----

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| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Delaware                                 | 13-3878747          |
|------------------------------------------|---------------------|
| (State or other jurisdiction of          | (I.R.S. Employer)   |
| incorporation or organization)           | Identification No.) |
|                                     |                |
| 120 Rio Vista Drive, Norwood, New Jersey | 07648               |
| (Address of principal executive offices) | (Zip Code)          |

| Large accelerated filer | o                                             | Accelerated filer              | o      |
|-------------------------|-----------------------------------------------|--------------------------------|--------|
|                    |                                          |                           |   |
| Non-accelerated filer   | o (Do not check if smaller reporting company) | Smaller reporting company | x      |

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|                                                                                                             | Page   |
|------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                             |   |
| PART I - FINANCIAL INFORMATION                                                                                   |   |
|                                                                                                             |   |
| Item 1. – Financial Statements (Unaudited)                                                            | 3      |
|                                                                                                             |   |
| Balance Sheets                                                                                                   | 3      |
|                                                                                                             |   |
| Statements of Operations                                                                                         | 4      |
|                                                                                                             |   |
| Statements of Cash Flows                                                                                         | 5      |
|                                                                                                             |   |
| Notes to Financial Statements                                                                                    | 6      |
|                                                                                                             |   |
| Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of Operations | 10     |
|                                                                                                             |   |
| Item 3. – Quantitative and Qualitative Disclosures About Market Risks                                 | 11     |
|                                                                                                             |   |
| Item 4. – Controls and Procedures                                                                     | 11     |
|                                                                                                             |   |
|                                                                                                             |   |
| PART II – OTHER INFORMATION                                                                                |   |
|                                                                                                             |   |
| Item 1. – Legal Proceedings                                                                                | 12     |
|                                                                                                             |   |
| Item 1A. – Risk Factors                                                                                    | 12     |
|                                                                                                             |   |
| Item 2. – Unregistered Sales of Equity Securities and Use of Proceeds                                      | 12     |
|                                                                                                             |   |
| Item 3. – Defaults Upon Senior Securities                                                                  | 12     |
|                                                                                                             |   |
| Item 4. – Submission of Matters to Vote of Securities Holders                                              | 12     |
|                                                                                                             |   |
| Item 5. – Other Information                                                                                | 12     |
|                                                                                                             |   |
| Item 6. – Exhibits                                                                                         | 12     |
|                                                                                                             |   |
| Signatures                                                                                                       | 13     |

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|                                                                                                |   | September 30, |       |   | December 31, |   |
|-----------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|--------------|--------|
|                                                                                                |   | 2010          |       |   | 2009         |   |
|                                                                                                |   | (Unaudited)   |       |   | (Audited)    |   |
|                                                                                                |   |          |       |   |         |   |
| ASSETS                                                                                              |   |
|                                                                                                |   |          |       |   |         |   |
| CURRENT ASSETS:                                                                                     |   |          |       |   |         |   |
| Cash                                                                                                |   | $             | 128        |   |         | $      | 269 |   |
| TOTAL CURRENT ASSETS                                                                                |   |          | 128        |   |         |   | 269 |   |
|                                                                                                |   |          |       |   |         |   |   |   |
|                                                                                                |   | $             | 128        |   |         | $      | 269 |   |
|                                                                                                |   |          |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                               |   |
|                                                                                                |   |          |       |   |         |   |   |   |
| CURRENT LIABILITIES:                                                                                |   |          |       |   |         |   |   |   |
| Accounts payable and accrued expenses                                                               |   | $             | 1,563,574  |   |         | $      | 1,348,037 |   |
| Officer Loans                                                                                       |   |          | 15,855     |   |         |   | 11,700 |   |
| TOTAL CURRENT LIABILITIES                                                                           |   |          | 1,579,429  |   |         |   | 1,359,737 |   |
|                                                                                                |   |          |       |   |         |   |   |   |
| STOCKHOLDERS' DEFICIT:                                                                              |   |          |       |   |         |   |   |   |
| Preferred stock, no shares issued and outstanding                                                   |   |          | -          |   |         |   | - |   |
| Common stock, $.001 par value; authorized 20,000,000 shares;issued and outstanding 3,792,045 shares |   |          | 3,793      |   |         |   | 3,793 |   |
| Additional paid-in capital                                                                          |   |          | 6,011,249  |   |         |   | 6,011,249 |   |
| Accumulated deficit                                                                                 |   |          | (7,594,342 | )      |         |   | (7,374,510 | ) |
| TOTAL STOCKHOLDERS' DEFICIT                                                                         |   |          | (1,579,300 | )      |         |   | (1,359,468 | ) |
|                                                                                                |   |          |       |   |         |   |   |   |
|                                                                                                |   | $             | 129        |   |         | $      | 269 |   |

