In a recent report published by Beacon Equity Research, Beacon outlined several prominent proponents of company structure and future growth for Clearly Canadian Beverage Corporation (CCBEF). Clearly Canadian Beverage Corporation produces, distributes, and markets alternative beverages and products. Their product line consists of a plethora of products; sparkling flavored waters, enhanced water beverages, natural and organic snack food, and healthy baby food have all been developed successfully.
Recently, the company has acquired DMR Food Corporation to aid in future growth, and the company will continue to acquire healthy product lines to diversify their product portfolio. Beacon Equity Research report also stated:
1. There is an increasing demand for health foods and beverages because of rising health and obesity concerns, North American’s eating habits have changed. Tasty but fattening foods are being replaced by healthier substitutes, such as enhanced water beverages produced by CCBEF.
2. There is a large potential market and strong growth opportunity for CCBEF. The flavored water market has grown over 50% annually between 2001 and 2004, with industry analysts estimating that this market could reach $800 million by 2009 from $168 million in 2004. Furthermore, sales of flavored non-carbonated drinks are expected to surpass soda sales by 2010. Growing health concerns, as mentioned above, has led to greater acceptance of flavored water and organic snacks produced by Clearly Canadian.
3. Strong brand recognition and aggressive marketing strategy. Clearly Canadian Company has sold over 90 million cases of water and more than 2 billion bottles of water worldwide. Because of this, the Company has become established its brand in the US and Canada, with the potential for expansion elsewhere. CCBEF is continuously acquiring new product lines and continuously developing new products, corresponding with various advertising and promotional campaigns. Additionally, the company has hired Steve Nash and Justin Morneau, both professional athletes, to aid in TV marketing in the future years.
4. Acquisitions complement organic growth. Clearly Canadian has acquired several prominent companies such as DMR Food, SunRidge Farms, Glengrove Organics and other brand nanamesmes. The Company also acquired My Organic Baby Inc., a leading organic baby food producer.
5. Strengthening the distribution network. The Company has secured distrubution for dried fruit and nut products in both Wal-Mart Canada stores and Ontario Sobey’s stores. Clearly Canadian has also secured distribution for their organic baby food line through Babies “R” Us in Canada and Loblwas Canda’s largest supermarket chain, SWhole Foods, Highland Farms and Capers.
6. Product development partnership with INOV8 Beverage Company. The Company has also entered into an agreement with INOV8 Beverage Company to develop a new line of sparkling beverages. Mike Weinstein, the former CEO of Snapple, now runs INOV8 and has recently been hired by Clearly Canadian to work as a consultant.
7. Expanded management team. The companies management team is quite experienced and is continuously working to recruit new professionals to aid in brand recognition. The CEO, Brent Lokash, and other employees such as Edwin Fok and Mike Weinstein have all had significant experience in the beverage sector.
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