Leading consumer market researcher Canadean recently forecasted the global alcoholic beverage market will reach $960 billion in 2016. In the U.S. market, alcoholic beverages are already responsible for more than $390 billion in domestic economic activity, according to the Distilled Spirits Council of the United States.
A rising star in this vast market is Drinks Americas Holdings, Inc. (OTCQB: DKAM), a developer, owner, marketer, and distributor of premium alcoholic beverages.
Beginning with changes to its Board in June 2011, DKAM has undergone a substantial turnaround. Most recently, in September, board member Federico Cabo was appointed as the Company’s president and CEO. An industry veteran with over 35 years of experience as a brewer and master distiller, Mr. Cabo is a highly seasoned expert and well suited to guide DKAM through its domestic and international expansion.
In the 14 months since the beginning of the turnaround process, DKAM has grown its distribution from only five states to all 50 states plus nine countries. A major driver of this success has been the Company’s premium KAH Tequila brand.
Winner of numerous awards globally, KAH Tequila is a highly-sought after brand, both for its recognized quality and for its unique bottles. Inspired by the traditional calaveras used on the Day of the Dead holiday, KAH Tequila bottles are forged from artisanal ceramics, hand-painted, and individually numbered works of art – no two bottles are the exact same.
Other growth drivers for DKAM include its award-winning Agave 99 tequila, Cerveza Mexicali, Rio Bravo Beer, Crazy Pig Mexican Ale, and Chili Devil Beer. The Company also markets Willie Nelson’s Old Whiskey River Bourbon and receives a royalty for Kid Rock’s American Badass Beer and Damiana Mexican Liqueur, and owns and distributes New York’s 100+ year-old classic, Rheingold Beer.
DKAM, with a price-to-sales ratio of only 1.1x, currently trades at a steep discount to its peer group, which has a price-to-sales average of 4.1x. Its growing portfolio of premium brands are anticipated to drive strong sales growth in the quarters ahead as the Company continues to expand distribution. To learn more about this exciting opportunity, view RedChip’s interview with DKAM’s VP of Sales, Joe Belli.
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