Innovation Beverage Group Limited
We are a developer, manufacturer, marketer, exporter and retailer of a growing beverage portfolio of 60 formulations across 13 alcoholic and non-alcoholic brands for which we own exclusive manufacturing rights. Our focus is on premium and super premium brands. (Incorporated in Australia)
Our flagship Australian Bitters Company (ABC) brand accounted for approximately 75% of our revenues in 2021. We also sell BitterTales, a brand to which we have the exclusive right to manufacture for distribution in the United States. The Bitters category is expected to return to growth from 2021 onwards, especially Cocktail Bitters, as restrictions ease and consumer trends around home cocktailing, desire for more natural ingredients and bitter flavors increases.
Our goal is to increase our market share in the $600 million global market for bitters. Our partnership with Coca-Cola Europacific Partners (NASDAQ:CCEP), one of the world’s largest Coca-Cola bottlers, to exclusively manufacture ABC bitters for distribution in Australia is a key component of this strategy. We retain distribution rights for ABC bitters outside Australia and are actively negotiating new distribution arrangements for new markets.
We are introducing a new non-alcoholic spirit brand called Drummerboy, our first entry into the growing non-alcoholic beverage market. No-and-Low Alcohol products are becoming increasingly accepted as a lifestyle and societal norm, making it more accessible and approachable for consumers. The market value of no/low alcohol in key global markets in 2021 was just under USD$10 billion, up from USD$7.8 billion in 2018. With a direct to consumer (DTC) retail price per bottle of AUD$50 (approximately USD$35) and via manufacturing efficiencies through in-house manufacturing, we anticipate a margin in excess of 80% gross profit when selling Drummerboy through its own www.drummerboy.com website in a DTC sale.
Our direct-to-consumer (DTC) distribution channel is a network of eCommerce platforms: www.bevmart.com.au, www.bevmart.com, www.wiredforwine.com, and www.drummerboy.com. We launched BevMart.com.au in Australia in May 2021 and BevMart.com in the U.S. in February 2022. In November 2021, we acquired the U.S.-based www.wiredforwine.com. Our Drummerboy brand will be offered through its own DTC website. We offer our brands, as well as other brands, through our four (4) eCommerce platforms.
**Note: Revenue and net income are for the year ended Dec. 31, 2021.
(Note: Innovation Beverage Group revamped its IPO again – back to a unit deal – in an F-1/A filing dated Nov. 15, 2022: 2.5 million units at an assumed IPO price of $4.15 per unit to raise $10.38 million – slightly less than the estimated proceeds under its previous stock-only version. Each unit consists of one share of common stock and one warrant to buy one share of stock. Previously: Innovation Beverage Group increased the size of its IPO by raising the number of ordinary shares to 2.13 million shares (2,125,000 shares) from 1.7 million shares and keeping the price range at $4.00 to $6.00, according to an F-1/A filing dated Sept. 15, 2022. Estimated IPO proceeds are now $10.63 million, up from $9 million previously. Innovation Beverage Group revamped its IPO as a stock-only deal – removing the warrants – in an F-1/A filing dated Sept. 13, 2022, in which the Australian company also disclosed terms: 1.7 million ordinary shares at a $4.00-to-$6.00 price range to raise $9.0 million. A week earlier, on Sept. 7, 2022, Innovation Beverage Group filed an F-1/A outlining a unit IPO without disclosing terms. Innovation Beverage Group filed the F-1 for its unit IPO on Aug. 19, 2022.)
|Industry:||Beverages - Alcoholic & Non-Alcoholic|
|Address||29 Anvil Road Seven Hills, NSW 2147 Australia|
|Phone Number||+61 (02) 9620 4574|
|View Prospectus:||Innovation Beverage Group Limited|
|Revenues||$3.75 mil (last 12 months)|
|Net Income||$0.03 mil (last 12 months)|
|Price range||$4.14 - $4.15|
|Est. $ Volume||$10.4 mil|
|Manager / Joint Managers||EF Hutton|
|Expected To Trade:|
|Quiet Period Expiration Date:||Available only to Subscribers|
|Lock-Up Period Expiration Date:||Available only to Subscribers|
|SCOOP Rating||Available only to Subscribers|
|Rating Change||Available only to Subscribers|