<PAGE>

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

                Quarterly Report Pursuant to Section 13 or 15(d)
                     of the Securities Exchange Act of 1934


                      For Quarter Ended: SEPTEMBER 30, 2008


                        Commission File Number: 000-28027



                         GLOBAL BEVERAGE SOLUTIONS, INC.
             (Exact name of registrant as specified in its charter)


                   NEVADA                                        90-0093439
                   ------                                        ----------
          (State or Jurisdiction of                         (IRS Employer ID No)
       Incorporation or Organization)

                    1595 N. W. 1ST COURT BOCA RATON, FL 33432
               (Address of principal executive office) (Zip code)


                                 (954) 473-0850
                           (Issuer's telephone number)


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 periods as 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 [ ].

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer," and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

 Large accelerated filer [  ]           Accelerated filer [  ]
 Non-accelerated filer   [  ]           Smaller reporting company [ X ]
 (Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X].

The number of shares outstanding of registrant's common stock, par value $0.001
per share, as of November 8, 2008 was 99,160,094 shares.

<PAGE>

<TABLE>
<CAPTION>
<S>     <C>


                GLOBAL BEVERAGE SOLUTIONS, INC. AND SUBSIDIARIES

                                      INDEX

                                                                                                        Page
                                                                                                         No.
                                                                                                       ------
Part I            Financial Information (unaudited)

      Item 1:     Condensed Consolidated Financial Statements

                  Balance Sheets as of September 30, 2008 and December 31, 2007                           3
                  Statements of Operations - For the Three and Nine Months
                    Ended September 30, 2008 and 2007                                                     5
                  Statements of Cash Flows - For the Nine Months Ended
                  September 30, 2008 and 2007                                                             6
                  Notes  to Condensed Financial Statements                                                8
      Item 2:     Management's Discussion and Analysis of Financial Condition and Results of
                  Operations                                                                             20
      Item 3:     Quantitative and Qualitative Disclosure about Market Risk                              25
      Item 4T:    Controls and Procedures                                                                25

Part II           Other Information                                                                      26

      Item 1:     Legal Proceedings                                                                      26
      Item 1A:    Risk Factors                                                                           26
      Item 2:     Unregistered Sales of Equity Securities and Use of Proceeds                            26
      Item 3:     Defaults Upon Senior Securities                                                        26
      Item 4:     Submission of Matters to a Vote of Security Holders                                    26
      Item 5:     Other Information                                                                      26
      Item 6:     Exhibits                                                                               28

</TABLE>
                                               2
<PAGE>

PART I:  FINANCIAL INFORMATION
ITEM 1:  FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S>     <C>

                                     GLOBAL BEVERAGE SOLUTIONS, INC.
                                  Condensed Consolidated Balance Sheets
                                 September 30, 2008 and December 31, 2007
                                               (Unaudited)

                                                                               2008               2007
                                                                          ------------      ------------
ASSETS
  Cash and cash equivalents                                               $      3,000      $      3,383
  Accounts receivable, net of allowance of $18,000 at
     September 30, 2008 and December 31, 2007, respectively                    310,884           364,225
  Inventory, principally finished goods                                        581,347         1,211,293
  Prepaid expenses and other assets                                             33,492            38,184
                                                                          ------------      ------------
     Total current assets                                                      928,723         1,617,085
Property and equipment, net                                                     60,227            58,176
Goodwill                                                                     2,063,054         1,990,804
Other, net                                                                      73,385            73,426
                                                                          ------------      ------------
          Total assets                                                    $  3,125,389      $  3,739,491
                                                                          ============      ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
  Accounts payable                                                        $  1,005,330      $  1,511,740
  Accrued expenses                                                           1,950,850         1,630,349
  Cash overdraft                                                                42,744            64,945
  Non-interest bearing advances from officer                                   116,250            36,900
  Notes payable                                                              5,700,384         4,509,386
                                                                          ------------      ------------
     Total current liabilities                                               8,815,558         7,753,320
                                                                          ------------      ------------

Commitments and contingencies (Note 6)

Stockholders' Deficit
  Preferred stock; $0.001 par value; 50,000,000 shares authorized;
     no shares issued and outstanding                                               --                --
  Common stock; $0.001 par value; 950,000,000 shares authorized;
     159,660,094 shares issued and 99,160,094 shares outstanding
     at September 30, 2008; 147,567,501 shares issued and outstanding
     at December 31, 2007                                                      159,660           147,567
  Additional paid in capital                                                30,711,067        30,486,962
  Deferred option compensation                                                      --           (40,449)
  Accumulated deficit                                                      (35,860,896)      (34,607,909)
  Treasury stock (60,500,000 shares, at cost)                                 (700,000)               --
                                                                          ------------      ------------
                                                                            (5,690,169)       (4,013,829)
                                                                          ------------      ------------
          Total liabilities and stockholders' deficit                     $  3,125,389      $  3,739,491
                                                                          ============      ============


                  See accompanying notes to condensed consolidated financial statements.


                                               3
<PAGE>
                                GLOBAL BEVERAGE SOLUTIONS, INC.
                        Condensed Consolidated Statements of Operations
                     For the Three Months Ended September 30, 2008 and 2007
                                          (Unaudited)


                                                                  2008                2007
                                                              -------------      -------------
REVENUES:
  Product sales                                               $   1,817,603      $   2,702,176
  Cost of product sold                                            1,162,631          1,978,596
                                                              -------------      -------------
                                                                    654,972            723,580
                                                              -------------      -------------

OPERATING EXPENSES:
  Officer and employee compensation and benefits                    487,733            522,745
  Professional fees                                                  24,381            119,774
  Amortization of intrinsic value of common stock options                --             20,225
  Rent and utilities                                                104,367            114,865
  Asset impairment                                                       --          7,901,152
  Other selling, general and administrative expense                 167,888            420,998
                                                              -------------      -------------
                                                                    784,369          9,099,759
                                                              -------------      -------------
OPERATING LOSS FROM CONTINUING OPERATIONS                          (129,397)        (8,376,179)
                                                              -------------      -------------

OTHER EXPENSE
  Interest expense                                                 (174,629)          (180,286)
  Other income                                                        3,500                 --
  Gain on sale of investment                                             --            150,000
                                                              -------------      -------------
     Total other expense                                           (171,129)           (30,286)
                                                              -------------      -------------
LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS                (300,526)        (8,406,465)
     INCOME TAXES                                                        --                 --
                                                              -------------      -------------
LOSS FROM CONTINUING OPERATIONS                                    (300,526)        (8,406,465)

DISCONTINUED OPERATIONS:
  Loss from discontinued operations with no tax benefit                  --           (153,313)
                                                              -------------      -------------
NET LOSS                                                      $    (300,526)     $  (8,559,778)
                                                              =============      =============

Net loss per common share, basic and diluted
  Continuing operations                                       $      (0.003)     $      (0.057)
  Discontinued operations                                                --             (0.001)
                                                              -------------      -------------
                                                              $      (0.003)     $      (0.058)
                                                              =============      =============

Weighted average common shares outstanding                       98,855,746        147,454,458
                                                              =============      =============


             See accompanying notes to condensed consolidated financial statements.

