SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

[X] QUARTERLY REPORT PURSUANT TO SECTION  13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934

                         For Quarter Ended June 30, 2000
                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

          FOR THE TRANSITION PERIOD FROM ------------ to -------------

                         COMMISSION FILE NUMBER: 0-13181


                          CAPITAL BEVERAGE CORPORATION
                          ----------------------------
             (Exact Name of Registrant as Specified in its Charter)

                      DELAWARE                                        13-3878747
                      --------                                        ----------
              State or other jurisdiction of                    (I.R.S. Employer
              incorporation or organization                  Identification No.)

                 1111 EAST TREMONT AVENUE, BRONX, NEW YORK 10460
                 -----------------------------------------------
               (Address of Principal Executive Office) (Zip Code)

                                 (718) 409-2337
                                 --------------
               (Registrant's telephone number including area code)

    Indicate  by check mark  whether  the  registrant  (1) has filed all reports
    required to be filed by Section 13 or 15(d) of the  Securities  Exchange Act
    of 1934 during the preceding 12 months (or for such shorter  period that the
    registrant  was  required to file such  reports) and (2) has been subject to
    such filing requirements for the past 90 days.

             YES    X                        No
                -----------

    The  number  of shares  of  registrant's  Common  Stock,  $.001  par  value,
    outstanding as of August 16, 2000 was 2,378,409 shares.


<PAGE>




                          CAPITAL BEVERAGE CORPORATION
                                   FORM 10-QSB

                                  June 30, 2000

                                      INDEX

                                                                            PAGE
                                                                          NUMBER

PART I.      FINANCIAL INFORMATION


Item 1.      Consolidated Financial Statements (Unaudited)

                     Balance Sheet as of June 30, 2000                       F-2

                     Statement of Operations for the six-months
                        ended June 30, 2000 and 1999                         F-3

                     Statement of Cash Flows for the six-months
                        ended June 30, 2000 and 1999                         F-4

             Note to Financial Statements                                    F-5

Item 2.      Management's Discussion and Analysis or plan of operations     F6-7

PART II.     OTHER INFORMATION

Item 6.      Exhibits and reports on Form 8-K                                F-8

Signatures                                                                   F-9

Financial Data Schedule                                                     F-10
<PAGE>


                          CAPITAL BEVERAGE CORPORATION
                           CONSOLIDATED BALANCE SHEET

                                  JUNE 30, 2000

                                   (UNAUDITED)

                                     ASSETS

CURRENT ASSETS:
     Cash                                                           $   979,751
     Accounts receivable -
       trade, net of allowance for doubtful accounts of $45,000         985,834
     Inventories                                                        958,777
     Prepaid expenses and other                                         191,574
                                                                     -----------
         TOTAL CURRENT ASSETS                                         3,115,936

PROPERTY AND EQUIPMENT,
       less accumulated depreciation of $42,447                         103,174

OTHER ASSETS:
     Intangible assets, less accumulated amortization of $680,000       880,000
     Other assets                                                         3,290
                                                                    ------------

                                                                   $  4,102,400
                                                                    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Accounts payable                                              $    876,895
     Accrued expenses and taxes                                         207,977
     Current portion of long-term debt                                   77,576
     Current portion of capital lease obligations                         8,882
     Accrued dividends on preferred stock                               396,113
                                                                    ------------
         TOTAL CURRENT LIABILITIES                                    1,567,443
                                                                    ------------

CAPITAL LEASE OBLIGATIONS                                                40,917

LONG-TERM DEBT                                                          445,626

STOCKHOLDERS' EQUITY:
     7% Cumulative Series B Preferred Stock, par value $.01;
         issued and outstanding 300,000 shares
           (Liquidation value $1,200,000)                                 3,000
     Common stock, $ .001 par value; authorized 20,000,000 shares;
         issued and outstanding 2,378,409 shares                          2,379
     Additional paid-in capital                                       5,365,573
     Accumulated deficit                                             (3,322,538)
                                                                    ------------
         TOTAL STOCKHOLDERS' EQUITY                                   2,048,414
                                                                    ------------

                                                                  $   4,102,400
                                                                    ============











    The accompanying notes are an integral part of the financial statements.

