OTC: BLNH

As
a result, producers have been launching beverages with such flavors that help improve physical and mental health. Over the past few years,
consumer preference is shifting from sugary carbonated soft drinks to healthy drinks. Moreover, the continuous introduction of new flavors,
innovative packaging, and incorporation of functional ingredients have helped in shaping and boosting the global market. Companies are
adding vitamins and minerals to their drinks to attract modern consumers.

With
the growing awareness regarding sustainability and the environment among consumers, industry players are increasingly offering flavored
waters in sustainable packaging. Several brands offer their drinks in aluminum cans to appeal to environmentally conscious consumers.
Furthermore, consumers are looking for drinks that are sourced and produced sustainably. This trend has been creating growth opportunities
for the market players.

The
supermarkets and hypermarkets segment have accounted for the largest revenue share. A large number of consumers prefer buying bottled
water from supermarkets & hypermarkets due to the shopping experience. Services, such as home delivery and click & collect, at
several supermarkets have also been attracting consumers. Walmart, Carrefour, Woolworths, Magnit and Edeka are among the leading supermarket
chains across the globe.

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Convenience
stores are also a prominent distribution channel for the market. With the growing number of convenience stores, product sales through
this distribution channel have been rising over the years. The online distribution channel segment is expected to register growth. The
provision of competitive pricing and hassle-free home delivery are driving the growth of this sales channel. Furthermore, the high penetration
of the Internet across the globe is expected to boost product sales via online platforms over the coming years.

The
availability of a wide range of still water products that are enriched with minerals, antioxidants, vitamins, and caffeine is estimated
to boost the segment growth in the years to come. Furthermore, the perception about sparkling drinks that they cause low bone mineral
density and tooth decay has been encouraging many consumers to shift towards still alternatives.

The
increasing availability of the still variants infused with various fruits, such as watermelon, blueberry, blackberry, lemon, mango, pomegranate,
and mandarin orange, is boosting the consumption of the products.

North
America accounted for the largest revenue share of flavored water in recent years and is expected to expand further due to the rising
product consumption as a healthy alternative to other carbonated drinks. Several popular brands, such as bubbly, AHA, Talking Rain, Nestlé
Pure Life, Perrier, Schweppes, and LaCroix, offer a wide range of products in the region. Thus, the increased accessibility of the product
has been boosting product adoption in the region.

Europe
holds a significant share of the global market. Natural flavored and naturally carbonated waters with high levels of minerals make it
more appealing to health-conscious consumers. The flavors added to the drinks are often obtained from natural fruit extracts. The product
sales are strong in several countries, such as Germany, the U.K., Italy, Spain, and France, where the product is often served with meals
in restaurants.

Furthermore,
the surge in disposable income of consumers has changed their food and beverage consumption patterns globally. Consumers are highly inclined
toward the consumption of healthy foods and beverages and limiting the intake of sugary drinks that have adverse health effects. Many
restaurants and bars have been serving the product, resulting in an optimistic outlook for the growth of flavored water over the forecast
period.

The
key players have been implementing various expansion strategies, such as mergers & acquisitions and new product launches, to strengthen
their market share. Some of the key players operating in the global flavored water market include:

● Nestlé

● Talking
Rain

● PepsiCo,
Inc.

● The
Coca-Cola Company

● Hint,
Inc.

● Spindrift

● National
Beverage Corp.

● Sanpellegrino
S.P.A.

● KeurigDr
Pepper, Inc.

● Saratoga
Spring Water Company

● VitaCoco

Sale
of CocoLove Water

In
July 2024, we signed an agreement with Monarch Media which gave us the license to distribute CocoLove water in France. CocoLove water,
manufactured by Monarch Media, is a coconut flavored water and is 100% organic with no sugar added and no artificial flavors or colors
added. CocoLove water uses no plastic or tetra packaging and is always in a can for upcycling and recycling purposes. It is anticipated
that we will buy CocoLove water from Monarch Media and Monarch Media will ship CocoLove water from its bottling plant to locations designated
by us.

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Our
license to sell CocoLove water is exclusive subject to Monarch Media’s right to sell CocoLove water in France using its own sales
channels. Monarch Media has no obligation to compensate us if it uses its own sales channels to sell CocoLove water in France.

In
consideration for the license, we:

●
issued
Monarch Media 200,000 shares of our common stock; and

●
agreed
to pay Monarch Media each year a royalty of:

●
10%
of the net sales of CocoLove water between US $100,000 and US $500,000;

●
7%
of the net sales of CocoLove water between US $500,000 and US $1,000,000; and

●
4%
of the net sales of CocoLove water greater than US $1,000,000;

No
royalty will be due on net sales of CocoLove water in any calendar year less than $100,000.

Monarch
Media may terminate our license in the event that annual royalties paid by us to Monarch Media are not at least $5,000 within each twelve
month period beginning July 2025.

We
plan to market CocoLove water in France by:

●
Social
media, targeting young, urban professions seeking alternatives to plain water;

●
Various
media channels;

●
Promotions
in colleges and universities; and

●
In-store
promotions.

We
plan to distribute CocoLove water to our customers in France through:

●
Grocery
stores, convenience stores and restaurants;

●
Vending
machines; and

●
Local
Distributors.

We
estimate we will be required to spend approximately $100,000 during the next twelve months to market and distribute CocoLove water in
France. We plan to initially target distributors and resellers due to our limited capital resources. The use of distributers and resellers
would limit our exposure to inventory and the cost of warehouse space.

Although
we have performed preliminary research into French distributors and retailers, as of the date of this 10-K, we have not begun any marketing
or distribution efforts.

Seasonality

Sales
of flavored water are seasonal, with the highest sales volumes typically occurring in the second and third calendar quarters, which correspond
to the warmer months of the year. Conversely, the first quarter often records the lowest sales figures.

Competition

CocoLove
water will compete with other coconut water companies and all categories of non-alcoholic liquid refreshments. The liquid refreshment
markets are highly competitive, and include international, national, regional and local producers and distributors. All of our competitors
have greater marketing and financial resources than we will have.

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