                                               4
<PAGE>

                                GLOBAL BEVERAGE SOLUTIONS, INC.
                        Condensed Consolidated Statements of Operations
                     For the Nine Months Ended September 30, 2008 and 2007
                                          (Unaudited)


                                                                   2008               2007
                                                              -------------      -------------
REVENUES:
  Product sales                                               $   6,568,115      $   6,373,575
  Cost of product sold                                            4,160,528          4,738,065
                                                              -------------      -------------
                                                                  2,407,587          1,635,510
                                                              -------------      -------------

OPERATING EXPENSES:
  Officer and employee compensation and benefits                  1,558,473          1,282,669
  Non-cash compensation                                              78,000              1,500
  Professional fees                                                 299,174            387,948
  Amortization of intrinsic value of common stock options           165,387             60,675
  Rent and utilities                                                293,644            225,298
  Asset impairment                                                       --          7,901,152
  Other selling, general and administrative expense                 727,167          1,008,298
                                                              -------------      -------------
                                                                  3,121,845         10,867,540
                                                              -------------      -------------
OPERATING LOSS FROM CONTINUING OPERATIONS                          (714,258)        (9,232,030)
                                                              -------------      -------------

OTHER EXPENSE
  Interest expense                                                 (528,229)          (400,465)
  Other expense                                                     (14,000)                --
  Other income                                                        3,500                 --
  Loss on sale of investments                                            --           (519,853)
                                                              -------------      -------------
     Total other expense                                           (538,729)          (920,318)
                                                              -------------      -------------
LOSS BEFORE INCOME TAXES FROM CONTINUING OPERATIONS              (1,252,987)       (10,152,348)
     INCOME TAXES                                                        --                 --
                                                              -------------      -------------
LOSS FROM CONTINUING OPERATIONS                                  (1,252,987)       (10,152,348)

DISCONTINUED OPERATIONS:
  Loss from discontinued operations with no tax benefit                  --           (988,430)
                                                              -------------      -------------
NET LOSS                                                      $  (1,252,987)     $ (11,140,778)
                                                              =============      =============

Net loss per common share, basic and diluted
  Continuing operations                                       $      (0.012)     $      (0.080)
  Discontinued operations                                                --             (0.008)
                                                              -------------      -------------
                                                              $      (0.012)     $      (0.088)
                                                              =============      =============

Weighted average common shares outstanding                      101,535,855        126,384,200
                                                              =============      =============


             See accompanying notes to condensed consolidated financial statements.

                                               5
<PAGE>

                                GLOBAL BEVERAGE SOLUTIONS, INC.
                        Condensed Consolidated Statements of Cash Flows
                     For the Nine Months Ended September 30, 2008 and 2007
                                          (Unaudited)

                                                                          2008               2007
                                                                      ------------      ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                                            $ (1,252,987)     $(11,140,778)
  Discontinued operations                                                       --           988,430
                                                                      ------------      ------------
                                                                        (1,252,987)      (10,152,348)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
          Amortization of intrinsic value of common stock options          165,387            60,675
          Depreciation                                                      26,794           273,211
          Common stock issued for services                                  78,000             1,500
          Amortization of notes payable discount                           102,070           120,790
          Loss on sale of subsidiary                                            --           519,853
          Asset impairment                                                      --         7,901,152
          Common stock issued for interest                                     900                --
          Changes in operating assets and liabilities:
               Accounts receivable                                          43,861           163,147
               Inventory                                                   629,946           (54,001)
               Deposits and prepaid expenses                               106,017              (737)
               Accounts payable                                           (197,313)         (216,525)
               Accrued expenses                                            283,621           447,732
               Non-interest bearing advances from an officer                54,350                --
                                                                      ------------      ------------
                    Net cash provided by operating activities               40,646          (935,550)
                                                                      ------------      ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Cash paid in excess of cash received in acquisitions                          --          (298,976)
  Earn-out provision of Aqua Maestro, Inc. acquisition                     (72,251)               --
  Purchase of property and equipment                                       (28,901)           (5,415)
                                                                      ------------      ------------
                    Net cash used in investing activities                 (101,152)         (304,391)
                                                                      ------------      ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Common stock issued for cash                                                  --         2,484,348
  Cash overdraft                                                           (42,744)         (165,024)
  Loan proceeds                                                            118,616           323,450
  Repayment of notes payable                                               (15,749)       (1,375,071)
                                                                      ------------      ------------
                    Net cash provided by financing activities               60,123         1,267,704
                                                                      ------------      ------------
Net increase (decrease) in cash and cash equivalents                          (383)           27,762
Cash and cash equivalents, beginning of period                               3,383               472
                                                                      ------------      ------------
Cash and cash equivalents, end of period                              $      3,000      $     28,234
                                                                      ============      ============

                                                                                          (Continued)
        See accompanying notes to condensed consolidated financial statements.


                                               6



<PAGE>


                                GLOBAL BEVERAGE SOLUTIONS, INC.
                   Condensed Consolidated Statements of Cash Flows, Continued
                     For the Nine Months Ended September 30, 2008 and 2007
                                          (Unaudited)

                                                                               2008            2007
                                                                            ----------     ----------

Supplemental Cash Flow Information:
  Cash paid for interest and income taxes:
     Interest                                                               $   27,625     $   27,470
     Income taxes                                                                   --             --

  Non-cash investing and financing activities: Common stock issued for:
        Convertible debt                                                        63,260             --
        Amounts due Rudy Ruettiger by Rudy Beverage, Inc.                           --        625,000
        Acquisition of Beverage Networks of Maryland, Inc.                          --      8,896,500
        Acquisition of Aqua Maestro, Inc.                                           --      1,431,250
        Liability of Rudy Beverage, Inc.                                            --          7,458
     Notes payable issued as partial consideration for:
        Acquisition of Beverage Networks of Maryland, Inc.                          --      3,704,652
        Acquisition of Aqua Maestro, Inc.                                           --        190,356

