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 September 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 November 13, 2000 was 2,678,409 shares.



<PAGE>





                          CAPITAL BEVERAGE CORPORATION
                                   FORM 10-QSB
                               September 30, 2000

                                      INDEX
                                                                         PAGE
                                                                        NUMBER

PART I. FINANCIAL INFORMATION


Item 1. Consolidated Financial Statements (Unaudited)

         Balance Sheet as of September 30, 2000                           F-2

         Statement of Operations for the nine-months and
          three months ended September 30, 2000 and 1999                  F-3

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

         Notes to Financial Statements                                    F-5

Item 2.  Management's Discussion and Analysis or Plan of Operations       1-2

PART II. OTHER INFORMATION

Item 6.  Exhibits and reports on Form 8-K                                  3

Signatures                                                                 4

Financial Data Schedule

<PAGE>

                          CAPITAL BEVERAGE CORPORATION
                           CONSOLIDATED BALANCE SHEET

                               SEPTEMBER 30, 2000

                                   (UNAUDITED)

                                     ASSETS

CURRENT ASSETS:
     Cash                                                           $   230,963
     Accounts receivable -
       trade, net of allowance for doubtful accounts of $40,000         764,393
     Inventories                                                        821,177
     Prepaid expenses and other                                         332,210
                                                                     -----------
         TOTAL CURRENT ASSETS                                         2,148,743

PROPERTY AND EQUIPMENT,
       less accumulated depreciation of $52,087                         268,482

OTHER ASSETS:
     Intangible assets, less accumulated amortization of $760,000       840,000
     Other assets                                                         3,290
                                                                    ------------

                                                                   $  3,260,515
                                                                    ============

                      LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Accounts payable                                              $    583,433
     Accrued expenses and taxes                                         227,362
     Current portion of long-term debt                                  116,414
     Current portion of capital lease obligations                        38,960
                                                                    ------------
         TOTAL CURRENT LIABILITIES                                      966,169
                                                                    ------------

CAPITAL LEASE OBLIGATIONS                                               176,157

LONG-TERM DEBT                                                          425,156

STOCKHOLDERS' EQUITY:
     Common stock, $ .001 par value; authorized 20,000,000 shares;
      issued and outstanding 2,678,409 shares                             2,679
     Additional paid-in capital                                       5,368,273
     Accumulated deficit                                             (3,677,919)
                                                                    ------------
         TOTAL STOCKHOLDERS' EQUITY                                   1,693,033
                                                                    ------------

                                                                  $   3,260,515
                                                                    ============




    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 September 30,              Nine Months Ended September 30,
                                                 ----------------------------------------------   ----------------------------------
                                                     2000                     1999                    2000                   1999
                                                 -----------------------------------------------------------------------------------
                                                   (Unaudited)            (Unaudited)              (Unaudited)           (Unaudited)

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

SALES                                            $   4,560,450           $   4,030,213          $  13,245,279         $   9,391,316

COST OF GOODS SOLD                                   4,071,027               3,267,224             11,298,642             7,485,265
                                                 -------------           -------------          --------------         -------------

GROSS PROFIT                                           489,423                 762,989              1,946,637             1,906,051
                                                 -------------           -------------          --------------         -------------

OPERATING EXPENSES

     Selling and delivery                              406,726                 333,081              1,191,383               694,529
     General and administrative                        527,358                 509,619              1,494,797             1,555,403
                                                 -------------           -------------          --------------         -------------
                                                       934,084                 842,700              2,686,180             2,249,932
                                                 -------------           -------------          --------------         -------------

LOSS FROM OPERATIONS                                  (444,661)               (79,711)               (739,543)             (343,881)

INTEREST EXPENSE                                       (26,646)               (13,544)                (40,190)              (40,381)

OTHER INCOME                                           100,000                   -                    100,000                  -

INTEREST INCOME                                          9,987                  17,344                 27,331                56,151
                                                 -------------           -------------          --------------         -------------

NET LOSS                                              (361,320)                (75,911)              (652,402)             (328,111)

PREFERRED STOCK DIVIDENDS                               (3,500)                (21,000)               (45,500)              (63,000)
                                                 -------------           -------------          --------------         -------------

NET LOSS APPLICABLE TO COMMON SHAREHOLDERS       $    (364,820)          $     (96,911)         $    (697,902)        $    (391,111)
                                                 ==============          ==============         ==============         =============

LOSS PER  COMMON SHARE - BASIC AND DILUTED       $       (0.14)          $       (0.04)         $       (0.28)       $        (0.16)
                                                 ==============          ==============         ==============         =============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES             2,678,409               2,378,409              2,478,409             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)

