The Pulse Beverage Corporation (OTCBB: PLSB) ("Pulse"), makers of Cabana™ 100% Natural Lemonade and Pulse® NutriPurpose™ brand beverages, gave the Street an update today on its continued rapid growth of distribution territories and 150%+ quarter-over-quarter case sales growth rates.
Key takeaway: The additional distribution in key territories will drive dramatic case sales growth during Q3 near or exceeding the "magic" 250,000 cases per quarter/one million+ annual sales plateau:
Pulse currently distributes its Cabana 100% Natural Lemonade into 33 states (and soon to be 39), Canada and Panama through over 60 distributors, most of which are considered Class "A" distributors.
Let us translate "Class A Distributor". In the beverage industry Class A distributor means a large and long established distributor associated with a major bottler like Coke or Pepsi or a large brewer ala Bud/Coors or Miller as opposed to a second tier distributor not-associated with major bottler or brewer. Class A distributors have significant leverage with retailers because their main products (beer and Coke/Pepsi) are key profit centers for retail grocery and convenience stores. Class A distributors USE this power to bring NEW products like Cabana 100% Natural Lemonade to increase their total market share to their retail customers...hence securing Class A distribution coverage is MUCH more valuable to PLSB than securing second-tier distributors.
MOST important to us PLSB shareholders--Bob Yates, CEO says, "Our Cabana™ 100% Natural Lemonade is among the top-selling beverages in grocery stores and C-Stores where our product is available. With this rapid growth of our distribution network, case sales increased 153% in Q2 compared to Q1. We expect a similar increase for Q3 compared to Q2."
Paddy Sheya, National Sales Manager of Pulse, added, "We have been concentrating our sales efforts on obtaining chain store listings in the areas where we have distribution set up which is leveraging our rapid growth from coast to coast."
Bottom-line: Pulse Beverage continues to exceed our aggressive sales forecasts for Cabana lemonades. With 40 states of distribution by summer's end, 80% of US population will be covered by their sales footprint and they are clearly ahead of the magic 1 million case annual /250,000 quarterly case sales rate that makes Cabana brand ALONE a $100 million brand (using the standard industry metric of @$100 a case value for non-alcoholic beverage brands w/over one million annual case sales.)
When their line of truly "good for you" Pulse® NutriPurpose™ brand beverages begins distribution in the Fall, we expect to have ANOTHER one million case brand (with its own $100 million valuation) this time NEXT year as they leverage their 40 state distribution system to gain market share TWICE as fast as Cabana.
With two $100 million+ beverage brands and current market cap of less than $20 million (fully diluted) Pulse Beverage represents the highest reward (10X) /lowest risk opportunity in our coverage universe.
If you don't have PLSB shares in your NBT Adventure Capital portfolio, now is the time to start or build your position at this extremely under-valued share price. Pulse Beverage is the financial legacy deal for Bob and his team of 25+ year beverage industry veterans-they have their eye on the $200+ million exit prize and so should we shareholders.