SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest event reported): November 15, 2004
BRAVO! FOODS INTERNATIONAL CORP.
(Exact name of registrant as specified in its amended charter)
Delaware 0-20549 62-1681831
------------------------------- ------------ -------------------
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
11300 US Highway 1, Suite 202
North Palm Beach, Florida 33408 USA
(Address of principal executive offices)
(561) 625-1411
Registrant's telephone number
China Premium Food Corporation
---------------------------------------------------------------------------
(Former name or former address if changed since last report)
Item 7.01 Regulation FD Disclosure
Public Conference Call
----------------------
On November15, 2004, the Company conducted a public conference call
to announce and discuss the results contained in its Form 10-QSB filed on
that date for the period ended September 30, 2004,. The following matters
were discussed at that conference call:
The Company reported total revenue of $825,430, with a gross margin
of $196,683, for the quarter ended September 30, 2004, compared to total
revenue of $334,537, with a gross margin of $281,064, for the same period
in 2003. The Company reported that General and Administrative expenses
decreased and are expected to
continue that trend in the future. The Company reported that revenues
would have been higher by approximately $134,000, if a third quarter order
had been shipped only several days earlier in that quarter. In addition,
the Company reported that contra-revenues, which decrease the reported
revenue of the Company, should decrease resulting in higher reported
revenues as its product lines mature.
The Company reported on the status of the launch of its new lines of
flavored milk products, including its new Masterfoods, Starburst, Milky Way
and 3-Musketeers line, Slim Slammers, a vitamin fortified 1%, no added
sugar flavored milk product with 1/2 calories and 1/2 carbohydrates, Pro
Slammers(tm), a protein fortified flavored "Extreme Sports" branded
milkshake, and Moon Pie.
The Company reported disappointing sales in 7-11, which were
challenged by two factors: immediate consumption demographics and chilled
distribution channel all dairy/brand competitors. Demographic factors in
C-Stores question the appropriateness of the Company's Marvel line in that
sales venue. The Company reported that the C-Store sales issue will be
resolved with the introduction of new products, including the Masterfoods
brands, which are packaged in a shelf stable bottle that does not require
refrigeration, and are more appropriate for C-Store demographics. Avoiding
the cold chain in distribution eliminates the built in conflict of using
local dairy processors, who produce competitive products to distribute the
Company's flavored milk lines.
Moving forward, the Company reported that 7-11 has authorized Slim
Slammers, Pro Slammers and Starburst Slammers on a national basis. In
addition, Wal-Mart has commenced regional testing with a demo program
starting Dec. 4th. The Company anticipates that sales will grow
dramatically with both accounts in spite of disappointing early results of
Marvel Ultimate Slammers in those channels.
In contrast to C-Stores third quarter sales, the Company reported a
63%sales increase in the retail grocery sector, from 33,419 cases in the
second quarter to 54,479 cases in the third quarter. To date, fourth
quarter sales in this sector amount to 21,408 cases, with increased
traction for the Company's Pro Slammers and Slim Slammers lines.
The Company reported the importance of the new Masterfoods,
Starburst, Milky Way and 3-Musketeer lines in terms of trade channels,
distribution and brand objective.
With respect to trade channels, these lines allow for product
positioning with a unique demographic profile of each Mars brand, combined
with an iconic awareness of products and clear food appeal.
The shelf stable technology represents breakthrough state of the art
processing and packaging, with significant warehouse distribution and
ambient direct store delivery opportunities. Ambient distribution
eliminates the need for cold storage and cold chain distribution and allows
the Company to sidestep current cold-chain distributors-the competition.
This technology gives the Company the opportunity to truly exploit the
immediate-consumption channel, which is critical for the beverage industry.
Finally the Masterfoods line supports the Slammers brand objective to
promote and sell milk as a beverage, utilizing the new Mars brands as dairy
based beverages branded with demographic profiling, including: 3-
Musketeers, a guilt free indulgence; Starburst-juice milk smoothie, with
its "Isn't life Juicy" approach; and Milky Way, one of Life's Simple
Pleasures. These new Slammers Mars brands cover the entire demographic
landscape for the immediate consumption beverage consumer.
Going forward, the Company reported the initial penetration of Slim
Slammers in the Northeast and in Southern California to be encouraging,
with an easy acceptance of the Mars line by buyers for both the retail and
C-Store segments. The Company reiterated its prior announcement of a
contract with TNT Marketing, the best-known broker for C-Stores in the
country. In addition, the company reported on the success of its
participation in the national Action Sports Associates High School Tour,
which is into its fifth week. In this tour, the company is focusing on its
Pro Slammers line, which is a protein-fortified milk product, as well as
the Slim Slammers and Marvel lines. The Company reported "clear
promotional excitement" surrounding the Company's participation in this
tour.
Finally, the Company offered guidance on anticipated revenues in the
fourth quarter '04 in the $1.5 million range, the first quarter '05 in the
$2 million to $2.2 million range, with the launch of the Starburst line,
and the second quarter '05 in the $3 million range as market penetration
continues. The Company anticipates cash flow break even in the third
quarter '05.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Bravo! Foods International Corp.
Date: November 16, 2004 By: /s/ Roy D. Toulan, Jr.
-------------------------------
Roy D. Toulan, Jr.
Vice President, General Counsel