<PAGE>



                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549
                                  FORM 10-Q

(Mark One) 

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

For the quarterly period ended                 March 29, 1997
                              ------------------------------------------------

                                      OR

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

Commission File Number                        33-43621
                      --------------------------------------------------------

                     INTERNATIONAL FOOD AND BEVERAGE, INC.
            (Exact name of registrant as specified in its charter)

                Delaware                                33-0307734
    -------------------------------        ------------------------------------
    (State or other jurisdiction of        (I.R.S. Employer Identification No.)
     incorporation or organization)

30152 Aventura, Rancho Santa Margarita, California              92688
--------------------------------------------------            ----------
   (Address of principal executive offices)                   (Zip Code)

                                (714) 858-8800
            ----------------------------------------------------
            (Registrant's telephone number, including area code)

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

Yes   X     No
    -----      -----

The number of shares of Common Stock outstanding as of April 15, 1997 was: 
                                  156,599,351
                                  -----------

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                     INTERNATIONAL FOOD AND BEVERAGE, INC.

                  FINANCIAL STATEMENTS AND OTHER INFORMATION

                                     INDEX


                                                                   PAGE NUMBER

PART I - FINANCIAL INFORMATION

    Item 1.  Financial Statements

             Statement of Operations for the three months 
               and nine months ended March 29, 1997 
               and March 30, 1996                                            1

             Balance Sheets as of March 29, 1997
               and June 29, 1996                                             2

             Statements of Cash Flows for the nine months
               ended March 29, 1997 and March 30, 1996                       3

             Notes to Financial Statements                                   4

    Item 2.  Management's Discussion and Analysis
               of Financial Condition and Results of Operations              5

PART II - OTHER INFORMATION

    Item 6.  Exhibits and Reports on Form 8-K                                6

SIGNATURES                                                                   6

<PAGE>


                    INTERNATIONAL FOOD AND BEVERAGE, INC.

                       PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                          STATEMENTS OF OPERATIONS


                              THREE MONTHS ENDED           NINE MONTHS ENDED
                          ------------------------     ------------------------
                           MARCH 29,    MARCH 30,       MARCH 29,     MARCH 30,
                             1997         1996            1997          1996   
                          -----------  -----------     -----------  -----------
                                (Unaudited)                   (Unaudited)

REVENUES                  $ 1,893,000  $ 1,375,000     $ 5,965,000  $ 4,384,000
COST OF SALES               1,449,000    1,179,000       4,670,000    3,623,000
                          -----------  -----------     -----------  -----------
GROSS PROFIT                  444,000      196,000       1,295,000      761,000

OPERATING EXPENSES:
  Selling and distribution    364,000      214,000       1,077,000      720,000
  General and administrative  146,000      120,000         438,000      396,000
  Interest expense             36,000       14,000          96,000       26,000
                          -----------  -----------     -----------  -----------
                              546,000      348,000       1,611,000    1,142,000
                          -----------  -----------     -----------  -----------
NET LOSS                   $ (102,000)  $ (152,000)     $ (316,000)  $ (381,000)
                          -----------  -----------     -----------  -----------
                          -----------  -----------     -----------  -----------


NET LOSS PER COMMON SHARE      $ (.00)      $ (.00)         $ (.00)      $ (.00)
                          -----------  -----------     -----------  -----------
                          -----------  -----------     -----------  -----------
WEIGHTED AVERAGE 
  NUMBER OF COMMON 
  SHARES OUTSTANDING      156,599,351  154,033,569     156,285,864  154,027,854
                          -----------  -----------     -----------  -----------
                          -----------  -----------     -----------  -----------


                            See accompanying notes.

                                      -1-

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                    INTERNATIONAL FOOD AND  BEVERAGE, INC.

                                 BALANCE SHEETS

                                                    MARCH 29,         JUNE 29, 
                                                      1997              1996   
                                                   -----------      -----------
                                                   (Unaudited)

                                    ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                          $  57,000        $  20,000
  Accounts receivable                                  440,000          505,000
  Inventories                                          580,000          643,000
  Prepaid expenses                                       5,000            7,000
                                                   -----------      -----------
    Total current assets                             1,082,000        1,175,000

FIXED ASSETS                                           844,000          905,000
                                                   -----------      -----------
                                                  $  1,926,000     $  2,080,000
                                                   -----------      -----------
                                                   -----------      -----------
                                       
               LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)

CURRENT LIABILITIES:
  Notes payable and current maturities 
    of long-term debt                               $  412,000       $  429,000
  Accounts payable                                   1,070,000          840,000
  Accrued wages and benefits                           338,000          373,000
  Accrued commissions and marketing                    182,000          181,000
  Other accrued expenses                               142,000          118,000
                                                   -----------      -----------
    Total current liabilities                        2,144,000        1,941,000

LONG-TERM DEBT                                         697,000          756,000

SHAREHOLDERS' EQUITY (DEFICIENCY)                     (915,000)        (617,000)
                                                   -----------      -----------

                                                  $  1,926,000     $  2,080,000
                                                   -----------      -----------
                                                   -----------      -----------


                            See accompanying notes.

