$VGID - 11/2015 Conference Call DD Notes
AND:
Total sales just under $400,000 for the quarter vs $250,000 last year for the AND product.
(Buzzy wanted higher numbers but because we don’t have a sales team he had to divert his time and energy to helping Fernhill become a public company. $FHBC).
Just under $1,000,000 for the year.
Goal is $5,000,000 for the future. (2-5yrs).
The cans are done! Being produced in Wisconsin!
Buzzy wanted to have them by this time last year but was way too expensive (need to have millions of units at a time).
First production of cans is the week before Christmas 2015 and ready to ship out the first of the year 2016.
This will help with profitability and our bottom line.
There is not a lot of new distribution starting in the winter so it won’t initially help the top line until spring with a bunch of new distribution.
We are going to transition to new distribution in the spring.
This year we had 25 new distributors, about 10 dropped off and we are now engaged heavily with 12.
These 12 have verbal and written contracts on the east and west coasts.
9 in the South East and 3 in the North West which is in addition to preexisting SW and NE distribution.
So far 9 of the 12 have signed contracts (all 3 in the NW and 6 in the SE).
This will double our current distribution.
All the money coming in goes right back into the product (raw goods) except $1 a case.
.50/case pay employees.
.50/case charities.
No salaries are being paid, ALL employees get paid by the case.
We are out money 120 days, with a 12-15% return.
We buy everything up front until we start working on terms with a strong $1million dollar revenue mark.
Buzzy thinks right now that’s not hard, its only 10,000 12pack cases a month, and we are already almost there.
These new distributors will be for AND and Roadkill.
The new guys want cans of AND and absolutely want Roadkill.
Roadkill (Fernhill Beverage $FHBC):
Did $350,000 in revenue in 2015.
Roadkill is expecting at least 2x sales next year.
Great hard working officers have grown Fernhill big this last year.
Roadkill is $VGID’s baby or little sister.
4 flavors now and 5th (Lemon Lime) is coming.
Fernhill is developing a new fitness water, natural herbal, pain relief (he can’t say too much).
Already have had some inquiries about selling the Roadkill brand to much bigger companies than us.
Getting ready to hand off our distribution to a bigger company, we only service 2000 accounts and they handle 25-30,000 accounts.
We plan on getting into Food Lion in the SE this Spring. (Able to name drop the founder after meeting him at daughters college).
We are in 29 Palms and will be in Camp Pendleton in 2016.
In 13 different 7-11 convenience stores right now.
Involved with Wounded Warriors and the NHL.
Placed order for 52 - 4’ single door True coolers, wrapped with our product, owned by us to put in storefronts.
Buzzy will not remain as Chairman after shares are distributed.
Spinoff Shares:
First intention was to be a true spinoff but Buzzy wasn’t ready and doesn’t really know how it works.
Going the route of a reverse merger is cleaner, cheaper and quicker.
It’s out of Buzzy's hands now.
***Once the name and ticker symbol has changed the company (Fernhill Beverage) is planning to announce a press conference introducing themselves and talking about the brands. PR’s, conference calls, etc. to follow.***
Fernhill Beverage, Inc. OTC ticker FHBC
Authorized Shares 580,000,000
Outstanding Shares 100,020,225
Freely Tradable Shares (Float) 11,720
Hammered Zebra Beer brand:
VGID will own 50%.
Hammered Zebra beer brand is a very small micro brew from San Diego.
Buzzy had them packaging, changing label, changing bottles, marketing towards more fun, sports, not taking yourself too serious type style.
Affter dealing with licensing,manufacturing and selling a beer the founders decided it's to too much hard work and red tape, so VGID is buying them.
A big PR campaign is coming with pictures and everything about the brand.
Hammered Zebra beer brand has 5 different formulas with very small distribution.
We are not paying a lot for it, it’s very cheap because the guys that started it don’t want to run it.
Repackaging, licensing and selling beer takes up to 2 years and up to $1mil, so instead we are partnering up with an individual whom already has national licensing to sell malts and spirits (his family has had since the depression).
This partner who is very powerful in the beverage business says, “Innovators get rewarded and imitators get punished."
He also already owns a big beer distributorship and
another person who is going to be a partner also owns a beer distributorship.
Not a lot of money for marketing at first but that is good because it is different marketing than non alcoholic beverages.
No give aways, samples, gorilla marketing etc.
Expecting to launch around March - May 2016.
Asian Wellness Product:
In the process of a strategic alliance of a band of partnerships.
In the process of purchasing a large chunck of a product developed in S.E. Asia.
It is a 3 ounce wellness shot that you take daily.
It has all kinds of exotic herbs and minerals and it is quite good.
We will be selling and marketing it as a 30 pack.
