A Vision for the Future

By Aaron Serge Bueno, Founder and Executive Chairman, November 2014

My vision is quite simple, because it is not mine alone, but one that is shared by every one of our clients.

This vision is not driven by Wall Street, or any other market, but solely by the desires of our clients and their consumers.

 I have traveled the world and consumers everywhere tell me the same thing, “Please create beverages that are simple, tasty, healthy and inexpensive.” They want a product that simplifies their kitchen, not just another appliance to “clutter it up”. It is from these wishes and needs, that we are building the best products on the market.

You may not have heard about SDS, despite the fact that we have received the “Most Innovative Company of the Year” Gold award in the At-Home Carbonation category, from Housewares Executive, the last three years in a row (ahead of Kitchen Aid and SodaStream in 2014). But you will have certainly heard about our products being sold around the world by world famous kitchen appliance brands such as Hamilton Beach’s Fizzini (currently in Walmart), SEB-Tefal (in France), Emson (coming soon with our Soda Boss in the USA), Limo-Bar (in the Czech Republic) and Home Bar (in Russia, China etc).

Our legitimacy starts in the At-Home Carbonation Category

Currently At-Home Carbonation companies use a technology that has a few fundamental problems; they use high-pressure CO2 cylinders, which require special handling and must be physically exchanged by the consumer and the appliances are quite complex, as it takes between six to nine steps depending if you drink sparkling water or a soft drink! We found solutions for these problems.

Since 2007, I knew that the CO2 cylinder would eventually be a deal breaker, especially in “soft drink” countries. After years of research and development SDS has now succeeded in introducing a solution that uses appliances with no CO2 cylinders; the technology is in the pods! Some people might say, “Who cares? People will drive fifty miles for a good bottle of wine, or stand in line fifteen minutes for a good cup of coffee.” Europeans love sparkling water and might not hesitate to exchange cylinders. But the fact is that for current soda there are better alternatives than CO2 and syrups. I always said that you can have the best technology in the world, the most beautiful appliance, the best price point but if in the end it does not taste great, then what’s the point! So yes, it might be an exciting experience to design your own drink, but that gets old fast. Listen to the recent announcements from Soda Stream and you will understand that I was right.

That breakthrough alone would have been enough, but at the same time, (because I have good ears) I knew consumers were looking for a healthier alternative to soft drinks. I heard something recently that I found interesting, “Traditional sodas today are the Marlboros of 30 years ago”. The decline is irreversible and I will bet a dollar that thirty years from now, these beverages will be shunned like cigarettes are today. I will not even go into all the damage these types of drinks do to our health. Today’s beverage companies will have to re-invent themselves, in fact they have already started.

So we spent years developing the healthiest alternative possible. In addition to our fantastic variety of flavors, our pods are nutraceutical products full of functional benefits covering nine different categories of body support and contain 50% of your daily needs of vitamins and antioxidants. Our products are labeled and endorsed by New York Times Best Selling author and television personality Dr. Ian K Smith, M.D., which gives consumers the confidence that they are buying a healthy product.

So are we the best alternative to both SodaStream and Keurig Cold?

Well, for SodaStream: I have always felt we were completing them rather than competing with them. They are and hopefully will be for a long time a good solution for competing bottled SPARKLING WATER. They allow you to design your own bubbles, whether you prefer Pellegrino or Perrier, and you don’t have to carry a bottle. The last Earnings Call from Danny Birnbaum proves me right. They are going back to where they were 10-15 years ago: The Sparkling Water world!

At SDS, we also have these “older technologies”, even more advanced having also an assortment of products that use simple disposable CO2 cylinders as well (such as the Soda Boss or the hand-held Fizzini), but there is still a better “technological alternative” than using a CO2 cylinder, and we will be proving it soon with the launch of an astonishing range of flavored sparkling waters, with healthy functional benefits. Also special ionized sparkling waters and a unique range of recipes for revolutionary Sparkling Electrolyte Water. This range is ready and we will be launching it in Q2 2015, using the same technology than for our other beverages: All in 1 pod!

