Aristocrat Group Corp (OTCMKTS:ASCC) is shifting attention to a multi-billion dollar boom that is growing exponentially. It is attempting to take advantage of the bourbon industry boom. Over the last several years, whiskey and bourbon has seen a resurgence in demand. Currently, demand is far outstripping supply globally creating persistent fears of shortages. Competitor Castle Brands Inc (symbol: ROX) trades at a market cap of $185 million compared to ASCC $1.62 million.
According to estimates by the US Distilled Council, Domestic revenues for bourbon, Tennessee whiskey and rye whiskey shot up 7.8 percent reach a total of $2.9 billion in 2015. This reflects an increase of $210 million from the prior year. Millennials are driving the trend behind the bourbon and whiskey growth as they shift their interests towards craft cocktails. This demographic is more interested in high-end, flavorful, premium products than ever before. A surge in interest in the provenance and authenticity has allowed micro-distillers to shake up the marketplace and carve out market share from the U.S. whiskey giants.
The president of ASCC stated, “The super-premium whiskeys are flying off the shelves the fastest. We’re already offering top-shelf distilled spirits to consumers. Adding brown beverages to our lineup of brands is a no-brainer.” ASCC is conducting due diligence toward to potential acquisition of a beverage alcohol company with a large portfolio of spirits brands, including whiskeys. It plans to introduce multiple new brands to the marketplace in 2016 in order to capture a larger share of the distilled spirits market’s historic growth.
Aristocrat Group Corp (OTCMKTS:ASCC) promotes unique brands that have mass market appeal across diverse demographics. ASCC’s brand management includes premium luxury goods, including top-shelf distilled spirits like RWB Vodka. It targeted the growing market for quality domestic spirits in order to deliver maximum returns to its shareholders.
ASCC is currently trading at a $1.62 million market valuation. The company is tapped into an industry that is reaching historic growth and set to provide significant returns to shareholders. An acquisition would bring immediate revenues and potentially allow the company to turn a profit. Its peers are trading at much higher valuations and this could easily triple from current levels.
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Disclosure: we hold no position in ASCC either long or short at the publication of this article.