Fernhill Beverage, Inc. is a for‐profit stock corporation registered in the State of Oklahoma with its headquarters located in Las Vegas Nevada. Fernhill Beverage, Inc. is created to develop an innovative and quality driven beverage company. Fernhill Beverage, Inc. is dedicated to providing the very best in fun, exiting and healthy beverage products aimed at a youthful consumer base. Fernhill Beverage, Inc. is committed to taking advantage of a unique and readily available distribution base. Fernhill Beverage, Inc. is poised to design the next evolution in the youth and young adult beverage market.
Fernhill Beverage’s mission is:
• To develop, create and market the best beverage products available to the consumer;
• To assemble a team of professionals with a proven track record of success both in and out of the beverage industry;
• To maximize revenues and profitability for its investors, shareholders and partners;
Fernhill Beverage Inc., located in Las Vegas, NV is incorporated in Oklahoma for the purpose of developing, creating and marketing beverage products. Fernhill Beverage, Inc. will, upon commencement of operations, complete the manufacturing and marketing of its initial brand Roadkill.
Fernhill Beverage, Inc. is committed to developing the brand Roadkill nationally through its independent distribution relationships.
Fernhill Beverage, Inc. has identified a largely overlooked and underserved segment within the multi‐billion dollar beverage industry. That market is the child and pre‐teen market.
Most large beverage companies have largely ignored the youngest of the consumers. They feel there is more profit in getting the child market to purchase a more adult marketed product. For instance: Most convenience stores will stock juice box products for young kids and expect them to advance to a 20oz. soda or a 20oz. sports drink. Fernhill Beverage, Inc. is concentrating on capturing that transition market with fun products that appeal to youth and have ingredients that appeal to adults.
Fernhill’s initial product offering (Roadkill), is packaged in a very attractive 12oz. slim bottle that fits smaller hands perfectly. The label is bright and colorful. The label depicts cartoon animals that have lost a battle with vehicles. Fernhill Beverage, Inc. has been very careful to make sure the characters on the labels are still alive. They are just vivid enough for children to say “Cool” and for moms and dads to say “Gross”. The product inside is very colorful and is designed to catch the attention of consumers immediately. Roadkill is initially offered in 3 exciting and fun flavors with others being developed and released as the market demands. The initial flavors are Green Apple (Green Gopher Guts), Blue Raspberry (Blue Raccoon Bits) Grape (Purple Possum Parts) with other flavors such as Fruit Punch (Red Fox in a Box) ready for production.
Fernhill Beverage, Inc. is also in the process of developing other products aimed at the teen and pre‐adult market to add to the product lines and to take advantage of new and existing distribution channels.
Our products are intended to have exceptional quality, fit, function and style for the discriminatory customer and the youth consumer and will be manufactured in the United States.
Fernhill Beverage, Inc. has developed its “flagship” brand Roadkill to take advantage of the gap left in the “youth and pre‐teen” group of the consumer beverage market. Roadkill ‘s initial launch will be in 3 extremely refreshing flavors:
• Green Gopher Guts (Sour Green Apple) ‐ a slightly sour mix of apple flavors and is a bright green color. The product is vitamin packed and is sugar free.
*Blue Raccoon Bits (Blue Raspberry) – a smooth blend of raspberry flavors. bright blue. The product is vitamin packed and is sugar free.
*Purple Possum Parts (Grape) – a mix of grape and other berry flavors. brilliant purple. The product is vitamin packed and sugar free.
The product is The product is a
Distribution and Marketing Methods of Products
In the beverage industry a new brand must be marketed to three distinct groups, (1) the distributors and their sales force, (2) the store’s manager or owner, (3) and last, but no less important, the consumers. Fernhill Beverage, Inc. has composed an approach that is specific to each group.
In the incubation period of a new brand the initial launch with a distribution base is crucial. Fernhill Beverage, Inc. realizes that to ensure the successful launch of a brand it must get the distributors and their sales force to push the desired product over another. This is best accomplished through incentives for the sales force. For example, a sales person might respond to a $10.00 bonus for every new retail account they open. They would also receive $1.00 per case for every case they sell in a 60‐day launch period. Other sales people may respond to a contest where the sales representative that opens the most new accounts over a 60‐day launch period would receive a vacation package for two. I t is important to work with the distributor’s general manager and/or owner to design an incentive program that best fits their needs and the needs of the brand. Some distributors are comfortable with financial incentives while others are not. Fernhill Beverage, Inc. is poised and ready to support the distributors with various sales and promotional programs for the marketing of its “flagship” brand Roadkill. Fernhill Beverage, Inc. has created sales sheets to be used as tools for the distributors to educate and present vital information about the product to the retail store manager or owner. Universally, retail establishments try to maximize profit potential per cooler location. To help retailers in their endeavor, Fernhill Beverage, Inc. will introduce the brand Roadkill with a “buy 3 cases get 1 case free” program when they purchase all flavors. The free case would be offered on a co‐op basis with Fernhill Beverage, Inc. and the distributor. This will improve the storeowner’s profit margin by 25%. There is limited retail shelf space available.
