Pulse Beverage Corp (OTCMKTS:PLSB) shares are holding gains from yesterday after the company’s deal to acquire Fiesta Mart. The deal is significant for PLSB because Fiesta Mart has many grocery stores over the Houston area. PLSB rallied more than 30% yesterday on the news.
“The hot weather for most of the year provides us with a great opportunity to expand our brand awareness. We anticipate that this new relationship will get us in front of additional opportunities throughout the Sunbelt in the upcoming months and we look forward to announcing additional distribution wins in the near term,” said Robert Yates CEO.
Pulse Beverage Corp (OTCMKTS:PLSB) bills itself as a company that develops, produces, markets and sells its Natural Cabana brand lemonade. The company has relationships with over 150 beverage distributors in all 50 states, Canada, Mexico and other countries.
In addition to Natural Cabana, the company sells coconut water and is developing a brand of heart healthy beverages.
According to company materials, “Pulse Beverage Corporation (“Pulse”) is an emerging beverage company that offers Natural Cabana® Lemonade/Limeade in 7 great tasting, low-calorie flavors and Natural Cabana® Coconut Water in pineapple and natural flavors. With Pulse’s revamped business model, utilizing warehouse direct and key accounts, Pulse directly teams up with major retailers like Walmart, Albertsons/Safeway, Kroger, Stater Bros, Food Max, Houchens, Kmart, 7-Eleven, United C-stores, Weis Markets, King Kullen, Dierbergs Markets, Hy-Vee Supermarket, WinCo Foods, Price Less Markets, Gristede’s Foods, Toot n Totem and Travel America. Consumers easily find Pulse’s prominently displayed products thereby increasing revenue and earnings for shareholders of Pulse.”
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Fiesta Mart warehouse distribution agreement came after PLSB inked an agreement with KeHE Distributors. The distributor has agreed to provide national distribution for the company’s beverage line, focusing on Natural Cabana Coconut Water, Lemonades, and Limeades. The KeHE distribution agreement will allow PLSB to target customers in Texas along with now the Fiesta Mart deal. The distributor has 17 distribution facilities in North America with over 470 trucks, servicing more than 100 retailers.
PLSB also plans to use KeHE as a springboard for targeting more national grocery chains.
“As a result of this new distribution arrangement, we are shipping an incremental 5% additional cases per month in the near term and expect to ship an incremental 15% additional cases per month within 6 months,” said Mr. Yates.
Pulse Beverage Corp (OTCMKTS:PLSB) is a subpenny player that is making aggressive moves for the long-term. The company is carrying a $505,069k market cap with more than 252M shares out. We see this is a top line growth company and a stock to watch here as the news continues to color and the market reacts. For continuing coverage on shares of $PLSB stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $PLSB, either long or short, and we have not been compensated for this article.