Fernhill Beverage Gives Guidance for 2020 and 2021
Carlsbad, California--(Newsfile Corp. - November 19, 2020) - Fernhill Beverage, Inc., (OTC Pink: FHBC) is pleased to offer guidance to shareholders and the public pertaining to the Company's progress with RK Super Vitamin Packed Kid's Drink, SuperBuzz Energy Drink, Hand Sanitizer and all other business proceedings.
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By all accounts, 2020 has been a trying year for most. Fernhill Beverage has not been immune to the tribulations of a year in a pandemic. Due to strong relationships with Vendors, Suppliers, Co-packers and Partners, the Company has weathered 2020 in grand fashion.
The Company will be taking this opportunity to evaluate the current year as well as make a strong effort to forecast business in 2021. The goal is to evaluate each unit of business and identify the growth opportunities of each and how they relate to the whole.
Fernhill Beverage's "Flagship" brand is RK Super. RK Super is a vitamin packed, fruit flavored kid's drink that is fun, healthy and the perfect size for the younger members of the beverage market.
Revenues in 2019 for RK Super were a solid $4,201,280.00 with 763,870 12-pack cases sold into distribution.
In Q4, 2019, RK Super generated solid revenues totaling $1,620,450.00. The Company believes that in Q4 2020, RK Super is on track to generate revenues approximately 10% greater than the output of Q4 2019.
The company is expecting Q4 2020 revenues to be in the vicinity of $1,770,000. This would deliver total Revenue of RK Super in 2020 of $3,977,495.00 with approximately 724,000 12-pack cases sold into distribution.
Growth Prospects for RK Super in 2021:
Fernhill Beverage is implementing a multi-faceted approach to growth.
First and foremost, the Company is constantly working to expand its distribution reach. Fernhill Beverage will always be targeting new distributors in untapped areas to represent our brands.
The Company is currently expanding its reach in the overseas markets such as Europe, Mexico, South America etc.
Starting in February 2021, RK Super will be adding 2 new flavors to its Super Hero line-up. Out-of-My-Way Orange and Lightning Lemon Lime will be shipped to current distributors increasing existing orders by 50%.
The Company believes that growth within the current distribution network as well as growth via new distribution channels could result in a 45-50% growth for 2021.
SuperBuzz Energy is a powerful and fun product that entered the Fernhill Family in 2020. Fernhill Beverage utilized the tepid business market to perfect the details of this Energy Drink geared toward an age group that is more independent and adventurous. The advent of SuperBuzz allows Fernhill Beverage the opportunity to offer beverage options to the market for ages 5 through 20.
In 2020, Fernhill Beverage completed the reworking of the flavor profile, making the fruit flavor cleaner and healthier. The Company completed the first full production of SuperBuzz.
The Company successfully completed an extensive test market in Southern California.
Through 3 quarters of 2020, SuperBuzz generated revenues of $24,516.00 with approximately 2,500 12-pack cases sold into distribution.
The Company expects revenues of SuperBuzz to exceed $30,000.00 with approximately 3,200 12-pack cases sold.
The Company expects total revenue of SuperBuzz Energy Drink to be approximately $55,000.00 in 2020 on roughly 5,700 12-pack cases sold.
Growth Prospects for SuperBuzz in 2021:
SuperBuzz will be experiencing rapid growth entering 2021. The Company has secured distribution within its current distribution networks. The consolidation of other National Energy Drink Brands has created an opportunity of distribution for SuperBuzz Energy Drink.
Fernhill Beverage has developed a Fruit Punch version of the Energy Drink that compliments the original Mango Passionfruit version perfectly. Both flavors will be released into new distribution in February for Spring and Summer Sales.
Fernhill Beverage is currently going through the process with the Company's Military Commissary Broker to have SuperBuzz approved for distribution throughout the Commissary system in the United States and Europe.
Fernhill Beverage expects total revenues to exceed $1,500,000.00 in 2021.
Fernhill Hand Sanitizer with Aloe and CBD is a product that Fernhill Beverage developed out of a request of other companies wishing to offer such a product for sale. Currently, Fernhill Beverage produces the product under a "White Label" program for a number of companies that sell it online and in retail.
Through 3 quarters of 2020, the hand sanitizer generated revenue of approximately $41,000.00 of passive revenue.
Fernhill Beverage expects total revenue for 2020 to exceed $60,000.00.
Prospects for growth for Hand Sanitizer in 2021:
Fernhill Beverage is currently very happy with the amount of business the Hand Sanitizer generates. The Company will be concentrating on internal growth with our retail partners and will not be actively seeking new business in this category.
Fernhill Beverage expects revenue of the Hand Sanitizer to grow modestly in 2021.
New Business Opportunities in 2021:
Fernhill Beverage Inc. will be engaging in a slightly new business model in 2021. In 2020 Fernhill Beverage acquired an existing label manufacturing company. Fernhill Beverage will be assuming the operations and revenue of the label company on February 1st 2021. This label company will allow Fernhill Beverage the flexibility of developing proprietary labels as well as generating overall revenue for Fernhill Beverage, Inc.
The Label Company is expecting roughly $300,000.00 in total revenue in 2020 with a 25% profit margin.
Fernhill Beverage will continue to look for growth opportunities. It is the intention of the Company to grow by acquiring other assets and products as well as developing new brands and expanding on the success of current brands.
It is the goal of the Company to grow in every way possible. 2020 was a trying year. We are pleased to announce that after much tribulation, Fernhill Beverage has weathered the storm that was 2020 quite well. It is incumbent on the Company to position the Company for success in 2021.
With 2020 coming to a close, the Company is pleased to offer this outline and guidance for 2021.
Fernhill Beverage Inc. would like to thank all the Company's Customers, Venders, Partners and Shareholders during these trying times. Together, everyone will be stronger.
Be sure to visit our website: www.fernhillbev.com to see all our exciting products.
Please follow the Company on Twitter @fernhillbev. The Company will be releasing updates. Many exciting things are happening.
Statements in this press release may constitute forward-looking statements and are subject to numerous risks and uncertainties, including the failure to complete successfully the development of new or enhanced products, the Company's future capital needs, the lack of market demand for any new or enhanced products the Company may develop, any actions by the Company's affiliates that may be adverse to the Company, the success of competitive products, other economic factors affecting the Company and its markets, seasonal changes, and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission. The actual results may differ materially from those contained in this press release. The Company disclaims any obligation to update any statements in this press release.
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