WHITEFISH, MT / August 7, 2014 / Blue Water Global Group, Inc. (OTCQB: BLUU) has put together a unique business model with multiple components that strategically support each other, laying the groundwork for reliable growth and revenue generation.
Featuring the Caribbean lifestyle, the company’s Blue Water Bar & Grill™ restaurant brand is being used to launch casual dining restaurants located in major cruise lines’ ports of call, while also serving as a launch pad for Blue Water Ultra Premium Rum™ and Blue Water Caribbean Gold™ Premium Rum. A third component of the business plan leverages the experience and relationships of company President and CEO, J. Scott Sitra, to profit from investments in private companies looking to go public, in order to accelerate growth in the restaurant and rum divisions of the company.Targeting the Strong Caribbean Tourist Market
Modern cruise ships can carry thousands of passengers, dropping hundreds of thousands of dollars at each port of call. This represents a huge and growing captive audience of people ready and willing to spend money, and Caribbean cruises represent the biggest cruise market by far.
Last year, an estimated 21 million people boarded cruise ships with approximately 84% of them departing from North America. The industry’s success can be largely credited to the Caribbean, which consistently attracts the highest number of passengers. With the region claiming over a third of all global itineraries last year, it clearly plays a huge role in helping the cruise industry become the fastest-growing category in the leisure travel market.
Successful cruise line operators, such as Carnival Corp. (NYSE: CCL) and Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH), have learned how to profit from a number of key metrics in this space. Travelers often view cruises as special trips and spend considerably more money while on a cruise. Also, many cruise passengers are regular customers. In fact, according to the Florida-Caribbean Cruise Association, cruisers average about 3.5 years since their last cruise.
When it comes to the cruise experience, it is well known that much of it is centered around food, with cruise lines spending millions of dollars annually trying to keep passengers well fed and satisfied. But it’s not an easy game. Even the biggest cruise ships can offer only a limited number of dining venues and options over the course of a given trip, and tourists looking for new experiences can easily get bored. Just as passengers look forward to getting off the ship to visit different ports (one of the reasons the Caribbean with its many islands is so popular), they also look forward to enjoying local fare, creating a massive market for port restaurants.
However, there is a significant gap in the current Caribbean dining picture, representing a major opportunity for Blue Water Global Group and the company’s Blue Water Bar & Grill(TM) restaurant brand. Currently, when off the ship, cruise passengers must often choose between fancy and expensive gourmet restaurants or very low-end tourist type restaurants that overcharge for limited menus. For tourists who are seeking a dependable casual dining option with a rich Caribbean flare, there are relatively few options.
What is needed is a solidly-built brand that returning tourists can know and trust to provide a great and consistent Caribbean dining experience. The Blue Water Bar & Grill(TM) restaurant is designed to perfectly address this open market, featuring consistent high-quality food and drinks prepared and served in an open-air environment with a large covered outside patio area offering a beautiful water view.
The company is already actively engaged in developing its first Caribbean island restaurant site at St. Maarten, in the Dutch West Indies. The restaurant will have a tiki roof, swimming pool with swim up bar stools, two fire pits, beach and pool lounge chairs with full drink and food service. U.S. News and World Report’s "Best Islands in the World" rank St. Maarten #9. It is one of the Caribbean’s most popular stops, where over 1.5 million cruise passengers visit each year and where tens of thousands of passengers can disembark in a single day. It has the Caribbean’s biggest cruise ship terminal, along with the busiest airport. The company plans to expand at the rate of approximately one new location annually to Aruba, Barbados, Cozumel, Grand Cayman, and Nassau.
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Expanding Beyond the Caribbean with Premium Rum Spirits
In addition to their Caribbean restaurants, Blue Water Global Group plans to leverage that market into a premium spirits offering. It makes good business sense, once you have gone to the trouble of developing a successful concept and brand, to build on that brand using the customer base you already have. That is exactly what Blue Water Global Group plans to do. Expanding on the Caribbean theme, the company is developing a line of premium rums through its wholly owned subsidiary, Blue Water Beverage Brands, Ltd. The rums will be produced in the Dominican Republic and will be sold at Blue Water’s restaurants as well as other retail locations. These are premium Caribbean rums, made of organically grown Caribbean sugar cane, harvested at the peak of freshness, and carefully crafted by a master rum maker.
Rum, and especially premium rum, has enjoyed a major resurgence in global popularity. North America and the Caribbean, as well as Europe and even India, are showing the biggest volumes. From the beverage industry investment standpoint, wine has receded due to production issues, with the spirit industry showing more strength.
The increasingly recognized strength of the spirits market is seen in the recent acquisition of Beam, Inc., one of the world’s leading premium spirits companies and makers of Calico Jack rum, by Suntory Beverage & Food Ltd. (OTC: STBFY). Similarly, the importance of rum in spirits portfolios is growing, as when Brown-Forman Corp. (NYSE: BF-A), one of the world’s top 10 biggest global spirits companies, added Appleton Jamaica Rum and Santa Dose Premium Rum to its distribution.
There is no spirit better linked to the Caribbean lifestyle than rum, and rum’s already established acceptance in the U.S. guarantees a strong demand as American tourists pile on to cruise ships each year headed for the islands of the Caribbean. As with food service, brand identity is important in the spirits industry, and linking an exportable premium rum to the Blue Water Bar & Grill™ restaurant theme will clearly benefit both.
The first two rums, Blue Water Ultra Premium Rum(TM) and spiced Blue Water Caribbean Gold(TM) Premium Rum, being introduced in 2014, will be expanded in 2015 through distribution channels into neighboring islands, the exclusive St. Barts, French West Indies, and Anguilla, British West Indies. The company plans to continue expanding these brands throughout the Caribbean Region and, ultimately, export them into the United States as early as 2016. Given the growing global market for rum, together with the company’s consistent branding model, the ultimate potential is significant.
Pursuing Investment Opportunities for Additional Support
Besides its restaurant and premium beverage work, Blue Water Global Group, through a Strategic Alliance Agreement with Taurus Financial Partners, LLC, has exclusive right to participate in early stage equity investments and future Registered Spin-Off transactions. This allows the company to invest in attractive private businesses that would like to go public and list their stock on public investor markets.
Blue Water Global Group’s President and CEO, J. Scott Sitra, founded Taurus Financial Partners in 2010 and serves as President and CEO there as well. His impressive background in taking companies public, and extensive familiarity with securities law, represents an important company asset. By applying this experience and covering procedural costs involved in going public, Blue Water Global Group can obtain blocks of stock from these developing businesses. This stock can later be sold to support the company’s restaurant and beverage initiatives, or passed on to company stockholders as a loyalty benefit. It is an arrangement that helps Blue Water Global Group, and also serves businesses that are seeking to go public without entangling themselves in toxic financing packages.
Blue Water Global Group has already completed its first such transaction, with Stream Flow Media, Inc., and is currently working on its second, with Next Level Hockey, LLC.
Strategically Laying a Solid Foundation
Together, these three Blue Water Global Group divisions constitute an impressive integrated foundation, targeting growing markets. Although each arm has independent strengths and potential, they are structured to support one another, providing a distinctive balance of diversity and unity. As such, the package offers a unique potential for consistent revenue generation and growth.
For additional information, visit the company’s website at www.BlueWaterGlobalGroup.com.
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