2017 Stock Recommendation. Arrow Head Seltzer Water. Let's do Bottle Math.

 2017 Stock Recommendation. Arrow Head Seltzer Water. Let's do Bottle Math.

Arrowhead was a smaller regional seltzer water maker. They had a sub contract I think? My conjecture from Pepsi from a investment consortium. The investment consortium owned the machines and their own building and factory. 

Arrowhead was a good investment, and it sold at some very large retailers like Walmart and Kroger. The retail price was about 4.99 for a 24 pack of metal cans, and about 5.99 for a 32 pack of plastic bottles

Let's do bottle math. A factory is machines to make seltzer water, and water treatment division to process water. That is just machines. The bottles and cans makes sense you have to be a very large consortium to have the ability to buy that much packaging. 

A seltzer water factory. That is all the factory does all day. Produce cans of seltzer water and bottles of seltzer water. Arrowhead mentioned 1997, the sales are okay not good but they have good manufacturing capacity about 12.5 million units a month

After that is a sales team, to make 35,600 a year is about 200 a day. But it makes sense strategically to have a distribution agreement with a large retailer

Arrowhead stock when I recommended was about 4 to 6.50 a share. I am not sure if they are still a public company

A reader asked in 2021 about Celsius. I guess same explanation. The factory is there, can you sell it? The retail network that you possess or represent has to sell about 10 million units a year to break even if you bought out Celsius at 3.70 a share for 220 million, a can of Celsius energy drink is about 5.67? Then a wholesale box of 24 is 49.99? You have to try to see if its something you can sit on in the warehouse or if you can just build a brand strategy like red bull marketing. Red bull will sue if you copy their strategy but you need to sell about 10 million units a month.