Hempaco, Nasdaq: HPCO Plans Beverage Incubator - Beverage Industry M&A

Hempacco and Illumination Brands Announce Letter of Intent for Potential Business Combination with this Beverage Industry M&A

I love beverages and the beverage industry. I love it so much that I wrote a book about it fifteen years ago called "Build Your Beverage Empire," Now it's the third edition. Since then, I've launched. Over 1,000 consumer goods and helped hundreds of beverage companies, Beverage Analysts, and Fund Managers. Now, after so many years, I have come across this Beverage Industry M&A opportunity with Hempacco, a publicly traded company in the Nasdaq ticker HPCO.

Here is a summary of the Press Release sent yesterday by Hempacco:

Business Combination Intended to Revolutionize the Beverage Industry, Introducing a Vertically Integrated Beverage and Snack Brand Incubator - Targeting $35 Million in Revenues in First Year

A potential combination would create a powerhouse in the beverage and snack sector. Plans include continuing to innovate functional beverages. The new company would be called Illumination Brands, and it is expected to have $35 million in revenues in the first year following the combination.

This strategic business combination would combine Hempacco's cutting-edge manufacturing, R&D capabilities, and celebrity partnerships with Illumination Brands' expansive distribution network. The latter has approximately $30 million in revenues annually across 5,000+ large and small-format retail locations in Colorado, Southern Wyoming, and parts of South Dakota. The synergy from the potential combination is anticipated to enhance existing operations and facilitate the launch of groundbreaking functional Beverages and Shots.

Hempacco & IIlumination Brands Combined Brands and Assets for the Beverage Industry M&A Transaction

The potential combination is expected to create approximately $35 Million annually in revenues for the newly combined companies. This figure doesn't even include the projected revenues of the brands that Illumination Brands owns (Xing Tea, Go Fast, Aspen Pure, and Solritos) in its brand portfolio. This is a testament to the firm and complementary nature of the combined brands and assets if the combination closes.

Hempacco & Illumination Brands Combination Objectives

• Industry Innovation: This combination would introduce the first vertically integrated beverage incubator in the USA, focusing on the entire lifecycle of beverage products from concept to R&D to sales and distribution.
• Product Launches: The combined company is expected to launch innovative functional Beverages and Shots, signaling a new direction in product development.
• Expansion of Snoop Dogg Products: The combination is expected to facilitate the expansion of Snoop Dogg's product line into up to five thousand new locations, enhancing market presence and consumer reach.
• Future Strategies: Post-combination, the combined company plans to expand its incubator for beverage companies, manufacture innovative products, and acquire other beverage distributors to bolster its market position by taking equity in its incubators.
• Revenue and Distribution: Illumination Brands now boasts a distribution network selling approximately $29 million annually across 5,000+ points of sale, which would be combined with Hempacco's current annual sales of roughly $6 million, Intellectual Property, Manufacturing, and Celebrity Brands.
• Target Customers: The combined company would sell products in convenience stores, targeting young adults with functional beverages, shots, gummies, and nutritional supplements.

About the Author: Jorge Olson

Jorge Olson is the author of the book Build Your Beverage Empire. He's done beverage industry mentoring, consulting, and analysis for hedge funds, mutual funds, banks, private offices, and other institutional investors. Jorge is the co-founder and CMO of Hempacco, the ticker symbol of HPCO; he lives in San Diego, CA. Fun Fact: Jorge is originally from Tijuana, Mexico.