On Wednesday, Iconic Brands (OTC: ICNB) reported a surge in year-over-year revenue of 114%, driven by its specialty brands, including Hooters private label spirits, Bellissima Prosecco and Sparkling Wines, and BiVi Sicilian Vodka. The fourth quarter contributed to the yearly increase by posting a more than 370% increase in sales compared to the same quarter in 2018. Notably, the Q4 revenue was higher than the previous three quarters combined.
Iconic Brands, Inc. is continuing to secure its niche identity as a lifestyle branding company with the highest expertise of developing, from inception to completion, alcohol beverage products for itself and third parties. Capitalizing on its core products, as well as from opportunities emerging due to the COVID-19 pandemic, Iconic Brands posted a gross profit of $475, 814, a 97% increase over last year’s earnings.
Cash on hand at year-end for Iconic brands increased by roughly $72,000 as a result of the increase in operating income. As part of its growth initiatives as the company enters its fiscal year 2020, the company highlighted several recent developments.
COVID-19 Pandemic Opens Online and Retail Channels
Although only a temporary measure, the COVID-19 pandemic has most states relaxing restrictions on the sale and transport of alcoholic products. An area of benefit to Iconic is through its relationship with Hooters, who is taking advantage of a unique ability to sell bottles of its premium spirits to-go. Also, Iconic announced that Hooters Spirits premium line of alcohol beverages expanded its footprint to additional Hooters corporate restaurants in 22 states with plans for placement of Hooters Spirits into franchised restaurants and off-premise retail distribution.
From its online sales, Iconic announced earlier in April that the company partnered with Christie Brinkley to donate a portion of the proceeds made from online orders of Bellissima products through online wine retailer, Splash Wines, to Direct Relief to aid in relief efforts for COVID-19. Consumers are also able to take advantage of free shipping for online orders of its Bellissima Prosecco and Sparkling Wines through Splash Wines. Consumers also responded well to Christie Brinkley’s QVC appearances during December 2019 and January 2020, proven by an estimated 40,000 bottles Bellissima Prosecco and Sparkling wines getting sold.
Beyond the spike in sales, Iconic Brands did well to develop its marketing presence and balance sheet during the 2029 fiscal year.
Video Link: https://www.youtube.com/embed/xvOXOmzubPo
NASCAR’s Chase Elliot Signs As Brand Ambassador For Hooter’s Spirits
From a marketing perspective, 2019 attracted NASCAR’s Most Popular Driver Chase Elliott to sign on as a brand ambassador for Hooters Spirits, inking a multiyear deal that includes personal appearances at select Hooters Spirits events.
Boosting its balance sheet, Iconic closed on a $1.5 million above-market private placement of preferred equity, with proceeds from the transaction being used to increase social media and digital marketing. The capital is expected to further its hiring of brand ambassadors and product influencers, and to provide the funding to increase inventory for accelerating demand and for new product innovations.
Iconic Brands Is Taking Advantage of Public Company Benefits
Iconic Brands, Inc. is exploiting a unique marketing opportunity and is one of only a few publicly-traded lifestyle branding companies that specializes in the comprehensive development and marketing of alcoholic beverages for itself and third parties. Competitive advantages are already showing dividends as Iconic continues to benefit from long-established industry relationships. These unique associations position Iconic to conceptualize, create, market, and distribute to retail and wholesale shelves throughout the United States.
Moreover, Iconic is focused on targeting a niche market that can disrupt the status-quo of traditional branding practices. Specifically, Iconic Brands is showcasing its expertise in the development of “celebrity-branded” beverages, partnering its products with world-renowned celebrities, and creating a personalized, high-quality product that is attracting the eye of consumers. And, it’s a market that is experiencing hyper-growth activity.
Iconic Brands Strengthens Ties With Major Celebrity Figures
As Iconic Brands continues to mature, the company is showing its superiority to attract major celebrities to help create and promote new brands of products. Already, Iconic Brands is leveraging its relationships with internationally recognized celebrities like Christie Brinkley, and Chaz Palmenteri... who have each inspired top-shelf products made possible by Iconic’s brand and product development expertise.
