Splash Beverage Group, Inc. (SBEV): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Splash Beverage Group, Inc. (SBEV)'s business model as we hit late 2025, and honestly, it's a classic case of high-potential assets running headlong into a capital crunch. We've mapped out their nine building blocks, showing a strategy built on acquiring emerging brands and locking down unique resources, like those Costa Rican water rights, but the numbers tell a tough story, especially seeing that $0 revenue reported for Q3 2025. This canvas lays bare the tension between their diversified value proposition-from premium tequila to functional drinks-and the severe cost structure and liquidity challenges they face right now; let's dive into the details below to see exactly where the risk and opportunity lie.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Splash Beverage Group, Inc. centers on securing distribution, production capacity, and capital infusion necessary to scale its brand portfolio.

Institutional investors providing convertible note financing represent a critical lifeline, especially given the company's negative EBITDA of -$8.1 million in the last twelve months ending late 2025. These partnerships are essential for near-term liquidity and operational continuity.

The relationship with local contract-packing partners is directly tied to the water segment, which has secured a major supply contract.

• Anchor Customer Purchase Order (Costa Rican Water): Multi-year contract valued at approximately $6 million annually.
• Production Start Expectation: Deliveries from local contract-packing partners anticipated as early as Q1 2026.

Distribution partnerships are the backbone for getting the portfolio brands, including Chispo Tequila and Copa di Vino, onto shelves and into venues. The company has made specific progress with major retailers and regional players.

The high-volume restaurant chain serves as a significant anchor customer for the new Chispo Tequila brand, agreeing to replace its house tequila offering.

• Chispo Tequila Launch States: California, Nevada, Texas, Oklahoma, New York, and Florida.

Agreements with national and regional beverage distributors and major US retailers define the route-to-market structure, which operates within the three-tier system.

Specific distribution and retail authorizations include:

• Major US Retailers: Partnerships reported with Walmart, Circle K, and Publix, expected to drive future growth (as of April 2025 analysis).
• Regional Distributor (Oklahoma): Partnership with Armada Distributing, which brings a dedicated team of 25 salespeople to the region.
• Regional Distributor (Colorado): Secured comprehensive coverage via a new relationship with Legacy Distribution Group.
• Retail Tests (Prior Data): Copa Di Vino had tests authorized in Walmart and multiple regions of Circle K.

Finance: review the covenants on the November 2025 senior notes maturing in February 2026 by next Tuesday.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Key Activities

You're looking at the core engine of Splash Beverage Group, Inc. (SBEV) right now-the things they absolutely must do well to execute their strategy as of late 2025. It's a mix of brand building, supply chain control, and aggressive market entry.

Acquiring and accelerating emerging beverage brands

The fundamental activity here is portfolio management through acquisition and internal development. Splash Beverage Group, Inc. is focused on scaling its portfolio by acquiring and accelerating brands that show high visibility or category innovation. This strategy is backed by recent structural moves; for instance, management is actively evaluating opportunities for an anchor acquisition to boost growth and speed up the path to profitability, looking both within the beverage sector and in additional high-growth categories. Furthermore, a key acceleration activity is entering new segments, evidenced by the joint venture (JV) with B.A.A.D Ventures LLC to enter the hemp-based THC beverage category, where Splash holds a controlling 51% ownership interest.

Here are the key strategic moves related to portfolio scaling:

• Commitment to securing an anchor acquisition for growth acceleration.
• Entering the THC beverage space via a joint venture, with Splash holding 51% ownership.
• Strategy centers on acquiring and accelerating early-stage brands.

Manufacturing, co-packing, and supply chain management

Managing the physical product flow is critical, especially as they build out new product lines and secure resource rights. A significant supply chain activity involves their Costa Rican water rights, secured by issuing $20 million of preferred shares for the asset. This water business is underpinned by a multi-year anchor customer purchase order valued at approximately $6 million annually. To fulfill this, Splash Beverage Group, Inc. has identified local contract-packing partners and is positioning to begin deliveries as early as Q1 2026.

