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EARI GROUP
EARI – OTC
Diversified Conglomerate of Beverage Brands
EARI is a diversified holding company specializing in distribution and branding of unique beverages. EARI’s focus is on growth opportunities of early stage branding in the beverage industry This company intends on scaling up rapidly by taking advantage of the group’s specialty beverage marketing operations.The recent acquisition of Betta4u Brands added 5 seperate brands to their portfolio . The company is presently in the process of raising $15 Million
EARI’s long-term strategy is focused on four priorities: expanding and diversifying our revenues from sales of our own brands of beverages; improving our sales and marketing effectiveness of our media operations through analysis of our marketing data grow sales of our branded beverages faster; disciplined acquisition of upstart beverage brands; developing a stream of revenue from providing our sales and marketing services to third party brands.
These shares have consolidated from significantly higher levels because of the recent offering in place. We feel that these shares are oversold and with the new influx of cash , the company can begin to execute its business model Serious investors must place these shares on their BUY LIST
This is not an offer . Please read SEC REG A before investing
WEBSITE SEC REG A BRANDS ABOUT
OVERVIEW
Recently the Company accomplished with the following transactions;
1) Acquisition of assets from StreetBeatz Inc, a video streaming network that develops branding, marketing and advertising content for Foody’s Video and Social Media Platform worldwide. StreetBeatz Brands Inc consists of 50% holdings of Foody TV Acquisitions of Florida Inc and 100% of (Assets) Sports & Entertainment TV.
2) Acquisition of Betta4u Brands Inc., and its wholly owned subsidiaries and brands;
- a) Fury Beverages LLC,
- b) Rhino Spirits LLC,
- c) Zegen Company (Philippines)
- d) Tickle Water Brand
- e) Neo Alkaline Water Brand
The purpose of this Offering is to raise capital for (i) sales and marketing for our beverage brand portfolio and (ii) acquisition of and newly developing beverage brands and (iii) build international distribution.
These 3 areas will be where the Company will be focusing its efforts moving forward, and its use of proceeds for the Offering will be focused on enhancing opportunities in these three areas. Notwithstanding, the three different areas of focus the Company will consolidate its financials into one statement and not report as different segments.
Management’s criteria for identifying its acquisition targets, which it may change at any time for any reason, is food and beverage companies with:
- Products with gross margins of 50% plus.
- Products in market segments showing high growth, 20% plus.
- Products with excellent consumer acceptance.
- Companies and Brands with a proven track record and a dynamic management team.
With these criteria, Management identified and executed a term sheet with Ambhar Global Spirits LLC (see discussion of Brand 5 below), and has identified a distillery with which it is negotiating acquisition. Management has already identified the targets we will acquire with the Use of Proceeds from this offering.
The Company has also designated a new class of stock, Preferred Series C, which it may issue only for mergers, acquisitions and strategic partnerships or investment. (please see Description of Securities for more information about the Preferred Series C Stock)
During the second quarter of 2021, the company acquired Betta4u Brands Inc., a Delaware corporation and its wholly owned subsidiaries, Fury Beverages LLC, Rhino Spirits LLC, Zegen, and brands Tickle Water and Neo Alkaline Water. Betta4u Brands was incorporated on 20 February 2018 (“Betta4u Brands “) and acquired by EARI via a Share Exchange Agreement. Betta4u Brands Inc. is a beverage sales marketing and business development company and operates the website, www.betta4ubrands.com. Over the last two years, Betta4u Brands has acquired US based brands and companies Neo Alkaline Water, Tickle Water, Fury Beverages LLC, Rhino Spirits LLC and a Philippine based Distribution company, Zegen. For the year ended December 31 2020, Betta4u Brands Inc. and its subsidiaries sold approximately $750,000 of product, which was significantly lower than approximately $6M in 2019, due to the pandemic. With the use of proceeds from the offering, the company will reinvigorate and expand sales, distribution and marketing efforts for all the brands.
Brands in the Water Category – 1) Neo Water and 2) Tickle Water
Entertainment Arts Research Inc. intends to grow Neo and Tickle Water by introducing new packaging and by appointing key personnel, already identified in strategic market segments. Product development is well underway in new and emerging categories in this functional hydration segment. Management believes the sparkling and alkaline water segment of the beverage industry is poised for exceptional growth over the next five years. Functional water is one of the biggest trends in non-alcoholic beverages currently. Functional water is water that has been enhanced with nutrients or other ingredients in an aim to provide additional health and wellness benefits, such as stress relief and skin, hair, and nail care. In 2015, sales of functional bottled water amounted to 3.24 billion U.S. dollars in the United States and are expected to grow to a value of over five billion dollars by 2022.