It’s Bellissima Prosecco, a line of premium and sparkling wines, for instance, brings to market the quality wines inspired by Christie’s healthy lifestyle that uses only vegan and organically sourced ingredients. Behind the magnetic name, Iconic Brands stands by its commitment to producing the most beautiful collection of Prosecco and Sparkling Wines, which is embodied by their unique processes that create full-bodied products from a well-nurtured vineyard. Focus is further placed in reverence to the Italian soil and the natural cycles of the vines, to the environmentally-friendly materials used in the brand packaging, and to the dedication to preserving the natural beauty of the world from which they produce.
Notably, Christie Brinkley is not just a name-drop for the product. She is actively supporting and refining her brand to make it one of the best lines of Prosecco and Sparkling Wines on the market, and as she has noted, maintains a vintage that is imbued with her Bellissima spirit. And, as her commitment extends to the sales of her products, Iconic will inevitably become a prime beneficiary of its growth.
Vodka, Gin, Rum, Hooter’s, and NASCAR’s Chase Elliot
Beyond wine, trendy and smooth tasting vodkas have reintroduced millions of consumers to a new class of liquor. BIVI vodka, a premium, and mild tasting spirit inspired by Chaz Palminteri is an Iconic Brands product that positions BIVI as a superior option to the vodka faithful. This brand was developed by using only the finest semolina wheat and only the purest mountain spring water of Sicily. The result - a distinct and pleasurable taste that is gaining market share.
Although celebrity endorsements can drive sales and create enormous brand recognition, consider what can happen when an association like NASCAR gets associated with the niche market frenzy. And that just happened. This time, Iconic may be positioned to benefit from both a national restaurant chain as well as from the NASCAR faithful.
Early in March, Iconic Brands put out a release stating that the world-famous restaurant chain, Hooters, chose Iconic Brands as their choice to produce its premium line of spirits that includes vodka, gin, rum, tequila, and their famous heat cinnamon whiskey. Adding an exclamation point to that announcement came when Iconic added that these Hooter’s labeled spirits are now proudly displayed on NASCAR favorite Chase Elliot’s #9, Hooter’s car.
Moreover, with Chase Elliot often in a lead car, these brands will be prominently positioned to the more than 9.1 viewers that were tracked during the 2019 season. And, if they follow Chase’s lead, the bottom line increases for Iconic Brands.
A Spike In Online Sales Drives Revenue Higher
As noted above, the COVID-19 pandemic has opened up new sales channels. And, in an environment that necessitates online purchasing, the company’s association with Splash Wines will likely generate additional online sales.
It’s important to note that unlike the small handful of its similar size competitors that are trying to earn shelf space, Iconic already has a distinct advantage - a valuable contract with federally licensed, United Spirits. That contract is an asset that makes Iconic Brands one of only a few private label developers that can import and sell to authorized wholesale distributors in all 51 markets in the United States.
Moreover, that license not only opens the door to national accounts from US-based clients but it also allows Iconic Brands to capitalize on its ability to procure superior and unique products from around the world and brand those products with internationally recognized celebrities.
Pushing the company forward is experienced management that is strategizing to take advantage of valuable licensing agreements. Also, Iconic is leveraging its growing list of internationally recognized celebrities already on its client list, and from working relationships with industry distribution giants.
Seizing Opportunity despite Consumer headwinds
The quarterly earnings demonstrate that Iconic is thriving in an extremely turbulent consumer market. And, with the trends in the alcoholic beverage sector during the past five years pointing toward increased attention toward celebrity-inspired, top-shelf products, Iconic’s ability to remain agile and focused should help the company to continue its growth trajectory. Also, by disrupting private-label marketing, if consolidation does become a factor as less advantaged companies fail to whether the economic disruption from the coronavirus, Iconic Brands may be better positioned to leverage their niche-focused strategy to exploit a massive opportunity
The near 1000% growth in revenues and more than 375% in the quarter over quarter revenues may prove that point.
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