Splash Beverage Group, Inc. (Splash) engages in the manufacturing, distribution, marketing, and sale of various beverages across multiple channels.
The company operates in both the non-alcoholic and alcoholic beverage segments. Additionally, Splash operates its own vertically integrated B-to-B and B-to-C E-commerce distribution platform called Qplash, further expanding its distribution abilities and visibility.
Splash is a portfolio company managing multiple brands across several growth segmen...
Splash Beverage Group, Inc. (Splash) engages in the manufacturing, distribution, marketing, and sale of various beverages across multiple channels.
The company operates in both the non-alcoholic and alcoholic beverage segments. Additionally, Splash operates its own vertically integrated B-to-B and B-to-C E-commerce distribution platform called Qplash, further expanding its distribution abilities and visibility.
Splash is a portfolio company managing multiple brands across several growth segments within the consumer beverage industry. The company has built organizational capabilities and an infrastructure enabling it to incubate and/or acquire brands with the intention of efficiently accelerating them to higher volume.
The company has proven capabilities in building consumer franchises and marketing and distributing multiple brands of beverages within the non-alcoholic and alcoholic segments. Manufacturing is typically outsourced to third party co-packers and distillers, or in select cases for a brand, such as Copa DI Vino wines, performed within its own facility in Oregon.
The company’s distribution landscape in the beverage industry is changing rapidly as tech-enabled e-commerce business models are thriving. Direct to consumer, office or home solutions are projected to continue to gain traction in the future. Recognizing this opportunity the company continues to shape its operating model to be vertically integrated with the company’s e-commerce platform, Qplash, which purchases local and regional brands for developing a direct line of sales to boutique retail stores and consumers.
The company has license rights to the TapouT Performance brand in North America (Including US Territories and Military Bases), the United Kingdom, Brazil, South Africa, Scandinavia, Peru, Colombia, Chile, and Guatemala.
Strategy
The company’s strategy is to combine the traditional approach of manufacturing, distributing, and marketing of beverages, with early-stage brands that have a reasonable level of pre-existing brand awareness and market presence, or have attributes to be purely innovative.
A core strategy for the company is to optimize the early success it is seeing with the Qplash online platform, its consumer-packaged goods retail division and its first entry point into the growing e-commerce channel.
Products
The company produces, distributes, and markets SALT Naturally Flavored Tequila (‘SALT’), a 100% agave 80 proof line of flavored tequilas, ‘TapouT Performance,’ a line of performance beverages that complete in the hydration and energy categories, Copa DI Vino single serve wine by the glass, and import Pulpoloco Sangria in 3 flavors.
SALT Flavored Tequila
The company produces, distributes, and markets the following flavors under the brand name SALT Naturally Flavored Tequila: Citrus flavor, Berry flavor, and Chocolate flavor.
Vodka, rum, and brown spirits have experienced significant growth when flavors are introduced, and the company expects this growth of flavors to continue, as the tequila category continues to rapidly expand.
SALT is being distributed by various Anheuser-Busch & Miller-Coors distributorships, and other distributors in multiple U.S. states. Additionally, SALT is for sale in Mexico. SALT has also launched in Guatemala and Japan and efforts continue to grow the brand’s international presence.
SALT is a business venture between the company and SALT USA, LLC. All aspects of manufacturing, logistics, distribution, and marketing are the company’s responsibility.
TapouT Performance Isotonic Sports Drinks
The company produces, markets, sells and distributes the following sports beverages under the brand name TapouT: TapouT Performance, TapouT Energy
TapouT Performance Beverages are a line of unique advanced performance beverages containing ingredients known for various functional benefits, including, focus, cognition, energy, recuperative and cell regeneration which promotes better absorption of nutrients, increase hydration, and cellular recovery. They are exclusively formulated with GRAS (FDA Designation ‘Generally Regarded as Safe’) ingredients versus controversial ingredients often used in many competitive products. TapouT Performance Beverages are all natural with highly innovative proprietary blends designed to enhance physical and or mental performance.
