Entertainment Arts Research (EARI): a Minor Player in 2 Giant Industries

challande

Written By: Marc Challande

Francophone

Published : June 24th, 2022

Previously named Property Investors Ventures, Inc, the company changed to its current name in 2008, Entertainment  Arts Research, Inc. (EARI). Throughout 2021, the company transitioned to become a diversified beverage brand holding company focused on growth opportunities in newly developing brands that can be scaled rapidly, utilizing common resources. The company is part of a multi-billion, fast-growing sector: the Craft Beer and Spirit sectors.

Craft Beer and Spirit: Two Huge Industries

Craft beer

Craft beer is already a massive market, worth USD 102 in 2021. If the Covid-19 crisis hit the sector and triggered a negative impact on demand across the world, the market is now projected to from USD 95B in 2020 to USD 210B in 2028, with a substantial Compound Annual Growth Rate of 10.83%. But what is driving the sector up?

Companies innovated and introduced many attractive flavors and stronger craft beers in the market, including fruit & spice, sour, malt & sweet, attracting the customer’s attention.

The demand is worldwide, led by Asia and, more particularly, China which witnessed its craft industry growing by 250%. Then, North America is considered the second-largest market share. Many renowned companies are already well-implemented, including The Boston Beer Company, Heineken, and Constellation Brands… Key players usually focus on strategic mergers and acquisitions to bolster their market presence.

Craft spirits

If the craft spirit market’s worth is lower than the craft beer industry, it should have a more robust CAGR. Valued at USD 13.23B in 2021, the sector is planned to expand at a fast pace of 28.3% CAGR between 2022 and 2030 to reach USD 124B. The industry is led by millennials (born between the 1980s and 2000s), that make a considerable demographic of alcoholic beverage consumers because they make a large portion of those who frequently visit restaurants and pubs. Even during the Covid-19 crisis, which had a negative impact, the market increased, according to the US Craft Spirits Association. Whiskey leads the market and counts for a 45% global revenue share in 2021. Gin should also expand at a fast CAGR of 31% in the same period. It is mainly explained because companies innovated with new flavors and regional botanicals. Once again, we find North America and Asia leaders in the sector. If North America had the most significant worldwide market share with 61% in 2021, Asia is expected to have the fastest growth with a 33.4% CAGR.

The sector has many famous leaders, including Constellation Brands, Pernod Ricard, and Campari.

About EARI

In 2021, Entertainment and Arts Research acquired in January 2021 Foody TV and Sports Entertainment Network streaming channels. Later in the year (July 2021), the company acquired Betta4u, and its wholly-owned subsidiaries, Fury Beverages LLC, Rhino Spirits LLC, Zegen, and brands Tickle Water and Neo Alkaline Water. Then, to finish its acquisition strategy for 2021, Entertainment and Arts Research added December to its portfolio Bell City Brewing Company and Craft Company. But how does the company identifies its acquisition targets? EARI is looking for companies with an EBITDA (earnings before interest, taxes, depreciation, and amortization) of over 15% and products with a gross margin of over 50%. EARI also targets products in market segments showing a high growth of over 20% per annum. Also, EARI targets innovative products, packaging, and brands with a proven track record and a dynamic management team. If 2021 was the acquisition year, next year should show an increase in its revenues.

The company planned to make other acquisitions, including another brewery company and a botanical water company.

 

Latest News

May 2, 2022: Entertainment Arts Research (OTC: EARI), a diversified beverage and media group, provides a corporate update on its subsidiary, Nature’s Fury. With ongoing supply chain issues hitting significant retailers, manufacturers, and distributors nationwide, Nature’s Fury has stepped up to fill potential gaps and lack of supply in the beverage industry. With newly updated labels and all flavors currently in stock, the company has adapted its pricing profile to reflect its premium ingredients which include 100% recommended daily intake of vitamins A, B3, B6, C, B5, B12, and D. At the end of May 2021, Nature’s Fury commenced its fourth program with major retailer Big Lots. This placed the company’s beverages in over 1,400 stores in 47 states.

Fundamentals/Earnings

On May 12, 2022, Entertainment Arts shared its Q1 results for March 31, 2022. The company has 102M shares outstanding, and 18M shares are part of the public float.

On January 4, 2021, EARI issued 20,000,000 common B; 15,000,000 Preferred B shares; and 8,000,000 Preferred D shares to B4U Holdings, Inc., controlled by Bernard Rubin, who was then appointed CEO and sole Director upon the resignation of Joseph Saulter

The company is authorized to have as much as 200M common stocks, meaning there should be more dilution because it targets to acquire other brands/companies.

Bottom Line

The company is part of two sectors set for massive growth by 2030. Moreover, the company has acquired many companies throughout 2021, increasing its growth potential. Bernard Rubin (CEO), has a strong experience in the sector as he launched several Consumer Packaged Goods brands and developed and managed co-packers, bottlers, distributors, and retailers through the entire supply chain from inception to shelf. He will know how to lead EARI to the top.

EnglishFrenchChinese (Simplified)GermanSpanish