SOURCE: Drinks Americas Holdings, Ltd.

September 17, 2007 09:58 ET

Drinks Americas Reports Leap in Revenue to $1.3 Million, a 289% Increase in First Quarter Fiscal 2008

Strong Sales Revenue Growth, Overall Portfolio Volume Growth and Continued Success of Trump Super Premium Vodka and Newman's Own Sparkling Fruit Juices Fuel Growth; Revenue for First Quarter Increased 289% to $1.3 Million Compared With $0.3 Million in First Quarter Fiscal 2007

WILTON, CT--(Marketwire - September 17, 2007) - Drinks Americas Holdings, Ltd. (OTCBB: DKAM), an owner, developer and marketer of premium beverages associated with renowned icons, reported results for its first quarter ended July 31, 2007.

Revenue for the first quarter fiscal 2008 was $1.3 million, an increase of $1 million, or 289%, compared with $0.3 million for the first quarter of last year. The primary contributor to Drinks Americas continued revenue growth was the ongoing expansion of Trump Super Premium Vodka, sales increases of its overall spirits and wine portfolio, and the expansion of its distribution of Newman's Own Sparkling Fruit Juices nationally.

Trump Super Premium Vodka is now available nationally in 46 states, covering 15,000 on-premise accounts and over 50,000 off-premise retail accounts, including liquor stores and supermarkets. In the first nine months of shipments, the Company sold approximately 60,000 cases, substantially well ahead of most successful industry brand launches of record.

J. Patrick Kenny, President & Chief Executive Officer of Drinks Americas, stated, "We continue to build tremendous momentum in our markets. As a result, we continue to achieve year-over-year record revenue as we drive the value of our premium icon brands. The launch of Trump Super Premium Vodka has been a dramatic success, as has Newman's Own Sparkling Fruit Juices and Water as we expand nationally. Our results are beginning to reflect the opportunity we now have to put the capital we raised earlier in the year to work, fueling our growth.

"Equally important and growing are Drinks Americas' bourbon, tequila, rum and wine businesses. All of these products are in a position, with both inventory and promotional support, to contribute to our revenue growth over the coming quarters."

Gross margin in the first quarter fiscal 2008 was 35.9% compared with 36.3% in the first fiscal quarter of 2007. The slight decline is attributable to the success of Newman's Own Sparkling Fruit Juices and Waters, which seasonally increased in volume, and due to expansion represent greater mix of sales than last year.

SG&A expenses in the first fiscal quarter 2008 was $2.0 million compared with $0.9 million in the first quarter of 2007. The increase is mainly due to the final Trump Super Premium Vodka one-time launch costs

SG&A expenses declined 18% from the prior quarter further representing the conclusion of the launch phase of Trump Super Premium Vodka.

Net loss for the first fiscal quarter was $1.6 million, or $0.02 per basic and diluted share, compared with a net loss of $0.8 million, or $0.01 per basic and diluted share for the first quarter of fiscal 2007.

First Quarter 2008 Highlights:

--  Signed joint venture with Universal's Interscope Geffen A&M Records to
    develop and market beverage products and provide Drinks Americas' current
    portfolio with substantial marketing resources.
--  Announced the upcoming launch and commenced production of Trump Super
    Premium Vodka flavors in fiscal second quarter.
--  Trump Super Premium Vodka awarded a four-star rating from pre-eminent
    reviewer F. Paul Pacult's Spirits Journal, one of the most respected and
    independent authorities in evaluating spirits products.
--  Commenced shipping Trump Super Premium Vodka 1.75 liter size to all
    major markets.
--  Sold Trump Super Premium Vodka to over 50,000 outlets, including both
    retail chains and on-premises accounts.  All distributors in key markets
    have reordered.
--  Expanded Newman's Own Sparkling Fruit Juices and Waters nationally.
    

Early Second Quarter 2008 Highlights:

--  Willie Nelson's Old Whiskey River Bourbon growing 50% ahead of last
    year incremental shipments of $160,000 in September, driven by expanding
    1.75 liter sales in targeted markets.
--  Newman's Own Sparkling Fruit Juices & Waters growing at 150% versus
    last year.
--  Drinks Americas' premium wine business sales of $350,000 or 203%
    increase from last year.
--  Pre-production orders for Drinks Americas' new Aguila Tequila Silver
    and Anejo added to the Reposado selection of approximately 600 cases.
    

Mr. Kenny concluded, "Our entire portfolio of beverages, spirits, wine and non-alcoholic offerings are all growing, as we are managing our expenses and ensuring our margin requirements are met while benefiting from our Iconic marketing model."