        See accompanying notes to condensed consolidated financial statements.
</TABLE>


                                               7
<PAGE>

                GLOBAL BEVERAGE SOLUTIONS, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


(1)      DESCRIPTION OF BUSINESS

(A)      ORGANIZATION AND BUSINESS

The condensed consolidated financial statements include the accounts of Global
Beverage Solutions, Inc. ("Global") and its wholly-owned subsidiaries, Beverage
Network of Maryland, Inc. ("BNM"), Aqua Maestro, Inc. ("AM") and Rudy Beverage,
Inc. ("Rudy") (until its sale in May 2007) (collectively the "Company"). The
Company distributes imported bottled water and alternative or "New Age"
beverages through BNM and AM. The Company's strategy is to develop and acquire
bottled water and "New Age" beverage brands. "New Age" beverages include
non-carbonated ready-to-drink iced teas, lemonades, juice cocktails, single
serve juices, ready-to-drink iced coffees, energy drinks, sports drinks, soy
drinks, natural bottled water and sodas as well as sparkling juices. The Company
believes that the combined distribution and customer base of its two
subsidiaries provides an established platform from which to acquire and develop
brands. Additionally, strategic opportunities may exist to acquire and further
develop existing distribution platforms.

Aqua Maestro, Inc. is based in Boca Raton, Florida and imports and sells bottled
water through a company-owned distribution center to retailers and consumers in
south Florida, direct to retailers outside of south Florida, direct to consumers
through its website at www.aquamaestro.com and to third party distributors.

Beverage Network of Maryland, Inc. is a New Age beverage distributor based in
Jessup, Maryland which distributes brands such as Welch's to retailers in
Washington, DC, northern Virginia, and the entire state of Maryland.

Our business strategy involves growing the third party branded revenue base in
each of these entities while developing and/or acquiring bottled water or New
Age beverage brands. Thus, through these entities we plan to sell our own
proprietary brands as well as third party brands.

On October 10, 2005, the Company changed its name to Global Beverage Solutions,
Inc. and began trading on the OTC Bulletin Board under the symbol GBVS.OB.
Beginning with the original incorporation on January 29, 1977, the Company has
had several name changes, including, Mercury Software, MedEx Corp., Aussie
Apparel Group, Ltd., Bluetorch, Inc., Pacific Crest Investments and Pacific Peak
Investments.


                                       8
<PAGE>


(B     )CONDENSED FINANCIAL STATEMENTS

The accompanying condensed financial statements have been prepared by the
Company and are presented in accordance with accounting principles generally
accepted in the United States of America for interim financial information and
pursuant to the requirements for reporting on Form 10-Q and Article 10 of
Regulation S-X without audit. Except as discussed below under "Operation as a
BDC" and disclosed herein, there has been no material change in the information
disclosed in the notes to the financial statements included in the Company's
December 31, 2007 Form 10-K as filed with the SEC. However, the Form 10-K was
not on a consolidated basis due to the Company's business development company
("BDC") reporting status and the September 30, 2008 Form 10-Q is on a
consolidated basis as the Company is no longer a BDC. As discussed under
"Operation as a BDC" below, the December 31, 2007 and September 30, 2007 amounts
disclosed in this 10-Q have been retrospectively applied to be comparable with
the September 30, 2008 amounts. In the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to present fairly
the Company's financial position as of the three and nine months ended September
30, 2008 and September 30, 2007, and the results of operations and cash flows
for all periods presented have been made.

Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. These
condensed financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's December 31, 2007 audited
financial statements on Form 10-K. The results of operations for the interim
periods presented are not necessarily indicative of the operating results for
the full years.

(C)     OPERATION AS A BDC

On June 19, 2003, the Company filed a Form N-54A with the Securities and
Exchange Commission ("SEC") to be regulated as a BDC under the Investment
Company Act of 1940, as amended (the "1940 Act").

On October 2, 2007, the Company reported in a Definitive Information Statement
on Schedule 14C that a majority of its shareholders approved and authorized the
Board to withdraw the Company's election to be treated as a BDC under the 1940
Act. On January 2, 2008, the Company filed a Form N-54C to withdraw its election
to be regulated as a BDC and as of that date, is no longer a BDC under the 1940
Act. The Company is no longer a BDC with unconsolidated majority-owned portfolio
companies but rather will be a distributor of imported bottled water and
alternative or "New Age" beverages through its two wholly-owned subsidiaries,
BNM and AM.

As a result of the Company's conversion from a BDC to a beverage distributor,
the change in accounting is considered a change in reporting entity. Statement
of Financial Accounting Standard No. 154, "Accounting for Changes and Error
Correction," requires that a change in reporting entity be retrospectively
applied to all prior periods presented. Accordingly, the Company's financial
statements are presented on an operating and consolidated basis for all current
and prior periods presented on a retrospective basis without regard to the BDC
method of accounting. The Company does not believe that withdrawing its election

                                       9
<PAGE>

to be regulated as a BDC will have any impact on its federal income tax status,
because the Company never elected to be treated as a regulated investment
company under Subchapter M of the Internal Revenue Code. Instead, the Company
has always been subject to corporate level federal income tax on its income as a
regular corporation under Subchapter C of the Internal Revenue Code.

(D)     RECLASSIFICATIONS

Certain reclassifications have been made to the prior period financial
statements to conform to the current period presentation.


(E)     GOING CONCERN

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern, which contemplates, among other things, the
realization of assets and satisfaction of liabilities in the normal course of
business. As of September 30, 2008, the Company has an accumulated deficit of
$35,860,896 and had net losses totaling $1,252,987 for the nine months ended
September 30, 2008. Additionally, as of September 30, 2008, the Company had
total current assets of $928,723 and had total current liabilities of
$8,815,558. The Company intends to engage in private placement offerings from
time to time to provide it with working capital to pay down certain of its debt
obligations, for other general corporate and operations uses, and to enable the
Company to pursue its strategy to develop and acquire bottled water and New Age
beverage brands and distribution platforms. In the event that the Company cannot
obtain additional funds when needed, it may be forced to renegotiate some or all
of its debt and curtail or cease some or all of its activities.

The Company's subsidiaries did have $142,414 in earnings during the nine months
ended September 30, 2008; however, that profit came from the termination of the
FIJI distribution agreement, in which FIJI forgave $304,543 in accounts payable
and provided $151,473 of inventory. In order to maintain profitability the
subsidiaries will require approximately $500,000 in additional funding for
inventory and working capital to achieve profitability. In addition, the Company
will require over $4,000,000 to satisfy its debt service requirements and
approximately $600,000 to meet its corporate overhead.

Although the Company believes it will be successful with its plans, due to
market factors and economic conditions, no assurance can be given that financing
will be available to the Company on favorable terms or at all.

