Why is this thread so dead? Listened to the cc yesterday. It was the most positive cc I've heard. I could summarize it but Balrog already did a great summary on Raging Bull, here is his summary:
>>From my CC notes:
There are presently 3 cities that have approached TCBG about opening a manufacturing plant in the city. Jon said, "they were throwing dollars at TCBG."
He said that there would be a press release about this this week.
He said that they could borrow $4 million @ 10% to buy 10 more Volpaks and pay it off over 5 years with normal debt financing or by getting the funds from one of these cities, pay 7% over 10 years and save up to $50,000 per month. This type of deal will allow them to grow the business without dilution and at a faster pace. Also with TCBG owning their own facility he said the margins would be higher.
2 Volpaks currently running at Sweet Ripe at 90% effeciency. Another is presently being installed.
By April 15th, 6 Volpaks should be running producing 50,000 cases per week on a bad week and 75,000 cases on a good week.
There are:
Four 10-Packs to a case.
84 cases to a pallet.
24 pallets per truck.
Their goal is to decrease shipping costs from $0.65/case to $0.30/case.
The company is always for sale at the right price. Beverage companies usually sell for 4 times revenues or 40 times earnings. ( This could be a good indication in the future of a minimum P/E that TCBG might carry.)
Marson, in Western Canada has contacted TCBG about retooling their Volpak 240 to produce the Rip It Sip It and they want to produce product for TCBG. This would add another machine for TCBG and improve shipping to the West coast especially to Costco.
Kmart has approved 4 items to be produced by TCBG.
Each Volpak can produce 750,000 cases per year. They get $5.50 per case.
Jon said about growth, they are going to be aggresive but intelligent.
Winn-Dixie or any other bulk single pouch orders will have margins 3 times higher than the 10 packs.
He believes that carbonated drinks can be put into their pouches but he's got enough going on now to even think about doing that yet.
They need 2 more production sites. One in California and one in either Texas or Florida. He said that 2 of the next 4 machines will definately go to California.
There are 5 employees, the other 4 are Vice Presidents of operations, manufacturing etc., he said, "all chiefs and no indians."
Funniest part of CC where everyone laughed was when someone asked if Jon would change the name of the company. He replied, " yes, to Coke or Pepsi." Meaning when one of them buys TCBG, they will change it's name.
He feels that Walmart will most definately win an award with this pouch. Said there will be a big promotion at Walmart at the end of April.
Currently TCBG has 12 million impressions on order which will come in over the next 40 days.
The complexity of producing these pouches is:
The straws are made in the U.S., the film comes from Switzerland, the machines come from Spain, manufacturing takes place in Canada and the products are sold in the U.S.
Sweet Ripe has added a washer at the end of the fill process on the Volpak. So each pouch is washed.
The pouch is the most successful private label product ever done at Walmart.
Believes that by the end of 2000, TCBG will be the 3rd largest pouch drink producer in the U.S. Will have done it in less than 3 years. Nestle, General Mills, Cadbury Schwepps and Proctor and Gamble have been at it for 15 years and still haven't done it.
Profitable by the end of 3rd quarter,( not 4th like someone previously posted).
By the 3rd quarter products should be in Safeway, Kroger, Shop Rite and some others.
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