Industry: New Age Beverages

Corporate Overview

Clearly Canadian Beverage Corporation (OTCBB: CCBEF)

Clearly Canadian markets premium alternative beverages and snack food products, including the company's original and zero calorie Clearly Canadian® sparkling flavored waters and their new non-carbonated "Natural Enhanced Waters" product line; consisting of dailyEnergy, dailyHydration and dailyVitamin.

All products are distributed in the United States, Canada and several other select countries.

Since inception, Clearly Canadian has sold in excess of 2 billion bottles worldwide, which equals some 90 million plus cases sold primarily throughout North America. It is from this past product success and current market research showing the Clearly Canadian brand has an 80% recognition level in the U.S., that one should look at the company's restructuring moves during 2006 and the major corporate events announced in 2007.

Some of these significant developments, include; additional new management and board members, a new balance sheet with no debt and $5 million in cash, streamlined operations with increased margins, a new product line in 3 new categories, the acquisition of a snack food leader and expanding national distribution coverage through local/regional distributors.

Clearly Canadian Beverage Corporation is once again poised to recapture a leadership position in the fast growing "Alternative Beverage" category, an industry segment estimated at $21 billion in 2006, up nearly 80% from 2001 sales of $11.7 billion. Forecasted growth by some industry experts project U.S. bottled water sales to hit $40 billion by 2010.

Clearly Canadian is now well-positioned to take advantage of their incredibly strong brand name recognition established since 1988.

In January 2007 Clearly Canadian launched their new non-carbonated "Enhanced Daily Waters." This immediately doubled the number of the company's beverage products (12 total) on the market and propels them into three new product categories.

All are low or zero-calorie, naturally flavored, health conscious offerings with their dailyENERGY and dailyVITAMIN lines directly targeting several of the highest growth categories and their dailyHydration product line, which represent the only certified Organic Essence water product anywhere in the world.

These six (6) new non-carbonated products (above)... compliment the company’s four (4) original sparkling, flavored water products and two (2) recently added sparkling flavored waters with zero calories (below).

All of Clearly Canadian’s sparkling flavored waters have also been completely redesigned, repackaged and reformulated for maximum consumer health benefits and visually enhanced marketing/advertising purposes.

These attractive new beverage line-ups have begun hitting store shelves in many major U.S. and Canadian markets. This North American market is currently generating over $20 billion in annual sales with leading energy beverages like Monster®, Red Bull® and healthy water beverages like vitaminwater®.

With several creative marketing plans ready to reach a whole new generation of health-minded consumers and Clearly Canadian’s own stalwart customer base, one key marketing ingredient may be the popular use of a celebrity spokesperson.

But getting the right famous person in the prime of their career can be a daunting task.

And with Clearly Canadian’s healthy sparkling waters and non-carbonated energy, organic and vitamin beverages -- getting the ultimate endorsement from a highly-respected, superstar athlete would be perfect.

Meet the “Most Valuable Player” in the National Basketball Association for the last 2-years and 3-time All-Star Steve Nash of the NBA’s Phoenix Suns.

During 2006, Mr. Nash entered into a worldwide product endorsement relationship with Clearly Canadian. This three-year exclusive agreement names Steve Nash as Clearly Canadian's official spokesperson and appoints Mr. Nash to the company's Advisory Board.

Mr. Nash is regarded as one of the great team players in NBA history as the MVP and league wide “assists” leader for the last several years. In 2006, Steve took the Phoenix Suns to the Western Conference finals for the second year in a row. He was also recently named one of TIME magazine’s "100 Most Influential People.”

Canadian-born, Steve Nash represented his home country at the 2000 Olympics where he captained Canada's national basketball team.

With Steve Nash’s picture included on the colorful labels of Clearly Canadian's sparkling water bottles, Mr. Nash is already energizing the company’s core brand of sparkling flavored waters and invigorating the launch of their exciting, new non-carbonated product lines.

