Castle Brands Inc. (NYSEMKT:ROX) announced, on Feb. 28, 2017, a deal that sent share spiraling higher by 60%. The company announced an agreement with Walmart to supply Goslings Ginger Beer to all U.S. Walmart stores. Shares had been trading .75 cents and immediately rallied to $1.15 on that trading day, volume followed along where 15 million shares traded hands from the previous 100,000.
It was clear everyone was surprised by the news as Castle had languished for a full year. This was not the end of the move for ROX.
Castle Brands Inc (NYSEMKT:ROX) develops and markets premium and super premium brands in the beverage alcohol categories. The Company is engaged in the sale of premium beverage alcohol.
ROX shares had been to this level previously, back in November 2015 all seemed well at the company but a few earnings disappointments and a long slow decline into February 2016 left many holders wondering what they were doing in this beverage stock when others were performing well.
John Glover, Chief Operating Officer of Castle Brands said, “Supplying Walmart with both the Regular and Diet Goslings Stormy Ginger Beer adds to the brand’s impressive growth and strengthens our position in the U.S. market. We are pleased that Walmart has implemented a full store roll-out. We look forward to working with Walmart to promote the continued success of Goslings Stormy Ginger Beer.”
Malcolm Gosling, President of Goslings-Castle Partners Inc., a global export venture between Castle Brands and the Goslings said, “The agreement with Walmart, the world’s largest retailer, to supply approximately 4,500 stores with Goslings Stormy Ginger Beer, which we believe is the largest selling U.S. premium ginger beer, is an indication of the strength and growing value of the Goslings brand.”
Shares have had a great 2017 on the back of this deal currently up 100% so far in 2017 settling recently around $1.50 per share. A look at the longer 2 – 5 year timeframe in the price action shows Castle Brands (NYSEMKT:ROX) is not new to price volatility and surprising partnerships that move the stock price. The company is a developer and international marketer of premium and super-premium brands including: Jefferson’s®, Jefferson’s Presidential Select™, Jefferson’s Reserve®, Jefferson’s Ocean Aged at Sea Bourbon to name a few. They also continue the line with Jefferson’s Wine Finish Collection and Jefferson’s Wood Experiments.
Find out when $ROX stock reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
The Goslings products named after President Malcom Gosling namesakes his products which got Walmarts attention with Goslings® Rums, Goslings® Stormy Ginger Beer, Knappogue Castle Whiskey®, Clontarf® Irish Whiskey, Pallini® Limoncello, Boru® Vodka, Brady’s® Irish Cream, The Arran Malt® Single Malt Scotch Whisky, The Robert Burns Scotch Whisky and Machrie Moor Scotch Whisky.
The American consumer has always been beverage crazy, and Castle Brands (NYSEMKT:ROX) represents how finicky the consumer and investor can be when it comes to these choices. I love the product, and personally I think it is part of the millennial desire to drink Moscow Mules at events, but we would have to talk to Malcom about what he thinks the current demand cycle is all about. I also think Ginger products fall into the new health category, and Goslings fit that bill perfectly for the Walmart partnership. For continuing coverage on shares of $ROX stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!