                                       F-2
<PAGE>
                          CAPITAL BEVERAGE CORPORATION

                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>

                                                       Three Months Ended June 30,                     Six Months Ended June 30,
                                                 ----------------------------------------------   ----------------------------------
                                                     2000                     1999                    2000                     1999
                                                 -----------------------------------------------------------------------------------
                                                   (Unaudited)            (Unaudited)              (Unaudited)           (Unaudited)

<S>                                            <C>                     <C>                    <C>                   <C>

SALES                                            $   4,614,009           $   3,366,881          $   8,684,829         $   5,361,103

COST OF GOODS SOLD                                   3,749,819               2,589,138              7,227,615             4,218,041
                                                 -------------           -------------          --------------         -------------

GROSS PROFIT                                           864,190                 777,743              1,457,214             1,143,062
                                                 -------------           -------------          --------------         -------------

OPERATING EXPENSES

     Selling and delivery                              408,899                 203,235                784,657               361,448
     General and administrative                        476,256                 567,093                967,439             1,045,784
                                                 -------------           -------------          --------------         -------------
                                                       885,155                 770,328              1,752,096             1,407,232
                                                 -------------           -------------          --------------         -------------

LOSS FROM OPERATIONS                                   (20,965)                  7,415               (294,882)             (264,170)

INTEREST EXPENSE                                       (12,569)                (13,321)               (25,298)              (26,837)

INTEREST INCOME                                          8,560                  18,560                 19,230                38,807
                                                 -------------           -------------          --------------         -------------

NET LOSS                                               (24,974)                (52,846)              (300,950)             (252,200)

PREFERRED STOCK DIVIDENDS                              (21,000)                (21,000)               (42,000)              (42,000)
                                                 -------------           -------------          --------------         -------------

NET LOSS APPLICABLE TO COMMON SHAREHOLDERS       $     (45,974)          $     (73,846)         $    (342,950)        $    (294,200)
                                                 ==============          ==============         ==============         =============

LOSS PER  COMMON SHARE - BASIC AND DILUTED       $       (0.02)          $       (0.03)         $        (0.14)       $       (0.12)
                                                 ==============          ==============         ==============         =============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES             2,378,409               2,378,409               2,378,409             2,378,409
                                                 ==============          ==============         ==============         =============



</TABLE>








    The accompanying notes are an integral part of the financial statements.

                                       F-3
<PAGE>
                          CAPITAL BEVERAGE CORPORATION

                      CONSOLIDATED STATEMENT OF CASH FLOWS

                                   (Unaudited)

                                                       Six Months Ended June 30,
                                                       -------------------------
                                                             2000         1999
                                                       ------------- -----------
                                                         (Unaudited) (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss                                            $ (300,950) $ (252,200)
                                                         ----------- -----------
     Adjustments to reconcile net loss to net cash
       (used in) provided by operating activities:
         Depreciation and amortization                       88,933      84,077

     Changes in assets and liabilities:
         Increase in accounts receivable                   (282,237)    (93,838)
         Increase in inventories                             (2,123)   (331,315)
         Increase (decrease) in prepaid expenses            (56,476)     24,691
         Decrease in other assets                            36,567      72,372
         Increase in accounts payable and accrued expenses  638,829     327,336
                                                         ----------- -----------
                                                            423,493      83,323
                                                         ----------- -----------

NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES         122,543    (168,877)
                                                         ----------- -----------

CASH FLOWS FROM INVESTING ACTIVITIES
     Capital expenditures                                   (20,549)    (47,915)

CASH FLOWS FROM FINANCING ACTIVITIES:
     Principal payments of capital lease obligations         16,165           -
     Decrease in  note payable                              (36,342)    (33,328)
                                                         ----------- -----------
NET CASH USED IN BY FINANCING ACTIVITIES                    (20,177)    (33,328)
                                                         ----------- -----------

NET (DECREASE) INCREASE IN CASH                              81,817    (250,120)

CASH - BEGINNING OF PERIOD                                  897,934   2,088,741
                                                         ----------- -----------

CASH - END OF PERIOD                                        979,751   1,838,621
                                                         ========== ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
     INFORMATION:

     Cash paid for interest                                  25,298      26,837
                                                         ========== ============

     Cash paid for income taxes                          $        - $         -
                                                         ========== ============











    The accompanying notes are an integral part of the financial statements.

                                       F-4



<PAGE>





                          CAPITAL BEVERAGE CORPORATION

                    NOTE TO CONSOLIDATED FINANCIAL STATEMENTS

                                  JUNE 30, 2000

                                   (Unaudited)


1.       BASIS OF PRESENTATION

                  The accompanying  financial statements reflect all adjustments
         which,  in  the  opinion  of  management,  are  necessary  for  a  fair
         presentation  of the  financial  position and the results of operations
         for the interim periods presented.

                  Certain  financial  information  which is normally included in
         financial  statements is prepared in accordance with generally accepted
         accounting principles,  but which is not required for interim reporting
         purposes has been  condensed  or omitted.  The  accompanying  financial
         statements should be read in conjunction with the financial  statements
         and notes  thereto  contained in the  Company's  Annual  Report on Form
         10-KSB.

2.       SUBSEQUENT EVENT

                  A dividend in the amount of $399,613 was declared by the Board
         of Directors to be paid on July 14,  2000,  for all of the  outstanding
         shares of the Corporation's 7% cumulative convertible preferred stock.

