Forecasts 2 Year Revenues Of $3.7 million
MYRTLE BEACH, S.C., April 23 /PRNewswire/ -- Mingo Bay Beverages, Inc.
(OTC Bulletin Board: MGBA) formally closed the acquisition of Springhouse
Natural Spring Water from Stone Castle Properties. "It has taken us one year
to put this deal together. This acquisition makes Mingo Bay a full service
beverage company," said Larry Moses, president, Mingo Bay. According to
Investors Business Daily (12/19/96), "U.S. per capita consumption has grown
faster for bottled water than for any beverage segment over the past five
years, soaring 25% to 11 gallons in 1995 from only 8.8 gallons in 1991,
according to Beverage Marketing Corp. in New York."
Springhouse is located just outside of Frankfort, Kentucky in Woodford
County. This area is known for three things: Thoroughbred horses, Kentucky
Bourbon Whiskey, and the quality of the spring water. Whiskey distillers
migrated to Kentucky in the 1800s because of the quality of the water and the
central location. Springhouse with its central location provides Mingo Bay
direct access to a huge U.S. market.
The spring which flows at a rate of 250,000 gallons per day, is located on
116 acres of Kentucky Blue Grass. Also part of the facility are warehouses, a
bottling facility and the old train depot which is now the Old Taylor Museum.
The property houses 1,000,000 square feet under roof.
Mingo Bay's agreement with the Stone Castle Properties includes a 48,O00
square foot production facility as well as a 12,000 square foot office
building. Mingo Bay has acquired a 99 year lease on both the water and the
facilities. Included in the agreement is the existing bottling equipment,
appraised by The Schrader Industrial Group, total value $285,425. This
existing equipment, that Mingo Bay has now acquired, along with additional
equipment can be used in setting up the plant for production. The Company
said it expects to begin distribution as early as July.
Mingo Bay plans to package the water products in a variety of sizes from
1/2 liter to 5 gallons under both the Mingo Bay and Springhouse labels, Moses
said. He also points to a recent article he says was in the Dallas Morning
News and reprinted in the Sun-Sentinel, which was headlined: "Hottest beverage
on the market: Bottled water sales rise 26 percent in 6 years" and went on to
say that "Americans drank 2.7 billion gallons of bottled water last year --
almost 60 percent more than 10 years ago."
From 1997 through 1998, Mingo Bay expects bottled water to account for
25% of their revenue or $3,750,000. "We reach economies of scale in water at a
very quick pace. This low overhead and fixed cost is due to the Springhouse
acquisition," said president Larry Moses. "This will enable us to penetrate
markets more rapidly, increase our bottom line to 28% net, and in the long run
pass this value onto the shareholders."
Mingo Bay has projected a yearly pre-tax profit of 4.95 million, .504
earnings per share, to be achieved over the next two full years of operation.
This is generated in large part to the marketing efforts of the concentrated
tea and fruit juice line, liquid coffee and bottled water in both the domestic
and international markets.
SOURCE Mingo Bay Beverages, Inc. |
