Info

We package and distribute recreational fishing bait products through our Killer Bee, Inc. subsidiary, which was acquired in April, 1999. These products include varieties of bait shrimp, catfish bait, cut squid, whole squid, cigar minnows, ballyhoo, frozen chum, and menhaden oil. The products are primarily packaged in frozen form in our own facilities. In contrast to Custom Pack, this segment of our business concentrates on an entirely different area of demand for products of the sea. However, we utilize many of the supply sources for our seafood business to supply the "Killer Bee Bait" lines as well. Because of these established sources of supply, we are in a position to acquire abundant supplies of recreational fishing bait products to support this line of business. We acquired the assets, brand names and distribution rights of Drag N Bait, Inc. and Natural Bait Brokers in 1999 and 2001, respectively, which has strengthened our source of supply for the key bait product, ballyhoo, and solidified our distribution in the Florida market. Integration of these businesses has now given us the leading position in the bait market in the Southeast United States, and a market share that we estimate to be about 2% of the total U.S. saltwater bait market. The "Killer Bee Bait" name is a registered trade name, and the products are sold through Wal Mart, Boater's World, Academy Sports, and other large retail outlets, and at independent marinas and bait shops. For the year ended March 31, 2003, Killer Bee registered $2,647,032 in sales and accounted for 29% of our total revenues. The recreational bait industry represents a $1.0 Billion sales market annually in the United States, according to 2001 National Survey of Fishing, Hunting and Wildlife-Associated Recreation, which includes both freshwater and saltwater fishing. We have focused initially on establishing ourselves in the saltwater market primarily in the Southeastern United States, but we expect to further develop our customer base and distribution to include other saltwater fishing states as well as the larger inland freshwater market. We are not aware of any single dominant company or nationally recognized brand name for bait products, and we have the objective of establishing Killer Bee Bait in that position over time.