Fort Lauderdale, Florida, August 9, 2022 – Splash Beverage Group, Inc. (NYSE American: SBEV) (“Splash” or the “Company”), a portfolio company of leading beverage brands, today issued a letter to shareholders from Robert Nistico, Chairman and CEO of Splash Beverage Group.
Dear Fellow Splash Beverage Group Shareholders,
On behalf of Splash’s Board of Directors, our senior management team and employees, we are delighted to have you as shareholders and as valued members of our corporate family. As we prepare to release Q2 results in the next couple of weeks, I wanted to take a few moments and share with you some of the important developments that have occurred at Splash Beverage Group since the beginning of the year and as we proceed in the coming months.
No update would be complete without reiterating the transformative announcement we made on November 17, 2021, in which we signed a distribution agreement for TapouT, Copa di Vino and Pulpoloco with AB ONE. AB ONE, of course is owned by AB-InBev, the corporate owner of Budweiser and the agreement represented our single largest distribution deal to date. This agreement is extremely important to Splash because with one agreement, we achieved a level of recognition and distribution ability in the industry that might have taken years to achieve on our own, if ever. With that recognition came the credibility of being associated with one of the blue-chip names in the beverage distribution business. And from that moment we’ve been growing and building momentum. Since the November announcement, and due to our President Bill Meissner’s strong execution, we have added more than 20 distribution agreements and retail authorizations, most notably but not limited to:
- Retail authorizations for TapouT from Walmart
- 7-11 to carry Pulpoloco beginning in September in a third of the country to start
- Winn Dixies Stores across 5 states
- Save-A-Lot stores across 32 states
- Ralph’s Grocery Stores (Kroger) in Southern California
- Copa di Vino and Pulpoloco is in Dodger’s Stadium for the entire 2022 baseball season as well as special events.
- Distribution agreements with Kalil Bottling – Arizona, Colorado, New Mexico and Southwest Texas
- Florida-based Suncoast Beverage & Sales
- Central distributors in Arkansas
- Republic National – California, Missouri, New Mexico
- Northern Eagle – New Jersey
- D. Bertoline – New York
- KW Beverage – South Carolina
- Heimark Distributing – California
- Tenace – California
- Stokes Distributing – Mississippi
- Ohio Eagle – Ohio
- The Juice Factory – New York
- Beechwood – New Jersey
- MEXCOR – Texas
- Buck Distribution – Maryland
Distribution is the key to the beverage business. Securing these arrangements is all about relationships and hard work. Our relationships with key distributors like AB-ONE and Kalil Bottlers helped open doors, and our team’s ability to execute have and will continue to do the rest. Some of the impact from these announcements was felt in our first quarter financial results reported back in May when we reported an 86% increase in year over year revenues, but most of these agreements and authorizations took place over the course of the first half of 2022, so we have not really begun to see the financial impact of these relationships.
We also recently announced our plans to acquire an 80% interest in Pulpoloco. We’ve been the exclusive importer of Pulpoloco to the US since 2021 and we’ve overseen a dramatic increase in the growth of the brand and most recently, a commitment in 7-11 in approximately a third of the US to start. At the same time, we’re seeing an incredible increase in societal interest in all things renewable and biodegradable. Pulpoloco is packaged in a highly innovative, ecofriendly paper can called the CartoCan. This unique packaging, itself made from sustainable wood fiber, generates less greenhouse-emissions during production and presents an overall lower carbon footprint. This not only enhances the value of Pulpoloco’s products but opens the possibility for myriad other uses as the eco-friendly product becomes more widely recognized. Acquiring the majority interest in this business makes strong business sense.
We see unique opportunities for each of our brands, each one reflecting positive consumer trends in their respective segments. TapouT is tapping into a growing market for isotonic beverages that offer a healthier list of ingredients. Flavored tequila is showing growth in the spirits category and in the single serve wine segment, Copa Di Vino is proving to be a breakout product with consumers. And of course, the opportunity afforded by bio-degradable paper cans has the potential to be a complete game changer. So, we feel we’re in all the right categories at all the right times.
We believe we have a strong foundation to support our business plan. We have a management team with deep experience in the beverage industry, a robust portfolio of brands that are aligned with the latest in consumer demands, a growth strategy that is firing on all cylinders as evidenced by the 8-month string of distribution and authorization announcements, and we have access to the capital we need to grow.
We are building a business that is serving a large and growing market, offering unique and compelling products. While we remain, laser focused on day-to-day execution, we are always keeping an eye on the broader market and analyzing all the trends we see developing. We are committed to remaining flexible and agile so that we can respond to opportunities that present themselves. We would like to thank all our shareholders and supporters. We appreciate the confidence you have shown in us to date, and we look forward to earning your continued support.
This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 8, 2021, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.