The financial statements do not include any adjustments related to
recoverability and classification of asset carrying amounts or the amount and
classification of liabilities that might result should the Company be unable to
continue as a going concern.


                                       10
<PAGE>

(2)     ACQUISITIONS AND DISPOSITIONS

BEVERAGE NETWORK OF MARYLAND, INC.

On February 23, 2007, the Company completed the purchase of BNM from XStream
Beverage Network, Inc. ("XStream"). The transaction was structured as a merger
of BNM into the Company's wholly owned subsidiary Global Merger Corp., a Nevada
corporation, pursuant to the Agreement and Plan of Merger between the parties
dated January 31, 2007, and as amended and completed on February 23, 2007.

Based in Jessup, Maryland, BNM engages in the distribution of beverages in the
Mid-Atlantic States.

As a part of the transaction, the Company issued 60,500,000 shares of its common
stock and a $2,000,000 note payable to XStream. At closing, the Company paid
$229,000 on the note and pursuant to the agreements was required to pay a
percentage of any subsequent cash proceeds received from subsequent raises of
equity capital to reduce the note balance.

AQUA MAESTRO, INC. ("AM")

On March 29, 2007, the Company completed the purchase of AM from the
shareholders of AM. The transaction was structured as a merger of AM into the
Company's wholly owned subsidiary, Global Beverage Acquisition Corp., a Florida
corporation, pursuant to the Agreement and Plan of Merger and Reorganization
between the parties dated March 29, 2007.

With its business office in Boca Raton, Florida and logistics in Fort
Lauderdale, Florida, AM is engaged in the wholesale and retail distribution of
domestic and imported bottled water, comprising forty-four brands and over one
hundred-seventy different items. Its wholesale client base is across North
America and the Caribbean, including well-known hotels and resorts. In its
retail home delivery division, AM provides its products through its Internet
site aquamaestro.com.

Consideration for the acquisition of AM included $500,000 in cash, 10,000,000
shares of the Company's common stock and an earn-out. The cash was payable
$300,000 at closing and the balance in equal monthly installments of $22,222
beginning April 15, 2007. The earn-out is a percentage of defined gross profit
equal to 10% of calendar 2008 gross profit, 5% of calendar 2009 gross profit and
3% of calendar 2010 gross profit. On December 12, 2007 the earn-out was replaced
with an increase in amounts outstanding to a total of exactly $100,000 and to be
paid out at the rate of exactly $4,000 per week beginning Friday December 14,
2007 and ending Friday May 30, 2008. These payments have been completed and
there is no longer an earn- out due as part of the consideration for the
acquisition of AM.

The acquisitions were accounted for using the purchase method of accounting and,
accordingly, the condensed consolidated statements of operations include the
results of BNM beginning February 23, 2007 and AM beginning March 29, 2007. The
assets acquired and liabilities assumed were recorded at estimated fair values
as determined by the Company's management based on information currently

                                       11
<PAGE>

available and on current assumptions as to future operations. A summary of the
estimated fair value of assets acquired and liabilities assumed in the
acquisitions follows:

<TABLE>
<CAPTION>
<S>     <C>

                                            BNM                AM               TOTAL
     Current assets, excluding cash
       and cash equivalents             $    917,221     $    430,014      $  1,347,235
     Property and equipment                   88,848           17,387           106,235
     Deposits and other assets                46,372           27,221            73,593
     Customer list                           920,845               --           920,845
     Goodwill                             12,752,323        1,799,433        14,551,756
                                        ------------     ------------      ------------
                                          14,725,609        2,274,055        16,999,664
                                        ------------     ------------      ------------
     Liabilities assumed                   1,095,228          352,536         1,447,764
     Notes payable                         3,766,818          190,356         3,957,174
     Guaranty accrued                        968,000               --           968,000
     Common stock issued                   8,896,500        1,431,250        10,327,750
                                        ------------     ------------      ------------
                                          14,726,546        1,974,142        16,700,688
                                        ------------     ------------      ------------
     Cash acquired in excess of
       cash (paid)                      $        937     $   (299,913)     $   (298,976)
                                        ============     ============      ============
</TABLE>

Unaudited pro forma results of operations for the nine months ended September
30, 2007, as if the BNM and AM acquisitions occurred at the beginning of the
period follows. The pro forma results include estimates and assumptions which
management believes are reasonable. However, pro forma results are not
necessarily indicative of the results that would have occurred if the business
combinations had been in effect on the date indicated, or which may result in
the future. The results of BNM and AM are included for the 2008 period, as
reported; accordingly the 2008 period is not included below in the reported
values for the 2007 third quarter 10Q.

     Net revenues                                          $   8,346,133
     Loss from continuing operations                            (676,997)
                                                           =============

     Loss from continuing operations per common share,
          basic and diluted                                $      (0.005)
                                                           =============

     Weighted average common shares                          147,454,458

SALE OF RUDY BEVERAGE, INC.

On January 18, 2007, the Company executed an agreement with Rudy Partners, Ltd.
("Partners") wherein the Company agreed to sell its 80% interest in Rudy
Beverage, Inc. ("Rudy") for an 8% secured promissory note in the amount of
$6,000,000 plus assumption of the advances and receivables owed to the Company
by Rudy. The agreement closed on May 11, 2007. The note is collateralized by
11,000,000 shares of the Company's common stock held by Partners' owners and was
scheduled to be paid in six annual installments of $1,000,000 commencing January
31, 2008. The Company sold the $6,000,000 note for $100,000 in cash and a note
receivable in the amount of $600,000 on October 9, 2007. The note was scheduled
to be paid in weekly installments of $75,000 commencing October 22, 2007, and
the final payment was due December 10, 2007. Only $12,000 of the $600,000 was

                                       12
<PAGE>


paid and the Company fully reserved the $588,000 balance at December 31, 2007.
As of September 30, 2008 the Company has not been paid the amount owed.

