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beverage innovation news editor Mike Ramey looks at how dynamic Canadian tycoon Bobby Genovese, Chairman and CEO of Clearly Canadian Brands and head of Barbados based BG Capital, has put the business back on track with new products, a strategic acquisition and a 'fly on the wall' TV show called Bobby G: Adventure Capitalist.
“Alternative beverage” producer Clearly Canadian has reported its first significant revenue growth in a decade, after developing its food business. The Canadian group said sales jumped 213% to US$3.34 million in the last quarter of 2007, and were 48.9% up over the full year to $11.1 million.
The rapid increase came from Clearly Canadian’s healthy snacks and organic baby food divisions, which were acquired in the first half of 2007. However, the group’s core beverage business continued to struggle, with 2007 sales down a further 25%.
On 14 April, Clearly Canadian added another food brand to its portfolio, signing a letter of intent to acquire Baldwin Street Kosher – a quality line of hot dogs and sausages that sells at major supermarkets in the Toronto area, as well as sporting hubs such as the Air Canada Centre (ACC), home of the Toronto Maple Leafs ice hockey team.
Bobby Genovese, Chairman and CEO of Clearly Canadian Brands, said: “We will use our resources to rapidly expand Baldwin Street’s revenues. We anticipate being able to pay for this acquisition out of cashflow generated from its operations. We continue to review many solid opportunities that have been presented to us.”
Clearly Canadian was a pace-setting beverage company in the 1980s and ‘90s, but fell on hard times over the last decade. The business is now owned by Genovese, who is trying to get it back on track by developing Clearly Canadian into a diversified producer of healthy food and drinks.
The entrepreneur initially appointed Brent Lokash, a young corporate lawyer, to run the company. However, Genovese has now taken personal control of the turnaround as Chairman and CEO, while Lokash is head of the beverage division as well as mergers and acquisitions.
The INOV8 Beverage Co, led by former Snapple CEO Mike Weinstein and former Yoo-hoo/Orangina CEO Brian O’Byrne, has also been called in to develop new drinks under the Clearly Canadian brand.
While Clearly Canadian’s bottom line for 2007 wasn't revealed (the company reported a $1.4 million loss in the third quarter), Genovese was bullish about future prospects: “Our beverage division has been challenged by the significant cost increases in shipping and delivering our product, which has affected many alternative beverage companies,” he said.
“We've spent the last six months addressing this problem, and feel confident that, with the significant guidance of INOV8, we're now well positioned to significantly increase revenues in this division in 2008 and beyond.”
Genovese – a dynamic Canadian tycoon whose BG Capital investment company is based in Barbados – is the focus of a 'fly on the wall' documentary series on cable TV in the US. The show, Bobby G: Adventure Capitalist, follows Genovese’s jetsetting progress around his five luxury homes and diverse business interests, which also include an underwater cemetery in Key Biscayne, Florida.
Much of the drama revolves around Clearly Canadian. The camera gets in close as 'Bobby G', Lokash and other members of the team battle to reverse the fortunes of the iconic national brand.
Genovese has been delighted by reactions to the show. “Not only have we had tremendous response from our very loyal brand customers, but numerous corporate opportunities have been presented,” he said. “Now that the business world more fully understands what we're looking to accomplish, and how we're positioning this company, the prospects have been numerous.”