As for the Keurig Cold, well, time will tell. If the rumors are true, pricing could be a real issue for both the appliances and the capsules, even with the big name brands and millions in advertising. And what will be their positioning? Convenience? Health? With Coke on board it would seem a bit complicated, and I do not see the COKE brand on a capsule with their model of “serving the exact same coke taste everywhere”, since no two houses have the same water!

Now let’s focus on SDS and where our clients want us to be!

That means that we are now entering into the coffee arena, rolling out an exciting line of hot and iced coffees alongside our cold, sparkling and not sparkling beverage flavors. The coffee range will launch with Vanilla, Hazelnut and Caramel coffee pods in 2014 with an extensive range of unique flavors including White Chocolate Mint, Almond, Coconut, Raspberry Chocolate Truffle, but also Espresso Shots, Strong Regular coffee, Cappuccino and Latte among others, following in Q1 2015. These coffees will be offered in the USA under the Marley Coffee Brand as per the brands partnership announcement in September 2014.

We simply re-invented coffee and created something truly unique! Our luscious coffee recipes are amazing because unlike existing market offerings, hot water is not a necessity. Consumers can enjoy their beverage hot or cold and in either milk or water. We call it ‘pre-brewed, all-natural, aromatic blends™’ and it tastes great hot or iced! Everyone who has tried it agrees, the taste is truly unmatched! Moreover, for the flavored coffees, it is not just adding flavor to the coffee, it is like having them brewed together!

Continuing to expand our reach into new categories, we also announced the roll out of our Rainbow Power™, the first fully natural fat burner beverage range. The Rainbow Power™ calorie killer line, available in liquid drop form and powdered flavor pods, is fully natural, contains no chemical caffeine and is safe for the heart and for the thyroid. In several independent clinical trials Rainbow Power™ fat burner was proven to increase daily basal metabolism by an incredible average of 38.5% at rest with two 500ml servings per day (equates to 760 calories burned in less than 90 minutes after consumption). When used in association with a calorie controlled diet Rainbow Power ™ fat burner will help aid weight loss.

The market is crying out for beverages that not only taste great but are good for your health and diet. We went above and beyond to achieve Rainbow Power’s™ weight-loss benefits, making sure that taste was not compromised in any way while offering consumers the option of enjoying beverages still or sparkling, hot or cold, using either the ViBEration pods, or being added directly to still or sparkling water using our beverage enhancer.

Rainbow Power™ will be available in Q1 2015, first in Lemon & Ginger, Lime & Mint and Pineapple as liquid Beverage Enhancers (for adding to consumers’ favorite beverage) and in early Q2 with Chili & Chocolate, Pineapple & Guarana, Lemon & Ginger and Orange & Ginger as flavor pods for use with our ViBEration CO2 cylinder free appliances. Rainbow Power™ will be launching under the SHRED brand, a partnership with Dr. Ian K. Smith announcement in July 2014.

As a conclusion

We will revolutionize the future of the At-Home Beverage Appliance in the USA and across the globe! As we meet more and more consumer demands and combine several appliances into one we are finishing to achieve what we call the “Global Beverage Solution Appliance” which will even include a smart small appliance to be attached to water dispensers or fridges to create a very low price Beverage Center. All of this extensive platform range will be starting at less than $20!

By the end of Q2 2015, we will have an amazing collection of Healthy Functional Benefit & Tasty range of Hot & Cold Sparkling & Still Beverages, including all Soft Drinks, Fruits Mixed-Blends, Iced Teas, Cocktails, Energy drinks, fully natural Fat Burner etc… Together with an amazing range of Coffee and Flavored Coffee. We will also have a unique range of Sparkling Flavored, Ionized and Electrolyte Water. What are we missing? Beer? – Not really. Stay tuned!

We are supported by many retailers, and are talking to many potential partners in the Beverage World, including major Coffee Companies and many more big players. We are also supported by very strong partners who are now entering into SDS Shareholding because they simply believe that “David can tickle Goliath(s)”. This is SDS’ Challenge: Make our clients and their customers happy, all around the globe, by having us as a key and modest innovative partner.

To your health and happiness,

signature

Aaron Serge Bueno
SDS’ Founder and Executive Chairman

PS. Keep an eye on us, because ANOTHER revolution is coming very soon!

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