Scottsdale, Ariz., Oct. 16 - Baywood International, Inc. announced expansion of its business plan and unaudited sales results for its recently acquired Orangeburg, NY-based Skae Beverage International, LLC, maker of natural, ready-to-drink New Leaf brand of teas.
Sales Results
Skae Beverage unaudited sales for the nine months ended September 30, 2008 grew 183% to $2,500,000, compared to $885,000 in the year-ago period. Volume growth was primarily driven by the growing sales into the distribution network and increasing turn of the brand from consumers in the independent grocery/restaurant "street" channel.
The New Leaf brand is already established in the Northeast and is emerging in the Southeast, Midwest and South Florida through over 50 distributors and approximately 5,000 accounts in the independent grocery/restaurant "street" channel. The Company's goal is to build the New Leaf brand and drive sales growth through expanded distribution, marketing support and new product additions.
"The track record and continuing momentum of the New Leaf brand with distributors and consumers is compelling. The growth of Skae Beverage is the result of a great product coupled with great management, and we intend to support this enterprise and Mr. Eric Skae to its fullest potential," stated Neil Reithinger, President & C.E.O. of Baywood.
Teas are a component of the fast growing functional beverage category. The Company believes that it is essential to expand its business aggressively in this category. As previously announced, it has appointed Mr. Eric Skae to run the Skae Beverage division and to its Board of Directors to oversee these plans. This expansion centers on the following guidelines:
* New Beverage Market Opportunities -- The Company believes that the acquisition of Skae Beverage/New Leaf Tea provides a significant growth opportunity in the overall $10 Billion functional beverage markets.
* Operational Synergies -- The Company believes it can achieve production and distribution efficiencies with the aim of enhancing profitability.
* Product Opportunities -- The Company intends to use its expertise in nutritional formulation in these various distribution channels to develop a new line of ready-to-drink (RTD) beverages based on Super Juices* and other functional beverages.
* Manage the nutraceutical business for growth in the natural health food channels through support for its most popular, profitable and new products.
A New Functional Beverage
The Company believes that it can effectively combine its nutraceutical beverage expertise and health food distribution channels with Skae Beverage's RTD expertise in the street and food, drug and mass distribution channels to foster significant growth in RTD tea and a new and authentic RTD Functional Beverage targeted to Gen Y and their Baby Boomer parents.