Clearly Canadian (OTCBB – CCBEF)
Stock Guru Profile – Clearly Canadian
In the The Annual Letter to Shareholders Brent Lokash, President of Clearly Canadian, indicated that a 2007 goal was to expand their business in Asia.
Stock Guru will examine more closely the opportunties available to Clearly Canadian in Asia.
What we know about Asian soft drink boom is this: The boom in Asia is still in Ready to Drink Tea (RTD tea), especially RTD green tea. This has its full expression in East China, resulting in the largest volume consumption of Asian specialty drinks in 2005, at 1.4 billion liters, over one quarter of the total national off-trade volume sales. Robust economic development and high disposable incomes have underpinned the enormous consumption.
South China enjoyed the most vigorous growth in the review period, still moving ahead by 18% in volume terms in 2005. The traditional regional drink, herbal tea, continues to thrive, resulting in more consumption of RTD herbal tea, under Asian specialty drinks. Meanwhile, Asian juice drinks, such as coconut juice, continued to see robust growth, in line with the overall weather conditions in the region.
Northwest sees pick-up in volume growth as consumers switch to packaged products
As the most underdeveloped region, Northwest China picked up in volume consumption terms of Asian speciality drinks in the review period, with 17% off-trade volume growth registered in 2005, mostly because of consumers trading up to packaged RTD tea instead of hot drinks as well as rising demand for Asian juice drinks, cereal/pulse-based drinks and other Asian speciality drinks. However, total volume was only at over 332 million litres, about 6% of the national total, in 2005.
Forecast performance by region
North and Northeast China likely to top the volume growth in the forecast period
Asian specialmty drinks are expected to continue to see healthy growth in the forecast period, as, after all, they are “traditional” drinks in the six regions, resulting in habitual consumption. North and Northeast China is likely to top the volume growth from 2005 to 2010, with total off-trade volume growth of around 41%, mainly benefiting from consumers’ rising demand for such drinks as well as the upcoming Olympic Games in Beijing in 2008. Visitors all over the world may venture to try Asian-flavoured drinks, possibly out of curiosity or with the intention of knowing more about the local culture.
Regional preference for drinks may turn out to be key to product development
There is a distinctive regional preference for different kinds of Asian speciality drinks, mainly out of local habits as well as the overall weather conditions. South China is well known for its excessive humidity, hence the popularity of RTD herbal tea in this region. Generally, the creamy taste of almond juice drinks proves more popular in Northern regions, whereas the lighter texture of RTD green tea has a following in East and Mid China. Walnut drinks are more appealing in Southwest China. These regional preferenceshave a decisive impact on the sales of these specific Asian speciality drinks in certain regions; and the impact is expected to continue in the forecast period.
Clearly Canadian is in a prime position to benefit particulary from the 2008 Beijing Olympic Games particularly with their spokesman Steve Nash. On January 25, 2007, we will remind you to view the new Steve Nash video. Clearly Canadian is leaving no stone unturned.$
Source: Trade associations (China Beverage Industry Association), Trade press (FMCG Report, FMCG Information), Company research, Store checks, Trade interviews, Euromonitor International estimates
Additional information about Clearly Canadian may be obtained at http://www.clearly.ca/.
SOURCE:
Business Wire and
Clearly Canadian Beverage Corporation
Investor Relations contact:
Steve Cook, 800-983-0993
investor@clearly.ca
or
Marketing contact:
604-742-5314
smanson@clearly.ca
Forward Looking Statements Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as expects, intends, plans, may, could, should, anticipates, likely, believes, estimates, potential, predicts, continue and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company’s belief that a strong financial foundation could accelerate its efforts towards broadening distribution, increasing availability of its product lines, exploring all profitable alternatives related to its brand name, developing new business and product lines and implementing its stated strategic initiatives. These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company’s ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company’s ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company’s products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.
Disclosure: Pentony Enterprises LLC was compensated $12,000 for profile coverage. Pasadena Capital Partners has received $30,000 and 125,000 warrants. Pasadena expects to receive 125,000 additional warrants for continued services. Pentony Enterprises LLC is affiliated with Pasadena Capital Partners and shares in the compensation received. Pentony Enterprises LLC is not a registered investment advisers or broker/dealers. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
Safe Harbor Statement: All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company’s behalf, that are not statements of historical fact, constitute “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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