Premier Beverage Group Announces Captive Brands Strategy

Expansion Into High Volume Captive Brand Functional Beverage Market Provides Diversification of Revenues

Nov 03, 2011, 13:14 ET from Premier Beverage Group

NEW YORK, Nov. 3, 2011 /PRNewswire/ -- Premier Beverage Group (OTC: DAMH) plans to enter the captive brand functional beverage market as soon as practicable, according to CEO Fouad Kallamni, who noted that Premier is planning to set up a newly formed business unit, Captive Brands Corp (CBC).  This new CBC business unit will offer a turnkey private label solution for retailers seeking to offer premium functional beverage products, including energy drinks, energy shots, enhanced waters, and milk products, among others.  

"The demand for premium functional beverages is increasing across all beverage categories," Kallamni said.  "However, these beverage categories are highly competitive, and dominated by industry giants like Coca-Cola and Pepsi.  Through direct alignment with retailers, offering exclusive premium functional beverage programs within their stores, our brands gain a significant advantage.  It is no secret that private label and store brands get excellent placement.  In addition, retailers make significant margins off of these products, which make these products attractive to retailers, especially those which have limited access to valuable shelf space.  By entering the captive brand market, we provide a turnkey solution for retailers eager to enter the premium functional beverage space.  

"The premium functional beverage space is unique in how it's approached by its customers," Kallamni pointed out.  "Consumers buy premium functional beverages based heavily on the branding and packaging, which puts generically-packaged store brands at a competitive disadvantage.  Through our programs, we provide retailers with a high end brand, produced by us on their behalf, that is in line with premium name brands in the space today.  In today's challenging economic climate, being aligned with a recession-friendly-priced brand provides us with a significant marketplace advantage.  Retailers which have introduced owned brands have seen substantial growth, as evidenced by the success of Duane Reade's Delish® brand and Walgreen's Big Flats 1901® private label beer brand, among others."

In 2010, overall private label sales were approximately $88.5 billion, according to Nielsen's "Private Label Manufacturers Association's (PLMA) 2011 Private Label Yearbook."  Over the past decade, annual private label sales grew 39% in supermarkets and 97% in drug stores.  Consumers who purchase private label brands save on average 35% from name brands. In addition, in recent years, consumers have widely acknowledged the improvement in private label quality.

"By expanding our business through the addition of the Captive Brands unit," Kallamni concluded, "we are positioning Premier Beverage Group as a diversified functional beverage business, combining the high potential of our OSO Beverages line with a predictable, high volume Captive Brands business."

About Premier Beverage Group

Premier Beverage Group (OTC: DAMH) is a holding company that – through its subsidiary, OSO Beverages – owns, develops, markets and distributes high-end premium functional beverages.  Premier Beverage Group's flagship brand, OSO, is a premium energy beverage offered primarily to on-premise accounts.  OSO – offered in both regular and sugar-free flavors – is produced in Austria, using only the finest ingredients – resulting in a clear, crisp energy beverage and an up-market consumer experience.  For more information on Premier Beverage Group, please visit www.premierbeveragegroup.com.  For more information on OSO Beverages, please visit www.osobeverages.com.  

This press release, within the meaning of the Private Securities Litigation Reform Act of 1995, contains forward-looking statements involving known and unknown risks, delays, and uncertainties that may cause our actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks, delays, and uncertainties include, but are not limited to: risks associated with the uncertainty of future financial results, our reliance on a limited number of suppliers, the limited diversification of our product offerings, additional financing requirements, development of new products, government approval processes, the impact of competitive products or pricing, technological changes, as well as the effect of economic conditions and other uncertainties detailed in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.

For more information, contact:

Ned Barnett, Barnett Marketing Communications
(702) 561-1167
ned@barnettmarcom.com

Investor Relations
(646) 820-0630
ir@premierbeveragegroup.com

SOURCE Premier Beverage Group



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