Launch of New Carbonating Appliances
In the first quarter of 2011 the Company announced that it had purchased the assets of Omnifrio Beverage Company, LLC, a company that was developing a single-serve carbonated beverage system, and as a result the Company would begin a strategic brand and competitive base positioning project. The Company completed that project in the second quarter and determined that the new single-serve carbonated beverage systems will be branded "Primo Flavor Station." There will be two models, the Primo Flavor Station 500 that uses the Company's patented Flavor-Cups and CO2 cylinders, or "Primo Carbonators," and the Flavor Station 100 that is expected to retail for less than $100. Each device will be offered as a tabletop model for the 2011 holiday season. In 2012, the Company expects to launch a version of the Primo Flavor Station 500 as a module that will attach to Primo's bottom load dispensers.
Prim added, "We are excited about the introduction of the Primo Flavor Station line. The Flavor Station 100 will make carbonated beverages in a single-serve, refillable bottle. Our research shows consumers have personal beverages preferences and our Flavor Stations will allow them to create their beverage of choice in the convenience of their home and office. Both series of the Primo Flavor Station will offer consumers a unique, easy and affordable way to drink beverages and water as we further leverage our consumables."
The Flavor Station products represent an extension of the Company's overall razor/razorblade strategy. The introduction of the Flavor Station products will provide the Company with numerous high margin "razorblades" for the consumer headed into the holiday season and fiscal year 2012. Consumers who have purchased the "razors" can then be expected to purchase our "razorblades" -- water, flavors, CO2 and other beverage accessories. The Company expects that these appliances and consumable products will positively impact its long-term growth prospects.