Clearly Canadian Acquires Eastern Canada's Leading Organic Snack Company

On February 7, 2007 Clearly Canadian announced the acquisition of DMR Food Corporation. Operating under the name Sweet Selections, DMR Food is the leading seller of organic and natural snack foods in Eastern Canada with a current growth rate exceeding 25% annually.

Sweet Selections packages and markets organic and natural dried fruit and nut snack foods, including the brands Sunridge Farms, Sweet Selections, Simply by Nature, Naturalife and the newly introduced bulk format, Glengrove Organics, which are sold in major food retailers and natural stores throughout Eastern Canada.

This acquisition will nearly double Clearly Canadian's estimated revenues of $10 million in 2006 to approximately $20 million annually. Sweet Selections strong presence in Canada's largest grocery chains provides an ideal complement to Clearly Canadian's brand recognition and established presence in the beverage sector.

With retailers continuing to place a major emphasis on organic and natural products, Clearly Canadian's model for growth emulates what Pepsi/Frito Lay has successfully done over the years in connecting beverages and snack food. We believe the synergy of these two companies will provide numerous strategic opportunities to penetrate this dynamic market combination and create long-lasting value for shareholders.

Terms for the acquisition of DMR Food Corporation (Sweet Selections):

Clearly Canadian Beverage Corp. paid $450,000 CDN upon closing with another $450,000 CDN payable over the next 3 years.

3,000,000 warrants were also provided to purchase the Company's CCBEF common stock at a purchase price of $4.00 U.S. per share, with the prevision that if a gain of $2,550,000 CDN is not realized from a sale of the warrants within 1 year from their sale of the warrant shares, Clearly Canadian will pay any shortfall.

Investors should take note, as this means the stock must reach $4.85 per share to cover the company's in-the-money guarantee and fulfil their commitment without having to outlay any more cash.

In addition, the Company has entered into a 3 year consulting agreement to retain the services of Sweet Selection's founder, David Reingold.

DISTRIBUTION

On January 23, 2007 - Clearly Canadian Beverage Corporation announced the signing of a distribution agreement with Intrastate Distributors, Inc. for distribution of Clearly Canadian brands in Michigan.

Intrastate Distributors is one of Michigan's largest non-alcoholic beverage distributors and handle many of the fastest growing alternative beverages like vitaminwater® and Fuze®.

Investors should note that this represents an entirely new direction for the company. As indicated by Clearly Canadian President Mr. Brent Lokash; "... this represents the first step in our new distribution strategy."

This strategy targets large independent distributors with a strong presence in the Alternative Beverage markets. Reinforcing Clearly Canadian's results-driven focus of deeper product penetration within some of the most lucrative U.S. market, more news soon followed:

On Janaury 29, 2007 -- the company announced another distribution agreement with Big Geyser for all Clearly Canadian® sparkling flavored water products.

Big Geyser, one of New York's largest independent non-alcoholic beverage distributors, represents many of the finest brands of Juices, Teas, Waters and Soft Drinks available in the Five Boroughs, including; Nassau and Suffolk Counties (Long Island).

Servicing 20,000 accounts, Big Geyser distributes to every class of trade, including; Convenience, Drug, Grocery, Chain, Mass Merchandisers, Gas Stations, Restaurants and Food Services.

As an outright leader in one of North America's foremost markets, here is what Big Geyser of New York had to say about the agreement: "We are very excited about partnering with Clearly Canadian. They have high quality products with enormous upside potential," stated Jerry Reda, V.P. of Sales for Big Geyser. "With their all natural ingredients, Clearly Canadian's products definitely fill a void in our portfolio."

Headline on February 15, 2007 -- Clearly Canadian Adds Chicago Distributor

Clearly Canadian Beverage Corp. announced the appointment of Central Beverage Corporation to distribute its products throughout the greater Chicago area. Central Beverage services a population of greater than 6 million people and has experienced tremendous growth over the years due to distributing several popular "New Age" brands, including Monster and Arizona.

As the company continues to add top flight distributors, they are consciously building a strong market foundation to support Clearly Canadian's products for many years to come.