                                                 Nine Months Ended September 30,
                                                 -------------------------------
                                                             2000         1999
                                                       ------------- -----------
                                                         (Unaudited) (Unaudited)

CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss                                            $ (652,402) $ (328,111)
                                                         ----------- -----------
     Adjustments to reconcile net loss to net cash
       provided by operating activities:
         Depreciation and amortization                      139,609     127,841

     Changes in assets and liabilities:
         Increase in accounts receivable                    (60,796)   (341,373)
         (Increase) decrease in inventories                 135,477    (294,956)
         (Increase) decrease in prepaid expenses           (197,112)     31,843
         Decrease in other assets                            36,567      72,372
         Increase in accounts payable and accrued expenses  364,323     303,278
                                                         ----------- -----------
                                                            418,068    (100,995)
                                                         ----------- -----------

NET CASH USED IN OPERATING ACTIVITIES                      (234,334)   (429,106)
                                                         ----------- -----------

CASH FLOWS FROM INVESTING ACTIVITIES
     Capital expenditures                                    (4,121)    (49,322)
                                                         ----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Principal payments of capital lease obligations        (10,929)          -
     Payment of accrued dividends on preferred stock       (399,613)          -
     Decrease in  note payable                              (17,974)    (50,541)
                                                         ----------- -----------
NET CASH USED IN BY FINANCING ACTIVITIES                   (428,516)    (50,541)
                                                         ----------- -----------

NET DECREASE IN CASH                                       (666,971)   (528,969)

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

CASH - END OF PERIOD                                        230,963   1,559,772
                                                         ========== ============

SUPPLEMENTAL DISCLOSURE OF CASH FLOW
     INFORMATION:

     Cash paid for interest                                  40,190      26,837
                                                         ========== ============

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



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

                                       F-4



<PAGE>


                          CAPITAL BEVERAGE CORPORATION

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                               September 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.       STOCKHOLDERS' EQUITY

                  On July 6, 2000, the holder of 300,000 shares of 7% Cumulative
         Convertible  Preferred  Stock,  Series  B,  $.01 par  value of  Capital
         Beverage  Corporation  (the  "Company")  converted  those  shares  into
         300,000 shares of the Company's common stock, $.001 par value.



                                       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 nine months ended  September 30, 2000 were  $13,245,279 as
  compared to sales of $9,391,316 for the nine months ended  September 30, 1999.
  The increase in the nine months ended  September  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  nine-month  period in 2000 was 85% as compared to
  80% for the  comparable  1999 period.  The increase in cost of goods sold as a
  percentage  of sales  for the nine  months  ended  September  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 nine-month period
  ended  September 30, 2000 were  $2,686,180  as compared to $2,249,932  for the
  respective  1999 period.  The increase in the nine months ended  September 30,
  2000 results from the increased cost to deliver the substantially higher sales
  generated in this period.

        Interest expense for the nine-month  period ended September 30, 2000 was
  $40,190 as compared to $40,381 for the respective 1999 period. The decrease in
  the  nine-month  period ended  September  30, 2000 is due to the  reduction of
  debt.  Interest income for the nine-month  period ended September 30, 2000 was
  $27,331 as compared to $56,151 for the respective 1999 period. The decrease in
  the  nine-month  period  resulted  from the  decrease in average  cash balance
  invested in the Vista account.


                                        1

<PAGE>

      Liquidity and Capital Resources

               Cash used in operations  for the nine months ended  September 30,
      2000 was $234,334.  The decrease in inventories of $135,477 was due to the
      sales  volume  being  greater  than the cost of  goods  available  for the
      period.

               Working capital decreased from $1,812,050 at December 31, 1999 to
      1,182,574  at  September  30,  2000 as a result of the losses  incurred in
      operations.

               At September 30, 2000, the Company's primary sources of liquidity
      were  $230,963 in cash,  $764,393 in accounts  receivable  and $821,177 in
      inventories.

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


                                       2

<PAGE>

PART II - OTHER INFORMATION


Item 1.      LEGAL PROCEEDINGS
             -----------------

                     Not applicable

Item 2.      CHANGES IN SECURITIES AND USE OF PROCEEDS
             -----------------------------------------

             On July 6, 2000,  the  holder  of 300,000  shares of 7%  Cumulative
             Convertible  Preferred Stock,  Series  B, $.01 par value of Capital
             Beverage   Corporation  (the "Company") converted those shares into
             300,000 shares of the Company's common stock, $.001 par value.


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
                     September 30, 2000.


                                        3

<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: November 20, 2000               /s/Carmine N. Stella, President and
                                      Chief Executive Officer,
                                      as  Registrant's duly authorized officer



                                      /s/Carol Russell,
                                      Secretary and Treasurer





                                        4