The operational backbone supporting these assets can be summarized:

Expanding distribution network across key US states (e.g., six states for Chispo)

Getting product onto shelves and into consumer hands is a non-negotiable activity. For the internally developed Chispo Tequila, the planned market penetration involves a focused, multi-state launch. You need to know exactly where they are targeting initial volume. The plan is to launch Chispo Tequila across six states.

This distribution push is supported by securing key customer commitments:

• Targeted Launch States: California, Nevada, Texas, Oklahoma, New York, and Florida.
• Anchor Customer Secured: A high-volume restaurant chain agreed to replace its house tequila with Chispo.

Strategic evaluation of an anchor acquisition for growth

This is a forward-looking activity that consumes management time and capital resources. Splash Beverage Group, Inc. remains committed to securing an anchor acquisition. This is not just about adding volume; it's about enhancing the growth trajectory and accelerating the move toward profitability. While the primary focus is within the beverage sector, management and the Board are evaluating opportunities in additional, high-growth categories. This evaluation process is happening alongside significant balance sheet restructuring, such as the exchange of approximately $12.7 million of outstanding convertible notes for preferred equity in Q1 2025.

Developing and launching new brands like Chispo Tequila

Internal brand development is a core activity, exemplified by Chispo Tequila, which was developed internally by the President and Chief Marketing Officer, William Meissner. This new product launch is tied directly to the distribution expansion mentioned above. The company is also actively expanding its portfolio into the THC beverage category, formalizing this with the joint venture. The market timing for the THC expansion is influenced by external factors, as management noted potential for significant market demand due to a 'current slated ban of these drinks in one year.'

Key brand development metrics include:

• Chispo Tequila: Developed internally and launching across six key states.
• THC Beverage Category: Discussions with multiple brands are underway to capitalize on near-term demand before a potential one-year ban.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Key Resources

The Key Resources for Splash Beverage Group, Inc. (SBEV) as of late 2025 are centered on tangible assets, intellectual property, and human capital that support its multi-channel beverage strategy.

Portfolio of Alcoholic and Non-Alcoholic Brands

Splash Beverage Group, Inc. (SBEV) maintains a portfolio that spans both alcoholic and non-alcoholic segments, aiming to leverage efficiencies and dilute risk across categories. The company's strategy involves accelerating pre-existing brands or acquiring innovative ones. Key brands include:

The Chispo Tequila launch has seen strong early response, including a high-volume restaurant chain planning to replace its house tequila with the new brand. Splash Beverage Group, Inc. (SBEV) is also expanding into the THC beverage category, anticipating significant near-term market demand before a slated ban in one year. The company's Q3 2025 revenue was reported at $0.98 million, with a Trailing Twelve Month (TTM) revenue as of September 30, 2025, of $1.02 million. Full Year 2025 revenue guidance was projected between $38 million and $42 million.

Contractual Water Rights in Costa Rica, Valued at $20 Million

The company entered an agreement to acquire exclusive water rights to natural spring sources in Costa Rica's cloud rainforests for a total consideration of $20 million, issued via convertible preferred stock. The seller must transfer the mineral rights, land deeds, and physical assets by December 31, 2025. Year-one orders for the resulting Blu premium water brand already exceed $10 million.

Experienced Management Team with CPG and Brand-Building Backgrounds

The management team includes executives with numerous years in the beverage industry or experience working with sports nutrition. William Meissner, President and Chief Marketing Officer, developed Chispo Tequila internally. Bill Caple serves as Chairman of the Board. The company is currently in a CEO transition process.

E-commerce Platform Qplash.com for Direct Sales

The vertically integrated B2B and B2C e-commerce distribution platform, Qplash, was a significant resource, though its revenue contribution was severely impacted by inventory constraints. In fiscal year 2024, revenues from Qplash decreased by approximately $13 million, representing an 88.5% drop. The company's guidance for Full Year 2025 anticipated growth driven, in part, by the restart of the Qplash e-commerce platform.