To battle the dilemma of a lack of retail shelf space Fernhill Beverage, Inc. is prepared to offer proprietary suction cup racks where needed. Fernhill Beverage, Inc. intends to provide labels promoting the brand Roadkill on each of the suction cup racks.
Fernhill Beverage, Inc., will also have static cling labels available to advertise Roadkill on the cooler glass doors. As volume grows, Fernhill Beverage, Inc. is prepared to offer proprietary coolers to select retail locations. Fernhill Beverage, Inc. will again take advantage of its relationship with distributors to utilize shelf space in coolers that the distributors currently own and operate in various retail locations. Marketing within a major grocery chain is vastly different than marketing within a convenience store or “mom and pop” retail location. In many instances strategic plans such as end caps, positioning of the product at eye level on the shelf and displaying the product near checkout stands can be coordinated with the grocery general manager. This relatively simple strategy can be extremely effective and accomplished without the layout of massive capital.
Fernhill Beverage, Inc. believes that the most successful strategy to market to the consumer starts with a grass roots campaign. Much like the phrase “all politics are local”
Fernhill Beverage, Inc. feels “all marketing is local”.
Fernhill Beverage is capable of producing the product for roughly $.32 per unit in the early stages of production. That price will decrease to roughly $.26 to $.28 per unit as production quantity grows. At this point, the full production cost of Roadkill is $.32 per unit or $7.68 per 24 pack case.
Currently, Roadkill is sold to the distributor for $.509 per unit or $12.00 per 24 pack case. This allows the Company to retain a $.18 per unit or $4.32 profit per case not including shipping.
The distributor then sells Roadkill to the retail location for $.75 per unit or $18.00 per case. This allows the distributor to retain $6.00 profit per case making it very attractive to them and allowing them it add it to their existing orders.
Roadkill is shipped to the distributor in a palletized format. Each pallet contains 72 cases with a revenue amount of $864.00. A full trailer contains 20 pallets with a revenue figure of $17,280.00.
Roadkill has a target retail price of $.99 to $1.19 depending on the market. Fernhill Beverage has found that the lower retail price will serve as an incentive to purchase the product.
In the Company’s first full year of operations, Fernhill expects to generate $250,000.00 to $400,000.00 in revenue primarily through the sale of Roadkill product.
The key to sustainable revenue and growth is directly tied to the number and quality of distributors offering the product to retail locations. Each distributor has a specific geographical area. Within that area they have a large amount of retail outlets they can potentially sell the product into.
Fernhill Beverage’s goal to twofold:
- 1) Secure as many distributors as possible.
- 2) Have those distributors sell to their customers as many cases of Roadkill as possible. 10
After 12 months of operations, the Company has a goal of a minimum of 20 distributors located in specific geographical locations selling a minimum of 500 cases of Roadkill per month. The minimum goal is 10,000 cases of Roadkill per month generating $120,000.00 per month and be on a pace to generate revenue exceeding $1,400,000.00 in that year.
Once the Company surpasses the $1,000,000.00 in revenue goal, growth can be accomplished quickly. With a cash flow exceeding $100,000.00 per month, the Company will have the capability of placing sales persons in specific regions of the Country to bring on new distributors and to help grow distribution within existing distributors.
The initial distribution is located in Southern California. Distribution is growing quickly in the South West from there. The second area of distribution is the North East. Distribution has started in late summer 2015 in New England and will be growing throughout 2015 and 2016.
Fernhill Beverage has targeted growth from Southern California, Arizona and Nevada up the West Coast into Oregon, Washington, Colorado, etc. The Company has also targeted New England, New York, Mid Atlantic and down the East Coast. Once that distribution is saturated, Fernhill Beverage will concentrate on the gulf Coast and the Mid America states.
Fernhill Beverage, Inc. intends to initiate its grass roots campaign by promoting samples at youth sporting events, street fairs, and school events and utilizing sampling crews wherever possible. At the early stages of a product’s introduction, it is imperative to get the product into the hand of as many potential consumers as possible.
Fernhill Beverage, Inc. believes once a kid has a Roadkill once, that young person will be a Roadkill customer for years to come. The unique stand‐alone packaging was designed to draw the consumer’s attention to the product enticing them to hold it, buy it, taste it and buy it again. Initially, Fernhill Beverage, Inc. intends to keep all advertising local to the markets it is currently distributed in to ensure the advertising message reaches a consumer that can readily purchase the product.
Not until the product has a strong national distribution base will Fernhill Beverage, Inc. allocate funds to a national promotion program.
- Date and State (or Jurisdiction) of Incorporation:
Fernhill Beverage, Inc. was incorporated on August 27, 2015 as an Oklahoma corporation under the Oklahoma General Corporation Laws (“Oklahoma Act”).
- The issuer’s primary and secondary SIC Codes; 5960‐ Beverage Products
- the issuer’s fiscal year end date; 31ST DAY OF DECEMBER
- principal products or services, and their markets;