Dow Jones 12609.67 -12.10 7:17 am PST, January 25, 2007 NASDAQ 2466.28 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1437.94 -2.19 Change your subscription status here Russell 2000 791.28 -2.75 VOLUME 07: ISSUE 10 Clearly Canadian: Bottled Water is Big Business  To say it was an improvement or a step-forward really wouldn't do the company justice. Rather, we think the term 'evolution' may be a better description. Though the average consumer may only see this evolution in the form of a new product on store shelves, we'd contend the recent reinvention of the company would also qualify as an evolution in itself. In that light, perhaps opportunity-seeking investors should be as curious as health-concerned shoppers.  After months of work, Clearly Canadian (OTCBB: CCBEF) has unveiled an impressive new product line - Enhanced Daily Water. The line consists of three choices...dailyEnergy, dailyVitamin, and dailyHydration (a certified organic essence product). We think it goes without saying the rollout of these new products could be a home-run for the growing number of health-conscious consumers.  And while it may be only water to some, to Clearly Canadian's shareholders, it could mean so much more. In our opinion, the kinds of revenue this new line could produce should make a big splash with investors. In fact, based on the stock's chart, Wall Street might already be warming up to what we feel may be one of the best trading opportunities of 2007.    The Same, But Different To the die-hard cola fan, the news may not even seem like news ....bottled water is still just bottled water, right? Well, in simple terms, no. Perhaps an explanation of what makes the new product line different than already-existing ones is in order. After all, as investors, that difference is why we're excited.  Clearly Canadian's sparkling flavored water is a carbonated beverage with real fruit flavors, real cane sugar, and a really great taste. This is the product that put the company in business back in 1988, and has remained at the heart of their operation. These bottled waters are well suited for someone who's thinking about their dietary intake, but this product is also enjoyed by consumers just looking for a fresh, clean taste.  The new Enhanced Daily Waters could appeal to both of those consumer groups, but another key market segment has just been tapped ...those people who want - or need - their water to enhance their health condition as well as quench a thirst. As the names describe, the enhanced water lines are designed to help boost energy, provide vitamins, and re-hydrate the body.  So, yes, the two product lines are different. And yes, this should matter to investors. Why? Read on.    Meeting the Newly-Realized Need In our view, either of the company's bottled water lines is more than just an innovative way of meeting a growing demand. We think Clearly Canadian is hitting the nail right on the head! Why? Consumers are more health-conscious than ever before, and for good reason - some of the data is just staggering. Consider just a handful of the realities associated with traditional cola drinks.....  The USDA recommends the daily intake of added sugar to be no more than 10 teaspoons. One 12 ounce can of soda contains that amount, if not more!  Studies shows that women who drink one or more sugary drinks per day were 83% more likely to develop type-2 diabetes than women who only drink one sugary drink per month.  Drinking 64 ounces of soda every day could mean up to seven pounds worth of weight gain in just one month. (It seems like a lot of soda, but many people may be drinking that much without even realizing it.)  While health concerns like obesity, tooth decay, and diabetes (just to name a few) were always lingering worries associated with sugar-rich beverages, the grim reality is just now setting in....and the stats are being confirmed with more and more research. As the collective health of heavy soda drinkers has deteriorated, the general public is finally accepting the idea, and is finally willing to do something about it. Left with little choice, healthy living has become more than a fad - it seems to have become a necessity...and one we don't think is going away anytime soon. That's what we find so attractive about the investment opportunity.  The company's great-tasting sparkling flavored waters were already a smart choice for healthier-living consumers, but the Enhanced Daily Waters may well qualify as Clearly Canadian's next-generation of healthy alternative drinks. How so? They're a direct attack on what some consider a poor-health epidemic, and at the same time, they help supplement a body's natural needs. And, they do so with no caffeine, no carbonation, and little to no calories. We feel there is plenty of one thing though - there's plenty of opportunity for revenue. Clearly Canadian is a very well-branded enterprise, with 8 out of 10 U.S. consumers recognizing the name. And, the industry itself appears to be growing exponentially, thanks to a swelling health craze.    A Bigger Slice of a Growing Pie  In business, there are two basic ways to improve revenues. You can sell more goods to your current customer base, or you can add a new customer base. As it turns out, we see Clearly Canadian doing both.  One of the key pieces of the traditional marketing plan includes the use of celebrity - particularly, an athletic figure that can highlight the benefits of enhanced water products. Steve Nash was brought on as the official spokesperson in June of last year. The Canadian-born NBA star is regarded as one of the great players in NBA history, but his three NBA All-Star titles have officially certified the status. Did we mention he was named the NBA's Most Valuable Player twice in a row? Point being, Clearly Canadian has a high-profile, highly-respected spokesperson. In our opinion, the attention he can garner alone is worth whatever they're paying him. With his endorsement, we'd expect the buzz around the new Enhanced Daily Water line to build pretty quickly.  Of course, Clearly Canadian also looks like they're taking a parallel route to another type of consumer...  In terms of positioning, we weren't surprised to learn the new water line will be distributed along with the current flavored water product most North American consumers are familiar with. It's a natural fit, as those same buyers are probably going to be interested in the Enhanced Daily Waters as well. Odds are you'll be able to find the new product side-by-side with the ones already in production.  We'd say this new line though, while it may also appeal to Clearly's current fans, is likely to excite a whole new group consumers presently untapped by the company. After all, the appeal of the enhanced waters may press a few buttons that weren't being pressed before.  