The assets and liabilities of Rudy at March 31, 2007, are as follows:

     Current assets                                 $   452,348
     Property and equipment                              88,889
     Goodwill                                           950,000
                                                    -----------
          Total assets                                1,491,237
     Current liabilities                               (502,971)
                                                    -----------
          Net assets of discontinued operations     $   988,266
                                                    ===========

The loss from operation of discontinued operations at March 31, 2007, may be
summarized as follows:

                              2007
                            ---------

     Revenues               $  26,893
     Cost of sales             30,989
                            ---------
          Gross profit         (4,096)
     Operating expenses       206,022
     Consulting fees          625,000
                            ---------
          Net loss          $(835,118)
                            =========

In addition, expenses of $153,313 were taken in the three months ended June 30,
2007, for a total of $988,430 for losses from discontinued operations. There
were zero expenses taken in the three month period ended September 30, 2007

(3)     ACCRUED EXPENSES

Accrued expenses at September 30, 2008 and December 31, 2007 consist of the
following:


                                                     2008           2007
                                                  ----------     ----------

     Accured interest                             $  344,295     $ 310,3255
     Accrued salaries                                593,983        250,439
     Guaranty to note holder for stock issued
       in acquisition of BNM                         968,000        968,000
     Other                                            44,572        101,585
                                                  ----------     ----------
          Total                                   $1,950,850     $1,630,349
                                                  ==========     ==========

                                       13
<PAGE>


(4)     NOTES PAYABLE

Notes payable at September 30, 2008 (substantially all delinquent) and December
31, 2007, consist of the following:
<TABLE>
<CAPTION>
<S>     <C>

     Secured convertible promissory notes payable (1)                     $1,326,000     $1,326,000
     Note payable to XStream Beverage Network, Inc. with interest
           at 6% (2)                                                       1,152,605      1,072,453
     Convertible note payable to XStream, with interest at prime
          plus 2% (2)                                                        722,954             --
     Note payable to a profit sharing plan with interest at 14%               46,522         71,522
     Demand notes payable to individuals with interest at 12%                     --         25,000
     Note payable to an individual                                           100,000             --
     Note payable for truck financed at 9.45% for 48 months                   18,616             --
     Note payable to stockholder with interest at 14% due
           February 17, 2008                                                  20,000         20,000
                                                                          ----------     ----------
                                                                           3,386,697      2,514,975
                                                                          ----------     ----------
                                  DISCOUNTED NOTES

     Non-interest bearing note payable to Master Distributor which
          was assumed as a part of the acquisition of BNM (3)              2,090,653      1,740,132
     Non-interest bearing notes payable to the former stockholders
          of Aqua Maestro, Inc.; payable in 9 equal monthly payments
          of $22,222 commencing on April 15, 2007; discounted at 12%;
          collateralized by inventory of Aqua Maestro                             --         15,749
     Non-interest bearing note payable to a company (4)                      223,034        238,530
                                                                          ----------     ----------
                                                                           2,313,687      1,994,411
                                                                          ----------     ----------
               Total notes payable                                        $5,700,384     $4,509,386
                                                                          ==========     ==========
</TABLE>

(1)      During the year ended December 31, 2006, the Company issued 8%,
         one-year secured convertible promissory notes payable ("Convertible
         Notes") to a group of investors in the aggregate amount of $1,335,000.
         The notes were convertible into restricted common shares at an initial
         rate of $.50 per share. Management has determined that these notes
         qualify as conventional convertible debt pursuant to APB No. 14,
         "Accounting for Convertible Debt and Debt Issued with Stock Purchase
         Warrants" and EITF 98-5, "Accounting for Convertible Securities with
         Beneficial Conversion Features or Contingently Adjustable Conversion
         Ratios," accordingly the embedded conversion option is not a
         derivative. The Company computed an intrinsic value of the beneficial
         conversion of $538,000 based on the quoted stock price on the grant


                                       14
<PAGE>

         dates. The beneficial conversion feature was credited to additional
         paid-in capital and charged to interest expense when the agreement
         commenced since the Convertible Notes could be converted when issued.

         The Convertible Notes include certain anti-dilutive provisions, such as
         an adjustment for stock splits and business combinations, adjustment
         for common stock dividends and distributions, adjustment for issuance
         of additional shares of common stock at a price per share less than the
         initial conversion price, and issuance of common stock equivalents at a
         price per share less than the initial conversion price.

         As of December 31, 2007, Convertible Notes in the aggregate principal
         amount of $1,326,000 are in default as the interest due, commencing
         November 1, 2006, has not been paid. The default rate of interest of
         12% is in effect for these Convertible Notes and is included in accrued
         expenses on the condensed consolidated balance sheets.

         As of February 13, 2008, the Convertible Notes were convertible into
         common stock at the rate of $0.00675 per share as a result of the
         conversion of $31,000 principal of the note discussed in (4) below.

(2)      The collateralized note with XStream required payment of 40% of any
         cash proceeds received by Global from its February 5, 2007 1-E Offering
         with the remainder payable in monthly installments of $25,000
         commencing September 1, 2007. In a Master Security Agreement, Global
         granted XStream a continuing security interest in substantially all of
         its assets as collateral as long as any obligation arising from the
         Agreement and Plan of Merger, as amended remained outstanding. In
         addition, pursuant to a Stock Pledge Agreement, the BNM stock owned by
         Global was pledged as additional collateral on the obligations of
         Global to XStream, and BNM guarantees the Global obligations to
         XStream.

         On January 23, 2008, the Company entered into a Stock Repurchase
         Agreement with XStream by which we repurchased the 60,500,000 shares of
         our common stock originally issued to XStream. As consideration for the
         purchase, we issued a convertible note in the principal amount of
         $700,000. The convertible note bears interest at the prime rate plus 2%
         and matures on October 31, 2008 and is convertible into shares of our
         common stock as the conversion price specified in the Stock Repurchase
         Agreement with XStream if we default in the repayment of amounts due
         under the convertible note or if we fail to pay $500,000 to Laurus
         Master Fund, Ltd. ("Laurus") on or before May 1, 2008 pursuant to the
         letter agreement described in the following paragraph. Global is
         delinquent on the May 1, 2008 payment.

         On January 23, 2008, and in conjunction with the stock repurchase
         described in the previous paragraph, we entered into a letter agreement
         with Laurus and XStream (the "Letter Agreement"). In connection with
         the Letter Agreement, XStream collaterally assigned both a secured
         promissory note that we issued to XStream in connection with our
         purchase of BNM from XStream and the convertible note discussed in the
         preceding paragraph. Under the Letter Agreement, we agreed to pay to
         Laurus $500,000 in repayment of a portion of the outstanding balance of
         the secured note by May 1, 2008. Upon making the $500,000 payment,

                                       15
<PAGE>

         Laurus agreed to release certain liens it has on the inventory of BNM
         and XStream, and Laurus and XStream agreed to terminate the stock
         pledge agreement with respect to the stock of BNM and the master
         security agreement securing collateral on our obligations under the
         secured note.

         Simultaneously, and in conjunction with, the stock repurchase and the
         Letter Agreement discussed above, we entered into a second amendment
         ("Amendment No. 2") to the secured note originally issued to XStream
         and which was part of collateral assigned by XStream to Laurus.
         Amendment No. 2 accelerated the maturity date of the note from March
         31, 2011 to October 31, 2008 and removed the requirement for monthly
         payments of $25,000. The secured note had a principal balance of
         $1,072,453 and accrued interest of $29,079 at December 31, 2007.

