Splash Beverage Group Enters into Agreement to Acquire 80% of Pulpoloco Sangria

Rhea-AI Summary

Splash Beverage Group (NYSE American: SBEV) has signed an agreement to acquire 80% of Pulpoloco Sangria, enhancing its control over manufacturing and distribution in the US and internationally. This strategic acquisition follows Splash's role as exclusive importer since 2020 and aims to increase revenue and profit margins. Pulpoloco experienced a remarkable 43% sales growth year-over-year. The transaction is expected to finalize by August, with founder Paul Damon joining Splash to oversee international operations.

Positive

• Acquisition of 80% of Pulpoloco Sangria enhances control over manufacturing and distribution.
• Expected increase in profit margins and revenue from direct control of manufacturing.
• 43% sales growth of Pulpoloco Sangria recorded through May compared to the previous year.

Negative

• None.

Controlling Manufacturing and Distribution Process to Add Scale and Drive Revenue Growth

Fort Lauderdale, Florida, June 23, 2022 (GLOBE NEWSWIRE) -- Splash Beverage Group, Inc. (NYSE American: SBEV) (“Splash” or the “Company”), a portfolio company of leading beverage brands, today announced that it has signed an agreement to acquire 80% of Pulpoloco Sangria in a transaction that will give Splash control over the manufacturing and distribution of Pulpoloco across the US while adding international markets, capturing the additional margin and revenue.

Splash acquired the distribution rights to Pulpoloco in 2020 and is currently the exclusive importer of Pulpoloco for the United States.  Splash has overseen the dramatic growth of the brand, including a 43% increase in sales through May versus the prior year.  Pulpoloco Sangria is made in Madrid, Spain following the family recipe of the founder Paul Damon with three varietals, Crisp White, Soft Rose’, and Smooth Red.  Pulpoloco is packaged in a highly innovative, ecofriendly paper can called the CartoCan.  Splash expects to complete the transaction by the end of August.

Robert Nistico, Splash Beverage Group’s Chairman and CEO, commented, “In addition to bringing Pulpoloco entirely under the Splash roof, we will benefit from the additional layer of margin AND increase our global footprint and revenue.  Pulpoloco was the only brand in our portfolio where we were not directly responsible for the manufacturing.  Owning the manufacturing process entirely, which includes the exclusive rights of the innovative eco-friendly packaging, not only expands those rights, but will provide us with the opportunity to ship in greater bulk and to markets with faster growth potential.  We believe this will help us add scale and drive additional revenue growth while potentially improving margins.”  

Splash announced that Pulpoloco’s founder Paul Daman will also be joining the Splash team and will manage the international business for Pulpoloco and other Splash brands as well.

Follow Splash Beverage Group on Twitter: www.twitter.com/SplashBev

About Splash Beverage Group, Inc.
Splash Beverage Group, an innovator in the beverage industry, owns a growing portfolio of alcoholic and non-alcoholic beverage brands including Copa di Vino wine by the glass, SALT flavored tequilas, Pulpoloco sangria, and TapouT performance hydration and recovery drink. Splash’s strategy is to rapidly develop early stage brands already in its portfolio as well as acquire and then accelerate brands that have high visibility or are innovators in their categories. Led by a management team that has built and managed some of the top brands in the beverage industry and led sales from product launch into the billions, Splash is rapidly expanding its brand portfolio and global distribution. 

For more information visit:
www.SplashBeverageGroup.com
www.copadivino.com
www.drinksalttequila.com
www.pulpo-loco.com
www.tapoutdrinks.com

Forward-Looking Statement
This press release includes “forward-looking statements” within the meaning of U.S. federal securities laws. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results and, consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements and factors that may cause such differences include, without limitation, the risks disclosed in the Company’s Annual Report on Form 10-K filed with the SEC on March 8, 2021, and in the Company’s other filings with the SEC. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.

Contact Information:
Splash Beverage Group
Info@SplashBeverageGroup.com
954-745-5815

FAQ

What acquisition did Splash Beverage Group announce on June 23, 2022?

Splash announced the acquisition of 80% of Pulpoloco Sangria to enhance manufacturing and distribution control.

How does the acquisition of Pulpoloco Sangria impact SBEV's revenue?

The acquisition is expected to increase revenue and profit margins by allowing Splash to manage the manufacturing process directly.

What growth did Pulpoloco Sangria achieve prior to the acquisition?

Pulpoloco Sangria saw a 43% increase in sales through May compared to the previous year.

When is the Splash acquisition of Pulpoloco expected to be finalized?

The transaction is expected to be completed by the end of August 2022.

Who will manage the international business of Pulpoloco after the acquisition?

Pulpoloco’s founder Paul Damon will join Splash and manage the international business.