The name has not been decided upon yet because the current name will not translate kindly to English (offensive).
Only other thing not settled is how to bring it to market. Buzzy is open for suggestions.
Maybe traditional up and down the street distribution,we sell to the distributor and help them sell to the store and the store sells to the individual.
Maybe big box if we can by the case (Sams, Cosco, etc) but very hard to accomplish.
Maybe direct marketing as a direct shipment 30 pack online.
Currently we are repackaging the bottle so it ships better, changing the name, new labels designed.
Mexican Kids Drink:
Our distributorship just made a deal with a company out of Mexico with a very popular kids drink in Mexico City and throughout.
They are doing millions of dollars in business.
***The product is called”___?___” (I couldn’t understand him, something like “Salbratitos"
***
We will help to create a market here in the U.S.
Next week we will be officially inking that deal to import “___?____" into the U.S. to create a market in California followed by helping them get across the entire southern U.S.
We will collect a broker fee for everything they sale.
In 2016-2017 this should build real residual revenue for the company without having to spend a lot of money.
Medicinal Marijuana Chai Tea:
Buzzy is personally not a big fan of the marijuana market however we are partnering with a group who has a lot of money and distribution who want to develop a medical marijuana infused Chai Tea.
They need help with getting it put together, packaged and produced.
Buzzy is currently putting together a contract where they pay for all development and we get a residual of all sales.
2016:
Revenue is up and share structure is the same.
Shares Authorized 2,000,000,000
Shares Outstanding 623,017,000
Freely Tradable Shares (Float) 275,596,133
Goal is to be involved with 5 different brands.
Hoping that 3 of the 5 we don’t have to pay for production. Probably not but will be for at least one or two.
VGID looking to grow without expending a lot of cash.
We are big fans of partnering up with people like our small distributorship that pays for itself with 3 vans on the road.
When we go from $1mil to $5mil in revenue we will not do toxic financing!
We can do private placement, stock as collateral but no more debt conversion.
We will start doing business on vender terms when we can work with them (bottles,cans,labels,caps etc. but not ingredients,trucking,etc where prices change too quickly).
We still need outside financing without it being toxic financing and this is an issue that needs to be tackled.
Incubation number 2 is in the works which is a retail hair cutting storefront.
Opening two and then bringing it public and franchising.
Verbal commitment for a retail space to open a (__?__) Hair Cutter.
Older sister is advising.
AND:
Total sales just under $400,000 for the quarter vs $250,000 last year for the AND product.
(Buzzy wanted higher numbers but because we don’t have a sales team he had to divert his time and energy to helping Fernhill become a public company. $FHBC).
Just under $1,000,000 for the year.
Goal is $5,000,000 for the future. (2-5yrs).
The cans are done! Being produced in Wisconsin!
Buzzy wanted to have them by this time last year but was way too expensive (need to have millions of units at a time).
First production of cans is the week before Christmas 2015 and ready to ship out the first of the year 2016.
This will help with profitability and our bottom line.
There is not a lot of new distribution starting in the winter so it won’t initially help the top line until spring with a bunch of new distribution.
We are going to transition to new distribution in the spring.
This year we had 25 new distributors, about 10 dropped off and we are now engaged heavily with 12.
These 12 have verbal and written contracts on the east and west coasts.
9 in the South East and 3 in the North West which is in addition to preexisting SW and NE distribution.
So far 9 of the 12 have signed contracts (all 3 in the NW and 6 in the SE).
This will double our current distribution.
All the money coming in goes right back into the product (raw goods) except $1 a case.
.50/case pay employees.
.50/case charities.
No salaries are being paid, ALL employees get paid by the case.
We are out money 120 days, with a 12-15% return.
We buy everything up front until we start working on terms with a strong $1million dollar revenue mark.
Buzzy thinks right now that’s not hard, its only 10,000 12pack cases a month, and we are already almost there.
These new distributors will be for AND and Roadkill.
The new guys want cans of AND and absolutely want Roadkill.
Roadkill (Fernhill Beverage $FHBC):
Did $350,000 in revenue in 2015.
Roadkill is expecting at least 2x sales next year.
Great hard working officers have grown Fernhill big this last year.
Roadkill is $VGID’s baby or little sister.
4 flavors now and 5th (Lemon Lime) is coming.
Fernhill is developing a new fitness water, natural herbal, pain relief (he can’t say too much).
Already have had some inquiries about selling the Roadkill brand to much bigger companies than us.
Getting ready to hand off our distribution to a bigger company, we only service 2000 accounts and they handle 25-30,000 accounts.
We plan on getting into Food Lion in the SE this Spring. (Able to name drop the founder after meeting him at daughters college).
