FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., May 16, 2022 /PRNewswire/ -- Beverage revenues are increasing around the world. In particular, Non-alcohol drinks, also known as 'virgin drinks', 'mocktails', 'performance' and 'near beer', refer to the beverages that comprise less than 0.5% of alcohol content by volume and encompasses a wide range of refreshment beverages, including energy drinks, juices, soft drinks, coffee & tea, bottled water, and probiotics. The beverage industry has faced spectacular transformation in consumer preferences in the past decade. According to a report from Allied Market Research projected that the global Non-alcoholic drinks market, which was valued at $820.0 billion in 2020, is estimated to reach $2,134.6 billion by 2031, registering a CAGR of 6.8% from 2022 to 2031. The report said: "Non-alcoholic drinks are mainly composed of soft drinks, bottled water, tea & coffee, juice, and others (energy drinks, value added water, sport drinks, and others). Soft drinks account for nearly 45.87% and 51.40%, by revenue and volume, respectively, followed by bottled water, and dairy drinks… Even though, it is currently the largest revenue generating segment, tea & coffee has indicated rapid growth in terms of revenue and volume, respectively. Moreover, the growing café culture and rise in awareness of the health benefits of tea & coffee have had a significant impact on the non-alcoholic drinks market." Active companies in the markets this week include Splash Beverage Group, Inc. (NYSE: SBEV), AB InBev (NYSE: BUD), The Coca-Cola Company (NYSE: KO), Celsius Holdings, Inc., (NASDAQ: CELH), Constellation Brands, Inc. (NYSE: STZ).
Allied Market Research continued: "Consumers' demand toward maintaining health & wellness and functional beverages has impacted the market. In addition, new compelling products with unique flavors and innovative packing by companies are expected to fuel the market growth. Furthermore, surge in disposable incomes in emerging economies has increased the adoption of non-alcoholic drinks. The huge market potential for diet and zero sugar drinks is projected to be observed for non-alcoholic drinks market during the forecast period. Moreover, introduction of newly launched drinks such as super premium juices, premium hydration, probiotics/kombucha, and craft soda to meet consumers' demand for low calorie, organic, high-quality, functional, and delicious drinks is anticipated to be an evolving landscape for the non-alcoholic drinks market in future."
Splash Splash Beverage Group Reports Record First Quarter 2022 Financial Results - Revenues Increase 86% Year over Year with $4 Million in Gross Sales as Company Signs 12 New or Expanded Distribution Agreements - Splash Beverage Group, Inc. ("Splash" or the "Company"), a portfolio company of leading beverage brands, today reported financial results for the first quarter period ended March 31, 2022. Investors are encouraged to read the Company's quarterly report on Form 10-Q which was filed with the Securities and Exchange Commissions (the "SEC"), contains additional information, and is posted at https://splashbeveragegroup.com/.
First Quarter Financial Performance:
- Gross sales for the first quarter were $4.1 million compared to $2.2 million 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 $5.7 million compared to $4.4 million 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 $8.5 million, compared with $4.2 million 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 $4.1 million 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.
"During the first quarter we also significantly strengthened our balance sheet with an $8 million capital raise under our existing shelf registration statement. The cash provided from this offering will help finance our ongoing operations and inventory needs to fuel future growth needs. At the end of the quarter, we still had more than $8 million in cash and less than $1 million in long term liabilities. We believe we are well positioned to benefit from the strong growth of the categories we compete in and consumer acceptance."CONTINUED… Read the Splash Beverage full press release by going to: https://splashbeveragegroup.com/investor/press/
Additional recent developments in the markets this week include:
Corona, an AB InBev(NYSE: BUD) global brand, recently announced the launch of Corona Tropical, the brand's first lightly sparkling alcoholic drink made with a hint of real fruit juice* available worldwide. An inclusive beverage for consumers who embrace the Corona lifestyle but are looking for an alternative to beer, Corona Tropical is a highly refreshing new way to enjoy Corona. The newest innovation by Corona is currently rolling out globally in China, Colombia, Peru, Panama, Ecuador and the UK, with additional markets launching later this year, starting with Canada.
According to Research and Markets, the global alcoholic infused sparkling water market size is expected to expand at a compound annual growth rate of 12% over the next several years. As more consumers around the globe look for alternative, low-calorie beverages, Corona created a product catered to consumers searching for that Corona lifestyle, beyond beer. Corona Tropical is a refreshing alcoholic beverage with no added sugar and less than 100 calories per can, available in several tropical flavors. With Corona Tropical, Corona is expanding its global beverage portfolio to offer a new, refreshing, and flavorful taste of paradise, by developing a completely unknown category in some markets around the globe.
The Coca-Cola Company (NYSE: KO) recently reported first quarter 2022 results, showing continued momentum in our marketplace performance. "We are pleased with our first quarter results as our company continues to execute effectively in a highly dynamic and uncertain operating environment," said James Quincey, Chairman and CEO of The Coca-Cola Company. "We remain true to our purpose and are staying close to consumers. We are confident in our full-year guidance, and we are well-equipped to win in all types of environments as we fuel strong topline momentum and create value for our stakeholders."
Revenues: Net revenues grew 16% to $10.5 billion, and organic revenues (non-GAAP) grew 18%. Revenue performance included 7% growth in price/mix and 11% growth in concentrate sales. Concentrate sales were 3 points ahead of unit case volume, largely due to the timing of concentrate shipments in the current quarter, partially offset by the impact of one less day in the quarter.
Celsius Holdings, Inc., (NASDAQ: CELH), maker of the leading global fitness drink, CELSIUS, recently reported preliminary and unaudited financial results for the fourth quarter and full year ended December 31, 2021.
A PDF containing our fourth quarter and full year preliminary and unaudited 2021 results and full financial tables is available at:
https://www.celsiusholdingsinc.com/Q4_2021
Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, recently reported its fiscal year and fourth quarter 2022 financial results and fiscal year 2023 outlook.
At Constellation Brands, our mission is to build brands that people love because we believe sharing a toast, unwinding after a day, celebrating milestones, and helping people connect, are Worth Reaching For. It's worth our dedication, hard work, and the bold calculated risks we take to deliver more for our consumers, trade partners, shareholders, and communities in which we live and work. It's what has made us one of the fastest-growing large CPG companies in the U.S. at retail, and it drives our pursuit to deliver what's next.
Today, we are a leading international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Every day, people reach for our high-end, iconic imported beer brands such as Corona Extra, Corona Light, Corona Premier, Modelo Especial, Modelo Negra, and Pacifico, our fine wine and craft spirits brands, including The Prisoner Wine Company, Robert Mondavi Winery, Casa Noble Tequila, and High West Whiskey, and our premium wine brands such as Meiomi and Kim Crawford.
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