To: mark cox who wrote (1132 ) 7/27/1998 12:24:00 AM From: Jaste Read Replies (2) | Respond to of 2452
Will attempt to answer some of your questions with info. gathered from cc. Otherwise, it would be best to wait for the filing coming soon in order for your inquiries to be fully addressed. Any company signing with TCBG for use of their packaging will pay 100% royalties, including Cliffstar. Cliffstar is not getting a deal due to the fact that TCBG is using their manufacturing facilities. What they are getting is restricted shares. Royalty fees usually equate to 100% margins. I believe manufacturing of the product at Cliffstar will be based on bi-weekly/monthly p.o. demands. So in effect, inventory will be kept to a minimum. Coke with their Minute Maid product will have the ability to manufacture a pouch package, just as long as there is absolutely no similarity to the design and/or function (ie. straw in the pouch, and foil tear) of the package compared to Kraft's and TCBG's. Now TCBG's package has the definite upper hand over Kraft's due to the fact that it's guaranteed not to spill upon opening, and it has a built in straw. Coke would be very smart in approaching TCBG to manufacture the package for them. Whether they're in touch, who knows? But it would be a wise assumption to say that Coke is aware of TCBG. TCBG struck a deal with Sweet Ripe - the largest juice manufacturer in Canada with labels such as Everfresh and Allen's under their belt - and along with Cliffstar who manufacture well known brands in the States - so again one could make another very good assumption in stating that more deals with well known brands in the States are on the way. If I have misinterpreted any of the info. presented during the cc., someone please correct me. In any case, the $12.00 figure you mentioned for projected share price in a year, although a little irrelevant at this point, sounds like it's on the mark. With more deals probable to come in the future, that figure could all of a sudden be awfully conservative imo. A winner on the bb's? No, can't be! Things are looking good.