Sports_Sales

Sales Projections

The following sales projections are based upon sales of a new brand beverage. These projections do not include incremental sales, i.e., co-packing, military, schools, hospitals, state and local government, etc.

The sales projections are based upon an industry standard of 2.5 cases sold per day of operation. The 2.5 case sales ratio is calculated using 3% of the overall aseptic single serve juice category volume sales in the state of California for the twelve month period ending July 2003.

Three juice flavors will be introduced into the marketplace in July 2007. Retailers impose an authorization (slotting) fee, ranging from $10 to $30,000 per sku. As acceptance of each flavor juice will vary in time, the following sales projections are based upon the total number of cases sold, rather than upon juice flavor cases sold. During 2004 and 2005, actual sales by juice flavor will be recorded. Sales projects for 2005 made during 2004 will be based upon juice flavors cases sold.

Sine the slotting expense will be incurred at various points in time in during 2004 to 2006, it is anticipated the slotting fee expense will be charged and placed into a reserve account during the first month a retailer places an order. By industry custom, the slotting fee is usually deducted by the retailer from the amount owed in the initial purchase invoice. At that time, the reserve account will be charged for the slotting fee.

The following 2006-2008 sales projection are listed by the retailer classification:

Cash and Carry: Smart and Final, Jetro
Major Chain Retailers: Stater Brothers, Food 4 Less, Albertsons (southern and northern California), Ralphs, Vons, Safeway, Raley's
Major Independents: Super A, Superior Warehouse, Cardineres, KV Mart, Big A, Sav-U-Foods, Jons, 32nd Street, North Gate, Save Mart, Food 4 Less (independents), etc.
Unified Grocers (formerly known as Certified Grocers): All single operated supermarkets/food stores with membership in excess of 3,000 stores
Distributors: Beverage and general

The sales projections for 2006 are very conservative due to the start-up nature of the beverage brand. The sales projections for 2006 and 2008 are based upon the beverage brand having achieved brand awareness. Therefore, the pattern of volume sales projections increases during the second half of 2006 and during 2006. A retailer's initial order is listed in bold numbers. These orders qualify for a 10% introduction allowance. Subsequent orders do not have this price discount.