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It's More than a Drink, at Sports Pouch Beverage Company, Inc.

by Greg Moses - AllPennyStocks.com News Reporter

September 12, 2006 (AllPennyStocks.com Media Inc.) - The single serve juice, water, and health drink beverage segment has been and continues to be a fast growing consumer favorite. This type of product, fortified with vitamins and minerals, is gaining momentum with consumers looking for refreshing and healthful alternatives to sodas. As a high margin sector, this $1 billion dollar beverage segment is highly competitive, featuring a broad and diverse base of players both large and small.

Differentiation is a key to success in the boutique and specialty beverage segment. Differentiation is especially important with new branded products, as well as established private label and regionally known brand names. Convenient, attractive, and value featured packaging that targets specific consumer groups is a winning formula for success.

One firm gaining industry notice for technology innovation and marketing concept design is the Sports Pouch Beverage Company. Inc. (Pink Sheets: SPBV). Marketed under the trademarked name "All American Sports Pouch"™, the product, is not only eye catching on the store shelves but projects a strong marketing image with the All American theme. The Sports Pouch is geared to a highly desirable consumption demographic, which are parents with children and especially children in sports.

The easy to use product comes in the traditional juice size package of 6.75 oz., which is the correct size for a child's drink. The product is able to maintain a high quality of taste and freshness, even with repeated openings, and does not require an external straw to enjoy the beverage.

But beyond producing new beverage brands and products, the Company was created for the expressed purpose of advancing pull-push spout technology for liquid pouch packaging. In fact, the Company has a "Process Pending Patent" for the Sports Pouch Beverage package with the pull-push spout. The Company's goal is to be one of the leaders in flexible pouch beverage packaging by the year 2008.

While the fruit flavored beverage tastes good, the Company's true advantage rests in the packaging. Parents and consumers alike have been frustrated with competitor packaging products, regarding difficulty of opening and closing, and general functionality. The "All American Sports Pouch"™ comes with a pull-push spout, which requires no external straw, and conveniently reseals its container, which is a big plus for children's drinks.

All of the Company's key competitors, use "straw and pouch" package systems, which are less convenient for consumers. In addition, Sport Pouch's resealing technology, which looks much like the spouts used to reseal bottled water, is much more user friendly.

The Company has a strong marketing plan and distribution channel. One example is its mutually beneficial strong business relationship with Smart & Final Inc., which began with the first shipment of mountain spring water to the California headquartered company in April, 2005. The mountain spring water product was the first of the SPBV proprietary product lines to be distributed.

Smart & Final is a major regional retail warehouse store operating 249 non membership warehouse stores spanning 6 western states and northwest Mexico. Smart & Final is a publicly held corporation trading on the New York Stock Exchange as SMF.

Recently, Smart & Final increased its cycle of orders for the "All American Mountain Spring Water"™ and is running a major end of summer sales promotion for the product. This joint promotion is expected to drive fourth quarter revenue for SPBV. The "All American Mountain Spring Water"™ features an 8 oz. flexible pouch comprised of 3 layers of plastic and aluminum film laminated to a custom fit. The product is sold in 12 pouch and 24 pouch packaging at the warehouse store.

Looking to 2007 and beyond, SPBV plans to expand distribution beyond the West Coast. The Company's business model can accommodate both branded and private label drinks for either domestic or international clients providing SPBV with multiple revenue streams. Senior Management continues to leverage its past business relationships with established grocery brokers and food distribution entities for success.

Sports Pouch Beverage is a very nimble competitor. The Company has the flexibility to develop new brands, or land co-packing agreements with established beverage manufacturers for well known consumer brands or private label brands.

The future business opportunities for this young Company look very bright. Beyond operating in a strong growth beverage segment with attractive profit margins, its potential is firmly anchored in its patent pending process technology, combining for a very solid foundation.

This cost effective production method allows SPBV to feature very competitive consumer pricing, while still affording attractive profit margins for retailers and co-packing beverage manufacturers.

In a prudent fashion, the Company started out locally and regionally and now has a business plan that details an expansion, across North America and into Central and South America. SPBV is definitely a Company to consider in the fast growing specialty beverage sector, as it expands its reach.

 

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