We are in 29 Palms and will be in Camp Pendleton in 2016.
In 13 different 7-11 convenience stores right now.
Involved with Wounded Warriors and the NHL.
Placed order for 52 - 4’ single door True coolers, wrapped with our product, owned by us to put in storefronts.
Buzzy will not remain as Chairman after shares are distributed.
Spinoff Shares:
First intention was to be a true spinoff but Buzzy wasn’t ready and doesn’t really know how it works.
Going the route of a reverse merger is cleaner, cheaper and quicker.
It’s out of Buzzy's hands now.
***Once the name and ticker symbol has changed the company (Fernhill Beverage) is planning to announce a press conference introducing themselves and talking about the brands. PR’s, conference calls, etc. to follow.***
Fernhill Beverage, Inc. OTC ticker FHBC
Authorized Shares 580,000,000
Outstanding Shares 100,020,225
Freely Tradable Shares (Float) 11,720
Hammered Zebra Beer brand:
VGID will own 50%.
Hammered Zebra beer brand is a very small micro brew from San Diego.
Buzzy had them packaging, changing label, changing bottles, marketing towards more fun, sports, not taking yourself too serious type style.
Affter dealing with licensing,manufacturing and selling a beer the founders decided it's to too much hard work and red tape, so VGID is buying them.
A big PR campaign is coming with pictures and everything about the brand.
Hammered Zebra beer brand has 5 different formulas with very small distribution.
We are not paying a lot for it, it’s very cheap because the guys that started it don’t want to run it.
Repackaging, licensing and selling beer takes up to 2 years and up to $1mil, so instead we are partnering up with an individual whom already has national licensing to sell malts and spirits (his family has had since the depression).
This partner who is very powerful in the beverage business says, “Innovators get rewarded and imitators get punished."
He also already owns a big beer distributorship and
another person who is going to be a partner also owns a beer distributorship.
Not a lot of money for marketing at first but that is good because it is different marketing than non alcoholic beverages.
No give aways, samples, gorilla marketing etc.
Expecting to launch around March - May 2016.
Asian Wellness Product:
In the process of a strategic alliance of a band of partnerships.
In the process of purchasing a large chunck of a product developed in S.E. Asia.
It is a 3 ounce wellness shot that you take daily.
It has all kinds of exotic herbs and minerals and it is quite good.
We will be selling and marketing it as a 30 pack.
The name has not been decided upon yet because the current name will not translate kindly to English (offensive).
Only other thing not settled is how to bring it to market. Buzzy is open for suggestions.
Maybe traditional up and down the street distribution,we sell to the distributor and help them sell to the store and the store sells to the individual.
Maybe big box if we can by the case (Sams, Cosco, etc) but very hard to accomplish.
Maybe direct marketing as a direct shipment 30 pack online.
Currently we are repackaging the bottle so it ships better, changing the name, new labels designed.
Mexican Kids Drink:
Our distributorship just made a deal with a company out of Mexico with a very popular kids drink in Mexico City and throughout.
They are doing millions of dollars in business.
***The product is called”___?___” (I couldn’t understand him, something like “Salbratitos"
*** We will help to create a market here in the U.S.
Next week we will be officially inking that deal to import “___?____" into the U.S. to create a market in California followed by helping them get across the entire southern U.S.
We will collect a broker fee for everything they sale.
In 2016-2017 this should build real residual revenue for the company without having to spend a lot of money.
Medicinal Marijuana Chai Tea:
Buzzy is personally not a big fan of the marijuana market however we are partnering with a group who has a lot of money and distribution who want to develop a medical marijuana infused Chai Tea.
They need help with getting it put together, packaged and produced.
Buzzy is currently putting together a contract where they pay for all development and we get a residual of all sales.
2016:
Revenue is up and share structure is the same.
Shares Authorized 2,000,000,000
Shares Outstanding 623,017,000
Freely Tradable Shares (Float) 275,596,133
Goal is to be involved with 5 different brands.
Hoping that 3 of the 5 we don’t have to pay for production. Probably not but will be for at least one or two.
VGID looking to grow without expending a lot of cash.
We are big fans of partnering up with people like our small distributorship that pays for itself with 3 vans on the road.
When we go from $1mil to $5mil in revenue we will not do toxic financing!
We can do private placement, stock as collateral but no more debt conversion.
We will start doing business on vender terms when we can work with them (bottles,cans,labels,caps etc. but not ingredients,trucking,etc where prices change too quickly).
We still need outside financing without it being toxic financing and this is an issue that needs to be tackled.
Incubation number 2 is in the works which is a retail hair cutting storefront.
Opening two and then bringing it public and franchising.
Verbal commitment for a retail space to open a (__?__) Hair Cutter.
Older sister is advising.
