Competition, start-up costs set back Atlantic Beverage

March 07, 1995|By Jay Hancock | Jay Hancock,Sun Staff Writer

Pressure from rival drink sellers cut into Atlantic Beverage Co. Inc.'s sales last year, and costs to launch a "fruitshake" product wiped out its profits.

But Atlantic Beverage managers believe 1995 will bring improvement. Competition should diminish, and the Flying Fruit Fantasy shake should turn a profit in the July-September quarter, said President William E. O'Leary.

Atlantic Beverage's 1994 revenue declined by 6.3 percent to $24.6 million, the company said yesterday. It lost $37,735 for the year, compared with a loss of $610,984 for 1993. Profits for 1993 were hurt by one-time costs and write-offs.

For the fourth quarter of 1994, the Baltimore-based company lost $422,139 on sales of $4.9 million. During the same period in 1993, Atlantic Beverage lost $916,765 on $5.4 million in revenue.

Atlantic distributes Elliott's Amazing Juices, Royal Mistic, Crystal Geyser and other "natural" and "alternative" beverages. It's a competitive field, as Coca-Cola Co. and other big players have muscled in with their own drinks.

"Our brands have done very, very well with all the competition, but I think growing them is a little more difficult than we originally thought it would be," Mr. O'Leary said.

Atlantic chose to maintain its profit margins last year rather than cut prices to gain sales, he said.

Atlantic

Beverage Co. Inc. ... ... ... ... ... Ticker ... ... ... ... Yesterday's

Baltimore ... ... ... ... ... ... ... Symbol ... ... .. Cls. ... .. Chg.

... ... ... ... ... ... ... ... .. .. ABEV ... .. .. .. 2 7/8 Bid .. ... - 3/8

Period ended

Dec. 31 ... ... ... ... ... .. 4th qtr. ... ... ... Year ago ... .. Chg.

Revenue ... ... ... ... ... .. $4,881 ... ... .. .. $5,404 ... .. -9.68%

Net Income ... ... ... ... ... ($422) ... ... .. .. ($917) ... ... .. ..

Primary EPS ... ... ... ... .. ($0.16) ... .. .. .. ($0.55) ... .. .. ..

... ... ... ... ... ... ... .. 12 mos. ... ... .. .. Year ago ... ... Chg.

Revenue ... ... ... ... ... .. $24,627 ... ... .. .. $26,296 ... ... -6.34%

Net Income ... ... ... ... ... ($38) ... ... ... ... ($611) ... ... ... ..

Primary EPS ... ... ... ... .. ($0.02) ... ... .. .. ($0.48) ... ... .. ..

Figures in thousands (except per share data.)

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