Specifically, we think the decision to market the Enhanced Daily Water products through health-food stores is a brilliantly-simple strategy that could significantly expand the company's costumer base to include a more intense health-conscious consumer. Think about it...the typical health-food shopper probably isn't at the store for reasons like price or convenience - they're looking for alternatives to the usual boxed, processed, and preservative-laden grocery store selection. Why wouldn't the same idea apply to water? The point is, we think Clearly Canadian is targeting a new customer in the right way....by offering the product in an environment where the consumers have pre-qualified themselves as being health-conscious.  What kind of dollars are we talking about? The total alternative beverage industry was estimated to be worth $21 billion (globally) last year, up 79% from 2001's estimated sales of only $11.7 billion. Some industry analysts expect 2010's bottled water sales in the U.S. alone to be in the $40 billion range. In comparison, Clearly Canadian reported revenues of $8.7 million in 2005, and has pulled in $6.3 million in sales through the first three quarters of their fiscal 2006. We expect the full-year 2006 numbers to be released within the first few weeks of the new year, anticipating they'll be in line with last year's figures. More importantly though, you'll notice Clearly Canadian presently owns a fraction of this $21 billion industry. So, their growth opportunity is enormous, which could mean healthy returns for investors.  Now, add the potential new customer base to the old one, then factor in the sheer growth of the industry. Now add the effect of Steve Nash's endorsement. What we think you have is the right formula for a nice increase in revenue. Owning just 1% of that $21 billion alternative beverage market would mean revenues around $200 million. See why we're excited? For what it's worth, we don't think the company will have much trouble achieving relatively significant market penetration.    The Product Line Isn't The Only Thing That's New On the surface - and in grocery store aisles - we suspect the average consumer will be thrilled with the new health-minded choice. And in many regards, that was the primary goal Clearly Canadian had adopted when they began formulating the new product line. What the average consumer won't see, however, is the total reinvention the company worked through to be able to get the new lines on shelves. In our investor-oriented opinion, that story is even more impressive.  We have to respect a company that, since its inception some 20 years ago, has sold over 2 billion bottles of water. Clearly they know how to produce and promote, as their history shows. In many ways, they helped launch the alternative beverage industry. However, having followed the company's turn-around efforts for nearly a year, we see today's news as a new beginning of sorts ....a symbol that Clearly Canadian is ready to reclaim its previous status in the world of alternative beverages. For all practical purposes, we'd consider the company as new as its Enhanced Daily Water line is. Just take a look at a few changes or additions made during what ended up being a transitional 2006....  Launched a reformulated sparkling flavored water product line  Became debt free, and created a cash surplus of greater than $5 million  Hired James Lokash, President (added 2005, actually)  Hired Leo J. Novosel, Director of Sales  Hired Sonia Manson, Marketing Manager  Created a new distribution network (early 2007)  With a strong foundation being laid in 2006, we feel the company is now fully able to put its focus on improving the top and bottom lines. The announcement of a new product line certainly seems like a big step in the right direction, but we're just as excited about a couple of other things President Brent Lokash mentioned in a recent letter to shareholders. In the coming year, Clearly Canadian will be looking for licensing deals, exploring the Asian market, and is even considering an organic snack food line. They all sound like winning ideas to us.  Is the new era for Clearly Canadian upon us? We think so, and not just because of the Enhanced Daily Water news. Yes, perhaps it sounds a little melodramatic, but we feel it's true all the same. To reiterate our opinion of the opportunity, we think forward-thinking investors stand to be highly rewarded by the new Clearly Canadian. The turn-around story has been fantastic so far, but we think the best is yet to come for the company and its shareholders.  By the way, if you'd like to receive regular commentary about Clearly Canadian or our other small cap stock ideas, it's easy - just sign up for the Small Cap Network e-newsletter. Every few days we'll deliver money-making insights straight to your inbox. You'll be joining the thousands of investors who have already benefited from our high-powered, small cap stock trading alerts. To register for the newsletter, click here, or visit http://access.smallcapnetwork.com/.    Clearly Canadian Launches Highly Anticipated Natural Enhanced Waters  Three New Product Lines Target Daily Drinking Needs for Healthy Lifestyles  VANCOUVER, BRITISH COLUMBIA, January 25 / - Clearly Canadian Beverage Corporation (OTCBB:CCBEF) is pleased to announce the launch of our new non-carbonated Natural Enhanced Waters: dailyEnergy, dailyVitamin and dailyHydration, a certified organic essence water. These new Natural Enhanced Waters are low or zero-calorie, flavorful, health conscious offerings with no preservatives or artificial sweeteners.  "Today's launch is a tremendous start to 2007 for Clearly Canadian," stated Brent Lokash, President, "We look forward to showcasing these innovative new beverages through our aggressive new distribution system and highlighting each product line with inventive marketing concepts involving two-time NBA/MVP Steve Nash, our corporate spokesperson."  Stated Lokash, "Soon to hit the market everywhere, our new Natural Enhanced Waters are designed to resonate with consumers looking for healthy alternative beverages. Our goal is to put Clearly Canadian back at the forefront of the alternative beverage industry and to provide a platform for further extensions of this product line-up. Please visit us at www.clearly.ca for more information."  About Clearly Canadian  Based in Vancouver, B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian(R) sparkling flavoured water, dailyEnergy, dailyVitamin and dailyHydration and are distributed in the United States, Canada and various other countries. Since its inception, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide. Additional information about Clearly Canadian may be obtained at www.clearly.ca.  Forward Looking Statements  Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief its new plans will lead the Company to profitability. These assumptions are subject to many risks and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.  For further information:  Clearly Canadian Beverage Corporation, Vancouver  Shareholder Relations: Steve Cook, 800-983-0993  E-mail: investor@clearly.ca  or  Marketing: Sonia Manson, 604-742-5314  Email: smanson@clearly.ca    We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. 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