Replies to post #54967 on Drinks Americas Holdings, Ltd. (DKAM)

[Toxic Avenger]

Call me crazy, but it seems to me if you call up a distributor and say "I have a new beer what will you charge me to distribute 4 cases to 3000 stores" you're not going to get the same answer as if you say you'd like 100 cases distributed to each of 500 stores.
Last quarter gross margin was negative and while there may be some start up costs and economies of scale, most of the start up costs are in SG&A, not CGS and economies of scale would require significant capital, which I don't see DKAM getting.