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Non-Tech : The Children's Beverage Group (TCBG) -- Ignore unavailable to you. Want to Upgrade?

To: Stephen Goldfarb who wrote (477)	7/3/1998 8:59:00 AM
From: LemonHead	Read Replies (1) \| Respond to of 2452

Very well put, I believe that we tend to look to much to the revenue and not closely enough at the expense and capital side.

To: Stephen Goldfarb who wrote (477)	7/3/1998 12:44:00 PM
From: Doug T.	Read Replies (1) \| Respond to of 2452

Steve, Found this after running a search "volpak" (AOL - excite). I didn't know TCBG won a lawsuit against Kraft/Capri. We have a winner! businessbydesign.com TCBG's Legal Challenge Breaks Kraft/Capri Sun's Domination of the Stand-Up pouch Drink Market According to industry sources, Capri Sunjuice drinks, packaged in aseptic foil (not see-through) stand-up pouches, produces over 1 billion units each year, representing over half of the entire U.S. market for manufactured stand-up pouches. Kraft attempted to corner the marketplace on this type of packaging by way of a U. S. trademark on stand-up pouches. TCBG mounted a legal challenge to Kraft's dominance in this marketplace and won, making it the only other U.S. company able to legally manufacture, market and distribute stand-up Pouch Products. As part of the settlement of TCBG's lawsuit, the Company owed Kraft nothing, and has opened up outstanding market opportunities with its own proprietary products as well as potential private label contracts. Kraft continues to protect its US Trademark against other competitors, since the TCBG settlement refers to the company exclusively. TCBG offers a more economical package (including the built-in drinking straw), which means advantageous consumer pricing within the billion dollar overall children's beverage market. Currently Capri Sun holds about a 36 percent share. As a result of this legal decision, TCBG has gained an enviable position within this industry, with little competition in the drink pouch category beyond the current dominant brand: Kraft/Capri Sun. In addition TCBG has the right of first refusal on all the Volpak SZ40DF machines manufactured for the US market. Since these are the only machines capable of producing TCBG' s exclusive packaging, the Company is protected against competition in this regard. Patent Process Sought For TCBG's Award-Winning Built-In Straw Drinking System To solidify TCBG's ability to offer unique, consumer-friendly drink packaging, the Company has applied for a utility patent to protect its one-of-a-kind built-in straw drinking system. Called the "Rip it sip it O "' straw, it is literally built into the package during the manufacturing and product-filling process. The consumer simply rips a pre-scored corner of the package to access the straw, eliminating the spillage encountered with other pouch packages which requires the straw to be manually inserted into the package. This is the case with Kraft/Capri Sun products, and all other aseptic juice products, whether packaged in tetra boxes or Capri Sun style pouches. Innovative Packaging: Innovative Manufacturing Equipment The Company has purchased new Volpak S240DF manufacturing units designed to create the state-of-the-art liquid gusset pouches with the built-in straw system that forms the basis of the TCBG product line. These unique machines are the only ones capable of manufacturing and filling TCBG's exclusive pouch packaging. They are also capable of outstanding production rates: completing up to 120 units per minute. Trade Group Gives Award for TCBG's Unique Packaging The Institute of Packaging Professionals has given its 1997 Silver Star Award to TCBG for its stand-up pouch pack including the Rip it sip itO " built-in straw system. This trade group honors the most innovative, market friendly packages in the industry. ÿ Each machine has the capacity to produce thirty million units per year. Based upon a staggered machine delivery schedule in 1998, TCBG will have the capacity to produce a minimum of 90,000,000 drink pouches this year. The resulting sales in 1998 are expected to be $14 million. For calendar year 1999, the company expects to take delivery on additional machines boosting unit production to over 270 million, resulting in gross revenues exceeding $42 million. By the year 2000, TCBG projects sales at approximately $89 million. ÿ TCBG currently has contract commitments from some of the largest retailers in America that will make use of all of the available production capacity the Company has planned for the near future. These are private label products each retailer will sell in competition with major brands on store shelves. THIS IS BIG!!!!!!!!!! Doug

To: Stephen Goldfarb who wrote (477)	7/3/1998 12:52:00 PM
From: Doug T.	Read Replies (1) \| Respond to of 2452

To All - Check this out. businessbydesign.com Investment Conclusion The Children's Beverage Group leads the way in creating innovative products and packaging in the highly competitive beverage industry.ÿ Strong Speculative Buy The near and long term outlook for the packaged and specialty drinks market continues to grow. The Children's Beverage Group has certain carved an enviable niche within an enormous global marketplace. The continued demand for specialty beverage packaging is intensified due to environmental and distribution concerns. The Volpak packaging and manufacturing capabilities combined with its agreement with Kraft Foods strategically positions this company for enormous growth opportunities. Look to TCBG to increase its presence in a 6 billion dollar plus market over the next few years. Given that this company is not riding on one product to flourish, we find it capable of flourishing with the proven management in place and as such rate the investment opportunity as a strong speculative buy. GO TCBG Doug