Intellectual Property and Brand Equity of Acquired/Developed Brands

The intellectual property and brand equity are focused on brands that either have pre-existing brand awareness or demonstrate pure category innovation. The company's overall financial structure as of September 30, 2025, showed total liabilities standing at $15.71 million, while the net income loss from ongoing operations was nearly $9.89 million. The Price to Book ratio was noted at 0.47.

• The company's stock price as of November 19, 2025, was reported at $1.50.
• The short interest ratio (days to cover) was 0.97.
• Short interest in the company had recently decreased by 39.90%.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Value Propositions

Diversified portfolio across high-growth categories (tequila, wine, functional drinks)

Splash Beverage Group, Inc. portfolio includes brands across alcoholic and non-alcoholic segments, such as flavored tequilas under the SALT Tequila and Chispo Tequila brand names, wine under the Copa DI Vino brand name, and sangria under the Pulpoloco Sangria brand. The company also markets TapouT performance hydration and recovery drink and Water Joe, a coffee-infused sparkling water. The projected revenue for Full Year 2025 is between $38 million and $42 million.

Premium, innovative products like Chispo Tequila and Pulpoloco Sangria

The company's brands demonstrating strong growth potential include Chispo Tequila and Pulpoloco Sangria. Pulpoloco Sangria is crafted and imported from Spain using a blend of true Spanish ingredients and is packed in a unique eco-friendly CartoCan®. This sangria line includes Smooth Red (Traditional Fruits), Soft Rosé (Strawberry Lemonade), and Crisp White (Lemon Ginger) varietals.

Access to pristine Costa Rican water with alkaline pH of 7.8 and electrolytes

Splash Beverage Group, Inc. acquired exclusive water rights to a natural spring source in Costa Rica for $20 million, issued in convertible preferred stock. The source is a volcanic aquifer located in Garabito, Puntarenas, Costa Rica, within one of the globally recognized Blue Zones. Independent testing confirms the spring water is naturally alkaline with a pH of 7.8 and contains minerals including magnesium, calcium, and silica. An initial international purchase order for this premium bottled water, from the All Day Group in the UAE, was valued at a minimum of $500,000.

Focus on consumer trends like natural quality and health benefits

The value proposition centers on purity, sustainability, and wellness credentials associated with the Costa Rican water source. The water is described as naturally alkaline and mineral-rich. The Pulpoloco Sangria packaging uses an eco-friendly CartoCan® to extend shelf life without adding any preservatives. The company's forecasted annual revenue growth rate of 1,243.74% is forecast to beat the industry average of -13.43%.

Multi-channel availability via retail, on-premise, and e-commerce

Splash Beverage Group, Inc. partners with distribution networks to bring its portfolio to market through retail, on-premise, and e-commerce channels. The company serves business-to-business retailers and end users through its website and third-party storefronts. The company's strategy includes the restart of the Qplash e-commerce platform, which is a driver for projected 2025 revenue growth.

• The company operates in two segments: Manufacture and Distribution of Non-Alcoholic and Alcoholic Beverages, and Retail Sale of Beverages And Groceries Online.
• Pulpoloco Sangria distribution was secured across 115+ stores in 8 states via Total Wine & More.
• The company's forecasted return on equity (ROE) for 2025-2026 is -506.71%.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Customer Relationships

You're looking at how Splash Beverage Group, Inc. (SBEV) connects with the people buying their drinks as of late 2025. It's a mix of direct digital sales and heavy reliance on established trade channels, which is typical for a growing beverage player trying to scale fast.

