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TROPICAL BEVERAGE INC (U-TPBV) - News Release Tropical Beverage Receives Commitment for Half Million
2006-11-13 06:00 ET - News Release
SANTA ANA, Calif. -- (Business Wire)
Tropical Beverage Inc. (Pink Sheets:TPBV), a producer and distributor of value-added water-based products, today announced that it has received an order to produce over 500,000 cases of product for a west coast distributor. The distributor sells water under private labels and into various markets, and will be using Tropical as its exclusive manufacturer for over 100 private labels. Tropical will be responsible for the logistics and handling of the product to the customers. The cases sell for a minimum of $3.50 per case for the basic package, but go up to $8.00 for the premium. The net revenue from this deal will bring $1-2 million to the company annually.
“This represents a direction that Tropical has been going over the last year. We have proven ourselves to be very strong in the co-packing arena, and we have been looking for solid customers that can fill the bottling time with nice, steady paying accounts. This distribution network fits perfectly for us. The plans are to improve the efficiencies in production to make these orders more profitable in the long run. Right now, they provide a nice cushion of steady business, in 6 months they will be providing a nice profit margin as we reduce our costs,” said Chris Lotito for Tropical.
Tropical Beverage (www.tropicalbev.com) manufactures and distributes a complete line of value-added beverages. Their extensive line includes pure spring waters, flavored waters, vapor-distilled waters and waters with additives (including oxygen, caffeine, electrolytes and other enhanced minerals and vitamins). They specialize in private-labeled water and have products in both domestic and international markets. In addition, Tropical Beverage continues to seek acquisitions of related companies that will enhance their product development and to build a network of subsidiaries across the nation.
Disclaimer: Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Technical complications that may arise could prevent the prompt implementation of any strategically significant plan(s) outlined above. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.
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