                                      -2-

<PAGE>


                      INTERNATIONAL FOOD AND BEVERAGE, INC.

                            STATEMENTS OF CASH FLOWS


                                                         NINE MONTHS ENDED
                                                   ----------------------------
                                                    MARCH 29,        MARCH 30, 
                                                      1997              1996   
                                                   -----------      -----------
                                                            (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Loss                                         $  (316,000)     $  (381,000)
  Adjustments to reconcile net loss to 
       net cash provided by operating activities 
    Depreciation and amortization                      122,000          126,000
    Issuance of Common Stock under 
       distribution agreement                           18,000
    Changes in assets and liabilities:
      Accounts receivable                               65,000          (72,000)
      Inventories                                       63,000           43,000
      Prepaid expenses                                   2,000           31,000
      Accounts payable                                 230,000          129,000
      Accrued wages and benefits                       (35,000)         (77,000)
      Accrued commissions and marketing                  1,000         (327,000)
      Accrued expenses                                  24,000            4,000
                                                   -----------      -----------
        Net cash provided by (used in) 
           operating activities                        174,000         (524,000)
                                                   -----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Additions to fixed assets                            (61,000)         (15,000)
                                                   -----------      -----------

        Net cash used by investing activities          (61,000)         (15,000)
                                                   -----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from issuance of notes payable                               456,000
  Principal payments on notes payable                  (76,000)         (74,000)
                                                   -----------      -----------

        Net cash provided by (used in) 
            financing activities                       (76,000)         382,000
                                                   -----------      -----------

NET INCREASE (DECREASE) IN CASH                         37,000         (157,000)
                                                   -----------      -----------

CASH AND CASH EQUIVALENTS, beginning of year            20,000          192,000
                                                   -----------      -----------

CASH AND CASH EQUIVALENTS, end of period             $  57,000        $  35,000
                                                   -----------      -----------
                                                   -----------      -----------

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
  Interest                                           $  96,000        $  19,000
  Income taxes                                               0                0


                            See accompanying notes.

                                      -3-

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                     INTERNATIONAL FOOD AND BEVERAGE, INC.


NOTES TO FINANCIAL STATEMENTS

NOTE 1 - FINANCIAL STATEMENTS

In the opinion of management, the accompanying financial statements, which 
have not been audited by independent public accountants, reflect all 
adjustments necessary to present fairly the data for the periods presented 
therein. The results of operations for the nine month period ended March 29, 
1997 are not necessarily indicative of the results that may be expected for 
the entire fiscal year ending June 28, 1997.

NOTE 2 - CHANGE IN CONTROL

A change in control transaction occurred December 31, 1994 and was recorded 
in conformity with Accounting Principles Board Opinion No. 16. Accordingly, 
assets and liabilities as of January 1, 1995 were restated and the results of 
operations since that time reflect the "push-down" of the new controlling 
shareholder's basis, minority interest at its historical basis, and the 
consideration received from the former controlling shareholder. The 
historical acquisition cost of the Company's fixed assets was approximately 
$4,000,000, however, as a result of "push-down" accounting these assets are 
reported currently on the Company's financial statements with a cost after 
accumulated depreciation of $844,000.  See footnotes to the audited financial 
statements for a more detailed description of the transaction.


                                      -4-

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                      INTERNATIONAL FOOD AND BEVERAGE, INC.


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

RESULTS OF OPERATIONS

Revenues for the nine month period ended March 29, 1997 of $5,965,000 
increased approximately 36% when compared with revenues of $4,384,000 in the 
prior year comparable period. Revenues for the most recent quarter increased 
approximately 38% when compared with revenues in the comparable three month 
period of the prior year. For the year to date period, each segment of the 
Company's business expanded with sales growth to retail grocery, foodservice 
and contract manufacturing customers. In May 1996, the Company introduced a 
line of pizzas which are sold under a private label brand in the frozen food 
section of a major national grocery retailer. The Company recently added a 
second major grocery retailer private label program with initial sales to 
this customer made in late February 1997. The Company experienced a decrease 
in its contract manufacturing sales during the most recent quarter as a 
result of product changes for one of the contract manufacturer's domestic 
customers and continuing uncertainties surrounding further shipments for 
export. Accordingly, revenue increases during the most recent three month 
period roughly offset the sales decline in contract manufacturing resulting 
in revenues for the quarter which were nearly flat as compared with the prior 
two fiscal quarters. The Company continues to market its pizzas and crusts 
nationally to retail supermarket customers (service delicatessen and frozen 
food sections) and major foodservice accounts.

