SOURCE: Pulse Beverage Corporation

Pulse Beverage Corporation

May 16, 2013 09:00 ET

Pulse Provides 1st Quarter Results and Corporate Update

DENVER, CO--(Marketwired - May 16, 2013) -  The Pulse Beverage Corporation (OTCQB: PLSB) ("Pulse"), makers of PULSE® brand of functional beverages and Cabana™ 100% Natural Lemonade, today announced its 1st Quarter results for 2013 and issued a corporate update.

Q1-2013 Highlights:

Case sales during Q1-2013 for Cabana™ increased 169% quarter over quarter and 133% as compared to Q1-2012. Revenue during Q1-2013 for Cabana™ increased by 232% quarter over quarter and 115% as compared to Q1-2012.

Pulse's Q1-2013 net loss from operations was expected and was a result of costs associated with improvements made to its flagship product PULSE®, expanding its distribution system, costs associated with securing chain store listings, cost and shipping of samples of both products to distributors and chain store buyers. Pulse expects to be operationally cash flow positive by the end of Q2-2013. We expect Cabana™ to reach the annualized one million case threshold by the end of Q2-2013. This is a very meaningful accomplishment for Pulse as well-respected beverage publications generally report that it normally takes four to six years to reach corporate profitability and annualized one million case threshold for new beverage brands.

During Q1-2013 grocery and convenience store chain store listings for Cabana™ increased by 4,000 listings to more than 11,000. An additional 2,000 chain store listings have been secured for Cabana™ since March 31, 2013 to a total of 13,000. It generally takes four to five months between securing a listing and having product on the shelf for sale to consumers. Some of the more notable chains carrying, or committed to carrying, Cabana™ are: Safeway Inc. including Vons and all banners, Sobeys (Canada), Albertsons, Walgreens, Whole Foods (selected divisions), Kroger (selected divisions), Hy-Vee, Roundy's Supermarkets, Hannaford and Sprouts. Pulse is in the process of securing many more chain store listings for both PULSE® and Cabana™. Some of these will soon be carrying PULSE® as well.

Pulse has in excess of $4.5 million in working capital as at March 31, 2013 including cash of $3.8 million, as such, Pulse will likely not need additional capital to finance the growth of its operations for its PULSE® and Cabana™ products. Pulse has received several offers for additional financing but has turned the offers down as it doesn't require additional financing for the foreseeable future.

Introduction of PULSE®

Pulse has recently completed its first commercial production run of PULSE® with improved packaging and flavor profiles from its initial pre-commercial production run completed in February 2013. Pulse has secured a large new distributor for Ohio/Kentucky and its largest Southern California distributor has also agreed to distribute PULSE®. Two-thirds of the run has been shipped to these two distributors.

Future Growth and Expansion Plans

Pulse's growth and expansion plans include:

  • securing additional distributors, chain store, convenience store and key account listings for its products across United States and internationally;
  • providing online shopping through a new and improved website by the end of Q2-2013;
  • furthering discussions with distribution partners in Asia, in particular, China, for distribution of both PULSE® and Cabana™ products;
  • increasing brand awareness of PULSE®;
  • acquiring additional brands that complement its product mix;
  • expanding its PULSE® brand by developing new proprietary formulations; and
  • introducing a third branded product closely associated with the PULSE® health platforms.

About The Pulse Beverage Corporation 

The Pulse Beverage Corporation is an emerging growth beverage company that manufactures and distributes Cabana™ 100% Natural Lemonade and PULSE® brand of functional beverages -- originally developed by a major healthcare company, in three health platforms: PULSE® Heart Health Formula™, PULSE® Women's Health Formula™ and PULSE® Men's Health Formula™.

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Forward-Looking Statements
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, regulatory incentives, the development of new business opportunities, and projected costs, revenue, profits and results operations. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.


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