Item 7.01 Regulation FD Disclosure On September 6, 2005, The Company held a public conference call to discuss a Master Distribution Agreement (the "Agreement)" with Coca-Cola Enterprises Inc.(CCE) for the distribution by CCE of the Company's flavored milk drink products in the entirety of the United States, all U.S. possessions, Canada, Belgium, continental France, Great Britain, Luxembourg, Monaco and the Netherlands, as well as any other geographic territory to which, during the term of the Agreement, CCE obtains the license to distribute beverages of The Coca-Cola Company. The Company made the following comments and noted the following material terms of the MDA during the conference call:
* The appointment of CCE as the exclusive distributor for the Company's products in The territory is effective August 30, 2005, has an effective distribution date of October 31, 2005, and an expiration date of August 15, 2015.
* CCE has the option to renew the Agreement for two subsequent periods of ten additional years.
* Under the terms of the Agreement, CCE is obligated to use all commercially reasonable efforts to solicit, procure and obtain orders for the Company's products, and merchandise and actively promote the sale of such products in the Territory, as defined in the Agreement.
* The Agreement establishes a comprehensive process for the phased transition from the Company's existing system of distributors to CCE, dependent upon distribution territory, product and sales channels. The parties have agreed that CCE will implement its distribution on a ramp-up basis, with the initial distribution commencing in the United States on or about the October 31, 2005 effective distribution date.
* With regard to the phased in transition to CCE distribution, the Company noted that its anticipated revenues would not materially increase during 2005 as a result of distribution by CCE, which will commence October 31, 2005.
* CCE may terminate the MDA upon twelve months notice after August 15, 2006.
* The Company has agreed to provide strategic direction of its products; maintain sales force education and support; actively market and advertise its products and design and develop point of sale materials and advertising.
* Under the Agreement, CCE has the right of first refusal to distribute any new products developed by the Company, and the Agreement establishes a process for the potential expansion of CCE's distribution of the Company's products to new territories.
* CCE may distribute products that compete with the Company's products.
* Production capacity will remain at 2,500,000 units per month until April 2006, when capacity will increase to 7,500,000 units per month.
* The Company does not have capacity issues with respect to its foreign business.
The Company announced that it will introduce a new lactose free milk based meal replacement product in November 2005 through 7-Eleven convenience stores, called Bravo! Breakfast Blenders. This new product has 50% more protein than milk and is positioned as "better for you meal on the go" beverage.
The Company offered the following guidance with respect to anticipated revenues:
* Third quarter revenues are expected to be in the $4 million range
* Fourth quarter revenues are expected to be in the $6 million to $7 million range
* Total revenues for 2006 are expected to be in the range of $70 million to $100 million with the increased implementation of CCE distribution
* Domestic Revenues for 2006 are expected to be in the range of $50 million to $60 million
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Good day today. The buys have taken over people are starting to realize that it is a pretty dumb idea to sell at these low prices. Up 4 cents today. I can't wait until this thing starts running! Good luck to everyone in BRVO, and if your not in yet you should definately consider getting in.
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Based on what the stock price is now on current revenues, then shouldn't we be near $5.00 per share at end of 2006 if they really do make $100 million at least?
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Press Release Source: Bravo! Foods International
Slammers(R) Named One of the Year's Best by Progressive Grocer Magazine Monday September 19, 9:46 am ET
NORTH PALM BEACH, Fla., Sept. 19 /PRNewswire-FirstCall/ -- Bravo! Foods International (OTC Bulletin Board: BRVO - News), a brand development and marketing company that manufactures, promotes and distributes vitamin-fortified, flavored milks, announced that its Slammers® milk drinks have been featured in the September issue of Progressive Grocer magazine, as an 'Editor's Pick' for one of the best new dairy products of the year. ADVERTISEMENT
Editors of Progressive Grocer selected Bravo!'s Milky Way® Slammers® as part of its "Winner's Circle," an impressive list of products whose "overall usefulness, innovative or appealing packaging, acuity at meeting the market's needs, merchandising programs that are especially well thought out, and responsiveness to important trends that extend beyond a 'me too' approach." Products picked by the editors of Progressive Grocer represent a wide variety of innovative products in dozens of supermarket categories.
Bravo! Foods CEO Roy Warren said, "We are excited to be part of the Winner's Circle of Progressive Grocer, one of the most well-respected and well-read industry publications. While retailers are welcoming Slammers® based on initial product testing and innovative co-branding campaigns, a prominent feature in a respected industry publication introduces our innovative and great-tasting milk drinks to a much wider audience."
Editors reviewed more than 300 products for the Winner's Circle Editor's Picks, from both the trade and consumer perspective. According to the article, " ... as trade journalists, we looked for factors that would likely lead to success in the marketplace; as consumers we had to like the product enough to consider buying them ourselves." The article praised Slammers® for "containing considerably less fat than whole milk while recreating the tastes of two of kids' favorite sweet snacks."
Bravo!'s popular Slammers® milk drinks come in 14oz. shelf-stable bottles that can be stored without refrigeration for up to six months. The long shelf life and ambient storage capability is due to a combination of unique processing and packaging, accomplished without compromising taste. Retailers nationwide are offered a variety of great-tasting, single-serve Slammers® flavors, for sale in the refrigerated dairy section.
Bravo! Foods recently signed an exclusive, 10-year distribution agreement with Coca-Cola Enterprises (CCE), the world's largest marketer, distributor, and producer of bottle and can liquid nonalcoholic refreshments, expected to commence in the fourth quarter of 2005.
Progressive Grocer ( http://www.progressivegrocer.com ), a publication of VNU Business Publications, is a respected monthly periodical targeted to supermarket management that covers all aspects of the global food business.
About Progressive Grocer
Progressive Grocer ( http://www.progressivegrocer.com )is a monthly strategic publication serving upper management in the supermarket industry along with all other segments of the global food business. In-depth features by an experienced staff of editors and writers offer insights into trends in store development, technology, marketing, logistics, international retailing, human resources, and consumer purchasing patterns.
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