our quarterly news bulletin, please click here to subscribe.

I’d like to start by highlighting and discussing our Annual Report, on Form 10-K, just filed with the Securities and Exchange Commission (SEC). Some highlights of our Annual Report include:

1.) In less than 90 days (starting in late August, 2014), we have hard launched VitaminFIZZ in two key markets (NYC and SoCal), placed it in over 600 sell-through locations, produced almost 25,000 cases of VitaminFIZZ, sold and/or received purchase orders for more than 22,000 cases and received numerous accolades to verify our rapid progress.

2.) Between April 30, 2014 and July 31, 2014, we reduced our derivative liability from $5,291,245 (on 4/30/14) to $650,135 (as of 7/31/14). That’s an over 85% REDUCTION in derivative liability. Expect more reductions as we continue to execute our business model.

3.) Throughout fiscal year (FY) 2014, while we reduced the liability side of our balance sheet, we continued to increase our assets. From 2013 to 2014, we increased our total assets from approximately $139,000 (on 7/31/13) to over $1,000,000 (as of 7/31/14). That’s an over 700% INCREASE in total assets. Expect significant increases as we continue to execute our business model.

Some topics in the Annual Report that may require further explanation:

1.) Our brand, The Herbal Collection™, has been transferred from Level 5 to Minerco. We are positioning ourselves to be a front runner in a very lucrative market with The Herbal Collection; however, the brand does not yet compliment Level 5’s family friendly, “good for you” brand line up. After discussions with partners, both existing and potential, we have officially moved The Herbal Collection to the Minerco umbrella. Expect to see some progress announced on The Herbal Collection around the first of the year.

2) The year over year increase in General and Administrative (G&A) from $368,000 to $872,000 was expected due to bi-coastal product launches and the acquisition and development of new brands.

3.) The Company cannot state actual revenues because they are being audited now for our Q1 ending 10/31/2014. Based on preliminary results, estimated revenues for VitaminFIZZ alone were approximately 22,000 cases sold for the 1st Quarter. Exact revenues are still being audited by our independent auditors and will be available in our FY 2015 Q1 (ending 10/31/14) Form 10-Q which is due 12/15/14.

Continuing on, below are some frequently asked questions and my short answers:

Q: Why the increase in the Outstanding Shares (O/S) and Reserve?
(This is, the #1 question I have been asked most recently!)

A: The increase in the O/S is twofold. (1) A few of the Convertible Promissory Notes entered into by the Company in early 2014 (and before) became due and/or presented conversions in Fiscal 2015 Q1. These Notes were allowed to convert out (we have no choice on Notes past their Maturity Date) to preserve operating capital during the hard launch of VitaminFIZZ on both coasts, especially once the launch was determined to be an “unprecedented success” by industry giants. (2) The opportunity to acquire Avanzar was literally a “once in a business plan” opportunity. We needed additional capital to complete this acquisition. The Avanzar acquisition will add an estimated $450,000 per month to Minerco’s FY 2015 top line revenue based on the deal structure. The long term financial and operational gains of this strategic acquisition / integration far outweigh any short term concerns.

Q.: How does Level 5’s 30% equity share of Avanzar’s revenues directly affect Minerco’s bottom line?

A: The 30% equity stake of Avanzar (with two Options to acquire more equity) is important to the long term bottom line revenues of Minerco; however, the short term benefits immediately materialize in the 51% voting interest of Avanzar. By controlling Avanzar, Minerco (through Level 5) is able to consolidate (report) all top line Avanzar revenues to Minerco’s financials (including our Cash Flow statement). Avanzar is projected to do over $5,000,000 in gross, top line revenue in FY 2015 (all of this $5,000,000 will be reported as Minerco revenue). Additionally, the Avanzar acquisition allows us “2 bites at the apple” for every one of our products we sell through Avanzar in Southern California and in any territory to which Avanzar expands.

Q: How many stores currently sell VitaminFIZZ?

A: As of today, approximately 320 retail locations in the New York market carry VitaminFIZZ. There are approximately 300 locations (including 175 Walgreens) carrying VitaminFIZZ in the Los Angeles market, and that number will grow significantly in the near future as Avanzar begins to roll out multiple national chain placements. Avanzar just received authorization from multiple major retail chains (in addition to Walgreens) to place VitaminFIZZ in 100’s of Southern California chain locations over the coming months (including more than 50 chain locations by end of this year). Find locations on VitaminFIZZ website.

Q: How much product has been produced to-date?

A: To-date, we have produced approximately 25,000 cases of VitaminFIZZ. Next week, we have another 30,000+ cases (including all six flavors) scheduled for production with the new clear style label.

Q: When will there be a national advertising roll out?

A: Paid advertising will start in markets where and when there is significant saturation of product. There is no point in getting consumers interested in VitaminFIZZ until there are ample retail outlets in their market for them to easily purchase. However, we have rolled out a campaign of on-site sampling of VitaminFIZZ in numerous Southern California locations which has been very well received by Walgreens and its consumers. As we saturate individual markets and regions, we plan to initiate local and regional advertising campaigns.

Q: When will the celebrity endorsement be announced?

A: While we have talked with many possible endorsers of VitaminFIZZ, like a national advertising campaign, a celebrity endorsement is currently premature. Until there is significant product saturation in most of the major markets, a celebrity with a truly national audience is an irresponsible deployment of precious capital. Our capital is much better used for market expansion and local advertising /sampling, to name a few.

Q: When will the company start a share buyback?

A: Let me ask a question, and you answer for yourself. Would you, as a shareholder, rather we use your capital (which is currently borrowed) to buy back shares for a minimal realistic return, or would you prefer we deploy your capital to grow and expand your business for an exponentially larger realistic return? When profits are sufficient to responsibly buyback shares, we plan to initiate a share buyback and/or dividend payment to shareholders.

Q: How are the sales of Coffee Boost™?

A: Coffee Boost sales (in last 90 days) have been as expected since we were focused on VitaminFIZZ. The total sales of Boost is estimated to be approximately 1,000 cases. As discussed in the Annual Report and recent press release, the future Boost will be the integration into the Vitamin Creamer® product line. Additionally, Coffee Boost has another unique opportunity that is being evaluated right now.

Q: Why did you expand to United Kingdom before more U.S. Markets?

A: The expansion to the United Kingdom (UK) was a natural fit for our business model. Due to our world class relationships and product, we were able to secure one of the largest and most respected distributors in all of Europe. Additionally, if you notice, the timing of actually placing product in the UK is scheduled to be “in time for summer.” By the time product is docking in the UK, we plan to also be lighting up new markets in the USA. Our focus will be on domestic expansion and saturation; however, the UK is a virgin market for enhanced sparkling water. To not take advantage of that opportunity would be irresponsible. While this opportunity in the UK is very beneficial to the growth of the VitaminFIZZ brand, we have not paused our expansion to additional major US markets and are aggressively pursuing the goal of a nation-wide presence.

We had a very successful FY 2014, and every quarter and year hereafter will be more successful. We will always face challenges, but there will always be opportunities, as well. With our products, our management and our shareholders, we will conquer challenges head on and take full advantage of the opportunities. While we continue to evolve and solidify our identity, please know that we are working tirelessly and making incredible, tangible progress on our plans to make Minerco a major success.

I know you have many other questions and I will address those questions methodically in my ongoing series of letters. Again, thank you for your confidence and support. http://www.minercoresources.com/news.php?p=99