                                       F-5

<PAGE>



MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

           The following  discussion  and analysis  provides  information  which
  management  believes is relevant to an  assessment  and  understanding  of the
  Company's  results of operations  and  financial  condition.  This  discussion
  should be read in conjunction with the financial  statements and notes thereto
  appearing elsewhere herein.

           Statements in this Form 1O-QSB that are not  statements of historical
  or current fact constitute "forward-looking  statements" within the meaning of
  the Private  Securities  Litigation  Reform Act of 1995. Such  forward-looking
  statements  involve known and unknown risks,  uncertainties  and other unknown
  factors  that could cause the actual  results of the Company to be  materially
  different from the historical  results or from any future results expressed or
  implied by such  forward-looking  statements.  In addition to statements  that
  explicitly  describe  such  risks  and  uncertainties,  readers  are  urged to
  consider  statements labeled with the terms "believes,"  "belief,"  "expects,"
  "intends,"  "anticipates" or "plans" to be uncertain and forward-looking.  The
  forward- looking  statements  contained  herein are also subject  generally to
  other  risks and  uncertainties  that are  described  from time to time in the
  Company's  reports and  registration  statements filed with the Securities and
  Exchange Commission.

  RESULTS OF OPERATIONS

        Sales for the six months ended June 30, 2000 were $8,684,829 as compared
  to sales of $5,361,103 for the six months ended June 30, 1999. The increase in
  the six months ended June 30, 2000  resulted  from the addition of the popular
  Heineken  brand as well as the  addition  of the Hansen  Beverage  line to our
  portfolio of products. The cost of goods sold as a percentage of sales for the
  six-month  period in 2000 was 83% as compared to 79% for the  comparable  1999
  period.  The increase in cost of goods sold as a  percentage  of sales for the
  six  months  ended June  30,2000,  is due  primarily  to the  addition  of the
  Heineken brand which sold as a lead item at a lower gross margin than products
  in our primary brand portfolio.

        Selling,  general and  administrative  expenses for the six-month period
  ended  June 30,  2000  were  $1,752,096  as  compared  to  $1,407,232  for the
  respective  1999  period.  The  increase in the six months ended June 30, 2000
  results  from the  increased  cost to deliver the  substantially  higher sales
  generated in this period.

        Interest  expense  for the  six-month  period  ended  June 30,  2000 was
  $25,298 as compared to $26,837 for the respective 1999 period. The decrease in
  the  six-month  period  ended June 30, 2000 is due to the  reduction  of debt.
  Interest  income for the  six-month  period ended June 30, 2000 was $19,230 as
  compared  to $38,807  for the  respective  1999  period.  The  decrease in the
  six-month  period resulted from the decrease in average cash balance  invested
  in the Vista account.

                                       F-6

<PAGE>




      LIQUIDITY AND CAPITAL RESOURCES

               Cash used in  operations  for the six months  ended June 30, 2000
      was  $122,543.  The  increase  in  inventories  of $2,123 was offset by an
      increase in accounts payable and accrued expenses of $638,829.

               Working capital decreased from $1,812,050 at December 31, 1999 to
      1,548,493  at  June  30,  2000  as a  result  of the  losses  incurred  in
      operations.

               At June 30, 2000, the Company's primary sources of liquidity were
      $979,751  in  cash,  $985,834  in  accounts  receivable  and  $958,777  in
      inventories.

               Management  believes it has sufficient sources of working capital
      to adequately meet the Company's needs through the end of 2000.

                                       F-7

<PAGE>



PART II - OTHER INFORMATION


ITEM 1.      LEGAL PROCEEDINGS

                     Not applicable

ITEM 2.      CHANGES IN SECURITIES AND USE OF PROCEEDS

                     Not applicable

ITEM 3.      DEFAULTS UPON SENIOR SECURITIES

                     Not applicable

ITEM 4.      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

                     Not applicable

ITEM 5.      OTHER INFORMATION

                     Not applicable

ITEM 6.      EXHIBITS AND REPORTS ON FORM 8-K


                     (a)        Exhibits:

                     NUMBER                     DESCRIPTION

                         27                          Financial Data Schedule

                         (b)                         Reports on Form 8-K

                     No reports on Form 8-K were filed during the quarter  ended
                     June 30, 2000.

                                       F-8

<PAGE>



                                   SIGNATURES

    Pursuant to the  requirements  of the  Securities  Exchange Act of 1934, the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                                CAPITAL BEVERAGE CORPORATION



Date: August 15, 2000                            /s/Carmine N. Stella, President
                                                    Carmine N. Stella, President
                                                    and Chief Executive Officer,
                                                 as Registrant's duly authorized
                                                 officer



                                                                /s/Carol Russell
                                                                   Carol Russell
                                                         Secretary and Treasurer

















                                       F-9