SOURCE: Tempco, Inc.

October 22, 2012 08:28 ET

ESIO Countertop Beverage Dispensing System Being Delivered to 2,400 Wal-Mart Stores in Nationwide Retail Launch

Tempco, Inc. to Begin Selling ESIO Franchises in Dallas-Ft. Worth Region in First Half of 2013

SCOTTSDALE, AZ--(Marketwire - Oct 22, 2012) - Tempco, Inc. (OTCBB: TEMO) ("Tempco" or "the Company"), a Regional Development Franchisee of ESIO Franchising, today provided the following corporate update to its current shareholders and potential investors.

ESIO Beverage System Being Delivered to Wal-Mart Stores

The first hot and cold, ready-to-drink beverage dispensing system made its debut at Wal-Mart beginning October 19, 2012, when Esio Beverage Company introduced its convenient countertop unit along with more than 30 great-tasting branded drink choices, including chilled juice drinks, lemonade, sports drinks and vitamin fitness waters, as well as iced or hot coffees and teas.

Branded beverages will be available in patented MultiServe E-Paks™, including Kraft's Country Time Lemonade and Crystal Light varieties featuring Appletini, Peach Tea and Wild Strawberry Energy; Campbell's V8 Splash selections including V8 Splash Berry Blend, Tropical Blend and Mango Peach; Apple & Eve Light Fruit Punch, Apple, Cranberry and Grape juices; Maxwell House Simple Roasts Hazelnut coffee; Diet Brisk Lemon and Raspberry Iced Teas; China Mist teas including Blackberry Jasmine Iced Green Tea and Passionfruit Iced Black Tea; Sqwincher sports drinks featuring Fruit Punch, Grape, Lemon Lime and Orange; and Esio's signature Barista Brothers Premium Coffees and Teas and its Vita-24 Fitness Water. Each MultiServe E-Pak provides approximately 14 eight-ounce servings.

The Esio Hot & Cold Beverage System will be available in nearly 2,400 Wal-Mart stores for $199 and will include two free E-Paks, a $12 value.

The revolutionary drop'ndrink™ technology embedded in the Esio Hot & Cold Beverage System allows users to instantly switch from cold lemonade (no ice needed) to freshly-brewed hot coffee, with no taste crossover and the ability to customize the strength of every beverage.

Esio Hot & Cold Beverage System drinks are low in sugar and calories, offering consumers a healthy alternative to traditional sugar-filled, high-calorie beverages.

The magic of the Esio system is its MultiServe technology, allowing the repeated use of its patented MultiServe E-Paks™ using chilled or hot water that's always available.

Esio's reusable three-inch-square E-Paks (no refrigeration required) each produce up to 108 ounces of drinks (approximately 14 eight-ounce servings), and the system's exclusive patented Strength Selector™ allows consumers to select their exact beverage strength.

What's more, the hassle-free beverage system is family-friendly, with a child safety lock, and is a proven time saver for today's active adults and families, with ice cold and steaming hot drinks available in seconds.

The Esio system, a home and office space saver, is also eco-friendly; each tiny E-Pak eliminates about nine 12-ounce cans or seven 16-ounce bottles that typically take up valuable refrigerator and pantry space before ending up in a landfill. Esio believes the cost savings are significant too, with drinks from the Esio being more affordable than single-serve convenience beverages purchased at the store.

"While Tempco will not derive revenue directly from the sale of beverage systems in Wal-Mart stores, those who buy Esio systems at Wal-Mart will become potential customers of ESIO franchisees, including Tempco, which can provide homeowners and businesses in their franchise territories with the patented MultiServe E-Paks for their Esio Beverage Systems," stated Anthony Silverman, Chief Executive Officer of Tempco, Inc. "In addition to the sale of such consumables, which should generate recurring revenue, ESIO franchisees are authorized to sell countertop and free-standing Esio Beverage Systems directly to consumers and will provide maintenance and repair services to their customers."

Tempco to Launch Franchise Activities in First Half of 2013

Tempco, Inc. executed its first Regional Developer Agreement (the "Agreement") and three franchise agreements with Esio Franchising (the franchising arm of Esio Beverage Company) in mid-August 2012. The Agreement provides Tempco the exclusive right to operate and/or sell up to fifty (50) Esio franchises in the Dallas-Fort Worth ("DFW") metropolitan area, which has a population of over 7.7 million people and more than 2.8 million households.

"We are currently in the process of identifying and securing warehouse and office space in the DFW market," added Silverman. "The first three unit franchises will be operated by Tempco. We expect to be selling additional franchises and serving consumers in the DFW area sometime during the first half of 2013."

