Capital Raise: $300,000
B2 Beverage Holdings, Inc. is re-launching its flagship “malternative” beverage lines, including its award winning
Hard CreamerTM, KalimaTM and Sangria. In 2007, its initial launch year, our Pina Colada Hawaiian Hard Creamer won the gold medal at the World Expo of Beer, and our Fuzzy Navel Hawaiian Hard Creamer won a bronze medal. The Kalima Hawaiian Hard Creamers were selected as finalists for the CSP Retailer Choice Best New Products, and won Best New Product at the 11th Annual Convenience Store News awards.
Our beverage brands are crafted for consumers that prefer a lighter alcohol tasting adult beverage alternative to the usual selection of beer, wine coolers, mixed drinks and flavored malt beverages in the market. In addition, our beverage line offers an unparalleled combination of creamy taste, smooth texture and vibrant colors.
At $107 billion in annual sales, the U.S. market for beer is the second largest market in the world based on national consumption, behind China. However, the traditional beer category has plateaued amongst consumers ages 30 and older, and amongst 18-29 year olds, as a preferred alcohol it has declined from 71% to 41% over the past two decades1. Growth segments include imports, craft beers, ciders and a drinks with various flavor profiles known as “progressive adult beverages”, “alcopop”, “malternatives” and “flavored malt beverages.”
Our plan is to develop a niche and establish leadership in that niche within the “malternative” beverage segment. The target market for our “malternative” beverages is women and entry-level consumers. We intend to initially roll-out in the Midwestern region of the United States, with a focus on establishing a downstream sales channel with Anheuser Busch distributors. As an emerging brand, with limited distribution, we don’t anticipate being picked up in the chain-sales market which is traditionally reserved for national accounts. In this region, we have identified 209 AB distributors. In 2016, we will be exclusively working to develop the Michigan market (~30 AB distributors). Though 2017, we will roll out to Illinois, Indiana and Ohio (~ additional 69 AB distributors). Excluding chain sales, we estimate our initial target market opportunity through 2017 to be approximately $82 million.
We are focused on developing a leading brand in the malternative beverage category and believe the key to success is rolling out regionally with the goal of building a strong and recognizable national presence. We believe if we can be successful in reaching this goal, that our business has the characteristics desirable for a strategic acquisition: proprietary dairy-based malternative platform and a unique product line that can unlock tremendous value to a buyer that has marketing and distribution infrastructure in place.