One company that may be underappreciated on the OTC right now given its recent dramatic strides in achieving its larger vision and its established branded products value is Splash Beverage Group Inc (OTCMKTS:SBEV), a holding company building a leading portfolio of beverage brands in both the spirits and fitness products markets.
The company has recently expanded in terms of material end-market access from a platform of strong branding and product development, and it may deserve more attention as a result. But shares have been declining likely because of a lack of visibility, which could turn as its progress gains greater attention ahead.
Hence, we highlight it here to cast a spotlight on the stock for those interested in small-caps making fresh progress with potentially game-changing implications.
Making a Splash
Splash Beverage Group Inc (OTCMKTS:SBEV) has been incubating a model with prolific potential, given the stability and growth of the spirits space and the juggernaut potential of its TapouT brand of fitness sports beverages.
Through its TapouT brand, the company has major ties to arguably the fastest growing sport over the past decade in mixed martial arts, with brand association to MMA that resonates with the niche culture and the popular exercise and fitness industry that surrounds it.
In addition, its SALT Naturally Flavored Tequila is a market leader in quality, made from 100% agave, adding up to an 80-proof naturally flavored tequila carrying the potential to make inroads into the insular global tequila marketplace.
According to company materials, SALT Tequila is remarkably smooth with a clean and delicate taste. Grown, distilled, and bottled in the region of Jalisco Mexico, each handcrafted bottle of SALT Tequila is the result of years of hard work, determination, and countless blends until they reached perfection. SALT Tequila offers a variety of naturally flavored tequilas including Berry, Citrus and Salted Chocolate.
Its products are already established in the US, which is the largest consumer of Tequila on the planet. In addition, the US demand for tequila is increasing year by year. Spain and Chinese demand for tequila is increasing at a high rate. Tequila has very strict requirements for raw materials. A mature blue agave requires a minimum of eight years, which limits the total production of tequila.
The worldwide market for Tequila is expected to grow at a CAGR of roughly 4.1% over the next five years, will reach $5.9 billion before 2025 (up from $4.7 billion in 2019, according to a New Research study from 360ResearchReports).
However, the company’s most recent release suggests much bigger reach ahead.
The Asian Frontier
Most people probably don’t realize that China is actually the largest market in the world for alcoholic beverages. Given the existing market positioning and strategic vision of Splash Beverage Group Inc (OTCMKTS:SBEV), an expansion into the Asian market represents a potentially game-changing development for its value proposition.
Hence, it should not escape notice that SBEV recently announced that it has secured distribution and Manufacturing capabilities in Greater China for its hydration and recovery brand TapouT Performance and distribution for its branded SALT Naturally Flavored Tequila line by entering into a distribution agreement with China-based American Software Capital.
According to its release, ASC is a National Chinese manufacturer and distributor for fast moving consumer goods and other items. The company runs a state-of-the-art facility and has impactful relationships with chains and outlets throughout China.
ASC CEO David Chen states, “ASC is delighted to become an investor and strategic partner of Splash Beverage to co-develop the market of Greater China, ASC has marketing resources in the area, and definitely the best candidate and partner for the job!”
As noted by the company, ASC will initially import and distribute TapouT and SALT Tequila beverage products in China as it works with Splash to position the Company for manufacturing capabilities over the intermediate term in order to streamline operations and maximize profitability in the region. ASC is also well-positioned to seamlessly incorporate additional brands as Splash continues to acquire and/or internally develop new brands, product lines and concepts.
“The thirst for Western brands continues to increase across Asia,” commented Robert Nistico, CEO of Splash. “We believe our relationship with ASC, one of China’s top manufacturers and distributors, will position Splash to capitalize on this trend. ASC has extensive relationships with top retail chains, and I’m confident this will further our advantage as we enter the Chinese market.”