Mr. Kenny further added, "In our short history we have established three national brands; Trump Super Premium Vodka, Old Whiskey River Bourbon, and Newman's Own Sparkling Fruit Juices & Waters. In this current quarter we are seeing an increase in orders for our Tequila and Rum as well. In the coming year we will continue to scale up by beginning to execute our joint venture plans with Universal Music Group's Interscope, Geffen A&M Records, and taking advantage of the other resources and avenues available to us with our Icon branding model to continue to grow and expand the Company."

More information on the Company's quarterly results can be found in its 10-Q filing with the SEC.

Conference Call Details

A company-hosted teleconference will be held on Monday, September 17, 2007 at 4:00PM ET. The dial-in number for the conference call is 1-866-425-6195, confirmation number 9250588. To listen to the live Webcast, log on to the Company's website at www.drinksamericas.com. The call will also be available for replay for seven days by dialing 1-877-519-4471, pin number 9250588.

About Drinks Americas

Drinks Americas develops, owns, markets, and nationally distributes alcoholic and non-alcoholic premium beverages associated with renowned icon celebrities. Drinks Americas' portfolio of premium alcoholic beverages includes Trump Super Premium Vodka and Willie Nelson's Old Whiskey River Bourbon. The Company's non-alcoholic brands include the distribution of Paul Newman's Own Lightly Sparkling Fruit Juice Drinks and Flavored Waters.

Other products owned and distributed by Drinks Americas include award-winning Damiana Liqueur and Aguila Tequila from Mexico, Cohete Rum Guarana from Panama, and Rheingold Beer. Damiana, Old Whiskey River, Aguila Tequila and Cohete Rum are Gold and Silver Medal award winners respectively from the International Beverage Tasting Institute and the San Francisco International Wine and Spirits Competition. For further information, please visit our website at www.drinksamericas.com

Drinks Americas was founded in 2004 by J. Patrick Kenny, a leading expert in beverage sales and marketing. Mr. Kenny developed his industry expertise in a variety of management positions at the world's leading beverage companies, including Joseph E. Seagram and Sons and The Coca-Cola Company. He has also acted as advisor to several Fortune 500 beverage marketing companies, and has participated in several beverage industry transactions.

Safe Harbor

Except for the historical information contained herein, the matters set forth in this press release, including the description of the company and its product offerings, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility and low trading volume of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company's need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The company disclaims any intent or obligation to update these forward-looking statements.

              DRINKS AMERICAS HOLDINGS, LTD., AND AFFILIATES
            Consolidated Statements of Operations (Unaudited)

                                                    Three Months Ended
                                                         July 31,
                                                    2007          2006
                                                ------------  ------------
Net sales                                       $  1,307,115  $    336,305
Costs of sales                                       837,466       214,085
                                                ------------  ------------
Gross margin                                         469,649       122,220

Operating Expenses:

 Selling, general and administrative expenses      1,985,275       865,510
                                                ------------  ------------

 Loss before other income (expense)               (1,515,626)     (743,290)

Other income (expense):
 Interest                                            (52,624)      (89,130)
 Other                                                  (349)        1,399
                                                ============  ============
                                                     (52,973)      (87,731)
                                                ============  ============
Net loss                                        $ (1,568,599) $   (831,021)

                                                ============  ============
Net loss per share, basic and diluted            $     (0.02)  $     (0.01)
                                                ============  ============



              DRINKS AMERICAS HOLDINGS, LTD., AND AFFILIATES
                        Consolidated Balance Sheet

                                                          July 31,
                                                            2007
                                                       =============
ASSETS                                                  (unaudited)

Current assets:
   Cash and cash equivalents                           $       5,264
   Accounts receivable, net                                1,151,801
   Inventory                                               2,895,983
      Other current assets                                   622,362
      Total current assets                                 4,675,410

Property and Equipment                                       118,288
Investment in Equity Investees                                61,636
Intangible Assets                                            844,095
Deferred loan costs                                           38,763
Other                                                        780,803

                                                       =============
                                                       $   6,518,995



LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                                    $   1,845,453
   Notes and loans payable                                 1,632,086
   Accrued Expenses                                        1,057,038
   Advances on shares to be issued                            20,000
                                                       =============
   Total current liabilities                               4,554,577

   Long-term debt, less current maturities                   250,000
                                                       =============

                                                           4,804,577

Stockholders' equity                                       1,714,418
                                                       =============

                                                       $   6,518,995

Contact Information

  • Contact for more information:

    Investor Relations Contacts:
    Stanley Altschuler
    Ryan Daniels
    Strategic Growth International
    150 East 52nd Street, 22nd Fl.
    New York, NY 10022
    (212) 838-1444
    http://www.sgi-ir.com