(3)      The Master Distributors note has scheduled monthly payments of $83,333
         for two years; discounted at 12%; penalty provisions require a late
         charge of $5,000 plus interest of 1 1/2% per month for all payments
         made after the 15th of the month; the Company guarantees that the note,
         with a face value of $2,000,000 plus the proceeds from 4,000,000 shares
         of its common stock will equal at least $3,000,000 total; and note is
         past due at December 31, 2007, with $175,000 applied to total scheduled
         principal payments of $833,333. At December 31, 2007, the Company has
         accrued $968,000 as an estimate of this guarantee.

(4)      On July 6, 2007, the Company entered into a Note Purchase Agreement
         ("Agreement") with a certain accredited investor ("Investor") for the
         private placement of a promissory note ("Note") in the principal amount
         of $259,202 for a purchase price of $233,450. The maturity date of the
         Note is August 31, 2008. Upon the withdrawal of the Company's election
         to be treated as a BDC under the 1940 Act, the note became convertible
         at the option of the Investor into a number of shares of the Company's
         common stock as determined in accordance with a formula set forth in
         the Agreement (at a conversion rate of 75% of the average of the lowest
         trade price of the common stock during any three business days for the
         ten business day period prior to such conversion election, as reported
         by Bloomberg L.P.)

         In connection with the Agreement, the Company entered into a letter
         agreement with Palladium Capital Advisors, LLC as placement agent,
         pursuant to which the Company paid the placement agent for its
         services, a cash fee of $33,333. In addition, $16,667 is payable within
         120 days of the date of the Agreement either in cash or through the
         issuance of the Company's common stock.

         The Company and the Investor also entered into a Registration Rights
         Agreement ("RRA") pursuant to which the Company has agreed to provide
         certain registration rights with respect to shares of its common stock
         issuable upon the Investor's election to exercise the conversion right
         contained in the Note. Pursuant to the RRA, the Company is required to
         file a Registration Statement no more than 60 days after filing to
         withdraw its election to be regulated as a BDC under the 1940 Act and
         is required to have the Registration Statement declared effective no
         more than 75 days after filing the Registration Statement. In the event

                                       16
<PAGE>

         the Company does not meet the required dates, the Company would be
         required to pay a cash fee of 1% of the outstanding loan balance for
         each of the first two months the Company is late and 2% for each
         subsequent month the Company is late, and the maximum exposure to the
         Company should be approximately $31,000. This requirement should end
         when the stock can become free trading pursuant to Rule 144.

         A total of $31,000 in principal of this note was converted into
         4,592,593 shares of the Company's common stock on February 13, 2008.

The three discounted notes may be summarized as follows at September 30, 2008
and December 31, 2007:

                                               2008              2007
                                            -----------      -----------

 Face value of discounted notes payable     $ 2,346,161      $ 2,099,951
 Discount                                       (32,474)        (105,540)
                                            -----------      -----------
   Present value of discounted notes        $ 2,313,687      $ 1,994,411
                                            ===========      ===========


(5)     EQUITY

COMMON STOCK:

The Company is authorized to issue up to 950,000,000 shares of common stock, par
value $.001. There were 159,260,094 shares issued and 99,160,094 shares
outstanding and 60,500,000 shares in treasury at September 30, 2008 and
147,567,501 issued and outstanding at December 31, 2007.

STOCK REPURCHASE AGREEMENT:

On January 23, 2008, we entered into a Stock Repurchase Agreement with XStream
by which we repurchased the 60,500,000 shares of our common stock originally
issued to XStream. As consideration for the purchase, we issued a convertible
note in the principal amount of $700,000 (the "XStream Convertible Note"). The
XStream Convertible Note bears interest at the prime rate plus 2% and matures on
October 31, 2008. The XStream Convertible Note is convertible into shares of our
common stock as the conversion price specified in the Stock Repurchase Agreement
with XStream if we default in the repayment of amounts due under the XStream
Convertible Note or if we fail to pay $500,000 to Laurus Master Fund, Ltd.
("Laurus") on or before May 1, 2008 pursuant to the letter agreement described
in the following paragraph.

On January 23, 2008, and in conjunction with the stock repurchase described in
the previous paragraph, we entered into a letter agreement with Laurus and
XStream (the "Letter Agreement"). In connection with the Letter Agreement,

                                       17
<PAGE>

XStream collaterally assigned both the XStream Secured Note and the XStream
Convertible Note to Laurus. Under the Letter Agreement, we agreed to pay to
Laurus $500,000 in repayment of a portion of the outstanding balance of the
XStream Secured Note by May 1, 2008. Upon making the $500,000 payment, Laurus
agreed to release certain liens it has on the inventory of BNM and XStream, and
Laurus and XStream agreed to terminate a stock pledge agreement with respect to
the stock of BNM and a master security agreement securing collateral on our
obligations under the Secured Note.

Simultaneously, and in conjunction with, the stock repurchase and the Letter
Agreement discussed above, we entered into a second amendment ("Amendment No.
2") of the XStream Secured Note. Amendment No. 2 accelerated the maturity date
of the note from March 31, 2011 to October 31, 2008 and removed the requirement
for monthly payments of $25,000. The XStream Secured Note has a principal
balance of $1,040,765 and accrued interest of $111,840 at September 30, 2008.

PREFERRED STOCK:
---------------

The Company is authorized to issue up to 50,000,000 shares of preferred stock at
$0.001 par value. At September 30, 2008, there were no preferred shares issued
or outstanding.

OPTIONS:

The Company recognizes amortization expense on a straight-line basis over the
requisite service period for each stock option grant. Total stock-based
amortization expense recognized was zero and $20,225 during the three months
ended September 30, 2008 and 2007, respectively. Total stock-based amortization
expense was $165,387 and $60,675 during the nine months ended September 30, 2008
and 2007, respectively. The 2008 amount includes $124,938 calculated using the
Black Scholes method for 12,620,000 options granted to employees on January 2,
2008.


(6)    COMMITMENTS AND CONTINGENCIES

GENERAL - The Company's commitments and contingencies include the usual
obligations which arise in the normal course of business. In the opinion of
management, these matters are not expected to have a material adverse effect on
the Company's financial position and results of operations.

OTHER ITEMS -
On June 1, 2008 Global consolidated its previous corporate office with the Aqua
Maestro office which requires monthly rental of $2,205 through May 31, 2009.
Aqua Maestro also has a warehouse lease which requires monthly rental of $5,089
through December 2008. Beverage Network of Maryland has an office and warehouse
lease which begins April 1, 2008 at $26,284 per month. The lease is with Master
Distributors, a note holder and is for a five year term with annual 3%
increases.


