Life On Earth In Acquisition Mode The Rest Of The Year

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Life on Earth (LFER) is making an aggressive move to consolidate in the beverage industry. Their niche market is focused on all-natural beverages. The global beverage industry is expected to reach an estimated $1.9 trillion by 2021. Their strategy is to go after the fastest growing segments of the market. The marketplace is currently segmented, and companies like New Age Beverage Corporation’s (NBEV) have strategically positioned themselves with a brand within multiple beverage categories, which is a business model that Life On Earth seems to be mimicking. NBEV’s diversified product line includes Coco Libre (organic coconut water), Aspen Pure (a probiotic water), Xing Tea and Xing Energy drinks, Búcha (Live Kombucha), along with two additional brands from a partnership with Reggae legend Bob Marley’s family beverage company. Marley’s ‘One Drop’ gives them a brand in the chilled coffee category, and ‘Mellow Mood’ places them in the emerging “relaxation” drink market.

New Age Bev has consistently maintained gross margins of 26.4% while its revenue recently increased 11.6% year over year. NBEV is more of a diversification play, while LFER is using the same business model to go after the faster growing all-natural segment of the market. According to BNP Media, 72% of consumers are interested in natural, healthy and organic beverages. The Life on Earth brand will be squarely positioned to take advantage of this dramatic market shift. Life on Earth’s competitive advantage is that the company has its own sales and marketing division and is vertically integrated with its proprietary distribution channel capable of realizing 60% gross margins. You may say LFER is a baby NBEV, as LFER is only a couple of brand acquisitions away from being as diversified as NBEV across multiple beverage categories. With solid distribution channels nationally, they just need to prioritize international expansion to be at a similar caliber.