Direct-to-Consumer (DTC) engagement via the Qplash.com e-commerce channel

The Qplash.com e-commerce channel is a key focus for direct customer interaction. Management projects that Qplash sales will hit the low to mid-20s millions in 2025. To give you some context, before recent liquidity challenges hampered operations, Qplash historically generated sales between $4 million and $4.5 million per quarter. Honestly, the operational footprint for this channel is lean; it's supported by only four individuals. They manage a fast cash conversion cycle, getting payments in just 5-10 business days after inventory procurement.

Targeted marketing to build brand awareness and consumer loyalty

Building awareness centers on getting new brands like Chispo Tequila into the hands of consumers across key markets. The overall 2025 revenue projection for Splash Beverage Group, Inc. (SBEV) sits between $38 million and $42 million, which relies heavily on successful brand adoption driven by these targeted efforts. The company anticipates achieving EBITDA positive status by late Q2 2025 or early Q3 2025, a milestone that requires strong consumer pull translating to sales velocity.

Key brand and product focus areas driving customer engagement include:

• Launch of Chispo Tequila across six states.
• Expansion into the THC beverage category, anticipating significant near-term demand.
• Continued push for the Copa di Vino brand in established retail channels.

Strong trade partner relationships for new product launches

Trade partners are defintely critical for getting volume out the door. The excitement from these partners has been strong, especially around new product introductions. For instance, the launch of Chispo Tequila is set for six key states: California, Nevada, Texas, Oklahoma, New York, and Florida. Furthermore, distribution expansion has been notable in specific geographic areas, achieving full state coverage in Washington and Texas within the Pacific Northwest, Northeast, and Southwest regions.

Here's a quick look at some key partnership metrics and targets:

High-touch sales and service for anchor on-premise customers

Securing anchor customers in the on-premise segment provides reliable, high-volume revenue streams. A significant win involves a high-volume restaurant chain agreeing to replace its current house tequila with Chispo. This kind of high-touch, direct sales engagement locks in significant initial volume. Also, the Costa Rican water business is supported by a multi-year anchor customer purchase order valued at approximately $6 million annually, which requires dedicated service and delivery coordination leading up to expected deliveries starting as early as Q1 2026.

These anchor relationships are central to the company's path to profitability, which management targets for late Q2 2025 or early Q3 2025.

Finance: draft 13-week cash view by Friday.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Channels

You're looking at how Splash Beverage Group, Inc. gets its products into the hands of customers, which is the core of its Channels block. For an alcohol-focused company, this is defintely complex because of the three-tier system. That system mandates moving product from the manufacturer to a distributor, and then finally to the retailer.

The company has been aggressively building out its physical footprint through distributor partnerships. For instance, in the past, they secured distribution for Pulpoloco Sangría with Total Wine & More and for four-packs of Popo Loco and Copa Di Vino with Walmart. They also announced statewide distribution in Colorado through Legacy Distribution Group for brands like Copa di Vino, Pulpoloco, and SALT Tequila. Furthermore, they have established distribution in Oklahoma via Armada Distributing and secured placement for Copa di Vino in all 115 Terrible's convenience stores in the Las Vegas area.

For on-premise sales, the focus is clearly on pushing new spirits like Chispo Tequila. Splash Beverage Group, Inc. has outlined plans to launch Chispo Tequila across six states: California, Nevada, Texas, Oklahoma, New York, and Florida. A key part of this on-premise strategy involves a high-volume restaurant chain agreeing to feature Chispo Tequila as its anchor product.

The Direct-to-Consumer (DTC) channel, Qplash.com, has faced significant headwinds. Revenues from this vertically integrated B2B and B2C e-commerce platform dropped by approximately $13 million, or 88.5%, in the fiscal year 2024 due to low inventory levels. The company has signaled a restart of the Qplash e-commerce platform as a driver for its 2025 revenue projections, which are guided between $38 million and $42 million. The most recently reported quarterly revenue for Q3 2025 was $0.98 million, though the trailing twelve months revenue ending September 30, 2025, was $1.02 million.