                                       18
<PAGE>

Future minimum lease payments: 2008 (three months) - $91,000; 2009 - $406,000;
2010 - $376,000; 2011 - $371,000; 2012 - $352,000; and 2013 - $89,000.

GUARANTY - The Company issued a non-interest bearing note in the amount of
$2,000,000 together with 4,000,000 shares of the Company's common stock to a
creditor of BNM. The Company has guaranteed that the creditor will receive at
least $3,000,000 from the note and the stock, providing the shares are sold by
February 23, 2009. The Company also guaranteed payment of salary to two
individuals by BNM in the total amount of $134,000 for 2007 and $26,000 for
2008, 2009 and 2010 and guaranteed reimbursement of expenses and payment of
health benefits for the same periods. Included in accrued expenses is $968,000
as an estimate of the potential cost of satisfying the guaranty.



                                       19
<PAGE>

ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS

This Form 10-Q contains forward-looking statements. For this purpose, any
statements contained herein that are not statements of historical fact may be
deemed to be forward-looking statements. These statements relate to future
events or our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as "may", "will", "should",
"expects", "plans", "anticipates", "believes", "estimates", "predicts",
"potential", "continue" or the negative of such terms or other comparable
terminology. These statements are only predictions. Actual events or results may
differ materially. There are a number of factors that could cause our actual
results to differ materially from those indicated by such forward-looking
statements.

Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Moreover, we do not assume responsibility
for the accuracy and completeness of such forward-looking statements. We are
under no duty to update any of the forward-looking statements after the date of
this Form 10-Q to conform such statements to actual results. Management's
discussion and analysis should be read in conjunction with our financial
statements and the notes herein.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management's Discussion and Analysis of Financial Condition and Results of
Operations discusses our financial statements, which have been prepared in
accordance with accounting principles generally accepted in the United States of
America. The preparation of these financial statements requires us to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting periods. On an on-going basis, we
will evaluate our estimates and judgments, including those related to revenue
recognition, valuation of investments in portfolio companies, accrued expenses,
financing operations, contingencies and litigation. We will base our estimates
and judgments on historical experience and on various other factors that are
believed to be reasonable under the circumstances, the results of which form the
basis for making judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from
these estimates under different assumptions or conditions. The most significant
accounting estimates inherent in the preparation of our financial statements
include estimates as to the appropriate carrying value of certain assets and
liabilities which are not readily apparent from other sources. These accounting
policies are described at relevant sections in this discussion and analysis and
in the "Notes to Financial Statements" included in our Annual Report on Form
10-K for the fiscal year ended December 31, 2007.


                                       20
<PAGE>


WITHDRAWAL OF ELECTION TO BE TREATED AS A BDC

On July 13, 2007, we filed our preliminary information statement on Schedule 14C
and on October 2, 2007, we filed our definitive information statement on
Schedule 14C which was provided on behalf of our board of directors ("Board") to
record holders of shares of our common stock ("Shareholders") as of the close of
business on the record date of July 12, 2007. This information statement
provided notice that the Board has recommended, and holders of a majority of the
voting power of our common stock have voted to approve authorization to the
Board to withdraw our election to be treated as a business development company
under the 1940 Act. The action became effective upon our filing a Form N-54C
with the Securities and Exchange Commission on January 2, 2008.

                         OVERVIEW AND BUSINESS STRATEGY

Subsequent to the filing of the Form N-54C on January 2, 2008, we intend to
pursue a business model whereby it would acquire majority ownership stakes in
beverage-related companies (the "New Business Model"). In this regard, we would
remain active in the imported bottled water category and New Age beverage
category through our two wholly owned entities: Aqua Maestro and Beverage
Network of Maryland.

Under the New Business Model, we will at all times conduct our activities in
such a way that we will not be deemed an "investment company" subject to
regulation under the 1940 Act. Thus, it will not hold itself out as being
engaged primarily in the business of investing, reinvesting or trading in
securities. In addition, we will conduct our business in such a manner as to
ensure that we will at no time own or propose to acquire investment securities
having a value exceeding 40 percent of our total assets at any one time.

Aqua Maestro is based in Boca Raton, FL and imports and sells bottled water
through company owned distribution to retailers and consumers in South Florida,
direct sales to retailers outside of South Florida, direct sales to consumers
generated through its website at aquamaestro.com and sales to third party
distributors.

Beverage Network of Maryland is a New Age distributor based in Jessup, Maryland
and distributes brands such as Welch's to retailers in Washington DC, Northern
Virginia, and the entire state of Maryland.

Our strategy is to grow the third party branded revenue base in each of these
entities while developing and/or acquiring bottled water or New Age beverage
brands. Thus, through these entities, we will sell our own proprietary brands as
well as third party brands.


                                       21
<PAGE>


RESULTS OF OPERATIONS

COMPARISON OF THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2008 AND 2007

Product sales and cost of product sold for the three months ended September 30,
2008 and 2007 are as follows:

                                    2008            2007
                                 ----------      ----------
                                                (pro forma)

Product sales                    $1,817,603      $2,702,176
Cost of product sold              1,162,631       1,978,596
                                 ----------      ----------
     Gross profit                $  654,972      $  723,580
                                 ==========      ==========

     Gross profit percentage         36.0%          26.8%

Product sales and cost of product sold for the nine months ended September 30,
2008 and the pro forma product sales and cost of product sold for the nine
months ended September 30, 2007 as if the acquisitions of BNM and AM had
occurred at January 1, 2007 are as follows:

                                    2008            2007
                                 ----------      ----------
                                                 (pro forma)

Product sales                    $6,568,115      $8,346,133
Cost of product sold              4,160,528       6,217,869
                                 ----------      ----------
     Gross profit                $2,407,587      $2,128,264
                                 ==========      ==========

     Gross profit percentage        36.7%          25.5%

Product sales declined $884,573 (32.7%) for the three months ended September 30,
2008 as compared to the same period in 2007. For the nine month period ended
September 30, 2008, product sales were $1,778,018 lower, or (21.3%), as compared
to the same period in 2007. Sales for BNM were $6,695,088 for September 30, 2007
compared to $5,022,561, for the nine month period ended September 30, 2008. The
decline in BNM sales is primarily due to dropping higher volume product with
lower gross profit margin. This sales decline was partially offset by sales of
higher margin products and resulted in an increase in gross profit percentage
from 25.5% to 36.7% for the six months ended September 30, 2008 and 2007. During
the three month period ended September 30, 2008, gross profit was significantly
higher in part due to the termination of the agreement with FIJI which included
inventory valued at $151,473 at no cost to us. AM sales were approximately,
$100,000 less in the nine months ended September 30, 2008 than as reported in
the pro forma sales for the same period in 2007.