The gross profit margin for the nine months ended March 29, 1997 increased to 
21.7% versus the prior year comparable period gross margin of 17.4%. In the 
most recent three month period, gross profit margin increased to 23.4% versus 
14.3% in the comparable prior year period. The current year margin 
improvements result from the decrease in cheese prices beginning late in 
October 1996 to more normal historical pricing levels, a more favorable 
customer mix purchasing higher margin products and the benefit derived from a 
higher level of overhead absorption as a result of increased sales. Despite 
margin improvements, fixed overhead per unit sold remains high at the 
Company's low level of production. The Company would realize an increase in 
its gross profit contribution rate assuming the Company is able to achieve 
increased production volume and ingredient prices remain stable.

Selling, general and administrative expenses for the nine months and quarter 
ended March 29, 1997 were roughly comparable as a percent of sales versus the 
prior year comparable periods at 25.4% and 26.9% versus 25.5% and 24.3%, 
respectively. Selling and administrative overhead remained relatively 
constant in dollars through each of the comparable periods decreasing as a 
percent of revenues given the sales increases, offset by increases in 
commissions and marketing as a percent of revenues. These increases in 
commissions and marketing expenses result from the continuing shift to higher 
margin programs replacing contract manufacturing revenues that are priced 
without commission or marketing. The Company does not anticipate having to 
add substantially to fixed overhead costs to support revenue growth of fifty 
to one hundred percent of its current revenue level assuming a similar mix of 
products and customers.

As a result of higher borrowings in the current fiscal year, interest expense 
for the nine months and quarter ended March 29, 1997 increased to $96,000 and 
$36,000 from $26,000 and $14,000 for the comparable prior year periods, 
respectively. The resulting loss for the nine month and three month periods 
ended March 29, 1997 was $316,000 and $102,000 versus reported comparable 
prior year period losses of $381,000 and $152,000, respectively.


                                      -5-

<PAGE>


                      INTERNATIONAL FOOD AND BEVERAGE, INC.

LIQUIDITY AND CAPITAL RESOURCES

Net cash provided by operating activities was $174,000 for the nine month 
period ended March 29, 1997 versus cash used in operating activities of 
$524,000 in the comparable prior year period. The cash provided by operations 
during the current fiscal year was generated primarily from additional 
balance sheet financing. Such cash was adequate to finance nominal fixed 
asset additions and service the Company's long term debt obligations during 
the period. Management believes that the Company will experience positive 
cash flow when it achieves a sustained average monthly revenue rate of 
approximately $750,000 at current sales prices and product mix.

In March 1996, the Company entered into a $500,000 revolving line of credit 
agreement collateralized by eligible accounts receivables and inventories. 
Throughout April and into May 1997 the outstanding borrowings under this 
credit facility averaged approximately $400,000 to $450,000. In April 1997, 
the Company received from its lender approval for an increase in the line 
limit to $750,000. At the Company's current level of operations, management 
believes that this credit facility will be adequate to fund the Company's 
short term working capital requirements or that there are alternatives for 
additional debt or equity financing, if required. There is no assurance that 
the Company would be successful in obtaining the necessary additional 
financing.

The Company's primary emphasis remains revenue generation through increased 
sales to existing and new customers. It is also aggressively evaluating 
opportunities ranging from contract manufacturing for others to the 
acquisition of a synergistic product line or company.

The foregoing Management's Discussion and Analysis contains "forward looking 
statements" within the meaning of Section 27A of the Securities Act of 1933, 
as amended, and Section 21E of the Securities Act of 1934, as amended, 
regarding management's expectations concerning gross profit contribution, 
cheese prices, volume, the adequacy of funds from the existing credit 
facility and the level at which the Company's operations become cash 
positive. The Company cautions that these statements are further qualified by 
important factors that could cause actual results to differ materially from 
those in the forward looking statements, including, among others, the 
following: reduced or lack of increase in demand for the Company's products, 
competitive pricing pressures, changes in the market price of ingredients 
used in the Company's products and the level of expenses incurred in the 
Company's operations.

                           PART II - OTHER INFORMATION

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)  None.

(b)  No reports on Form 8-K were filed during the three months ended March  29,
     1997.

                                   SIGNATURES

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

Date:    May 12, 1997              INTERNATIONAL FOOD AND BEVERAGE, INC.
---------------------

                                       /s/ Michael W. Hogarty
                                       -------------------------------------
                                       Michael W. Hogarty
                                       President and Chief Executive Officer

                                       /s/ Ann M. Gooch
                                       -------------------------------------
                                       Ann M. Gooch
                                       Vice President of Finance
                                       (Principal Financial and 
                                        Accounting Officer)


                                      -6-