( WDKA REPORT )Welcome to all our new members.
Post# of 64
( WDKA REPORT )Welcome to all our new members.
As usual we are the first Small-Cap Newsletter covering Panache Beverages Inc .
With the holidays approaching and most investors/traders away, we see an oppurtunity for our group to snag some cheap shares in (OTCQB:WDKA) before the street catches on. There is sure to be more eyes on this gem soon, as word has it there are some BIG awareness plans here . Zacks.com has issued a price target of $2.75/share that's 420% potential gains from the current PPS!
WDKA 52 week range: $.10 to $1.98
WDKA Current PPS: $.65
Panache has proven the ability to build a brand and cash in for their shareholders with the sale of 42 Below for $91 million . This could mean big money for those who get in early!
Our buyout watch alert from yesterday Panache Beverage, Inc. (OTCQB: WDKA) has issued another positive press release today. If you missed our report yesterday we have included a copy below.
NEW YORK, NY -- (Marketwire) -- 11/21/12
Panache Beverage Launches Alibi American Whiskey
Advertising creative notes, "Alibi is an elixir for the flawed human spirit in all of us... Alibi is for real people, real drinkers and believes that at one time or another, everybody needs an alibi."
Alibi American Whiskey will be available in New York, Florida and New Jersey by the Thanksgiving holiday and will be widely available nationally in 2013, including at retail and on-premise in Georgia, Illinois, Washington, Texas, Massachusetts, Connecticut, Arizona and Nevada.
This is the first foray into the brown spirits category for Panache, which markets and distributes Wódka Vodka. Considered a game-changer in the spirits industry, Wódka became the first super-premium vodka offered at a fraction of the cost of so-called "luxury" brand vodkas that have kept prices in the category artificially high through packaging, celebrity-oriented marketing and imposing triple-markup price tags. (Read Full Article) http://www.nasdaq.com/article/panache-beverag...KzZR4cvpKc
NEW YORK, NY -- (Marketwire) -- 11/20/12
Panache Beverage, Inc. Announces New Supply Agreement for Wodka Vodka; Increasing Gross Profit 11%; Projects Record Fourth Quarter
Panache Beverage, Inc. (OTCQB: WDKA ), an alcoholic beverage company specializing in the development, global sales and marketing of spirits brands, is pleased to announce that it has formalized a new supply agreement for Wodka Vodka with a Polish partner. The move will result in a cost savings, increasing the gross profit for Wodka Vodka by over 11%. The new distillery partner also produces the grain making Wodka Vodka one of the only value vodkas with the status of an artisan, field to bottle, brand.
"The distillery change was an important strategic move for the future of the Wodka Vodka business ," explained Panache CEO James Dale. "Increasing margin for the brand while solidifying our quality for value proposition was critical as we look at the things we need to do to make Wodka Vodka a 1 million case brand."(Read Full Article) http://www.nasdaq.com/article/panache-beverag...KzblocvpKc
MUST READ ON WATCH---POTENTIAL BUYOUT REPORT: WDKA, Panache Beverage Inc. Some of you may remember the infamous ad that got national attention for their signature brand Wodka Vodka. (Source CNN) - A vodka brand that claimed to represent "Christmas quality" at "Hanukkah pricing" will take down a New York billboard carrying the controversial slogan in response to complaints that the sign is offensive and promotes negative stereotypes.
The ad was changed however this one came down as well. (Source CBSNewYork) — A vodka company known for its controversial advertising has removed a Bronx billboard after community outcry.
The company making “Wodka” vodka drew the ire of residents and Community Board 2, who complained about the billboard reading “Escort Quality, Hooker Pricing.” The ad is meant to convey the company’s message of a premium product at a discount price.
The ad, which appeared over the Bruckner Expressway was taken down Wednesday morning. The same billboard can still be seen along the West Side Highway in Harlem. It is not clear if that ad will come down also.
On a more serious note this company could be a REAL target for a buyout read on...
From the report below: WDKA’s business model is to “build and exit” as the company already has demonstrated in its 2006 sale of its 42 BELOW vodka brand to Bacardi for $91 million.
