A Growing Recognition of What SSC and BPG Have to Offer

Every day I get emails or comments on the SSC website or calls from investors asking when will SHOT Spirits Corporation (SSPT.pk) stock go up?

I guess just like the person asking the question I really don't know, but have a basic idea that unless we have huge increase in sales of the ShotPak® brands by Beverage Pouch Group, the market sees little advantage in owning the SSC stock at this time. I guess the easy marketing 101 reply comes to mind, sell more and be recognized more.

However, it goes deeper than that. Very few market makers understand what SHOT Spirits Corporation acquired when they invested and concluded the technology deal with Beverage Pouch Group. Both SSC and BPG are not your father's beverage company! All other beverage companies in the market today are in one or two segments, normally closely allied to their top brand. BPG is a one stop beverage company and is in the liquor segment, ready to drink cocktails segment, nutraceutical water, fortified water and natural spring water segments, wine segment and draft beer segment. All this plus pouch patents and relevant machinery business. These various segments could all be stand alone companies.

What most investors don't take into consideration is that the base point of SSC on 1/1/07 was zero value and with huge losses and debt. The company actually had Caveat Emptor status and was bankrupt as well as having a share with little value.

BPG took it over on 1/1/08, after closing the technology deal (which included the use of the exciting ShotPak® cocktails) with SHOT Spirits Corporation and started to build our two ShotPak® brands using the principles below.

We planned to work with distributors and consumers to build our two brands so that they got noticed and drew fanatical consumer support from across the country. We emphasized the sensory features of the pouch and quality of the products.

We decided to build new innovative flavors with our distillery partner, Imperial Brands, for long term growth and for both the domestic and international market places. We now have 20 product lines. We decided to offer our patented pouch design to other liquor companies and pack for them. Our first contract is with California Blue® Tequilas.

We decided to build both of our Brands with the mission to stand the test of time and truly stand out as niche products. We had to think outside the glass and can 'box' traditionally used in the liquor industry. We saw the opportunity to create a modern, eco-friendly American Global StandUp pouch package with two different brands viz. ShotPak® 34 proof ready-to-drink cocktails and 80 proof STR8UP® spirits.

We invested in viral marketing and built a website that has become an online destination for all to learn about all our brands and the BPG company range of pouched beverages.

We also emphasize our good citizen mission and strongly support charities helping injured children, families needing nutritional support and recognize that alcohol needs to be dealt with as an adult beverage through education. We do not advertise in the press or on bill boards. We introduced six and 12 multipacks pushing the price point beyond $7.

Back to the stock question and why no movement upwards.

Let me say I am unashamedly what the market calls a Baby Boomer. We were the first generation to recognize the value of brands and growth by association. Thus now you understand why we decided to concentrate on ShotPak's growth in year one.

Remember we Baby Boomers invented 'growth'. That's the tool by which we are always measured. So we had to get the pouch in as many hands as possible and watch it grow from there. Our marketing themes were relentless, "Party in a Pouch / Share with your friends / Take your best shot" to get the adult beverage pouch into night clubs, celebrity events, golf courses, the transport segment, hotel pool areas and beach resorts as well as selected liquor stores.

As a Boomer our measurement of a Company's success was the stock market and their demand for ever increasing growth. No one bothered to really look inside a company, only that it grew.

This I strongly believe is the answer to the price question and the reason why our share is not moving. We are a sleeping giant and not fully understood! We are measured on growth alone and not potential. Our five parts can't be compared to any other company and we are missionaries in this regard. A beverage technology company.

Today as I reflect back on my previous 17 years in the beer industry, everything we did as Boomers was driven by the desire for maximum growth above all else. Each quarter had to be better than the last. More stores, more consumers, more export countries, reach higher and higher targets.

And then crash...

Now, suddenly in 2009 it seems, the new demand from investors is will you be around in six months? How strong is your brand? What is the depth of your company's intellectual property?

The indications are that brands that can deliver modest and measurable results are back in favor with investors, compared to say those that predict huge sales with doubtful bottom lines.

In addition to owning up to being part of the 'Baby Boomer' generation I have added another label of entrepreneur. I am finding that our beverage businesses is suddenly attracting venture capitalist interest.

Why?

Maybe they recognize that most entrepreneurs will continuously innovate regardless of the chaos around them and that winning the game is the very definition of entrepreneurship.

So suddenly what do or have they seen in Pink OTC SHOT Spirits Corporation (SSPT.pk) and its 15% investment in the Beverage Pouch Group?

Why the telephone calls? Why the visits?

I believe that they now see BPG as a unique one of a kind hard to duplicate small beverage company, with patented products and huge domestic and global potential.

A major plus for shareholders in SSC is that the Executive Committee has kept the free trading shares under a minuscule 45 million and a very positive benefit considering that year on year the SSC loss was reduced by over 60%, the assets were increased fivefold and this was done with no outside investors. Thus buying shares from this tiny pool of free trading shares is going to be harder as the second year results are reported.

It is not lost on the analysts that in the worst economy in 50 years, in the most regulated industry in the USA that both ShotPak® brands grew and now in 2009 have started to reach cult status. For example ShotPak® cocktails will be the exclusive ready-to-drink liquor at several major national concerts this summer (first is www.rockontherange.com). BPG is now working with celebrity industry partners like AEGLive, Sam Coplin Associates and Global Music. This exposure to hundreds and thousands of willing thirsty happy consumers will hopefully continue to support our market plan of further developing a niche and cult status and 'must have product'.

There is no question that our positive trend results and first year market penetration has awakened the interest of some forward looking money managers.

As they look closer they will find our BevPaQ™ Company will begin to offer nutraceutical health waters in a eco-friendly pouch in the third quarter as part of a technology collaboration license with a major pharmaceutical company. Same time we will start collaboration with The Nevada Bottling and Beverage Company and offer a range of their fortified and natural waters.

The VinoPaQ™ Company has already proven itself with its patented wine pouches and stand alone half gallon BarrelPaQ™ pouches are now being sold internationally. Suddenly the thought that in the USA we will be able to offer a 5 oz StandUp VinoPaQ™ wine pouch with open and close spout for consumption at any outdoor venue, will allow the wine traditionalists in this very conservative industry a chance to grow their events party market segment without harming glass sales.

Finally the catch phrase "toss me a tube" at a ball game, will hopefully be on everyone's lips as the CarboPouch™ from our BeerPaQ™ company starts to replace paper and glass packages at stadiums. This innovation allows breweries to sell fresh unpasteurized draft beer to thirsty consumers fast, and without the handling and pouring nightmares at present. Fresh beer, safe package, fast service, low carbon dioxide footprint and a Brand Managers dream of a pouch. The kind of stuff that made USA Brands famous around the world.

So now why won't SHOT Spirits Corporation shares go up in price? I don't know why, because we are doing all the right steps. What I do know is that there are a small number of shrewd investors who are not selling shares, because they understand where we are heading and the potential upside in the future.

A Shotsational April.