                                       22
<PAGE>

Operating expenses for the three months ended September 30, 2008 and 2007 are as
follows:

                                                           2008         2007
                                                         ----------   ----------
                                                                     (pro forma)

Compensation and benefits                                $  487,733   $  522,745
Professional fees                                            24,381      119,774
Amortization of intrinsic value of common stock options          --       20,225
Rent and utilities                                          104,367      114,865
Asset impairment                                                 --    7,901,152
Other selling, general and administrative expenses          167,888      420,997
                                                         ----------   ----------
Total                                                    $  784,369   $9,099,758
                                                         ==========   ==========

Operating expenses for the nine months ended September 30, 2008 and the pro
forma operating expenses for the nine months ended September 30, 2007 as if the
acquisitions of BNM and AM had occurred at January 1, 2007 are as follows:

                                                            2008          2007
                                                         ----------   ----------
                                                                     (Pro Forma)

 Compensation and benefits                               $1,558,472   $1,689,452
 Non-cash compensation                                       78,000        1,500
 Professional fees                                          299,174      398,288
 Amortization of intrinsic value of common stock options    165,387       60,675
 Rent and utilities                                         293,645      294,995
 Other selling, general and administrative expenses         727,167    1,261,439
                                                         ----------   ----------
 Total                                                   $3,121,845   $3,706,349
                                                         ==========   ==========

Operating expenses decreased $414,237 (34.6%) for the three months ended
September 30, 2008 compared to the same period in 2007 if we did not include the
$7,901,152 in asset impairment. Operating expenses decreased $584,504 (15.8%)
for the nine months ended September 30, 2008 compared to the same period in
2007. The amortization of the intrinsic value of stock options increased
$104,712 and other non-cash compensation amounted to an increase of $76,500 for
a total of $181,212 in non-cash compensation increases. Professional fees were
higher in 2007 primarily due to the acquisitions in 2007, the withdrawal as a
BDC effective at the beginning of 2008 and negotiating debt extensions.

Interest expense was $528,229 in 2008 as compared to $400,465 in 2007. The
increase is primarily due to the debt incurred in the acquisition of BNM and AM
that accrued interest for a longer period in 2008 than in 2007.


                                       23
<PAGE>

Loss on investments was incurred in the nine months ended September 30, 2007 for
$519,853 due to an unrealized depreciation in the note with Rudy Partners of
$1,658,283.

Discontinued operations consist of the operations of Rudy Beverage, Inc. for the
three and nine months ended September 30, 2007, as discussed in Note 2.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2008, we had a working capital deficit of $7,886,835 as
compared to $6,136,235 at December 31, 2007. The increase in working capital
deficit of $1,750,600 during 2008 was primarily the result of using working
capital to acquire treasury stock in the amount of $700,000, the net loss of
$1,252,987 and less the increases to common stock and additional paid-in capital
in the amount of $236,198 as a result of stock and options issued. Net cash
provided by operating activities was $40,646.

As of September 30, 2008, we had an accumulated deficit totaling $35,860,896. We
also had a net loss of $1,252,987 during the nine months ended September 30,
2008.

These factors, among others, raise substantial doubt about our ability to
continue as a going concern. We intend to fund operations through debt and
equity financing arrangements which management believes should be sufficient to
fund its capital expenditures, working capital and other cash requirements for
the next twelve months. The successful outcome of future activities cannot be
determined at this time and there is no assurance that, if achieved, we will
have sufficient funds to execute our intended business plan or generate positive
operating results. (See Note 1E)


OFF BALANCE SHEET ARRANGEMENTS

         o        None.

CONTRACTUAL OBLIGATIONS

         o        See Note 6 regarding operating leases.


                                       24
<PAGE>


ITEM 3:     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.


ITEM 4:     CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Our Chief Executive Officer has reviewed and evaluated the effectiveness of our
disclosure controls and procedures (as defined in Rules 240.13a-15(e) and
15d-15(e) promulgated under the Securities Exchange Act of 1934) as of March 31,
2008. Based on that review and evaluation, which included inquiries made to
certain of our other employees, the CEO concluded that our current disclosure
controls and procedures, as designed and implemented, are effective in ensuring
that information relating to our required to be disclosed in the reports that we
file or submit under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the Securities and
Exchange Commission's rules and forms, including ensuring that such information
is accumulated and communicated to our management, including the CEO, as
appropriate to allow timely decisions regarding required disclosure. However, we
had a personnel change in the first quarter, which did delay completion of the
information relating to our required disclosure in reports to be filed with the
SEC.

(b)  Changes in Internal Controls

There have been no changes in our internal controls over financial reporting
that occurred during the quarter ended September 30, 2008 that have materially
affected, or are reasonably likely to materially affect, our internal control
over financial reporting.



                                       25
<PAGE>

                          PART II - OTHER INFORMATION


ITEM 1:  LEGAL PROCEEDINGS

Although we may, from time to time, be involved in litigation arising out of our
operations in the normal course of business or otherwise, we are currently not a
party to any pending material legal proceeding.

ITEM 1A: RISK FACTORS

There were no material changes from the risk factors previously disclosed in our
2007 annual report on Form 10-K.

ITEM 2:  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the three months ended September 30, 2008, we issued our common stock in
the following transactions:

         o        400,000 shares were issued to a note holder of Aqua Maestro as
                  consideration for delaying the due date of the note.

All shares were issued pursuant to an exemption from registration under Section
4(2) promulgated under the Securities Act of 1933, as amended.


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.


                                       26
<PAGE>


ITEM 6:  EXHIBITS

The following exhibits are filed with this report on Form 10-Q.

          Exhibit  31       Certifications pursuant to Rule 13a-14 of
                            the Securities Exchange Act of 1934, as
                            amended, pursuant to Section 302 of the
                            Sarbanes-Oxley Act of 2002

          Exhibit  32       Certifications pursuant to 18 U.S.C.
                            Section 1350, as adopted pursuant to Section
                            906 of the Sarbanes-Oxley Act of 2002


                                       27
<PAGE>

                                    SIGNATURE

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.

                                         GLOBAL BEVERAGE SOLUTIONS, INC.



Date:    November 18, 2008             By:  /s/ Jerry Pearring
                                            ---------------------------
                                                Jerry Pearring,
                                                President and Chief
                                                Executive Officer



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