Saturday , 19 June 2021

GURU Energy Drink Stock Up +300% In Just 2 Months

Back when energy drinks took off the Monster Beverage Corporation (MNST) stock price increased from $0.0688 at the end of August 2002 to its current level of $94.99 – an amazing 137,967% increase- yes, 137,967% – in 18.5 years. Were we to go back just 10 years the stock has increased an impressive 971% over that period.

  • Might similar gains be made in the GURU Organic Energy Corp. (TSX:GURU ; OTC:GUROF) plant-based drink stock price in the coming years?
  • Might GURU get bought out in a multi-million dollar deal by a major drink company?

For example, last year PepsiCo, Inc. (PEP) acquired Rockstar Energy Beverages for $3.85 billion and the Coca-Cola Company (KO) acquired a 16.7% share in Monster for $2.15 billion back in 2014.

Recent Industry Research

  • U.S. energy drink industry sales were over $12.8 billion in the past year (as of May 2020), a 9.3% increase year-over-year Source: Information Resources.
  • U.S. sales of energy drinks are estimated to reach $19.4 billion by 2024, an 8.1% compound annual growth going forward. Source: Mintel
  • 70% of consumption in the energy drink market is by millennials and Gen Zers who, at the forefront of health and wellness trends and are focusing on buying products they consider natural or healthier. Source; Mintel.
  • 75% of the North American energy drink market is currently dominated by the two legacy brands, Red Bull and Monster.
  • GURU has started to capture some market share by providing products containing organic plant-based ingredients, without artificial sweeteners or synthetic caffeine. As the Company stated, “The brand connects with consumers who understand that getting closer to nature is the best way to connect to your own true nature.”
Source: Company Filing Document

GURU is a Montreal-based beverage company that pioneered the world’s first natural plant-based energy drink back in 1999 and aims to grow its presence across North America by tapping into the growing demand for healthier, plant-based alternatives.

GURU’s Product Line & % of Sales 

GURU is on a mission to clean up the industry by crafting unique energy drinks using creative recipes of plant-based organics that deliver good energy” according to Carl Goyette, President and CEO of GURU and, as outlined below, and is creating specific products to meet the varying taste and caloric requirements of its customers.

  • Guru Original:
    • Contains 80 calories (250 ml) or 115 calories (355 ml)
    • 53% of Q1 sales
  • Guru Lite:
    • Sweetened with extracts of monk fruit
    • Contains 20 calories (250 ml) or 25 calories (355 ml)
    • 30% of Q1 sales
  • Guru Matcha:
    • Launched in 2020, and, similar to Guru Lite
    • Contains 20 calories (250 ml) or 25 calories (355 ml)
    • 13% of Q1 sales
  • Guru Energy Water:
    • Contains zero calories, zero sugar and
    • 4% of Q1 sales
  • Guru Yerba Mate:
    • Launched in November
    • Low in calories and high in energy
    • Contains green tea, yerba mate, guarana, monk fruit and stevia
    • Introduces the açai flavor with a refreshing touch of mint

GURU Sales

Currently, the majority of GURU’s sales come from Quebec and California, and are generated in:

  • convenience stores (57%),
  • Canadian groceries and drug marts (19%),
  • American groceries and drug marts (16%),
  • online on platforms such as Amazon (5%),
  • and other channels (3%)

with a distribution network of more than 15,000 points of sale as well as an online presence at Guru.com and Amazon.com.

GURU TSX Listing

GURU started trading of its common shares on the Toronto Stock Exchange (TSX), under the symbol “GURU”, on November 4th, 2020 after closing its C$34.5 million financing on September 30, 2020 at C$5.45 per share, and completing a reverse takeover transaction with Mira X Acquisition Corp. on October 29, 2020.

GURU Revenue

Guru - Revenue ChartSource: S&P Capital IQ

GURU Stock Performance

Since GURU was listed on November 2nd, its stock price has appreciated by 308% (by 51% since the end of November) to C$22 as illustrated in the chart below.

Is GURU worth a taste for your portfolio?