October 6, 2008 -- NutriPure Beverages, Inc.'s (Pink Sheets: NUBV | Quote | Chart | News | PowerRating) wholly-owned subsidiary XND Technologies, Inc. has selected Jayger International, Ltd. as the Master Broker for export of its NU2O bottled water products into Japan and other Asian countries where Jayger has contacts and influence. Initial NU2O product formulations have been submitted in Japan and approval from the Japanese authorities is expected very soon. Once approval is received, XND will move quickly to gear up production for the Asian markets and a distribution schedule will be established and announced. XND and NutriPure have now decided to launch the NU2O product line simultaneously in both the U.S. and Asian markets in first quarter 2009.
NutriPure CEO Ken Jones elaborated, "This alliance with Jayger International gives us an immediate marketing gateway to Japan and Asia and the potential to launch our NU2O products in international markets much more quickly than we previously thought. Meanwhile, the current U.S. economic downturn, the difficult advertising markets caused by the political campaigns, and lack of available shelf space typical of the Holiday season led us to conclude that we can achieve a greater marketing impact by rescheduling our domestic launch for first quarter 2009, to coincide with our planned international launch. We also intend to maximize the enormous potential of XND and its NU2O brand by focusing our resources for the foreseeable future on our XND subsidiary, rather than seeking additional acquisitions or ventures that might distract us from our primary mission. We will release additional information about this soon, as well as an update on the progress and activities of our wholly-owned subsidiary MoneyMaker1 (Inka Grill Franchise Systems)."
October 6, 2008 -- Hat Trick Beverages Inc. (HKBV.PK) is pleased to announce that the Hot Beverages Division Tango Cafe and its North American Distribution operation for the Pringles 'Grab and Go' mini cans concluded the Business Expo Show held in Toronto, Canada.
The Pringles machines are being sourced from the manufacturer in Spain, while the actual Pringles product is supplied by a North American based distributors.
Mr. Sender Vaiser CEO for Hat Trick said, "This was a very exciting show. We had 2 separate booths where we displayed our product lines. One was for Tango Cafe hot beverages and the other one for Pringles 'Grab and Go' product lines. It was a hectic few days, and there was a great deal of excitement regarding our new product concepts, generating a large number of qualified sales leads. Based on our initial estimates, we feel that the business results generated from this show may bring in about $300,000 to $400,000 in sales.
Our web master will be posting various pictures taken during the show. In addition we are in the process of producing an infomercial targeted to distributor and a franchisees explaining the Tango line of products. This will begin airing as soon as production is complete."
October 6, 2008 -- Dr Pepper Snapple Group (NYSE: DPS | Quote | Chart | News | PowerRating) today said it expects to receive formal notification from Hansen Natural Corporation terminating its agreements to distribute Monster Energy as well as its other beverage brands in certain U.S. markets.
"Monster energy drinks are in less than one-third of our company-owned footprint," said Larry Young, president and CEO of DPS. "The successful launch of Venom, Dr Pepper Snapple's own energy drink brand, which was recently endorsed by Cowboys football star Terrell Owens, as well as expanded distribution of HYDRIVE, an enhanced energy drink in which DPS has an equity stake, together with our integrated business model give us confidence that we will be able to build a broader and even stronger energy portfolio and continue to participate in the long-term growth of this category." Year-to-date through September 2008, DPS said it generated approximately $170 million and $30 million in revenue and operating profits, respectively, distributing Hansen Natural brands in the U.S. The company will record a one-time gain related to the contract termination when terms are finalized. The company expects to provide more details related to the gain and the 2008 and 2009 financial impact on or before its third quarter earnings call in November 2008.
October 6, 2008 -- Hansen Natural Corporation (NasdaqGS:HANS) today announced that it has completed agreements with The Coca-Cola Company and Coca-Cola Enterprises, Inc. for distribution of its category leading Monster Energy(r) drinks line in six Western European countries, Canada and selected territories in the U.S.
Hansen will transition certain of its existing distribution arrangements to newly appointed distributors, including Coca-Cola bottlers and Anheuser-Busch distributors. In connection with the transition, Hansen will make termination payments to those of its existing distributors who will be terminated. Non refundable contributions were previously received by Hansen from certain of its existing distributors, who will be terminated. Such contributions were previously treated as deferred revenue and upon termination, the associated balance in deferred revenue will be realized in full. The pre-tax expense impact of the above amounts is currently estimated to be in the range of $110 to $130 million in the aggregate, but could be higher or lower. The actual termination payments could differ significantly from current estimates because the estimates are based largely on Hansen's estimate of each affected distributor's contractual termination rights. This estimate includes estimates of each distributor's own sales and gross profit levels, net of certain allowances. The actual termination costs will be expensed in full in the period in which the terminations become effective, which will primarily be in the fourth quarter of 2008.
Hansen will receive from newly appointed distributors non-refundable contributions covering a significant portion of the costs of terminating the affected distributors. These contributions will be accounted for as deferred revenue, which will be recognized as revenue ratably over the anticipated 20-year life of the distribution agreements.
Market Wrap for October 6, 2008 On Monday, stocks plummeted across the world on global financial and economic concerns, although late-session buying interest helped U.S. stocks pare more than half of their losses in the final hour of trade.
The Dow, Nasdaq and S&P 500 fell 3.5%, 3.8% and 4.3%, respectively, all settling at multi-year lows. Still, the end result was a huge improvement from the session's worst levels, when the Dow, Nasdaq and S&P 500 were down 7.8%, 8.8% and 8.3%, respectively.
Helping stocks pare their losses was a headline that France proposed an emergency G8 meeting on the financial crisis, which increased speculation that global central banks may make a coordinated intermeeting rate cut.
Overseas equity markets fared even worse than the U.S., with the DJ World Excluding U.S. Index falling 7.3% as Europe fell 7.6% The selling in Europe was driven over concerns that more bailouts of European financial institutions are needed after Germany's government stepped in to prevent the collapse of property lender Hypo Real Estate. In addition, interbank lending rates rose in European currencies as banks remain reluctant to lend to each other.
Global growth concerns were prevalent in commodity trading, with the CRB Index plunging 5.2%. Oil prices dropped 5.0% to $89.15 per barrel.
Meanwhile, risk averse investors bid up the prices of Treasuries in a flight-to-quality trade. The 10-year note climbed 36 ticks sending its yield down to 3.47%. On a related note, gold, which is considered a safe-haven, rallied 4.4% to $865.50 per ounce.
Weakness in Europe prompted a large 1.5% rally in the dollar. The euro fell 2.2% to $1.35 and the pound declined 1.7% to $1.74.
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