TOPLINE CATEGORY VOLUME | ||||||
SPORTS DRINKS | $7,986,151,091 | 10.1% | ENERGY DRINKS | $14,485,313,644 | 6.7% | |
BOTTLED JUICES | $7,730,105,507 | 8.5% | TEA/COFFEE | $7,344,734,789 | 6.6% | |
BOTTLED WATER | $18,999,973,759 | 2.1% | LIQUID DRINK ENHANCERS | $468,395,226 | 25.1% | |
SOURCE: IRI, a Chicago-based market research firm – @IrIworldwide% 52 Weeks through 3/21/21 |
Brand 3: Sports Beverage and Functional Hydration – Fury Beverages
Fury Beverages LLC., a Minnesota corporation formed on April 03, 2012 (“Fury) was acquired by Betta4u Brands in the second quarter of 2021 via a membership acquisition agreement. Fury is a sports hydration drink hat sells its products under the brand “Nature’s Fury” and operates the website https://www.drinkfury.com. Its business model is identical to that of Tickle and Neo Water, whereby production is outsourced to various contract packers and the route to market is similar. For the year ended December 31 2020, Fury Beverages sold approximately $240,000 Dollars in product. With the use of proceeds from the offering, we will produce inventory and expand our sales and marketing efforts. Sports Drinks powered through the pandemic to over $7.5 billion in sales over the past year. Yet even as the category’s dominant brands continue to expand the space – analysts are predicting it to pass $10 billion by 2024
Entertainment Arts Research Inc. intends to grow Fury by achieving economies of scale with the group’s brands in the areas of production, sales networks, distribution, customer acquisition, administration, freight, logistics and marketing. Management believe that the three segments of the beverage industry operated in, namely craft spirits, functional waters and nutritional sports drinks are poised for exceptional growth over the next five years.
Brand 4: Rhino Vodka
During the course of 2020, Betta4u Brands acquired Rhino Spirits LLC (D/B/A White Rhino Vodka), a California registered corporation that was formed on July 28, 2016 (“White Rhino”) via a membership acquisition
agreement. White Rhino Vodka operates the website, https://www.whiterhinovodka.com nd its business model is to produce, market and develop premium spirit brands in the craft spirit alcohol segment with contract packers and distributors. For the year ended December 31 2020, White Rhino had no revenue due to the pandemic but sold approximately $20,000 of product in 2019 to test the market in Southern California, where it was exceptionally well received by consumers. With the use of proceeds from the offering, we will build inventory, expand sales and marketing efforts with plans well underway for national distribution. The brand has committed to donate a portion of revenue to the International White Rhino foundation, a worthy cause to save the White Rhino from extinction.
Management believes the craft spirit category; specifically flavored vodka is poised for exceptional growth over the next five years. The alcoholic beverages market is forecast to grow by nearly 19 percent by 2024 to over 1.7 trillion U.S. dollars in value from an initial value of 1.5 trillion dollars. In 2020, the global market size of alcoholic beverages amounted to over 1.49 trillion U.S. dollar. The yearly revenue decreased by around 200 billion dollars compared to 2019. While estimates assume that the market size will again increase in 2021, it will take at least until 2022 before the market recovers and surpass the 2019 pre-pandemic revenue. However, the Statista Consumer Market Outlook estimates that by 2025 the global market size of alcoholic beverages will increase to over 2.2 trillion U.S. dollars.
Brand 5: Ambhar Tequila (Prospective)
We have continued to identify and negotiate the acquisition of beverage companies that will be accretive to our balance sheet. We have recently executed a term sheet and are finalizing the definitive documents for the acquisition of Ambhar Global Spirits LLC, owner of the “Ambhar Tequila” brand with a website of https://ambhar.com/index.php (“Ambhar”), which we disclosed on otcmarkets.com1.
Ambhar is a fast growing, ultra-premium 100% agave tequila brand that was first launched in the U.S. in 2011, and in Mexico in 2013. AMBHAR is currently distributed in Texas, Florida, New York, New Jersey, Colorado, and Oklahoma, and is available for purchase nationally through a managed ecommerce platform. Internationally, the brand is distributed in Mexico, the UK, parts of Canada, and in duty free. Additional markets are scheduled to soon open, including California.
Product Description AMBHAR Tequila is a high-quality, luxury spirit available in five marks: Plata (blanco), Reposado, Añejo, and newly launched Cristalino and Extra Añejo. We are also currently working on two additional variants, AMBHAR Smoky and AMBHAR Cannabis (subject to regulations per markets). Our tequila is elegantly presented in a distinctive and eye-catching Cognac-like bottle, adorned with our signature Dragonfly emblem (a symbol of joy, life, and luck).
Ambhar was valued at was valued at $12 million USD based upon standard market valuation based on cases of Tequila sold to date. Per the executed term sheet, we will acquire 51% of Ambhar and have the right to acquire the other 49% of the LLC upon successful completion of our funding obligation set forth in the term sheet of $3 million USD for Ambhar working capital, which will mostly be spent on marketing, which is set forth as part of the Use of Proceeds of this Offering. The $12 million valuation will make it a significant portion of our balance sheet: 50%.
During the last 3 fiscal years, Ambhar had sales of $1,232,097 (2018); $1,439,058 (2019); and $530,336 (2020). Management believes the 2020 sales figures are an outlier because of the Covid-19 pandemic; Ambhar has projected 2021 sales of $2,600,000 with the financials it provided in due diligence. These unaudited financial statements are attached at Exhibit 99.1 in accordance with paragraph (b)(7)(iii) on part F/S of Form 1-A. Ambhar was the subject of a Harvard Business Review case study regarding its growth strategy2, which management has used to evaluate the provided projection figures.
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