According to Research and Markets, the North American spirits market is expected to reach USD 278.5 billion by 2028, registering a CAGR of 7.7% over the forecast period.
Rogue Baron PLC. (OTCMKTS: SHNJF) is one company we’ve been eyeing that has a major opportunity to grab a slice of this rapidly growing market.
How SHNJF is Positioned to Accelerate its Revenue Growth
- Rogue Baron (OTCMKTS: SHNJF) believes if it can reach 10,000 cases sold annually, Shinju will be worth $50 million.
- SHNJF currently sells 3,000 cases of Shinju Japanese Whiskey annually.
- 7,000 more cases annually would only represent 0.1% of the average annual liquor market growth in the US alone.
- SHNJF’s Shinju is a high-end liquor with a reasonable price in a fast-growing market, so these projections could be considered conservative.
- Shinju’s trophy case is impressive:
- Sante Spirits 2021 Best in Class
- Sante Spirits 2021 Best Whiskey
- Sante Spirits 2021 Double Gold
- Fifty Best World Whiskey 2021 Silver Medal
- John Barleycorn 2021 Taste Competition Gold Medal Winner
- Japanese Whiskey Market Growth in the US is Accelerating:
- 2010 US imports of Japanese whiskey were $1 million
- 2019 US imports of Japanese whiskey were $50 million
Distribution is the Key to SHNJF’s Growth Potential
When building a successful liquor brand the key to success is distribution. Distributors help market brands through their network, and if a company is marketing itself, it needs to be sure that retailers carry their product otherwise they lose potential sales.
SHNJF has secured European distribution, it delivered its first shipment to the UK market recently.
A large catalyst for the stock, however, will be if the stock can complete a deal or two with US/ North American distributors.
A few distributors to keep an eye on include:
- Southern Glazer’s Wine & Spirits- With over 22,500 employees and $21 Billion in annual sales, Southern Glazer is the nation’s largest wine and spirits distributor. The company began in Florida in 1968 and grew quickly through a strategy of acquiring other established distributors. Today Southern operates in 44 states and distributes over 7,000 brands.
- Breakthru Beverage Corp.- operates in 13 states and the District of Columbia, with sales over $5.6 Billion.
- Republic National Distributing Company (RNDC)- second largest beverage alcohol distributor of premium wine and spirits in the U.S. with wholly owned operations in Alabama, Colorado, District of Columbia, Florida, Louisiana, Maryland, Mississippi, Nebraska, North Carolina, North Dakota, South Dakota, Texas, Virginia, and West Virginia. RNDC also operates in Arizona, Indiana, Kentucky, Ohio, Oklahoma, and South Carolina through venture partnerships. In total, RNDC employs more than 7,000 hard working individuals nationwide.
- Empire Merchants North LLC- employs 623 associates and distributes approximately five million cases per year. EMN is the only major locally owned distributorship in upstate New York.
- Fedway Associates, Inc.- one of the leading distributors in the state of New Jersey.
Any deals with one or several of these distributors could catapult SHNJF to a new level. Early investors will benefit.
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