Tuesday, August 14, 2012

Beverage and Nutrition Stock (OTC: HRDN) - "Significant Market Opportunity in Functional Beverages"

New York, New York - August 14, 2012 (Investorideas.com newswire) Beverage stocks research: Investorideas.com, an investor research portal specializing in sector research including beverage and nutrition stocks releases recent CFA commentary on DC Brands International Inc. (OTC: HRDN).

Patrick J. Murphy of Murphy Analytics LLC, a provider of sponsored research coverage on smallcap stocks , discusses the market opportunity moving forward .
"With a broad portfolio of dry supplements and the Company's patented and licensed flip top cap compartment used in the functional beverage product line, HRDN has a product lineup that gives the company the opportunity to drive sales in its target retail, online and international markets. "
Report:
Select Stock Trading Data
Recent Stock Price: $0.0040
Shares Outstanding: 485 million
Float 3.3 million
Recent Market Cap: $1.94 million
52 Week Range: $0.004 - $0.90
Exchange: OTCBB
Ticker: HRDN
URL: http://www.hardnutrition.com
Data sourced from Yahoo! Finance; otcbb.com; Company filings
DC Brands International, a publicly traded company under the ticker symbol HRDN, presently specializes in the manufacturing of its functional beverages and health products. Established in 1998, DC Brands began producing a number of lines of energy drinks in 2005. DC Brands then purchased the assets of H.A.R.D. Nutrition and began its quest to produce a new health line of products. DC Brands has recently announced the release of its new H.A.R.D. Nutrition Functional Water Systems, which it expects will revolutionize the functional beverage category.
H.A.R.D. Nutrition products are designed with the concept that increasing healthiness begins with sticking to a diet, increasing exercise and adding supplements to work with the person's diet and exercise regimen. Marketing for this product lineup captures this triangular approach to health and wellness in the Company's trademarked saying: "Life Won't Change Until You Change Your Life."™ Products are developed based on the Company's philosophy that cleaning the body and getting rid of toxins is the only way to get optimal results from the body, diet, training and supplements. HRDN has developed these products with the help of over 100 athletes combined with the most modern testing equipment available. HRDN products are categorized as follows:
  • Dry Supplements
  • Functional Beverages
  • Online Sales
  • International Sales
Dry supplements are designed to address performance, energy, recovery, strength, therapeutic needs, cleansing, weight loss, and wellness. These dry supplements serve as the foundation for the other three product categories. HRDN's functional beverage products utilize the supplements in dry form by placing them in a container built into each lid. Additionally, the Company has developed a unique, lightly flavored water which was formulated to act as a catalyst for the enclosed supplements, creating a functional system designed to provide the body with all the nutrients needed to deliver the desired results. Functional beverages products include:
  • Cleanz+: designed to help with the cleaning of the colon, kidneys and liver, plus improves digestive health and immune function.
  • Fix It: designed to helps reduce inflammation, ease tendonitis and break down mineral deposits that cause pain in the joints as well as keeping the tendons supple.
  • Health+: designed to provide everything a body needs throughout the day to stay on track and be productive.
  • Fat Fighter: a powerful blend of ingredients designed to help suppress appetite and reduce sugar cravings.
  • Feel Better: a proprietary blend of vitamins, minerals and herbs designed to replace what strenuous exercise takes out of the body.
  • Whacked Energy: formulated to lift a person up and keep them going without the sugar crash of traditional energy drinks.
  • Think!: a proprietary blend of vitamins, minerals and other ingredients designed to recharge the brain and body.
  • WIN!: formulated to increase endurance and stamina throughout the entire workout.
In gauging the general market opportunity in a June 2012(i) investor presentation, market leader GNC referenced a Nutrition Business Journal's Supplement Business Report 2011 in which it was estimated that 51% of physicians regularly use vitamins, minerals, herbs and supplements (VMHS) while 79% regularly subscribe VMHS to their patients. This interest in quality of life and addressing a broad array of consumer needs is reflected in a market that Nutrition Business Journal estimates(ii) grew to $28.1 billion in 2010 and a global nutrition industry that has reached $226 billion.(iii) While this general market opportunity already has become quite large, GNC again cites NBJ estimates of 3.1% growth annually for 2010-2017 for vitamins and 5.8% growth annually for 2010 - 2017 for sports nutrition. GNC attributes this growth both to a broadening of the sports nutrition space as well as growth in the general VMHS category both of which create an opportunity to attract younger, higher spending customers for life.
In a June 2012 presentation,(iv) Vitamin Shoppe echoed the optimism for the general market opportunity while citing an NBJ estimate that e-commerce for VMHS will grow at a compound annual growth rate of 16.2% from 2003 to 2015, when online sales are expected to reach $34 billion. Addressing the fragmented nature of the market, VSI cites the NBJ estimate that market leaders Whole Foods, GNC, Vitamin Shoppe and Vitamin World together hold a market share of approximately 11.3%.
