PDPG & its LOI for New Joint Venture

Today I’ll be talking about an OTC company that has been flying under the radar despite its 651% run up to $1.70 earlier in February. This stock caught my eye because of its ridiculously low float of 379 thousand shares which means it could run on any news. 

About a year ago Liberty International Holding Corporation changed its business focus with a pivot towards the sports beverage industry. The company also changed its name to reflect this new direction which is how Performance Drink Group Inc. aka PDPG came about. Since then the company has been developing a game plan for launching itself into this sector and it looks like PDPG is ready to unveil it. 

What triggered PDPG’s massive run in February was the company’s first tweet of 2022 which highlighted that it’s working on some deals behind the scenes and investors can expect an update from them soon. Not long after that, PDPG released news that it was working on an acquisition and joint venture in the drinks manufacturing space.

It looks like the company’s CEO David W. Lovatt sees an opportunity to impress consumers with innovative and new products. At the same time, he’s noticed popular brands in the industry are growing faster than they can privately supply which is why he wants PDPG to fill a gap in the market as a manufacturer of these beverages. 

To achieve this, serial entrepreneurs David W. Lovatt and Leonard K. Armenta Jr are leading PDPG into a new era with acquisitions of revenue generating brands and joint ventures with  experienced operators. So it’s no surprise that Lovatt believes this will result in significant  revenue generation as the company works to capture market share in both US and Asian markets. 

Right now the beverage industry is growing very rapidly with revenue projections for the global sports nutrition foods and drinks market reaching $90 billion this year. This is largely because of innovation across the market usually in terms of flavor. However things are really heating up as many companies introduce new drinks with hemp infusions and other ingredients that offer health benefits so it’s the perfect time for an emerging company like PDPG to take advantage of rising demand. 

Since then PDPG has been working towards its goal of announcing an LOI for a brand acquisition in March as well as a joint venture and it looks like it has made good on it after its recent announcement. 

So far PDPG has established an LOI for its joint venture with an EU-based partner specializing  in Research & Development. This will help with the development of patent-protected trade secrets for both raw ingredients and production processes. PDPG is especially interested in developing a new portfolio of ingredients, supplements, and products to improve heart health which could perform very well since a lot of people have become more health conscious following the pandemic.

PDPG’s CEO believes that after signing the definitive agreement, the partnership will help give the company access to stable, growing revenue streams across  multiple continents. This catalyst could help bring volume to the stock as more details about the R&D venture are revealed. 

As is, PDPG seems interested in including a range of natural ingredients such as olives, nuts, honey, and cannabis-based products in its products which could introduce the company to a new group of consumers who have been demanding improvements in the functional value of the drinks themselves. So I’ll be watching to see what products come from this joint venture as PDPG works to create sports drinks that are free of negative health side effects and disruptive cannabis-infused drinks. 

I don’t know about you, but personally I’ve noticed a shift towards health drinks and it looks like PDPG has noticed that too. According to market research, the Energy Drink market is projected to see an annual growth rate of more than 9% and the US is already the largest market for these products but the Asia-Pacific region will likely see the most growth in the years ahead.  

Just last year the energy drink market’s manufacturing capacity was outpaced by demand growth so PDPG has a good opportunity to fill a gap in this already growing market. If you want to find out what PDPG’s next moves are, you can always subscribe for investor notifications on the company’s website too. 

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