$1.5Tn Market With High Valuation Multiples
- Global beverage market valued at $1.5Tn in 2018 and projected to grow to $1.8Tn by 2024 (1)
- Recent growth has taken place in the emerging Functional Beverage Category as ignited by Vitamin Water’s $4.2Bn sale to Coke (2)
- Valuation multiples for acquisitions and spin-off transactions typically range from 5x - 7x of gross revenue and reach up to 20x for the best-known brands
- Splash is positioned to capitalize on industry growth due to management's experience and relationships with distribution and retail
- Cash out exits of specific brand sales will go to topline revenue and bolster shareholder value
- Wm. Bolthouse Farms Exit Case Study
- Wm. Bolthouse Farms Sold to Madison Dearborn Partners for $1Bn
- MDP Sold to Campbells for $1.55Bn 6 years later
(1) - Research and Markets: Global Beverage Market Forecasts
(2) - Expected industry growth in 2020 - Canadian, Quarterly Beverage Tracker, February 2021.
Get More Details Here From The Company Presentation.
And as I've already mentioned, SBEV has 5 must-see potential catalysts that could provide a breakout spark. Here they are:
No. 1 SBEV Potential Catalyst - Record Q1 2022 Revenue Increase
Splash Beverage Group Reports Record First Quarter 2022 Fi-nan-cial Results Revenues Increase 86% Year over Year with $4M in Gross Sales as Company Signs 12 New or Expanded Distribution Agreements
Fort Lauderdale, Florida, May 16, 2022 (GLOBE NEWSWIRE) -- Splash Beverage Group, Inc. (NYSE American: SBEV) ("Splash" or the "Company"), a portfolio company of leading beverage brands, today reported financial results for the first quarter period ended March 31, 2022...
First Quarter Fi-nan-cial Performance
- Gross sales for the first quarter were $4.1Mn compared to $2.2Mn in the prior year period, an increase of 86% over the prior year period. The increase in revenue were primarily due to increased sales from the single-serve wine business and increases in B2B and B2C ecommerce sales.
- Company reports twelve new or expanded distribution/sales agreements with distributors or retailers.
- Gross profit for the first quarter was $832K compared to $517K in the prior year period.
- First quarter net loss from continuing operations was $5.7Mn compared to $4.5Mn in the prior year period. The increased difference was primarily due to expenses relating to non-cash items, share-based compensation, and increased marketing costs.
- As of March 31, 2022, the company had total cash and cash equivalents of $8.5Mn, compared with $4.2Mn at December 31, 2021.
Robert Nistico, Splash Beverage Group’s Chairman and CEO, commented, “Our 2022 first quarter results demonstrate how we are effectively executing our business strategy of acquiring and expanding undervalued beverage brands within our growing distribution system. Since our announcement in November 2021, when we reported our transformational agreement with AB ONE distributors, we have added 15 new distribution agreements, with 12 agreements in the first quarter alone. This has helped drive gross sales growth to a record $4.1Mn in the first quarter, a significant increase over the prior year period as well as strong sequential growth from the fourth quarter of 2021. These agreements include TapouT Performance Drink where we will see the impact in Q2 as it takes time to set up and physically ship to new distributors."
Read the full article here.
No. 2 SBEV Potential Catalyst - Triggered Technicals Could Signal A Possible Breakout On The Horizon
With all of its big news happenings, it may be easy to overlook SBEV's technicals.
But I'm telling you right now... Don't.
Acting as another potential catalyst, SBEV has several bullish technical indicators across the short, medium, and long term.
Barchart is currently reporting these technical indicators as triggered (at close Wednesday):
Short Term Indicators
- 20 Day Moving Average
- 20 - 50 Day MACD Oscillator
- 20 - 100 Day MACD Oscillator
- 20 - 200 Day MACD Oscillator
Medium Term Indicators
Long Term Indicators
- 100 Day Moving Average
- 150 Day Moving Average
- 200 Day Moving Average
- 100 - 200 Day MACD Oscillator
On top of that, Barchart is signaling that its composite "TrendSpotter" indicator is triggered too.