"We have retained the services of a highly-experienced industry executive to manage the DFW region," continued Silverman. "Raymond L. Nelson spent 27 years (1977-2004) with DS Waters of America LP (formerly Danone Waters of North America, McKesson Water Products Company and Sparkletts Drinking Water), where he started as a route salesman and worked his way up to Vice President and Director of Field Operations for several U.S. markets. Ray is intimately familiar with selling and operating franchises that serve homes and offices in North Texas, one of the most vibrant economic regions in the U.S. We are confident that his capabilities will allow us to successfully launch and build our franchise operations in the DFW area."

As a Regional Developer, Tempco will receive revenue from several key activities, which include, but are not limited to the following:

  • The sale, lease or rental of countertop and free-standing Esio beverage dispensing systems;
  • Recurring sales of MultiServe E-Paks™ with more than 30 great-tasting branded drink choices;
  • The sale, lease or rental of water filtration systems;
  • Bottled water sales;
  • Equipment service and maintenance; and
  • The sale of cups and other ancillary products.

In addition, Tempco will receive ongoing monthly royalties for each of the Esio franchise operations in its regional territories.

Tempco also holds options to purchase regional franchise development rights in the additional ten (10) areas listed below:

San Antonio, Texas Metropolitan Area
Houston, Texas Metropolitan Area
State of Arizona
State of Colorado
Jacksonville, Florida Metropolitan Area
San Francisco Bay Area and Eureka, California
Sacramento/Chico, California and Reno, Nevada
Orange County, California
San Diego and the Imperial Valley, California
NW Los Angeles, California (Ventura to San Luis Obispo)

The option period shall expire by September 1, 2013 on all ten of these remaining areas.

About Esio Beverage Company and Esio Franchising

Headquartered in Mesa, Arizona, Esio Beverage Company, through its subsidiaries, is focused on the development, manufacturing and marketing of multi-serve beverage dispensing systems and beverage products for the home and office. Esio Beverage Company manages the company's retail, operational, and product development activities, and Esio Franchising serves as the manager of franchise activities.

The revolutionary ESIO Hot & Cold Beverage System includes countertop and free-standing multi-serve beverage dispensers that conveniently offer any size (up to 108 ounces, or almost one gallon) hot and cold drinks at the touch of a button. ESIO's patented MultiServe E-Paks deliver perfectly blended national branded and private label juices, sports drinks, vitamin fitness waters, teas and coffees. The countertop unit will initially be available exclusively in Wal-Mart stores and through Esio franchisees. More information on the ESIO Beverage System is available at www.esiobev.com. More information on Esio franchises is available at www.esiofranchise.com.

About Tempco, Inc.

Tempco, Inc. has entered into a Regional Developer Deposit Agreement, wherein Esio Franchising granted the Company an option to purchase up to 11 Esio Regional Development Franchises in certain optioned areas. Esio Regional Developers have the right to sell products in a specified geographical region. Regional Developers may, in their discretion, either sell products directly to consumers or sell franchise rights to specified territories as Unit Franchises. The Company purchased its first Regional Development Franchise in the Dallas-Ft. Worth area in August 2012.

Tempco, Inc. is headquartered in Scottsdale, Arizona, and its common stock trades on the OTC Bulletin Board under the symbol TEMO. Additional information is available on the Internet at www.sec.gov under the "Company Filings" section.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the "safe harbor" created thereby. Such forward-looking statements include, but are not limited to, statements regarding the expected timing of the completion of the proposed transaction; the ability to complete the proposed transaction considering the various closing conditions; the expected benefits and costs of the proposed transaction; any statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing and other statements that are not historical facts. Although Tempco believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, no assurance can be given that these expectations will be attained or that the transactions will be completed, and it is possible that actual circumstances and results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. The completion of and benefits from the transactions are subject to certain risks and uncertainties, including satisfaction of the conditions to the completion of the business combination, receipt of any required approvals, risks related to the timing or ultimate completion of the transaction; the possibility that expected benefits may not materialize as expected; and other risk factors relating to Tempco's business as detailed from time to time in Tempco's reports filed with the U.S. Securities and Exchange Commission. Tempco undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reader is directed to Tempco's filings with the U.S. Securities and Exchange Commission, including quarterly reports on Form 10-Q, reports on Form 8-K and its annual reports on Form 10-K, for a discussion of such risks and uncertainties.

Contact Information

  • For additional information, please contact:

    Anthony Silverman
    Chief Executive Officer
    (480) 980-0179

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (830) 693-4400
    Email Contact