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Non-Tech : The Children's Beverage Group (TCBG)

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To: Cavalry who wrote (1294)8/4/1998 12:38:00 AM
From: mark cox  Read Replies (1) of 2452
 
Hey Cal, how about trying to get an answer to this.

We have been told that each machine is capable of producing 30 million units per year. I don't dispute this figure because at 120 per minute being run 20 hours per day six days per week for 52 weeks the theoretical capacity would be 45 million units. That won't happen in the real world so let's stay with the 30 million. I have been told each machine will generate $5 to $6 million in revenue per year. To attain the $5 million they would have to receive the $0.16 per pouch we have heard about. This means that a 10 pack of product would cost $1.60 before Cliffstar, distributor and retailer's cuts.

You posted that in the CC, it was stated that TCBG would sell every day at $1.99 and $1.69 on sale. I am not in the juice drink business but these numbers don't seem right. I have priced Capri/Sun in several stores at 10/$2.00 regular price.

Could you ask Scott when you speak with him to clear this up please?

Another question I have is pretty soon TCBG will start producing product for Wal-mart and Winn-dixie. These orders should be in the millions of units no doubt. TCBG has $250,000 in cash. How are they going to pay for this growth? How will they buy pouches, water, sugar, fruit juice concentrate, packaging etc. with no money? I doubt if the retailers pay in advance. What part does Cliffstar/Sweet Ripe play in this?

I was told on Saturday that there are 20.2 million shares outstanding. If the 24.4 million you say is out there, how could he be off by 4.2 million shares?

Mark
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