Fort Lauderdale, Florida, January 5, 2023 — McapMediaWire — 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.
Dear Fellow Splash Beverage Group Shareholders,
As we embark upon 2023, I wanted to take this opportunity to briefly update our shareholders on some key developments that have taken place at Splash Beverage Group since our last corporate update.
Since our August update, we have continued to add distribution agreements and retail authorizations. This is a result of positive brand performance in existing accounts, and our growing reputation in the industry. Keep in mind that each new distributor and / or retail chain adds revenue for Splash.
These examples of authorizations are from both national and regional retailers throughout the country:
- Circle K, where all 7 varieties of Copa di Vino are now being featured in West Coast stores.
- Publix, one of the top grocers in the U.S. has authorized TapouT Performance Drink.
- Target, where TapouT is now authorized, and our distributors are currently placing product on shelves.
- 7-Eleven, where Pulpoloco was selected for 7-Eleven’s Brands with Heart highlighting our fully sustainable paper can.
- am/pm (BP), where TapouT is authorized for the West Coast of the U.S.
- Winn Dixie Supermarkets has authorized TapouT and is being distributed via one of our broadline distributors.
In addition, SALT Tequila continues its expansion with distribution agreements in Nevada and Maryland. Our objective of large venue distribution continues with The University of Alabama’s Athletics Department, home of the Crimson Tide football team, with one of the largest fan bases in the SEC, announced that Copa di Vino will be the exclusive wine available at UA sports events.
All told, we added more than a dozen-and-a-half new distributors and half-a-dozen national and regional retail chain authorizations, adding thousands of new shelfs to fill in as we prepare for 2023. Setting up this many distributors and chains is an arduous process and takes time. However, we believe we are poised to realize the impact of these additional accounts beginning in early in 2023 and we are very pleased with our progress as we continue to build distribution throughout the U.S.
This growth requires capital of course to ensure we have sufficient inventory to fill orders and support the additional activity. Our most recent raise over the holidays (from the sale of long-term convertible promissory notes and the issuance of warrants to purchase common stock), does just that. These funds came from pre-existing legacy investors and former board members who have demonstrated a long-term approach with their investments in Splash. We believe their investment is indicative of their ongoing confidence in Splash Beverage Group as it strengthens our balance sheet entering the new year.
We will be reporting our 2022 full year financial results soon, but our third quarter results reported in November reflected a 73% growth in gross sales on a quarter-to-quarter comparison, and 64% growth on a 9-month basis. We are confident our overall performance will eventually outpace external market influences.
All this added business needed additional hands to manage the growth, so we brought on industry veteran James Allred, recently of Anheuser-Busch InBev, to lead the sales team and drive new growth initiatives. Our success isn’t just limited to new agreements but has attracted some celebrity support as well. NFL great, Drew Brees, is now an ambassador for TapouT to his substantial number of fans and followers on social media.
Each of our brands tap into unique trends in consumer preferences, and we believe that we are in the right categories at the right time. We are very grateful to have you as shareholders and we look forward to continuing to earn that confidence.
Follow Splash Beverage Group on Twitter: www.twitter.com/SplashBev
About Splash Beverage Group, Inc.
Splash Beverage Group, an innovator in the beverage industry, owns a growing portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash’s strategy is to rapidly develop early-stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution.
This update 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 31, 2022, 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.
Splash Beverage Group
Phone: (917) 658-2602