Aristocrat Group to Benefit from Rebound in U.S. Consumer Spending

Aristocrat Group to Benefit from Rebound in U.S. Consumer Spending

By: Tomas Ronolski - AllPennyStocks.com News

Thursday, February 12, 2015

Last month, the Conference Board reported that Consumer Confidence in the U.S. rose once again in the month of January. After rising in the month of December, consumer confidence rose to 102.9 in the month of January. Lynn Franco, Director of Economic Indicators at the Conference Board, said that consumer confidence rose sharply in the month of January and now stands at the highest level since the month of August 2007.


The fourth-quarter GDP data, meanwhile, showed that consumer spending rose 4.3%. Consumption accounts for nearly two-thirds of the U.S. GDP and therefore a rebound augurs well for the U.S. economy.

The improving consumer sentiment also bodes well for consumer focused companies like Aristocrat Group Corp. (OTCBB:ASCC). The company is engaged in the identification and promotion of unique brands that have mass market appeal across diverse demographics.

Earlier today, ASCC announced that as it gets ready for the launch of its latest distilled spirits product, it plans to increase the retail footprint of its flagship spirit, RWB Ultra-Premium Handcrafted Vodka. RWB is currently available at around 150 on-premise locations. These locations include clubs, bars and restaurants, as well as some 50 retail outlets.

ASCC’s growth strategy this year is to focus on country music hotspots around the U.S. As the company plans to target these hotspots, it will be supported by the success of rising country music star Curtis Braly. Braly is sponsored by ASCC.

Robert Federowicz, CEO of Aristocrat Group, said that Braly is currently travelling the country in an RWB-branded tour bus. Federowicz added that he wants the company’s RWB Vodka to be available for sale everywhere that this tour stops.

Such marketing and promotion efforts will help ASCC boost its top-line, which in the quarter ended October 31, 2014 totaled $25,000. In the October quarter, the company’s revenue more than doubled when compared to the previous quarter. ASCC’s operating loss for the quarter was $333,000. However, it did manage to keep its expenses in check. While revenue more than doubled on a sequential basis, the company’s SG&A expenses only increased 30%, which is a very positive sign.

ASCC’s efforts to improve the visibility of RWB Vodka brand is paying off as the doubling of revenue in the October quarter showed. An improving consumer will further help the company. And with the company managing to keep its costs in check, one can expect ASCC to turn profitable sooner rather than later.

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