Expansion into new categories is a major strategic move. Splash Beverage Group, Inc. recently formalized a joint venture (JV) to enter the hemp-based THC beverage category, with the company holding a 51% ownership interest. This JV centers on the 10 mg hemp-derived THC flavored seltzer brand, Nimbus. The immediate plan is to expand Nimbus into six additional states right away.

Here's a snapshot of the distribution and retail footprint expansion efforts:

The company's overall channel strategy appears to be multi-pronged, relying on traditional three-tier distribution for established brands while using strategic JVs and DTC for emerging categories. The planned FY 2025 revenue projection of $38 million to $42 million contrasts sharply with the $4.2 million revenue reported for FY 2024, suggesting heavy reliance on these channel activations succeeding.

Key channel activities and associated data points include:

• Three-tier system activation driving growth for brands like Copa di Vino and Pulpoloco.
• Expansion into the THC beverage space via a JV where Splash Beverage Group, Inc. holds 51% ownership.
• The Nimbus THC seltzer is a 10 mg product.
• Chispo Tequila launch planned across six states.
• The company is also moving forward with a Costa Rican water business, supported by a multi-year anchor customer purchase order valued at approximately $6 million annually, with deliveries expected as early as Q1 2026.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Customer Segments

You're looking at the customer base for Splash Beverage Group, Inc. (SBEV) as of late 2025. The company targets several distinct groups across its portfolio of alcoholic and non-alcoholic offerings.

Mass-market retail consumers seeking alcoholic and non-alcoholic beverages are served through traditional off-premise channels, supported by distribution wins. For instance, Pico Sangria secured placement in over 115 Total Wine and More stores across the US as of April 2025. This segment is key to the overall revenue picture, which, despite a projected full-year 2025 revenue between $38 million and $42 million, showed a Trailing Twelve Months (TTM) revenue ending September 30, 2025, of only $1.02 million.

On-premise accounts (restaurants, bars) for house and premium spirits represent a channel where spirits volume saw growth. General on-premise data for Q1 2025 indicated spirits volume was up +2% year-over-year. The company's strategy aligns with the trend where premium spirit categories drive dollar sales in this environment.

Consumers focused on premium, functional, and innovative drinks are targeted through brand development like the Bobble Buzz hard seltzer line and expansion of the Copa di Vino brand. The company's Q3 2024 gross margin reached 30%, up from 23% in Q2 2024, driven partly by sourcing programs and lower wine costs for Copa DI Vino. This focus on quality and innovation is a stated strategy to compete in the broader beverage industry.

E-commerce buyers utilizing the Qplash.com platform represent a segment that experienced significant volatility. Revenues from the Qplash B2B and B2C e-commerce distribution platform saw a decrease of approximately $13 million, or 88.5%, in fiscal year 2024, largely due to low inventory levels. The Qplash resale business specifically reported a high gross margin percentage of 59% in Q3 2024. The company anticipated a restart of the Qplash e-commerce platform as a driver for its projected 2025 revenue growth.

Here is a snapshot of the revenue context surrounding these segments as of late 2025:

The company's customer engagement strategy involves multiple touchpoints:

• Securing shelf space in national retail chains like Walmart, Circle K, and Publix.
• Targeting on-premise visitation, where spirit drinkers go out for a drink about once every two weeks.
• Focusing on brand innovation to capture share in the premium and functional beverage space.
• Restoring inventory to meet demand on the Qplash platform for direct-to-consumer sales.

The projected 2025 EBITDA loss was estimated around $2 million to $2.5 million, with profitability targeted for late Q2 or early Q3 2025.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the burn rate for Splash Beverage Group, Inc. (SBEV) as of late 2025. The cost structure is heavily weighted toward operational overhead and financing obligations, which is typical for a company in an aggressive growth/turnaround phase.

The overall cost profile shows significant pressure, especially when comparing revenue to expenses in the most recent period. For the Trailing Twelve Months (TTM) ending September 30, 2025, the Cost of Revenue was $1.4 million against total Revenue of only $1.02 million, resulting in a negative Gross Profit of $-0.37 million. This indicates that the cost to produce and acquire inventory outpaced sales for the period.

