SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest event reported): August 15, 2005
BRAVO! FOODS INTERNATIONAL CORP.
(Exact name of registrant as specified in its amended charter)
Delaware 000-25039 62-1681831
------------------------------- ------------ -------------------
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
11300 US Highway 1, Suite 202
North Palm Beach, Florida 33408 USA
(Address of principal executive offices)
(561) 625-1411
Registrant's telephone number
------------------------------------------------------------
(Former name or former address if changed since last report)
Item 7.01 Regulation FD Disclosure
Public Conference Call
On August 15, 2005, the Company conducted a public conference call to
announce and discuss the results contained in its Form 10-QSB filed on that
date for the period ended June 30, 2005. The following matters were
discussed at that conference call:
Results of Operations
The Company reported total revenue of $3,346,388, with a 29.5% gross
margin of $988,261, for the six months ended June 30, 2005, compared to total
revenue of $1,879,562, with a 32.7% gross margin of $614,475, for the same
period in 2004. This represents an increase of 78% in revenue and 61% in
profit from the same period in 2004. For the three month period ended June
30, 2005, the Company reported total revenue of $2,448,618, with a 31% gross
margin of $768,154, for the three months ended June 30, 2005, compared to
total revenue of $1,441,356, with a 35% gross margin of $506.390, for the
same period in 2004. This represents an increase of 70% in revenue and 51%
in profit from the same three-month period in 2004.
The Company reported that increased sales of its Starburst(R)
Slammers(R) product line, and the introduction of its new MilkyWay(R) and 3
Musketeers(R) Slammers(R) during this period, resulted in a significant
increase in total revenue over any quarter in the Company's history. The
Company reported that selling expenses increased, owing to greater
promotional activity, but are expected to decrease as a percentage of revenue
in the future with continued increased sales and greater efficiencies in
distribution and associated freight costs.
Distribution
The Company reported that sales have risen significantly since the
close of the second quarter ended June 30, 2005, resulting in unaudited gross
revenues of $1,008,000 in July. The sharp increase in revenue is due to the
successful nationwide distribution of the Company's co-branded Starburst(R),
3 Musketeers(R) and Milky Way(R) Slammers, the launch of a MilkyWay(R) 9-pack
in Sam's Club stores, the engagement of new distributors and significant
growth in distribution channels. The Company also experienced increased
reorders for its Masterfoods Slammers(R) line, with 14 of the 16 distributor
dairies used for distribution to 7-Eleven stores having reordered; 42 of 88
national distributors and 10 of 20 Sam's Club stores. The Company also
reported that it shipped 13,302 cases of its Slammers(R) Marvel(R) line in
the United Kingdom in July, as part of its initial UK launch, generating
revenues of $93,110 and has UK reorders in the first week of August for 1,890
cases.
The Company reported that it has 14 new distributors on a national
basis, 11 of which presently have the Company's products. The Company also
reported that its products are in 4,700 Walgreen's Stores, 3,300 new
convenience stores, 2,000 new supermarkets and 10 new distribution centers
for Sam's Club. The Company secured 16 new retail accounts in July and 6 new
accounts, to date, in August. The Company reported 205 new orders in July
and August for the Masterfoods line, representing approximately $1.3 million
in revenues, with the anticipated potential for re-orders.
Capacity
As a result of rising sales, the Company announced that, in addition to
plans to increase the present domestic capacity of 2.5 million units per
month for Slammers(R) beginning in September of 2005, with additional
capacity increases expected in April 2006 to 7.5 million units per month, the
Company and its production partner Jasper Products are contemplating the
addition of a Shibula production line in the Fall of 2006, that will increase
Jasper's capacity for Slammers(R) production to 16 million units per month.
The Shibula production line has a start up operational lead time of
approximately 12 months.
Initiatives
The Company reported that a number of initiatives were underway,
including a new Bravo! branded line for the Company's major C store customer,
with an anticipated September launch. In addition, new Masterfoods lines are
being explored, as well as a product line to reach the toddler demographic.
The Company also is reducing the fat content of its Pro Slammers(TM) and
Slammers(R) Marvel(R) lines.
In addition, the Company recently initiated a number of strategic
efficiencies to decrease its freight expenses. As previously announced, the
Company will convert all of its existing product lines from refrigerated,
extended shelf life products to the new ambient packaging, which requires no
refrigeration throughout the delivery process, and significantly reduces the
Company's per case freight
2
cost. Concurrently, the Company has expanded the availability of its current
lines by modifying pallet size, enabling customers to order more flavors.
Promotions
Planned promotions include continued advertising in trade publications,
an anticipated set of TV commercials on Nickelodeon, Marvel Comic Book
advertising, C- store grass roots radio promotions and sponsorships involving
the Washington Redskins NFL team, the Erica Enders NHRA race car team and the
U.S. Club Youth Soccer Program.
Coca-Cola Enterprises
The Company reported that its previously announced Letter Of Intent
with Coca-Cola Enterprises is progressing and that the Master Distribution
Agreement with CCE is close to execution status, with an anticipated closing
of the CCE stock purchase transaction by the end of August.
Guidance
The Company offered guidance, expecting gross revenues to rise to $4
for the third quarter of 2005. On the strength of reorders and growth in
distribution partners, the Company raised its guidance from $5 million to
$6million in gross revenues for the fourth quarter, with gross revenue for
the full year an expected $13-15 million. The Company expects to be
operationally profitable before year-end. Finally, the Company referenced a
recent Lehman Bros. published analytical report on the potential CCE / Bravo!
transactions, as announced, that suggested revenues of $80 to $90 million for
the Company in 2006 with the consummation of the proposed CCE transactions.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Bravo! Foods International Corp.
Date: August 16, 2005 By: /s/ Roy D. Toulan, Jr.
-------------------------------
Roy D. Toulan, Jr.
Vice President, General Counsel
3