Beverages, Inc. (Pink Sheets: NBVG) is focused on growth and diversification in the healthy food / healthy water industries. NutriPure currently owns two wholly-owned subsidiaries, XND Technologies, Inc. and Inka Grill Franchise Systems.

Beverages’ subsidiary XND Technologies, Inc. is bringing to market a complete line of nutrient-enhanced bottled water products under the NU2O label. XND has a strong management team in place, headed by Founder and CEO Steve Nickolas, a veteran of 30 years experience in the water business. Nu2O products will be the first and only premium nutrient-enhanced bottled water products to be produced using a revolutionary cold-filling process that enables the adding of organic nutrients while retaining the appearance and taste of pure water. This concept is unique because no other producer adds organic nutrients without also adding masking flavors, colors or sweeteners. Nutripure’s products will contain no calories, no carbohydrates, no colors and most importantly, no flavors other than pure water. NutriPure’s patented cold-fill process gives the company two huge marketing advantages over its competitors. First, this process costs 30% less than the standard hot-fill process, which translates directly to greater bottom line profits. Cold-filling also enhances the bioavailability of the ingredients, prevents biodegradation, and allows beverages to be bottled at neutral pH, thereby creating a more healthful product without altering the taste of the water. This process gives NutriPure the advantage of being able to use the claims “natural”, “organic”, and “no preservatives” on its packaging and marketing materials. Consumer testing indicates that the public sees Nu2O in a category of its own, somewhere between SmartWater and VitaminWater. Nu2O products will include a vitamin enhanced water for general health, a diet formulation for weight watchers, an immune booster, an energy and fitness drink, and additional formulations to be announced later. The company plans to initially launch three formulations under the Nu2O label, with three additional formulations scheduled to be introduced after the second quarter of operations. Distribution will begin in the Southwest U.S. and expand nationwide over the following six to eight months, contingent upon finalization of funding and staffing requirements. Based on an extensive analysis of current and anticipated market conditions, the company forecasts gross product sales at $10,855,500 for the first 12 months of operations, $49,890,000 for its second year, and $66,100,000 for the third year. These are preliminary projections subject to change depending on a variety of factors including unanticipated fluctuations in the market place.

subsidiary Inka Grill Franchise Systems (“IGFS”) owns the nationwide franchising rights to the Inka Grill restaurant, recipes and products, and an agreement is already in place with a major franchising firm to take the concept nationwide and eventually worldwide. Inka Grill is a highly successful chain of Peruvian restaurants in Southern California with a well-deserved reputation for serving up the ultimate Peruvian food experience. Peruvian cuisine is growing very rapidly in popularity because it has enormous appeal to both “foodies” and to those seeking healthier and more nutritious restaurant alternatives. Adventurous eaters are attracted to the unique combinations of flavors and fragrances that set Peruvian food apart as a distinguishable yet approachable alternative to more standard food choices, while those who are more health-conscious are drawn to its combination of fresh and nutritional ingredients with healthy spices and herbs. Inka’s recipes are based on home-style cooking from the Northern Provinces of Peru, where seafood, chicken, lamb, beef and potatoes are the staple. Every dish is prepared to order and only the freshest organic ingredients and care are used in all of Inka’s preparations. These factors, combined with the affordability of the menu choices, the ability to replicate the restaurants very quickly in multiple locations with a small and profitable footprint, and Inka Grill’s record of success in the highly competitive Southern California restaurant scene, have created an usually strong franchising concept. The franchising process is well underway and the company expects to open its first franchised locations in early 2009.

 

KEY FACTORS TO INKA GRILL’S FRANCHISABILITY

• Excellent track record -- low cost basis with strong year-on-year profitability.

• New and exciting casual dining concept with “first mover advantage” – currently no significant Peruvian restaurant franchises exist in the USA.

• Unique alliance/partnership with global franchise leader

• Delicious, affordable cuisine with broad geographic appeal.

• Restaurants run to peak efficiency at below average cost basis (28%), yielding above average margins.

• Easily duplicated.

• Unique food and beverage lines ready for retail sales in major outlet and club stores

Beverages, Inc. continues to seek additional acquisitions and ventures in the healthy food / healthy water industries. NutriPure became a public company so that we can share our successes with you. Thank you to all who support our ideas and dreams.