TapouT, formally associated with the UFC and mixed martial arts has been producing branded clothing and light exercise equipment for over 23 years and has a high level of aided and unaided brand awareness.
TapouT License Agreement
The company has the rights under a License Agreement with ABG TapouT, LLC (the ‘License Agreement’) to produce, market, sell and distribute TapouT sports beverages in North America (including US Territories and Military Bases), United Kingdom, Brazil, South Africa, Australia, Scandinavia, Peru, Colombia, Chile and Guatemala. The beverages covered by the License Agreement include sports drinks, energy drinks, energy shots, electrolyte chews, energy bars, water, protein, and teas.
The company has the right to use the TapouT brand to market, advertise and promote for sale its TapouT beverages and branded products. As part of the alliance, Splash commits to investing 2% of sales in marketing to the TapouT Performance Brand. TapouT provides marketing collateral for advertising and promotion and has influential relationships with select celebrities and athletic talent. TapouT agrees to use reasonable efforts to request its retained celebrities and/or athletes be present at autograph signings, tradeshows, and other similar events.
Copa DI Vino Wine Group, Inc. (CdV) and Related Financing
On December 24, 2020, the company entered into an Asset Purchase Agreement with CdV, pursuant to which it purchased certain assets and assumed certain liabilities that comprise the CdV business.
In conjunction with the acquisition, the company also entered into a Revenue Loan and Security Agreement (the ‘Loan and Security Agreement’) by and among the company, Robert Nistico, additional guarantor and each of the subsidiary guarantors from time-to-time party thereto (each a ‘Guarantor’, and, collectively, the ‘Guarantors’), and Decathlon Alpha IV, L.P. (the ‘Lender’). The Loan and Security Agreement provided for a revenue-based credit facility with the Lender (the ‘Credit Facility’).
Copa DI Vino Wine Group, Inc.
Copa DI Vino is the leading producer of premium wine by the glass in the United States. The Copa DI Vino product line is highly innovative as a ready to drink wine glass capable of going anywhere without the need for a bottle, corkscrew or glass. The company also has a growing keg wine business for on-premises restaurants and bars.
Through its acquisition of Copa DI Vino Corporation, the company is able to offer nine varietals of wine: Pinot Grigio, Riesling, Merlot, Chardonnay, White Zinfandel, Moscato, Red Blend, Sauvignon Blanc and Cabernet Sauvignon. In addition to its wine varietals, Copa DI Vino also procures Pulpoloco, a sangria which is encased in an eco-friendly fiber based can from Spain. The rights to utilize this packaging for multiple categories were conveyed to the company in conjunction with the distribution rights.
E-commerce
‘Qplash’ is a wholly owned division of Splash. It is the company’s first entry point into the growing e-commerce channel. The division sells beverages online through www.qplash.com, and third-party storefronts, such as Amazon.com. Inside of the division, there are two primary customer groups: business to business retailers, which in turn offer the products to their customers, and business to consumer, selling direct to end users. The business-to-business program allows businesses to control inventory, order with payment terms, and offer the convenience of delivery directly to each store.
Qplash offers over 1,500 listings and has warehouses that ship from both California and Pennsylvania.
Distribution
For the company’s beverage-alcohol products, it operates within what is referred to as a ‘Three Tier Distribution System’ where manufacturers are not permitted to sell directly to retailers, but instead contract for local and regional distribution with independent distributors. These distributors typically have geographic rights to distribute major beverage brands and call on every store in a given area, such as major cities or regions. The company’s management team has extensive experience working within this channel and it will be successful in building a strong network of these distributors.
In addition to working with these independent distributors, the company also has distribution arrangements with national retail accounts to distribute some of its products directly through their warehouse operations. Most notably, the company executes a distribution agreement with AB-InBev, for distribution with their own operations, AB ONE. This provides SBG very effective distribution capabilities.
Intellectual Property
During the fiscal year ended December 31, 2023, the company were granted a trademark for Copa DI Vino. The United States Patent and Trademark Office issued the trademark on March 12, 2024.
History
Splash Beverage Group, Inc. was incorporated in the State of Ohio in 1992.
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