Clearly Canadian is moving fast on their expansive distribution initiative, and we believe the three (3) noted distribution announcements in early 2007 portend the beginning of numerous additional distribution agreements throughout the year ahead.

Stay tuned, as we will update our coverage as further distribution developments warrant.

HISTORY

Clearly Canadian Beverage Corporation revolutionized the beverage industry in 1988 with the introduction of its flagship, original product, Clearly Canadian sparkling flavored water -- a premium alternative beverage with distinctive flavors and award-winning packaging.

New, more distinctive and contemporary packaging helped them naturally stand out from the competition. In addition to the taste, packaging has always been a trademark for the success of Clearly Canadian, ever since the brand first hit the shelves in 1988. The company's original pear-shaped 11 oz. blue glass bottle (above) stood out in a sea of cans and plastic containers.

A powerful overnight success, brand Clearly Canadian was soon distributed widely throughout North America and a few short years later, expanded internationally to Europe and Asia where the Clearly Canadian phenomenon began anew with consumers.

Over the years, Clearly Canadian Beverage Corporation has established a reputation for innovation in the ground-breaking quality of their product's taste appeal, health value, and uniquely original packaging presentation. the marketplace.

The NEW Clearly Canadian is making it their mission to retake a leadership position in the fast-growing market segment of "New Age Beverages." But the rewards are substantially higher as alternative beverage sales in the early '90's were $3.5 billion.

Today (2006) sales hit $21 billion with double-digit growth numbers continuing their strong trend on an annual basis.

Bringing back the best of what Clearly Canadian achieved during their hay day, now new management and new investment backers are increasing the success equation by acquiring new complimentary products and expanding existing product categories.

And that is something every CCBEF shareholder should appreciate in the short & long-term!

• Strong brand recognition, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide.

• Entered 2007 debt free and with $5 million in cash.

• Expanded product lines and categories by launching their new non-carbonated Natural Enhanced Waters: dailyEnergy, dailyHydration and dailyVitamin.     

• Acquired DMR Food Corporation, the leading Organic Snack Company

  in eastern Canada to strengthen its foothold in the beverage sector and diversify into the complementary organic snack sector.

• The DMR Food acquisition in February 2007 will nearly double company revenues and adds the well-known brands Sunridge Farms, Naturalife,   Sweet Selections and Simply by Nature to their stable of brand products.

• Signed two-time reigning NBA/MVP Steve Nash to a three year exclusive contract as Clearly Canadian's spokesperson.

• Actively exploring licensing agreements to include the Clearly Canadian name on a variety of other products.

• Planned expansion of all product lines into Asia.

• Signed distribution agreements with 2 major distributors, for distribution of Clearly Canadian brands in New York and Michigan (represents new strategy for independent distributors in key alternative beverage market).

• The “New Age Beverage” segment has been showing strong exponential growth since the early 1990’s with estimated sales of $21 billion in 2006 and industry analyst's projected sales of $40 billion by 2010.

• New sales and marketing management includes personnel with heavy experience managing national brands such as Snapple, Yoo-Hoo, Weight Watchers, Pepsi-QTG (Quaker/Tropicana/Gatorade).
  

• Stellar management team has completed corporate restructuring resulting in significantly lower fixed administrative and infrastructure cost and significantly greater operating margins.

Brent Lokash, President

With a healthy background in business law, corporate finance, mergers and acquisitions, Brent Lokash is well-suited to oversee Clearly Canadian's corporate operations. Starting his legal practice in administrative and commercial law, Brent subsequently focused on providing consulting expertise to public and private companies seeking acquisitions and financings. Brent is also former Chairman of The Neptune Society, one of America's largest pre-need funeral services companies.

Andrew Strang, Chief Operating Executive

An innovative business leader and entrepreneur, Andrew Strang brings a strong management and operations background to his role as Chief Operating Executive. Recognized in 2000 as one of British Columbia's Top 40 Under 40 business achievers , Andrew co-founded Maple Leaf GST Refund Service, trailblazing a new financial services industry within Canada. Andrew holds a law degree from the University of British Columbia.

