Summary of Innovation Beverage Group Conference Call Company Overview - **Company Name**: Innovation Beverage Group (Ticker: IBG) - **CEO**: Sahil Barry - **Location**: Sydney, Australia - **Core Focus**: Development, manufacturing, and marketing of alcoholic and nonalcoholic beverages, with a mission to expand into the North American market [2][5][6] Key Products - **Flagship Products**: - Australian Bidders Company - Bidder Tales (premium offering) - Twisted Shake cocktails - Drummer Boy nonalcoholic spirit - **Formulations**: 70 formulations across 14 brands [5][6] Market Insights - **Global Market Size**: - Total bitters market was approximately $4 billion in 2020, increasing to about $5 billion by 2024 [8][9] - Cocktail bitters market is estimated at $800 to $900 million [9] - **Market Share**: - Australian Bidders Company holds a 45% market share in Australia as of 2024, up from 20% in 2020 [10][11] - **Nonalcoholic Spirits Market**: - Estimated at $9.9 billion in 2021, projected to grow to $30 billion by 2024 [15] Financial Performance - **Revenue Trends**: - Revenue in 2023 was $3.1 million, with a slight decline to $2.9 million in 2024 due to divestment from the US market [56] - Losses have halved from 2022 to 2023, with expectations of nearing breakeven in 2025 [30][56] - **Gross Margins**: - 82% for Australian Bidders Company, 40% for Twisted Shake cocktails, and 70-80% for Drummer Boy nonalcoholic spirit [46] Strategic Initiatives - **North American Expansion**: - Targeting 12-13 key states for distribution in the US, with a marketing push starting in July 2024 [33][34] - Plans for a soft launch at the Tales of the Cocktail convention [34] - **E-commerce Strategy**: - Currently, e-commerce contributes 5-7% of revenue, with plans to grow this channel in Australia [36][37] - **Capital Expenditure**: - Recent CapEx focused on equipment to support growth, with no immediate need for additional funding unless acquisitions are pursued [38][39] Management and Leadership - **Current Leadership**: - Interim CEO Sahil Barry has over 10 years of experience in the beverage industry [28] - New Chief Sales and Marketing Officer, Genevieve Jonhan, has extensive experience in the liquor industry [29] - **Future Leadership Plans**: - Actively seeking a full-time CEO to lead the company, with a target to fill the position by Q4 2024 [40][41] Risks and Challenges - **Tariffs and Trade**: - Current tariffs on bitters are 10%, manageable through cost-sharing with consumers [51] - **Supply Chain Risks**: - Procurement and shipping challenges, particularly for raw materials post-COVID [53] Future Opportunities - **Product Development**: - Potential expansion into rum and nonalcoholic cocktails, leveraging existing products like Twist Shaker [57][60] - **Market Trends**: - Observing growth in nonalcoholic beverages, particularly in the US and European markets [59][62] Conclusion - Innovation Beverage Group is positioned for growth in the North American market with a strong product portfolio and strategic initiatives aimed at increasing market share and revenue. The company is navigating challenges related to leadership, supply chain, and market expansion while capitalizing on emerging trends in the beverage industry [31][56][60]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of ev ...