----

|                               |   | Three Months Ended September 30, |      |   | Nine Months Ended September 30, |   |
|------------------------------------|--------|----------------------------------|-----------|--------|---------------------------------|--------|
|                               |   | 2010                             |      |   | 2009                            |   |   | 2010 |   |   | 2009 |   |
|                               |   | (Unaudited)                      |      |   | (Unaudited)                     |   |   | (Unaudited) |   |   | (Unaudited) |   |
|                               |   |                             |      |   |                            |   |   |   |   |   |   |   |
| REVENUES                           |   | $                                | -         |   |                            | $      | - |   |   | $ | - |   |   | $ | - |   |
|                               |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES:                |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative         |   |                             | 58,812    |   |                            |   | 71,092 |   |   |   | 219,833 |   |   |   | 257,937 |   |
|                               |   |                             | 58,812    |   |                            |   | 71,092 |   |   |   | 219,833 |   |   |   | 257,937 |   |
|                               |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
|                               |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                           |   | $                                | (58,812   | )      |                            | $      | (71,092 | ) |   | $ | (219,833 | ) |   | $ | (257,937 | ) |
|                               |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS PER SHARE:                |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                  |   | $                                | (0.02     | )      |                            | $      | (0.02 | ) |   | $ | (0.06 | ) |   | $ | (0.07 | ) |
|                               |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| WEIGHTED AVERAGE NUMBER OF SHARES: |   |                             |      |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Basic and Diluted                  |   |                             | 3,792,045 |   |                            |   | 3,792,045 |   |   |   | 3,792,045 |   |   |   | 3,792,045 |   |

----

|                                              |   | Nine Months Ended September 30, |     |
|---------------------------------------------------|--------|---------------------------------|----------|
|                                              |   | 2010                            |     |   | 2009 |   |
|                                              |   | (Unaudited)                     |     |   | (Unaudited) |   |
|                                              |   |                            |     |   |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:             |   |                            |     |   |   |   |
| Net loss                                          |   | $                               | (219,833 | ) |   | $ | (257,937 | ) |
| Changes in assets and liabilities:                |   |                            |     |   |   |   |   |   |
| Other assets                                      |   |                            | -        |   |   |   | 2,319 |   |
| Accounts payable and accrued expenses             |   |                            | 215,538  |   |   |   | 166,735 |   |
| Total adjustments                                 |   |                            | 215,538  |   |   |   | 169,054 |   |
|                                              |   |                            |     |   |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES             |   |                            | (4,295   | ) |   |   | (88,883 | ) |
|                                              |   |                            |     |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:             |   |                            |     |   |   |   |   |   |
| Capital contributed                               |   |                            | -        |   |   |   | 19,500 |   |
| Proceeds from officer loans                       |   |                            | 4,155    |   |   |   | 5,500 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES         |   |                            | 4,155    |   |   |   | 25,000 |   |
|                                              |   |                            |     |   |   |   |   |   |
| NET DECREASE IN CASH                              |   |                            | (140     | ) |   |   | (63,883 | ) |
|                                              |   |                            |     |   |   |   |   |   |
| CASH - BEGINNING OF PERIOD                        |   |                            | 269      |   |   |   | 64,202 |   |
|                                              |   |                            |     |   |   |   |   |   |
| CASH - END OF PERIOD                              |   | $                               | 129      |   |   | $ | 319 |   |
|                                              |   |                            |     |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |   |                            |     |   |   |   |   |   |
| Cash paid for interest                            |   | $                               | -        |   |   | $ | - |   |
| Cash paid for taxes                               |   | $                               | -        |   |   | $ | - |   |

----

----

----

|                     |   | September 30, |      |   | December 31, |   |
|--------------------------|--------|---------------|-----------|--------|--------------|--------|
|                     |   | 2010          |      |   | 2009         |   |
| Due to CEO               |   | $             | 850,209   |   |         | $      | 692,688 |   |
| Due to former executives |   |          | 479,336   |   |         |   | 479,336 |   |
| Legal and accounting     |   |          | 123,986   |   |         |   | 66,492 |   |
| Other                    |   |          | 109,823   |   |         |   | 109,521 |   |
| Total                    |   | $             | 1,563,354 |   |         | $      | 1,348,037 |   |

----

----

----

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| (a)    | Exhibits |
|--------|----------|
|   |     |   |
|   | 31.1     | Certification of Chief Executive Officer and Principal Accounting Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002 |
|   |     |   |
|   | 32.1     | Certification of Chief Executive Officer and Principal Accounting Officer pursuant to Section 906 of the Sarbanes Oxley Act of 2002 |

----

| Date:    November 17, 2010 | CAPITAL BEVERAGE CORPORATION |                                  |
|-------------------------------------------|------------------------------|---------------------------------------|
|                                      | (Registrant)                 |                                  |
|                                      |                         |                                  |
|                                      |                         |                                  |
|                                      |                         |                                  |   |
|                                      | By:                          | /s/ Carmine N. Stella            |   |
|                                      |                         | Carmine N. Stella                     |   |
|                                      |                         | President and Chief Executive Officer |   |
|                                      |                         | (Principal Executive Officer)         |   |