RE:RE:RE:New To Tinley"Typically it takes significant volume to drive positive margins in the beverage industry. With early revenue in Q3, Tinley has already achieved positive gross margins, which we expect will continue to improve as we execute our growth and improvement plans at our Long Beach facility. This reflects the strength of our scalable co-packing business model combined with manufacturing process and supply chain improvements for our Tinley’s-branded products. Given the nature of our co-packing business, where most costs are fixed, we expect our margins will continue to strengthen as volume continues to meaningfully grow. We also expect the activation of the on-site distribution licence to further drive additional economics from each drink produced." Click Here for recent updates on company improvements! The market is supposed to be forward-looking.
Tinley's yearly/quarterly burn rate has been primarily due to building the LBF, this phase is coming to completion except the expansion of the mini-line. Meaning, Tinley's revenues will begin surpassing operating expenses in late 2022 to early 2023.
Tinley surpassed 1M in revs for the fiscal year, when Levia accomplished a similar milestone they were acquired for 3x Tinley's market cap. Not to mention Levia doesn't have anywhere near the capacity, co-packers, two licenses on site with a tax advantage over competition, expansion to Canada, Non-Alcoholic market exposure.
“Manufacturing consistently delivers far higher gross margins than the branded products themselves, without the high marketing costs and inventory risks.” Tinley was using a co-packer and not offering co-packing during the majority of the company's history, this has changed recently, trade/invest accordingly.