Developments in the Nonalcoholic Beverage Market

FinancialBuzz.com News Commentary

NEW YORK, May 1, 2018 /PRNewswire/ --

Data provided by Grand View Research shows that the global nonalcoholic beverage market size was valued at USD 967.3 billion in 2016. The market is projected to grow at an estimated CAGR of 5.8% from 2017 to 2025. The growth of the market is explained by several factors including rising disposable income, population growth, and changing lifestyle. In addition, increasing concerns regarding obesity and health awareness are expected to trigger the growth of functional beverage and bottled water product segment, while at the same time reduce the consumption of carbonated drinks. Koios Beverage Corp. (OTC: SNOVF), Monster Beverage Corporation (NASDAQ: MNST), Celsius Holdings, Inc. (NASDAQ: CELH), National Beverage Corp. (NASDAQ: FIZZ), Dr Pepper Snapple Group, Inc. (NYSE: DPS)

The report also indicates that the functional beverage sector is expected to develop into the fastest growing product in the market over the forecast period. A functional beverage is a non-alcoholic drink which offers potential health benefits and contains non-traditional ingredients like minerals, vitamins, amino acids or added raw fruits. Energy drinks, sports drinks & nutraceutical drinks are the major segments of the global functional beverages market. As for the value of the market, Mordor Intelligence indicates that the functional beverage market was valued at USD 26.2 billion in 2015, at an expected CAGR of 6.5% by 2023.

Koios Beverage Corp. (OTC: SNOVF) also listed on the Canadian Securities Exchange under the Ticker (CSE: KBEV). Yesterday after the market closed the company announced that, "Koios Beverage Corp. (CSE: KBEV), formerly Super Nova Petroleum Corp. (CSE: SNP) (OTC: SNOVF) (the "Company" or "Koios Bev"), is pleased to announce that further to its news release on April 13, 2018, the Company's common shares will resume trading on the Canadian Securities Exchange (the "CSE") under the symbol "KBEV" at market open on May 1, 2018, following the publication by the CSE of its bulletin granting final approval of the Company's listing application in connection with its transaction (the "Transaction") with Koios, Inc. ("Koios") completed on April 13, 2018 that constituted a "fundamental change" of the Company within the meaning of the policies of the CSE. A listing statement describing the Company and Koios, as well as the terms of the Transaction and associated transactions, prepared in accordance with the policies of the CSE, is available on SEDAR at http://www.sedar.com...

About the Company's Business - The Company, through its wholly-owned subsidiary Koios, is an emerging functional beverage company which has an available distribution network of over 2,000 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, Muscle Foods USA, KeHE, and Wishing-U-Well. Together these distributors represent over 80,000 brick and mortar locations across the United States from sports nutrition stores to large natural grocery chains including Whole Foods and Sunflower markets. Through its partnership with Wishing-U-Well, Koios also enjoys a large presence online, including being an Amazon choice product.  

Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants. Koios products can enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity. Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain. Koios is one of the only drinks in the world to infuse its products with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity."

Monster Beverage Corporation (NASDAQ: MNST) in February reported financial results for the three- and twelve-months ended December 31, 2017. Net sales for the 2017 fourth quarter increased 7.5 percent to $810.4 million from $753.8 million in the same period last year. Net sales for the Company's Monster Energy® Drinks segment, which is comprised of the Company's Monster Energy® drinks, Monster Hydro® energy drinks and Mutant® Super Soda drinks, increased 7.6 percent to $736.1 million for the 2017 fourth quarter, from $684.4 million for the same period last year. Net sales for the Company's Strategic Brands segment, which includes the various energy drink brands acquired from The Coca-Cola Company, increased 7.8 percent to $69.6 million for the 2017 fourth quarter, from $64.5 million in the comparable 2016 quarter. Net sales for the Company's Other segment, which includes certain products of American Fruits & Flavors ("AFF") sold to independent third parties, were $4.7 million for both the 2017 and 2016 fourth quarters.

Celsius Holdings, Inc. (NASDAQ: CELH), maker of the leading global fitness drink, CELSIUS®, recently announced that its CELSIUS HEAT™ brand has won a global award for product packaging.  The award, the second since CELSIUS HEAT™'s 2017 debut, paints a clear picture that Celsius Holdings, Inc., is a nimble organization capable of bringing highly desirable, on trend products to market with outstanding results. CELSIUS HEAT™, the Company's second product line in the portfolio, a carbonated and proven thermogenic providing high performance energy, won Best Packaging/Label Design at the 2018 InnoBev Global Soft Drinks Awards, held at the 14th Global Soft Drinks Congress, in Prague on April 18th, 2018. CELSIUS HEAT™ is packaged in 16-ounce cans and packed with 2,000mg of L-citrulline and 300mg of caffeine, as well as the CELSIUS® proprietary blend. The standout packaging and label design includes elements which position the brand as highly credible. The front of the can features a square box calling out key ingredients, designed to emanate a medical label, supplement or vitamin facts panel.  This front facing visual affect lends credibility and sets the stage for the structure and function claims, which are clinically proven, and the clear differentiator among other brands in the fitness and energy drink categories.

National Beverage Corp. (NASDAQ: FIZZ) proudly refreshes America with a distinctive portfolio of Sparkling Waters, Juices, Energy Drinks and Carbonated Soft Drinks. On March 8, 2018, the company announced results for its third quarter and nine months ended January 27, 2018. Revenues grew to $731 million, up 19%. "Despite severe weather conditions which temporarily disrupted deliveries in certain markets, our third quarter top-line and bottom-line growth again led the industry," stated Chairman and CEO Nick A Caporella. "The third quarter marked our 15th consecutive quarter of year-over-year earnings growth, and the 11th consecutive quarter of double-digit earnings growth. While we are compelled by regulations to record a one-time adjustment to previous deferred tax liabilities by $4.3 million, and adjust prior year-to-date income tax to the estimated effective tax rate for the full year resulting in a $7 million reduction in tax expense; after these adjustments the third quarter produced after-tax earnings of $41.1 million or earnings per share of $.88."

Dr Pepper Snapple Group, Inc. (NYSE: DPS) is a leading producer of flavored beverages in North America and the Caribbean. On February 15, 2018, the company announced it has renewed its fountain agreement with Arby's covering the availability of both Dr Pepper and Diet Dr Pepper in its U.S. restaurants through 2027. Dr Pepper is currently offered at all domestic Arby's locations, and with this new agreement, Arby's plans to expand availability of Diet Dr Pepper to nearly all U.S. restaurants by the end of 2018. With a heritage spanning more than 50 years, Arby's dedication to MeatCraft™ combined with Dr Pepper and its distinct blend of 23 flavors is a partnership where bold tastes make for a truly one-of-a-kind dining experience.

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