Bravo! for low-carb, low-calorie milk drink
issued an upbeat message with its second quarter results,
attributing its up-turn in fortunes to the launch of new brands,
which the company believes have left it one step ahead of the
competition, reports Philippa Nuttall.
Bravo! saw a significant increase in revenue for the quarter, though the company ultimately recorded a net loss on account of promotional costs for new product launches.
Revenue rose to a record $1.4 million, against $438,000 last quarter and $354,000 in the second quarter of 2003, which left a net loss of $880,000. This compared to a net loss of $881,000 for the previous quarter and of $708,000 for the second quarter of last year.
"The net loss was due to the promotional, shipping and marketing costs associated with the introduction of new products," said Tommy Kee, vice president and chief financial officer of Bravo!. "Overall, this is a much stronger balance sheet than we have seen for a long time."
CEO Roy Warren was in no doubt that these expenses would be reduced once these costs were out of the way, "at least on a relative, if not an absolute basis," he said.
The most recent product to appear on the market is the Slim Slammers range, which comes in two rich-sounding flavors, but is being marketed to health conscious customers as containing half the calories and half the carbs of regular milk and as having a third more calcium than regular varieties of the drink.
Bravo believes this drink gives the company a competitive edge over its market rivals as it hits the new consumer trend of low- as opposed to no-carbs.
"With Slim Slammers we are going in the right direction that some carbs are better for you than no carbs," said Mike Edwards, executive vice president of sales and marketing.
He, like the rest of his team, considers Bravo's drinks to be superior to anything else on the market, in terms of the actual product and its packaging.
"For example, our product beats Nestle's Nesquick on carbs, calories and nutrition," added Ben Papita, vice president of new business development for schools and vending.
He also drew attention to the Pro Slammers range of drinks, otherwise known as the "school line" because of the audience at which it is aimed. He noted that schools looking at adding nutritional value to the products sold in their vending machines - in attempt to stem the rising tide of child obesity - are particularly interested in this beverage.
Bravo! has just signed its first contract for Slim Slammers with the Californian supermarket chain Ralphs and and the initial order will be shipped on 16 August. Then the real test of winning consumer trust will begin.