Matthew Hoogendoorn, Chief Financial Officer

Matthew Hoogendoorn brings over 27 years of accounting and strategic financial experience to Clearly Canadian. Hoogendoorn holds a Chartered Accountant designation in British Columbia, a Certified Public Accountant degree in Illinois, and has been in public practice from 1980 to 2005. He formerly acted as Chief Financial Officer of The Neptune Society, Inc., and BG Capital Management Corp.

Frank Uy, Corporate Controller

As a Chartered Public Accountant and a Certified Management Accountant, Frank Uy has garnered extensive experience in a number of industries including oil and gas, real estate, financial services, and most notably, the beverage industry. A Calgary native, Frank has worked on both sides of the border and is known for his tenacious work ethic; a quality that will no doubt come in handy as our Corporate Controller.

Leo Novosel, Director of Sales

Leo Novosel has a long history of superior results in the beverage industry. Starting with A&W Brands in 1983, Leo more recently acted as Zone Vice-President for the Snapple Beverage Group, growing revenues to over $100-million for his zone. Vastly knowledgeable of the strategies and structures used to sell consumer beverages via top tier distribution networks, Leo is the ideal person to head up Clearly Canadian's sales efforts as we seek to strengthen our position in the New Age beverage category.

Sonia Manson, Marketing Manager

Highly versed in all aspects of packaged goods marketing, Sonia Manson also brings a strong understanding of the distribution channels used within the beverage industry. Before joining Clearly Canadian, Sonia profitably championed Weston Bakeries' multi-million dollar portfolio, including Weight Watchers and Kellogg's brands; overseeing the development of more than 40 new and innovative products for Canada's largest bakery.

Darrell Chin, Director of Technical Services

Darrell Chin has over twenty-five years of experience in the beverage industry, specializing in managing the technical departments of various beverage industry leaders. Chin joined the team back in 1991, as he was inspired by the entrepreneurial spirit of Clearly Canadian and motivated by the incredible growth potential of the brand. Since joining Clearly Canadian, Chin has been largely responsible for helping keep the company on the cutting edge of product development – overseeing all aspects of quality assurance and product development.

Stuart Gerber, Director of Operations

Stuart Gerber has been with Clearly Canadian since 1990, responsible for various operational functions including customer service, supply planning, distribution, systems assessment and implementation. As part of the management team since 1995, he has developed exceptional analytical skills and an in-depth knowledge of the operating requirements of Clearly Canadian and the beverage industry. Working closely with the President, COE and other members of the senior management team at Clearly Canadian, Gerber has been integral in maintaining a superior operating environment for the company.

ADVISORY BOARD

James Dines, Advisory Board Chairperson

James Dines is a highly regarded investment advisor with in-depth market knowledge and a strong analytical background. The Dines Letter publication- one of the most successful tri-weekly investment newsletters on the market - has proven to be an invaluable resource among the financial community. With his guidance, leadership, experience and track record as an investment analyst, the team at Clearly Canadian is thrilled to have him on board as the chair of the Advisory Board.

Brian O’Byrne, Advisory Board Member

Brian O’Byrne is the co-founder and CEO of New York based INOV8 Beverage Company, an idea shop specializing in creating new and innovative beverage concepts.

O’Byrne previously presided as President of Yoo-hoo/Orangina Beverage Company from 1997 until 2001 when the company was sold to Cadbury Schweppes PLC. His years of experience in pioneering and running profitable beverage companies will be a tremendous asset to the team at Clearly Canadian.

Steve Nash, Advisory Board Member

Clearly Canadian is pleased to have 2-time NBA MVP Steve Nash accept a pivotal role as the company’s official spokesperson. Steve Nash has partnered with Clearly Canadian as part of a three-year worldwide agreement that will undoubtedly leverage the premium brand. Nash is one of Canada’s finest athletes and is well respected for his strong work ethic, selfless attitude and dedication to philanthropic initiatives. He enjoyed Clearly Canadian products growing up in his hometown of Victoria, BC and is interested in growing the popularity of the brand and the company’s non-profit initiatives with the Global Water.

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