OTC: BRFH The Health Food Smoothie Craze
Quietly and unnoticed there is a major stealth bull market going on in the health food sector. Here’s some examples:
- Organic pasta, breakfast cereal, and frozen pizza company Annie’s (NYSE: BNNY) came public at $19 per share on March 28th. Within one month, the stock traded up to $44 per share, yielding a 131% return in 30 days for investors lucky enough to get the IPO shares.
- Since the market low in 2009, nationwide organic super market chain Whole Foods Market (NYSE: WFM) has traded from $10 to $85, delivering a mere 750% to investors over a 3 year period as the company continues to deliver an annual growth rate in excess of 10%.
- Organic Grocer Fresh Market (NYSE: TFM) – a competitor to Whole Foods, was a $32 stock in 2011- today the stock trades closer to $52 for a 62.5% gain over the past year. Fresh Market delivered 13.5% growth in 2011.
- Hain Celestial Group (NASDAQ: HAIN), a natural and organic food manufacturer, was a $16 stock in early 2011. Today, HAIN trades for about $45, delivering a 182% return for those who have held the stock for the past 18 months.
- Monster Beverage Corp (NASDAQ: MNST), formerly known as Hansen’s Natural Sodas, was a run of the mill Southern California beverage company for many years. Hansen’s introduced a line of natural sodas and bottled carbonated fruit juices, and sales exploded. In the past year, MNST has run from $20 to $64- yielding a whopping 220% to investors who chose to hold the stock the past 15 months.
Attention health food investors- there’s a new food specialist in town. This company’s products have been marketed in Australia, New Zealand, and the Middle East for the past seven years, and the same management team is now in the US and ready to penetrate the market. They have perfected the product Down Under, and are now introducing it to a market 30 times the size.
Their specialty beverages can be found in over 1100 locations Down Under, and is about to take the US QSR (Quick Serve Restaurant) market by storm in the US.
For your consideration:
Barfresh Food Group (OTC: BRFH): The Most Profitable 7 Square Inches in the World
McDonald’s put their smoothie program in last year, and same store sales went up 6%. For an established restaurant chain like McDonald’s, a 6% same store sales increase is a massive gain. Its unheard and drove McDonald’s stock to all time high of $100 per share.
Once behemoth McDonald’s gets a result like that, every other chain follows suit to take advantage of the new trend and remain competitive. So, naturally, Burger King has introduced their version this year, complete with a major advertising campaign starring David Beckham, Jay Leno, and Mary J. Blige. I guess a 6% revenue bump is worth a major advertising investment.
The key ingredients in a smoothie are ice cream (or sorbet), fruit, fruit juice, and ice. So, if you’re a quick serve restaurant with fairly limited space to prepare new menu items, how do you put together a Smoothie offering to your customers? The difficulty is by far the ice- most QSRs do not have ice behind the counter- the only ice in the store is on the other side of the counter, and comes out of the soft drink fountain machine.
Enter Barfresh with the perfect solution, and no other food provider on Planet Earth can provide this same solution. It is patented in many countries around the world, and patent pending in the US.
BRFH sells this product to all kinds of customers- but their largest category of customer is the QSR- Quick Serve Restaurant. This is the perfect solution for a QSR to get in the Smoothie business with a great deal of ease.
All the store needs 5.5 ounces of water, seven square inches on a counter for a blender, and some freezer space. These specially designed packages sell to restaurants for about $1 each.
A high quality Smoothie can be made in a blender is just 30 seconds and served to the customer. Restaurants charge anywhere from $2.50 to $4.50 for the finished product, making the Smoothie one of the highest margin products on the menu.
Hence- my belief the 7 square inches required for the blender might be the most profitable 7 square inches on Earth.
It’s extremely easy for any employee to prepare, and there is zero waste, and a great margin- QSRs love this.
BRFH Ready to Deliver
The packaging process is proprietary, and took many years to perfect. Their patented production lines can be added on to any ice cream factory, which will allow the company to expand rapidly in the US without huge capital investment.
No one else in the world has the capability to put ice, ice cream, frozen fruit, and fruit juice in the same frozen package.
BRFH has completed the installation of its first production in an ice cream factory in Salt Lake City, and is ready to begin accepting purchase orders in the near future.
This product was developed in Australia, and the Barfresh Smoothie is served in nearly every Subway store in Australia, New Zealand, and the Middle East. Krispy Kreme is a customer as well, along with many other names that aren’t familiar to US consumers.
One important note: Barfresh USA and Barfresh Australia are separate companies with the same ownership. Founder Riccardo Della Coste is the CEO of both companies, and is running the show on both sides of the oceans.
You can invest in the US version now under symbol BRFH. The company has just completed its first US production line. This line is capable of producing about 7 million units annually. The company has been showing product in the US for 3 years, and I believe its first major orders are just around the corner.
I suspect the stock will trade a lot higher when the company starts announcing its first orders. A close relationship with a major QSR chain like Taco Bell, Dunkin Donuts, or Quizno’s subs would like send the stock screaming up the charts.
For risk oriented investors, this is the time to get involved- before the orders come.
Time to Invest Your 7 Minutes in BRFH
As I mentioned yesterday, all you need to do is commit 7 minutes of your time to watch a video on the company. I know everyone can afford to invest 7 minutes.
Click Here to watch the video and read a lot more about the company from another source.
Here’s the URL: http://www.gobarfresh.com/
There’s some other information you should have. For starters, I’ve purchased a lot of this stock through my company and my family account. I was instrumental in helping the company raise capital in the US to get the operations started.
I expect to be very active trading this stock- both buying and selling. I did both last week, and will continue to do so without any prior notification. I’m both hoping and expecting the company to start delivering its first purchase orders in the near future, and am hopeful these future events will have the stock trading much higher.
Much more on this company in the coming weeks. There’s a lot to know and understand.
I love this stock around the $1 level. I believe it could follow the same trajectory we saw with LUXR last month- trading to about $1.50, backing and filling, and eventually finding the $2 level over the next 4 weeks. Fundamental developments will have a lot do with the short term upside.
Longer term, the QSR market in the US is 30 times that of Australia, so the company has massive upside potential. QSRs are scrambling to put in a Smoothie program, driven by the need to catch up with McDonalds and Burger King.
Invest 7 minutes to watch the video- you can afford it, then own the stock if you are as compelled as I am.
A reminder: Catch me live on TV every Monday from 12 to 2PM eastern.
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