First off, the math is all wrong. And it is amazing that anyone supposedly so adversed in the beverage arena, and one who is a supposed Financial Journalist in the "Beverage Sector" would somehow concoct a way to make "a case" of beer" 12 bottles when it has NEVER been 12 bottles anywhere.
Bobby Mason, the President of MBC, told a reporter that he hoped they would sell 100,000 cases of KR beer the first year. First off, any bump on the log anywhere would know he is NOT going to give real numbers to the press in such a tough environment. Especially an environment that is so cutthroat that the bigger beverage moguls would hire bashers and hedges to drive the smaller companies out of business. (Thought I would include that so a few lab rats would have something to work on). 100K cases is just Michigan, and a light number. I mean, think about it. The State of Michigan just granted MBC $700K in tax incentives, MBC is reating close to 400 jobs, and Bobby Mason is dumping $7 million into a project "that he hopes" will generate $1 million a year in sales? Not even close. Especially when the cost of those "jobs" will force a production cost alone of close to $36 a case on 100,000 cases.
Now, take Comerica Park for the Kid Rock Concerts on July17-18. One city. One event. Sold out both shows. Comerica Park has a capacity with added seats after the 2005 All-Star game of 40,950. 5000 seats are added to the outfield for concerts making it 45950 total for each show. The director of concessions confirms "they have approved and are allowing" 300 kegs of BadAss Beer for the event, in the kiosks. A limited amount. That is 595,000 ounces of BadAss Beer flowing AND SOLD for the event. It is expected that the beer will be SOLD OUT during the first concert. One size, a 22 oz, Kid's staple $10 a hit. That is 27000+ beers sold.
That is also 2066 cases of "limited supply" release through the same SINGULAR one distributor that pre ordered 100,000 cases alone for the Detroit area in Michigan. One city. 100,000 cases "to start." Just to start. You hear me? For starters?
Kid Rock's albums number 25+ million worldwide. His fans number well over 5 million. The states of MI, OH, IL, TX, and CA alone will generate a MINIMUM of 100,000 cases in initial orders from those SO CALLED distributors that DO....DO....DO want to do business with us. Well, I have news for you. The REASON Drinks DOES NOT do business with the idiots at SunBelt, Charmer, National, etc. is for this very reason. They are paid BY the big boys to keep the likes of DKAM out when a product like this comes along. Just read all the lawsuits my good friends at Maris had to go through with BUD for doing such a thing. Yeah, free market capitalism at its finest. One step above the mafia.
Therefore, it's expected that 750,000 Kid Rock fans, Harley riders, Heartland America, working blue collar joes that are pissed BUD sold out to the Belgians will buy the beer and will buy a MINIMUM of 4 cases a year. Four cases a year? Yeah, just four cases a year. (More like 12-15). But for the sake of argument, four cases. That is 3,000,000 cases per year at a DKAM to distributor price of $10 per case. That is $30 million in sales.
$30 MILLION IN FIRST YEAR SALES
$30 MILLION IN FIRST YEAR SALES
$30 MILLION IN FIRST YEAR SALES
DKAM WILL BUY THE BEER FROM MBC! YOU HEAR ME? THEY WILL BUYYYYYY THE BEER FROM MBC. This isn't the glorified Ebay Store concept LIQR is using to wash their products into the market whereby they book sales and never carry a dime of inventory. They book sales on NOTHING that they purchase for resale. Nope. DKAM will buy the finished product and sell to distributors. All those infamous taxes on beer are the sole responsibility of the distributors and retailers. LIQR spews junk about such a huge tax loss carryover they "bought" when they reverse merged. Well, DKAM has the same tax loss carryover. So, no taxes! All the advertising is being born by Kid and MBC. DKAM has sales costs for product, personnel, and shipping and that's it. And it is shipped out of MBC. As for the difference over the NEWLY EXPANDED CAPACITY OF 1 MILLION CASES AT MBC? DKAM HAS FIVE, I REPEAT FIVE CO PACKERS THAT CAN EASILY HANDLE THE EXCESS DEMAND/CAPACITY FOR KID ROCK BEER. This was known going in to the deal that MBC would not be big enough. Kid demanded "Michigan Made" and that was the trade off that excess capacity would fall to larger breweries.
So, anybody can play around with any manufacturing numbers they want to on the beer. Those are MBC's numbers and the concern for those is ZERO with respect to DKAM. The same holds true for advertising and taxes. Any financial journalist that even had a clue would know this...all of this...and not cloud the issues for personal gain. And when it comes down to it, it makes all the sense in the world that anybody who thinks they are somebody would spend countless hours trying to drive a paper square stake into a steel hole with a LIQR lawsuit when $30 million, and a 1000% increase in sales is happening for Drinks right now. That is why you get "No Comment" when a LIQR Investor poses as a Financial Journalist looking for information to feed to LIQR executives. It would seem that is the goal in the whole process right now. Akin only to a mosquito looking for blood in a room full of rather large hands. You just don't go up against 150+ years of beverage experience and think you'll come out looking anything more than what you were going in. I'll leave the descriptors to the less than knowledgable...which number many for sure.
Posted by: BCInvestor Date: Wednesday, June 10, 2009 2:23:21 PM In reply to: None Post # of 35773
Kid Rock Bad Ass Beer Math:
Let's say DKAM sells 100,000 cases x 12 (which would be a stretch in my opinion) = 1,200,000 bottles the first year.
If the retail of a 12 pack of higher end domestic beer retails at $14.00, so let's say the Kid Rock Beer is equal to that.
The Beer Institute (BeerInstitute.org) says 40.8% of retail price of beer is taxes, soon to be more under the current regime, so that leaves $0.69 per bottle left to split between DKAM, retailer, distributor, Michigan Brewery and Kid Rock.
If DKAM wholesales the product at $0.39 per bottle:
So this is a potential scenario of break down of what is left: Brewery (glass, package, box, label, ect): $0.30 DKAM: $0.05 Kid Rock: $0.04 Distributor: $0.20 Retailer: $0.25
That leaves no consideration toward advertising, marketing or promotion the product.
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