V Group has signed an agreement with United Packaging Group, a beverage manufacturer and co-packer on the West Coast.
“One of the challenges of growth in the beverage industry, is the ability to keep the distribution channels flush with product. As a company grows, the ability to produce enough product can be hindered by many factors. One such factor is manufacturing line time availability and line capacity. In the early stages of marketing a brand or brands, producing product in limited quantities is a necessity. A company needs to work with smaller manufacturers that will do smaller production runs. Once demand exceeds the ability of the manufacturer to produce, larger facilities need to be engaged. This is a welcome challenge and a positive step in the evolution of the brands,” states Larry Twombly, V Group President and Fernhill Beverage’s Chairman.
United Packaging Group (UPG) is located in Colton, Ca. They are a multi-purpose beverage co-packer and manufacturer. United Packaging Group has the ability to produce many types of water products including flavored products and carbonated beverages. The Company has multiple production lines that have the ability to produce products at a pace that may exceed 500 bottles per minute. The Company also has the ability to produce custom and proprietary PET bottles on sight making the process much more efficient.
UPG will initially be producing Fernhill’s (FHBC. OTC Pink Sheets) RK Super brand in a 12oz. package. Quickly after that, the Company will be packaging Fernhill’s RK Super XL; a carbonated product in an attractive 16oz bottle. UPG will also be co-packing V Group’s AND Fitness Water product packaged in a unique dumbbell package. The Company will also be producing Leaf of Faith’s (LOFB. OTC Pink Sheets) Patience line of beverage products.
UPG is in the final stages of installing a completely new production line dedicated to products like the one’s V Group, Fernhill and Leaf of Faith offer. The new production line will add to the Company’s already massive capabilities. This new production line will be completed in August.
“We are very excited to do business with this large co-packer. Their location as well as their production abilities will allow us to grow much quicker. It will fulfill our production needs for the entire West Coast. With the larger productions, comes economy of scale. We estimate that we will be able to save roughly $0.50 (Fifty cents) per 12 pack case on every product produced. This number is significant. The lower production cost will allow the Companies to grow faster, allowing more for promotion as well as adding to the profitability of all brands,” states Larry Twombly. Mr. Twombly adds: “We would like to thank our previous co-packers including Famous Ramona Water in Ramona, Ca. They have been an incredible and patient partner for us. They have been instrumental in allowing us to grow and allowing us to meet the needs of our distributors.”
V Group Inc, Fernhill Beverage Inc. and Leaf of Faith Beverage, Inc. would like to thank their distribution partners, vendors, customers and share holders for assisting the companies and allowing all parties to succeed. “We, as an organization, recognize the accomplishments of everyone involved. Although hard work is still in front of us, we are pleased at the progress we have made, and we feel energized for the future endeavors. We can’t be successful without the assistance of everyone involved”. Larry Twombly
Source: Company Press Release