FBEC Worldwide, Inc.’s Chairman and CEO, Robert Sand, Issues a Letter to FBEC Shareholders

CHEYENNE, WY / ACCESSWIRE / May 13, 2015 / FBEC Worldwide Inc., (OTC:FBEC), a beverage company with intellectual property formulas and marketing capability for production and distribution of proprietary beverages, today announced the Company issued a Shareholder Letter from its newly-appointed Chairman and CEO, Robert Sand. Mr. Sand’s letter is included in its entirety below:

FBEC Worldwide, Inc.
1621 Central Avenue
Cheyenne, WY 82001
May 13, 2015

Valued Shareholders,

It is a pleasure to communicate with you as your newly-appointed Chairman and CEO. I hope this will be the first of many interactions directly and indirectly with you as we release news and updates on our business operations and strategies this year.

Before I review our approaches to the market, I want to provide you a picture of the beverage industry. The non-alcoholic beverages industry encompasses liquid refreshment beverages (“LRB”) including; bottled water, carbonated soft drinks, energy drinks, fruit beverages, ready-to-drink coffee and tea, sports beverages and value-added water. Demand for non-alcoholic beverages is driven by consumer tastes and demographics. The US beverage industry remains highly concentrated as the top 50 companies account for 90% of its overall revenue. Industry reports show that sales of beverages are mostly concentrated in soft drinks which accounts for approximately 80% of sales, bottled water now accounts for 15% percent, and then the category of “other” which includes pure fruit juices and even manufactured ice. The majority of sales are soft drinks such as; sodas (carbonated soft drinks, or “CSD”s), tea and coffee drinks, sports drinks, energy drinks, fruit and vegetable drink blends (not pure), and artificially carbonated water. The profit margins on beverages are considered some of the highest in consumer products and range from 60% for a leading, high-volume beverage brand, to 90% for more niche beverages. The net profitability of individual companies then depends on effective marketing and expertise in logistics to ensure timely delivery for restocking shelves and coolers. While large companies have economies of scale in production and distribution, smaller companies like ours, can compete by producing new products, catering to local tastes or developing a high margin niche-market beverages.

We are dedicated and believe FBEC has tremendous potential in our industry with a unique market approach we will capitalize for the betterment of our shareholders, staff, customers and consumers of our products. To grow our business, we have targeted strategic acquisitions of additional revenue-generating beverage companies that we expect to announce near term. These new additions will place our beverage products to the forefront of our competition and differentiate ourselves to our distributors, wholesalers, customers’ stores and of greatest importance, our consumers.

We have recently formed a strategic partnership with Southern California-based BAXCO Pharmaceuticals to process and package our newly formulated hemp-based beverage formula. BAXCO Pharmaceuticals was established in 1996 and quickly became a leader in the competitive world of pharmaceutical contract manufacturing of vitamins and supplements. FBEC has acquired the exclusive rights to various hemp-based formulas developed by BAXCO’s leading scientist, Dr. Horst Krupp. Further, FBEC is in active negotiations with various other revenue generating beverage companies we are looking to acquire. Our goal is to develop a scale of economy with these acquisitions and our existing Frontier Beverage product line.

Our company has undergone a restructuring to align our incentives with that of our shareholders. We are now keenly focused on growth and our effort to expand our sales at margins we can drive to the bottom line and increase shareholder value. Investing in our growth is a nominal expense to ensure that we are working to maximize the potential of our company. 

We are starting our second quarter of 2015 on a solid footing and we expect to end the year with revenue and earnings. We have retained Malone-Bailey LLP, Auditors/CPA, to complete and file the 10-K for our year end 2014, and the 10-Q for our first quarter ended March 31, 2015. The 10-K will be filed this month, and the 10-Q will be filed simultaneously. These fillings will bring current all disclosure obligations with the SEC and OTC Markets. Our Board of Directors has agreed to file the application for advancing FBEC to OTC Markets’ “QB” designation which will facilitate the purchasing of our shares and increase shareholder value. The Company is currently DWAC and compliant with DTC. We have engaged the Oregon-based Warm Media, Inc. to design our new website, and Connecticut-based Lamnia International with its industry communications veteran, John Mattio, to help us develop and market our corporate story to the investment community while servicing our shareholders with the attention each deserves.

Our inspiration comes from many sources-our shareholders, our customers and our consumers, as well as our critics. Our staff and advisors have a passion for what they do that ignites this inspiration every day, everywhere we do business. We remain fresh, relevant and original by knowing what to change without changing what we know. We are asking more questions, listening more closely, and collaborating more effectively with our business partners, distribution, and strategic consultants to help us provide our customers the products they need, and our shareholders with the results that they merit for their trust and confidence.

We look forward to a great year and value your support along the way.

Kind regards,

/s/ Robert Sand
Robert Sand
Chairman and CEO
FBEC Worldwide, Inc.

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Safe Harbor for Forward-Looking Statements: This news release includes forward-looking statements. While these statements are made to convey to the public the company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The Company’s operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are and will be set forth in the company’s periodic filings with the U.S. Securities and Exchange Commission.

Investors:

John Mattio
Lamnia International
(203) 885-1058
jmattio@lamniaintl.com
www.lamniaintl.com

SOURCE: FBEC Worldwide, Inc.

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