Here is a breakdown of the key cost components based on the latest available figures:

Cost of Goods Sold (COGS) for Beverage Production and Inventory Acquisition

The Cost of Revenue, or COGS, reflects the direct costs tied to producing and acquiring the beverage inventory for brands like Copa DI Vino and Pulpoloco. The margin performance has been volatile, which speaks to sourcing and production efficiency challenges. For instance, Q3 2024 saw gross margins improve to 30%, up from 23% in Q2 2024 and 11% in Q1 2024, suggesting strategic sourcing programs were beginning to take effect, though the TTM figure shows a return to negative gross profit.

Debt-Related Losses and Interest Expense from Financing Activities

Financing costs are a major drain on the bottom line. The Interest Expense for the TTM ending September 30, 2025, stood at $-5.87 million, which is substantial relative to the $1.02 million in TTM revenue. This high expense is tied to the capital raises, including the private placement of convertible notes, which are necessary to fund operations but carry significant debt service costs.

Sales, General, and Administrative (SG&A) Costs for Marketing and Distribution Expansion

SG&A is the largest recurring operating cost outside of COGS. For the TTM ending September 30, 2025, SG&A was $6.73 million. This spending supports the core strategy of expanding the distribution network for Copa DI Vino and Pulpoloco. In Q3 2024, the company noted a reduction in spending, with SG&A down $500,000 from the prior quarter (Q2 2024), showing an attempt to manage these overheads.

Marketing commitments are contractually tied to sales volume:

• Royalty payment for the TapouT brand is the greater of 6% of net sales or a guaranteed minimum annual royalty of $660,000.
• Splash commits to investing 2% of sales in marketing for the TapouT Performance Brand.

Legal Costs Associated with Disputes (e.g., Terminated TapouT LLC License)

Disputes add unpredictable, non-operating costs. For fiscal year 2024, the Income Statement included a line item for Legal Settlements totaling $-0.33 million. Management acknowledged in late 2024 that the decision not to continue with the TapouT license resulted in a legal struggle with Authentic Brands Group (ABG). The TapouT license agreement was set to expire on December 31, 2025, with a renewal option.

The high operating expenses, which totaled $14.95 million for the TTM ending September 30, 2025, compared to only $1.02 million in revenue for the same period, clearly signal a period of significant cash burn that requires continuous external funding to sustain operations.

Splash Beverage Group, Inc. (SBEV) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Splash Beverage Group, Inc. (SBEV) revenue streams as of late 2025. It's a picture painted by recent filings, showing a company in a tough spot but with a potential lifeline in future contracts.

The core business model relies on two main categories of product sales, which form the basis of the Revenue Streams block in the Business Model Canvas:

• Sales of alcoholic beverages, specifically mentioning Tequila, Wine, and Sangria brands.
• Sales of non-alcoholic beverages, including performance drinks and water products.

Honestly, the recent financial reality has been stark. The operational status directly impacted top-line performance in the third quarter.

• Note: Q3 2025 revenue was $\text{\$0}$ due to suspended operations and lack of capital.
• Note: 9M 2025 revenue was $\text{\$438,272}$ for the nine months ended September 30, 2025.

Here's the quick math on the reported revenue performance leading up to the end of Q3 2025, which you need to see side-by-side with the prior year's nine-month performance:

Still, there's a significant potential future revenue component tied to the water assets. This is the anchor that management is clearly leaning on for a turnaround, assuming execution goes as planned.

• Potential future revenue from the multi-year water purchase order (Blu premium water) is valued at approximately $\text{\$6 million annually}$.

The company is positioning to begin deliveries from this water source as soon as Q1 2026, which is a concrete action tied to realizing that $\text{\$6 million}$ annual stream. Finance: draft 13-week cash view by Friday.