SCMP Updates Minerco Resources Flagship Beverage VitaminFizz

WEST PALM BEACH, Fla. - Nov. 10, 2014 - PRLog -- HOUSTON, Nov 07, 2014 (GLOBE NEWSWIRE via COMTEX) -- Minerco Resources, Inc. , the parent company of Level 5 Beverage Company, Inc. a specialty beverage company which develops, produces, markets and distributes a diversified portfolio of forward-thinking, good-for-you consumer brands issued a letter to its shareholders from Chairman & CEO, V. Scott Vanis today. The letter follows:

Dear Shareholders,

We had a very busy year, and the last 90 days were a blur. I'm sure most of you have been keeping track of Minerco's recent series of news releases announcing our progress in introducing VitaminFIZZ(R) to the marketplace. It's also well publicized that our subsidiary, Level 5 Beverage Company, has purchased controlling interest in Avanzar, one of the leading beverage distributors on the West Coast. On the distribution subject, we are also very excited to partner with JD's Food Group to be the first enhanced sparkling water in the United Kingdom. Our New York City partner, Drink King, has also been lighting up countless VitaminFIZZ accounts: to the tune of over 300 locations so far. It's an exciting time for Minerco and its shareholders.

I'm writing this letter, and others in the near future, to let you know that I have been paying attention to various concerns many of you have expressed through social media and by directly contacting us. Your concerns are important to the management of our company, and we intend to respond as frequently and openly as we possibly can. After all, you have made a commitment to us, and we will always honor that commitment.

I'd like to start by highlighting and discussing our Annual Report, on Form 10-K, just filed with the Securities and Exchange Commission (SEC). Some highlights of our Annual Report include:

-- In less than 90 days (starting in late August, 2014), we have hard launched VitaminFIZZ in two key markets (NYC and SoCal), placed it in over 600 sell-through locations, produced almost 25,000 cases of VitaminFIZZ, sold and/or received purchase orders for more than 22,000 cases and received numerous accolades to verify our rapid progress.

-- Between April 30, 2014 and July 31, 2014, we reduced our derivative liability from $5,291,245 (on 4/30/14) to $650,135 (as of 7/31/14). That's an over 85% REDUCTION in derivative liability. Expect more reductions as we continue to execute our business model.

-- Throughout fiscal year (FY) 2014, while we reduced the liability side of our balance sheet, we continued to increase our assets. From 2013 to 2014, we increased our total assets from approximately $139,000 (on 7/31/13) to over $1,000,000 (as of 7/31/14). That's an over 700% INCREASE in total assets. Expect significant increases as we continue to execute our business model.

Some topics in the Annual Report that may require further explanation:

-- Our brand, The Herbal Collection(TM), has been transferred from Level 5 to Minerco. We are positioning ourselves to be a front runner in a very lucrative market with The Herbal Collection; however, the brand does not yet compliment Level 5's family friendly, "good for you" brand line up. After discussions with partners, both existing and potential, we have officially moved The Herbal Collection to the Minerco umbrella. Expect to see some progress announced on The Herbal Collection around the first of the year.

-- The year over year increase in General and Administrative (G&A) from $368,000 to $872,000 was expected due to bi-coastal product launches and the acquisition and development of new brands.

-- The Company cannot state actual revenues because they are being audited now for our Q1 ending 10/31/2014. Based on preliminary results, estimated revenues for VitaminFIZZ alone were approximately 22,000 cases sold for the 1st Quarter. Exact revenues are still being audited by our independent auditors and will be available in our FY 2015 Q1 (ending 10/31/14) Form 10-Q which is due 12/15/14.


We had a very successful FY 2014, and every quarter and year hereafter will be more successful. We will always face challenges, but there will always be opportunities, as well. With our products, our management and our shareholders, we will conquer challenges head on and take full advantage of the opportunities. While we continue to evolve and solidify our identity, please know that we are working tirelessly and making incredible, tangible progress on our plans to make Minerco a major success.


Sincerely,

V. Scott Vanis

Minerco Resources, Inc.