Innovation Beverage Group Limited's Business Segments

Innovation Beverage Group Limited (IBG), incorporated in Australia in 2018 and renamed in 2022, develops, manufactures, markets, exports, and retails a beverage portfolio of 70 formulations across 14 alcoholic and non-alcoholic brands, focusing on premium and super premium segments. IBG operates through three wholly-owned subsidiaries: IBG USA LLC, Reg Liquors LLC (doing business as Wired for Wine), and Innovation Beverage Group USA Inc. IBG USA Inc. manages importing, production through co-packers, marketing, and wholesaling in the United States, with distribution agreements covering multiple states and a sales and marketing agreement spanning all 50 states. Reg Liquors LLC, an e-commerce retailer, ceased U.S. operations in October 2024 to concentrate on developing IBG's own brands, while continuing third-party retail operations in Australia. The flagship Australian Bitters Company (ABC) brand, launched in 2015 as an Australian alternative to Angostura Bitters, accounted for 98% of IBG's revenues in 2024 and holds approximately 45% market share in Australia, with distribution through Coca-Cola Europacific Partners. IBG manages business activities in Australia and the U.S., with revenues primarily derived from the Australian market in 2024. The company relies on manufacturing and distribution relationships, including with Sway Energy Corp., noting potential conflicts of interest due to familial ties between executives. IBG owns or licenses intellectual property for brands such as Australis Gin, Twisted Shaker, and BitterTales under various agreements.

The Group operates in two reportable geographic segments: Australia and the United States. For the year ended December 31, 2024, revenue totaled $2,931,243, with $2,929,943 from Australia and $1,300 from the United States. Loss from operations was $(3,197,040), comprising $(2,110,363) in Australia and $(1,086,677) in the United States. Depreciation and amortization expenses were $445,555 for Australia and $4,355 for the United States. Capital expenditures amounted to $3,247 in Australia and none in the United States. Total assets were $4,955,373 after eliminations, with $7,563,548 in Australia, $572,096 in the United States, and eliminations of $(3,180,271). Revenue is categorized into two distribution channels: brand products and e-commerce products. Brand products generated $2,885,936 in revenue, with $2,884,636 from Australia and $1,300 from the United States. E-commerce products revenue was $45,307, all from Australia. The Group had net sales to one major customer exceeding 10% of net sales, representing approximately 95.73% of net sales in 2024 and 82.52% in 2023.