Count them. That's 10 triggered technical indicators.
Could this be a signal of things to come?
No. 3 SBEV Potential Catalyst - A Summer Full Of Distro Agreements
As you read above, this company has been making moves left and right.
Over the last few months, they've turned it up a notch with several distribution agreements that could bring the company serious attention.
Check them out:
7/19/22: Splash Beverage Group Extends Distribution in Arizona with 86 Retail Locations Across Three Convenience Store Chains
7/6/22: Splash Beverage Group Gains New Distribution with Convenience Store Chain Brewer Oil Company for TapouT Distribution Across New Mexico
6/30/22: Splash Beverage Group Signs Agreement with Mexcor for Full State Distribution of All Three Beverage Alcohol Brands in Texas
5/23/22: Splash Beverage Group Broadens Reach through Agreement with Maryland’s Buck Distributing
Could their next potential distribution agreement by one in your neck of the woods?
No. 4 SBEV Potential Catalyst - A Game-Changing Acquisition Of 80% Of Pulpoloco Sangria
Splash Beverage Group Enters into Agreement to Acquire 80% of Pulpoloco Sangria
Controlling Manufacturing and Distribution Process to Add Scale and Drive Revenue Growth
Fort Lauderdale, Florida, June 23, 2022 (GLOBE NEWSWIRE) -- Splash Beverage Group, Inc. (NYSE American: SBEV) (“Splash” or the “Company”), a portfolio company of leading beverage brands, today announced that it has signed an agreement to acquire 80% of Pulpoloco Sangria in a transaction that will give Splash control over the manufacturing and distribution of Pulpoloco across the US while adding international markets, capturing the additional margin and revenue.
Splash acquired the distribution rights to Pulpoloco in 2020 and is currently the exclusive importer of Pulpoloco for the United States. Splash has overseen the dramatic growth of the brand, including a 43% increase in sales through May versus the prior year. Pulpoloco Sangria is made in Madrid, Spain following the family recipe of the founder Paul Damon with three varietals, Crisp White, Soft Rose’, and Smooth Red. Pulpoloco is packaged in a highly innovative, ecofriendly paper can called the CartoCan. Splash expects to complete the transaction by the end of August.
Robert Nistico, Splash Beverage Group’s Chairman and CEO, commented, “In addition to bringing Pulpoloco entirely under the Splash roof, we will benefit from the additional layer of margin AND increase our global footprint and revenue. Pulpoloco was the only brand in our portfolio where we were not directly responsible for the manufacturing. Owning the manufacturing process entirely, which includes the exclusive rights of the innovative eco-friendly packaging, not only expands those rights, but will provide us with the opportunity to ship in greater bulk and to markets with faster growth potential. We believe this will help us add scale and drive additional revenue growth while potentially improving margins.”
Splash announced that Pulpoloco’s founder Paul Daman will also be joining the Splash team and will manage the international business for Pulpoloco and other Splash brands as well.
Read the full article here.
No. 5 SBEV Potential Catalyst - Low Float Could Provide Potential Volatility
According to the Yahoo Finance website, SBEV has a relatively low float.
The website reports this profile to have approximately 24.59Mn shares in its float.
Why is that important? It's important on one crucial level. Volatility.
With so few shares available for trading, other potential catalysts (like big news) could spark a vertical move in the short-term.
SBEV Recap: 5 Must-See Potential Breakout Catalysts
No. 1 - Record Q1 2022 Revenue Increase
No. 2 - Triggered Technicals Could Signal A Possible Breakout On The Horizon
No. 3 - A Summer Full Of Distro Agreements
No. 4 - A Game-Changing Acquisition Of 80% Of Pulpoloco Sangria
No. 5 - Low Float Could Provide Potential Volatility
Coverage is officially initiated on SBEV. When time permits, do this: