Sunday, February 2, 2014

What’s the Next Big Small Cap Beverage Stock? FIZZ, REED & KRED

If you are looking for the next small cap beverage stock that could turn into the next Monster Beverage Corp (NASDAQ: MNST), under the radar beverage companies like small caps National Beverage Corp (NASDAQ: FIZZ), Reed's, Inc (NYSEMKT: REED) and Konared Corp (OTCBB: KRED) could be just what you are looking for. I should point out that the beverage space is often a battle between David and Goliath as everyone, and especially smaller players, must fight for every inch of shelf space. Nevertheless, the following small cap beverage stocks are at least holding their ground and putting up a good fight leading to profits for investors:

National Beverage Corp. A leader in the development and sale of flavored beverage products and the fifth biggest beverage company in the USA, National Beverage Corp offers a wide selection of flavored soft drinks, juices, sparkling waters and energy drinks. Brands would include Asante, Big Shot, Cascadia, Clear Fruit, Crystal Bay, Everfresh, Everfresh Lemonade, Everfresh Premier Varietals, Faygo, Home Juice, Home Juice Lemonade, LaCroix, Mega Sport, Ohana, Rip It, Rip It 2oz Shot, Rip It X, Ritz, Shasta, Spree, St. Nick's and Sundance Naturals. Back in September, National Beverage Corp issued what has been described as the strangest earnings release ever that was entitled: "National Beverage Reports Less Than Typical Results." Both CNBC and Forbes picked up on it (See: What are they drinking at National Beverage? and A Soda CEO Pops Off With Wacky Comments About His Company's Stale Business) and not because revenues fell 6% to $172 million, net income fell 16% to $12 million and EPS fell 16% to $.26 but because of quotes like this from CEO Nick A. Caporella: 

"There can be no allowable regrets in business or fumbles on the field (deck) of Endeavor – none . . . (no one even knows how to practice them)," quipped Caporella.

"From mega retailers to soft drink giants, the summer of '13 will symbolically claim its victims! Consequently, the culmination of nervousness of a 'whiplashed' consumer to the 'knee jerk' reaction of Big Cola . . . all segments of soft drink sales were affected – as retailers and soft drink companies subsequently disclosed. The lowering of prices being Big Cola's response – further complicated the situation! Cooler weather compounded already weakened consumer spirits," indicated Caporella.

And ended with the following plea:

"As I repeat from our Annual Report, look at our track record over the past twenty years – no mental degradation has occurred! Judge us by all four quarters next July 2014. Certainly, we have come to know – precious rainbows usually require both rain and sunshine! Team National's results were obtained by diligence and untiring determination. We are Disappointed – Yes; Contrite – Certainly; Resilient – Absolutely . . ." a heartfelt Caporella concluded.

However and while not sugarcoating a bad quarter might be a breath of fresh air on Wall Street, Forbes pointed out that Caporella earned a total compensation package of $6.62 million in 2012 - "a king's ransom" when compared to Coke's Muhtar Kent who received $6 million in compensation and Pepsi's Indra Nooyi who received $17.4 million. Small cap National Beverage Corp is up 5.65% since the start of the year, up 52.6% over the past year and 144.5% over the past five years.

Reed's, Inc. The maker of natural sodas sold in over 13,000 natural food markets and supermarkets nationwide, Reed's, Inc offers six award-winning non-alcoholic Ginger Brews plus owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and the top-selling cola line in natural foods, the China Cola product line. In addition, Reed's, Inc has launched Reed's Culture Club Kombucha line of organic live beverages, Reed's Ginger Candies and Reed's Ginger Ice Creams plus the company has started producing private label natural beverages for select national chains.  Earlier this week, Reed's, Inc announced that FreshDirect had authorized Reed's, Virgil's and Reed's Culture Club Kombucha to be added to their online offerings by mid-February while earlier in the month, the company announced that Manhattan Beer Distributors will begin distributing all eight flavors of Reed's Culture Club Kombucha throughout Manhattan, the surrounding boroughs and Hudson Valley. In December, National Beverage Corp announced that Haggen Food & Pharmacy had authorized four flavors of Reed's Culture Club Kombucha in all 32 of their Haggen and Top Food and Drug stores throughout the Oregon and Washington markets while earlier in the month, the company announced that Ingles Markets, Inc. (NASDAQ: IMKTA) had authorized four flavors of Reed's Culture Club Kombucha in 200+ of their supermarket locations throughout North and South Carolina, Georgia, Tennessee, Alabama and Virginia. Small cap Reed's, Inc is down 10.4% since the start of the year, up 27.9% over the past year and up 505.9% over the past five years.

Konared Corp. Headquartered in the Hawaiian Islands, the KonaRed Corporation consists of a group of seasoned sales and marketing professionals and proven scientists who have been studying the benefits of Hawaiian Coffee Fruit for the past 5 years – a byproduct of coffee production as its the fruit that surrounds the coffee bean (or seed). Its also been recognized as an antioxidant powerhouse. Currently, Superfruit Antioxidant Juice is KonaRed Corporation's flagship product derived from the coffee fruit of the Hawaiian Coffee plant from the world famous Kona Coffee region on the Big Island of Hawaii:

KonaRed Corporation's beverage products are already available from major retailers throughout Hawaii, California, Arizona, Colorado, the Northwest and Canada:

Moreover, KonaRed Corporation has made significant progress since 2008 when the company first began its research and development into coffee fruit:

Small cap Konared Corp is up 27.3% since the start of the year and up 40% since last October.

 

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