Source: Seeking Alpha
Diageo’s $2.1 Billion Deal Signals More Consolidation On The Way
A week ago , spirit conglomerate Diageo (DEO) agreed to buy a majority stake in United Spirits , India’s largest spirit company. Diageo said it would end up with 53.4% in United Spirits for a price tag of $2.1 billion or 20x trailing EBITDA. This transaction continues the trend that began in the 1990’s of the consolidation of the spirit industry. With the major spirit conglomerates largely using the “acquire to grow” business philosophy, more transactions are expected. Notably, Diageo is thirsty for more deals and already is in talks to buy leading tequila maker Jose Cuervo. The question now becomes who’s next.
Panache Beverage (OTCQB: WDKA ) is a smaller company that’s business model that fits the consolidation trend of the major spirit players. WDKA’s business model is to “build and exit” as the company already has demonstrated in its 2006 sale of its 42 BELOW vodka brand to Bacardi for $91 million. Vodka represents over 25% of all spirits purchased in the U.S.
The company's expertise lies in the strategic development and aggressive early growth of its brands establishing its assets as viable and attractive acquisition candidates for the major global spirits companies. Panache's existing portfolio contains three brands: Wodka Vodka, Alchemia Infused Vodka and Alibi American Whiskey.
Zacks covers the stock and has a price target of $2.75 on the shares, plenty of upside from today’s prices. In the report, Zachs is bullish on the company’s three brands and says “Panache remains well positioned to achieve solid revenue growth and operating leverage as it builds its portfolio of successful brands to eventually sell to the big players in the acquire to grow spirits arena.”
The company’s most recent news centers are the expansion of distribution for its spirit brands. On May 9, Panache announced a deal to enter Canada with Wodka Vodka and Alchemia Infused Vodka. On June 28, Panache announced that Wodka Vodka entered into a major distribution deal in Australia . On July 30, Panache announced a Wodka Vodka distribution deal into the state of Nevada. The growth rates for Panache have been impressive. In its last reported quarterly results , Panache reported revenue growth of nearly 70% year/year.
Beam’s (BEAM) brands include Jim Beam Bourbon, Maker's Mark Bourbon, Sauza Tequila, Pinnacle Vodka, Canadian Club Whiskey, Courvoisier Cognac, Teacher's Scotch Whiskey, Cruzan Rum, Hornitos Tequila, Knob Creek Bourbon, Laphroaig Scotch Whiskey, Kilbeggan Irish Whiskey, EFFEN Vodka, Pucker Flavored Vodka, Larios Gin, Whiskey DYC, DeKuyper Cordials, and Skinnygirl Cocktails. Beam is focused on delivering superior performance with its unique combination of scale with agility and a strategy of Creating Famous Brands, Building Winning Markets and Fueling Our Growth. Beam and its 3,200 passionate associates worldwide generated 2011 sales of $2.8 billion, volume of 34 million 9-liter cases and some of the industry's fastest growing innovations.
Beam has been widely mentioned as an M&A target ever since the breakup of Fortune Brands last year. In a story last year just after the break up, Street analysts said that that with bourbon sales outpacing vodka in the U.S. as drinking at home increases, Beam’s command of a third of the domestic market with Jim Beam and Maker’s Mark may lure Pernod or Diageo said Davenport and Goldman Sachs. Separately, an analyst noted that Beam has “a very strong position in the U.S., which is the most profitable market, so it would be a very nice addition to one of the other global players.”
In a story earlier this year in a UK paper , there were rumors of a bid for Beam in the works in the $90/share range. Broker Liberum Capital said that Beam would be a good fit as Diageo is under exposed to brown spirits in the US. Furthermore, a multi-billion pound break-up bid for Beam could possibly be boss Paul Walsh’s swansong, Liberum Capital noted.
Molson Coors Brewing Company (TAP) is one of the world’s largest brewers. The company’s operating segments include Canada, the United States, Central Europe, the United Kingdom, and Molson Coors International. The company has a diverse portfolio of owned and partner brands, including signature brands Coors Light, Molson Canadian, Staropramen and Carling.
The company has struggled and analysts weren’t too pleased with TAP’s acquisition of StarBev earlier this year for €2.65 billion ($3.54 billion). The purchase price represented a multiple of approximately 11x EBITDA. That fact, combined with the sluggish stock price, may provide an opportunity for a competitor to come in and make a bid. In fact, the stock was recently mentioned as a takeover candidate . The mean analyst target calls for upside of over 15% in the shares.
(OTCQB: WDKA ) security details: A/O 9-30-12: 26,392,674 Shares outstanding
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Have a Happy Thanksgiving Everyone
The Team at FPP,
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