With a broad portfolio of dry supplements and the Company's patented and licensed flip top cap compartment used in the functional beverage product line, HRDN has a product lineup that gives the company the opportunity to drive sales in its target retail, online and international markets. As HRDN begins to increase distribution beyond its core market in Colorado through arrangements such as the recently announced agreement with a national sales and brokerage company, there is an opportunity to gain share in the highly fragmented vitamins, minerals, herbs and supplement market. In a recent letter to shareholders, President and CEO Stephen Horgan addressed HRDN's strategy going forward, emphasizing the attractive market size and the Company's opportunity to gain share:
"I believe the success of our business going forward will also depend on two things: our ability to distribute our product in key markets and retailers; and then our ability to accelerate revenue and fuel that demand. We have put in place a relationship that we expect will expand our distribution capabilities nationally. This relationship will immediately expand our reach far beyond DC Brands' historic Colorado market and believe it will be a solid, initial step towards the success of the business…The functional beverage space continues to be a strong and growing multi-billion dollar industry. We have an exceptional product in HARD Nutrition that we believe is uniquely positioned to compete and succeed in this category."
Patrick Murphy Bio:
Patrick J. Murphy is the owner of Murphy Analytics LLC, a provider of sponsored research coverage on smallcap stocks. Mr. Murphy has nearly 20 years of capital markets experience providing institutional investment and transaction analysis across a range of asset classes including microcap equities, commercial real estate debt and equity, municipal derivatives and public finance, venture capital, fixed income, CMBS and mortgage REIT's. In addition to his work with Murphy Analytics, Mr. Murphy also serves as a consultant to a municipal derivatives advisory firm. Mr. Murphy is an alumnus of the University of Notre Dame (1991), with an undergraduate degree in Economics, and earned a Masters Degree in Finance from St. Louis University in 1997. Mr. Murphy is a CFA Charterholder and a member of the CFA Society of St. Louis.
Patrick Murphy Disclaimer:
Readers are advised that the above article is solely for information purposes and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. The views expressed herein are based upon the author's analysis of the issuer's public disclosures, and assumes both their accuracy and completeness. The opinions and statements included herein are based on sources (including the companies discussed and public sources) believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. The author has not independently verified the information contained herein. This information is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. You should review a complete information package on all companies, which should include, but not be limited to, the Company's annual report, quarterly reports, press releases and all regulatory filings. The foregoing discussion contains statements which are based on current expectations, estimates and projections, and differences from such expectations, estimates and projections can be expected. The author, Patrick Murphy, was compensated $510 by InvestorIdeas.com for writing this article. Murphy does not own shares of any of the companies mentioned in this article. Mr. Murphy's research firm, Murphy Analytics, may be engaged for the provision of a research report on the Company in the future.
i http://phx.corporate-ir.net/phoenix.zhtml?c=88669&p=irol-presentations
ii http://newhope360.com/nutrition-business-journal
iii http://newhope360.com/us-functional-food-and-beverage-sales-growth-2000-2013e-0
iv http://www.vitaminshoppe.com/content/en/support/help/investors.jsp
About InvestorIdeas.com:
InvestorIdeas.com is a leader in investor stock research by sector, featuring stock news, commentary and trading alerts.
Follow Investorideas.com on Twitter http://twitter.com/#!/Investorideas
Follow Investorideas.com on Facebook http://www.facebook.com/Investorideas
Follow Investorideas.com News on Linkedin.com/today at http://www.linkedin.com/today/investorideas.com
Sign up for the free investor news and stock alerts at Investorideas.com
http://www.investorideas.com/Resources/Newsletter.asp
Disclaimer / Disclosure: The Investorideas.com is a third party publisher of news and research Our sites do not make recommendations, but offer information portals to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. This site is currently compensated by featured companies, news submissions and online advertising.
http://www.investorideas.com/About/Disclaimer.asp
Disclosure: Investorideas.com and its SMS partner Running Bull OTC have been compensated by HRDN for one month of news, email and sms: twenty five thousand  
BC Residents and Investor Disclaimer: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: http://www.bcsc.bc.ca/release.aspx?id=6894
DC Brands is featured on Running Bull OTC for SMS alerts - sign up for the ap with your Android; Blackberry coming soon!
http://www.runningbullotc.com/
Contact HRDN: Wade Brantley
wbrantley@dc-brands.com
www.hardnutrition.com
Contact Investorideas.com 800 665 0411

No comments: