UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C.  20549





Form
10-Q





x           QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934





For
the quarterly period ended June 30,
2008






TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934




Commission
file number 333-149804




ALCANTARA
BRANDS CORPORATION


(Exact
name of registrant as specified in its charter)





Nevada
            
            26-2137574(State
      or other jurisdiction of incorporation or organization)
            
            (I.R.S.
      Employer Identification No.)





1101
      E. Tropicana, Suite 2118Las
      Vegas, NV
            
            89119(Address
      of principal executive offices)
            
            (Zip
      Code)





Registrant's
telephone
number:                                                                (702)
425-9105





Copies
of Communication to:


Stoecklein
Law Group


Emerald
Plaza


402
West Broadway


Suite
690


San
Diego, CA 92101


(619)
704-1310


Fax
(619) 704-0556





Indicate
by check mark whether the issuer (1) 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   ̈





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 definitions of “large accelerated filer,” “accelerated
filer” and “smaller reporting company” in Ruble 12b-2 of the Exchange
Act.





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





Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).


Yes  x     No   ̈





The
number of shares of Common Stock, $0.001 par value, outstanding on August 11,
2008, was 850,000 shares










PART
I – FINANCIAL INFORMATION





Item
1.     
Financial Statements.







ALCANTARA
      BRANDS CORPORATION(A
      DEVELOPMENT STAGE COMPANY)BALANCE
      SHEET(UNAUDITED)






June
      30,2008ASSETSCurrent
      assets:Cash
            
            $
            2,966Total
      current assets
            
            
            2,966Total
      assets
            
            $
            2,966LIABILITIES
      AND STOCKHOLDERS' EQUITYCurrent
      liabilities:Accounts
      payable
            
            
            750Total
      current liabilities
            
            
            750Total
      liabilities
            
            
            750Stockholders'
      equity:Preferred
      stock, $0.001 par value, 10,000,000 sharesauthorized,
      no shares issued and outstanding
            
            
            -Common
      stock, $0.001 par value, 100,000,000 sharesauthorized,
      850,000 shares issued and outstanding
            
            
            850Additional
      paid-in capital
            
            
            16,650(Deficit)
      accumulated during development stage
            
            
            (15,284
            )Total
      stockholders' equity
            
            
            2,216Total
      liabilities and stockholders' equity
            
            $
            2,966





See
Accompanying Notes to Financial Statements.


2


ALCANTARA
      BRANDS CORPORATION(A
      DEVELOPMENT STAGE COMPANY)STATEMENTS
      OF OPERATIONS(UNAUDITED)








For
      thethree
      months
            
            
            March
      7, 2008ended
            
            
            (inception)
      toJune
      30, 2008
            
            
            June
      30, 2008Revenue
            
            $
            -
            
            
            $
            -Operating
      expenses:General
      and administrative fees
            
            
            34
            
            
            
            34Professional
      fees
            
            
            2,750
            
            
            
            15,250Total
      operating expenses
            
            
            2,784
            
            
            
            15,284(Loss)
      before provision for income taxes
            
            
            (2,784
            )
            
            
            (15,284
            )Provision
      for income taxes
            
            
            -
            
            
            
            -Net
      (loss)
            
            $
            (2,784
            )
            
            $
            (15,284
            )Weighted
      average number of common shares
            
            
            850,000
            
            
            
            843,966outstanding
      - basic and fully dilutedNet
      (loss) per share - basic and fully diluted
            
            $
            (0.00
            )
            
            $
            (0.02
            )





See
Accompanying Notes to Financial Statements.


3


ALCANTARA
      BRANDS CORPORATION(A
      DEVELOPMENT STAGE COMPANY)STATEMENTS
      OF CASH FLOWS(UNAUDITED)








March
      7, 2008(inception)
      toJune
      30, 2008CASH
      FLOWS FROM OPERATING ACTIVITIESNet
      (loss)
            
            $
            (15,284
            )Adjustments
      to reconcile net (loss)to
      net cash used in operating activities:Shares
      issued for services
            
            
            10,000Changes
      in operating assets and liabilities:Increase
      in accounts payable
            
            
            750Net
      cash used in operating activities
            
            
            (4,534
            )CASH
      FLOWS FROM FINANCING ACTIVITIESProceeds
      from sale of common stock
            
            
            7,500Net
      cash provided by financing activities
            
            
            7,500NET
      CHANGE IN CASH
            
            
            2,966CASH
      AT BEGINNING OF YEAR
            
            
            -CASH
      AT END OF YEAR
            
            $
            2,966SUPPLEMENTAL
      INFORMATION:Interest
      paid
            
            $
            -Income
      taxes paid
            
            $
            -Non-cash
      activities:Number
      of shares issued for services
            
            
            100,000





See
Accompanying Notes to Financial Statements


4
 ALCANTARA
BRANDS CORPORATION
 (A
DEVELOPMENT STAGE COMPANY)
 NOTES
TO FINANCIAL STATEMENTS


NOTE
1 – BASIS OF PRESENTATION




The
condensed interim financial statements included herein, presented in accordance
with United States generally accepted accounting principles and stated in US
dollars, have been prepared by the Company, without audit, pursuant to the rules
and regulations of the Securities and Exchange Commission. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Company believes
that the disclosures are adequate to make the information presented not
misleading.




These
statements reflect all adjustments, consisting of normal recurring adjustments,
which in the opinion of management, are necessary for fair presentation of the
information contained therein. It is suggested that these condensed interim
financial statements be read in conjunction with the financial statements of the
Company for the period March 7, 2008, (inception) through March 14, 2008 and
notes thereto included in the Company’s S-1 and S-1/A filed on March 19, 2008
and April 7, 2008, respectively. The Company follows the same accounting
policies in the preparation of interim reports.




Results
of operations for the interim period are not indicative of annual
results.




NOTE
2 – GOING CONCERN




The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the recoverability of
assets and the satisfaction of liabilities in the normal course of business. As
noted above, the Company is in the development stage and, accordingly, has not
yet generated revenues from operations. Since its inception, the Company has
been engaged substantially in financing activities and developing its business
plan, setting up its internet website, and incurring start up costs and
expenses. As a result, the Company incurred accumulated net losses from March 7,
2008, (inception) through the period ended June 30, 2008 of ($15,284). In
addition, the Company’s development activities since inception have been
financially sustained through equity financing.




The
ability of the Company to continue as a going concern is dependent upon its
ability to raise additional capital from the sale of common stock and,
ultimately, the achievement of significant operating revenues. The accompanying
financial statements do not include any adjustments that might be required
should the Company be unable to recover the value of its assets or satisfy its
liabilities.




NOTE
3 – RECENT ACCOUNTING PRONOUCEMENTS





FAS 161


In
March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities", an amendment of SFAS No. 133. SFAS 161
applies to all derivative instruments and non-derivative instruments that are
designated and qualify as hedging instruments pursuant to paragraphs 37 and 42
of SFAS 133 and related hedged items accounted for under SFAS 133. SFAS 161
requires entities to provide greater transparency through additional disclosures
about how and why an entity uses derivative instruments, how derivative
instruments and related hedged items are accounted for under SFAS 133 and its
related interpretations, and how derivative instruments and related hedged items
affect an entity's financial position, results of operations, and cash flows.
SFAS 161 is effective as of the beginning of an entity's first fiscal year that
begins after November 15, 2008. The Company does not expect that the adoption of
SFAS 161 will have a material impact on its financial condition or results of
operation.





5


FAS
162


In
May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted
Accounting Principles.”  SFAS 162 will provide framework for selecting
accounting principles to be used in preparing financial statements that are
presented in conformity with U.S. generally accepted accounting principles
(GAAP) for nongovernmental entities.  SFAS 162 will be effective 60 days
following the Securities and Exchange Commission’s approval of the Public
Company Accounting Oversight Board (PCAOB) amendments to AU Section 411. 
The Company does not expect the adoption of SFAS 162 will have a material impact
on its financial condition or results of operation.




FAS 163


In
May 2008, the FASB issued SFAS No. 163, “Accounting for Financial Guarantee
Insurance Contracts – an interpretation of FASB Statement No. 60.”  SFAS
163 requires that an insurance enterprise recognize a claim liability prior to
an event of default (insured event) when there is evidence that credit
deterioration has occurred in an insured financial obligation.  This
Statement also clarifies how Statement 60 applies to financial guarantee
insurance contracts, including the recognition and measurement to be used to
account for premium revenue and claim liabilities. Those clarifications will
increase comparability in financial reporting of financial guarantee insurance
contracts by insurance enterprises. This Statement requires expanded disclosures
about financial guarantee insurance contracts. The accounting and disclosure
requirements of the Statement will improve the quality of information provided
to users of financial statements.  SFAS 163 will be effective for financial
statements issued for fiscal years beginning after December 15, 2008.  The
Company does not expect the adoption of SFAS 163 will have a material impact on
its financial condition or results of operation.





NOTE
4 – STOCKHOLDERS EQUITY




The
Company is authorized to issue 10,000,000 shares of it $0.001 par value
preferred stock and 100,000,000 shares of its $0.001 par value common
stock.





Common
Stock




On
March 7, 2008, the Company issued two officers of the Company and an individual
a total of 750,000 shares of its $0.001 par value common stock at a price of
$0.01 per share for a total amount raised of $7,500.




6


On
March 14, 2008, the Company issued 100,000 shares of its common stock toward
legal fees at a value of $0.10 per share.




As
of June 30, 2008, there have been no other issuances of common
stock.





NOTE
5 – RELATED PARTY TRANSACTIONS





On
March 7, 2008, the Company issued two officers of the Company and an individual
a total of 750,000 shares of its $0.001 par value common stock at a price of
$0.01 per share for a total amount raised of $7,500 in exchange for the founding
officer's business plan, business concept, and Website.
   7


FORWARD-LOOKING
STATEMENTS





This
document contains “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995.  All statements other than
statements of historical fact are “forward-looking statements” for purposes of
federal and state securities laws, including, but not limited to, any
projections of earnings, revenue or other financial items; any statements of the
plans, strategies and objections of management for future operations; any
statements concerning proposed new services or developments; any statements
regarding future economic conditions or performance; any statements or belief;
and any statements of assumptions underlying any of the foregoing.





Forward-looking
statements may include the words “may,” “could,” “estimate,” “intend,”
“continue,” “believe,” “expect” or “anticipate” or other similar
words.  These forward-looking statements present our estimates and
assumptions only as of the date of this report.  Except for our
ongoing securities laws, we do not intend, and undertake no obligation, to
update any forward-looking statement.





Although
we believe the expectations reflected in any of our forward-looking statements
are reasonable, actual results could differ materially from those projected or
assumed in any of our forward-looking statements.  Our future
financial condition and results of operations, as well as any forward-looking
statements, are subject to change and inherent risks and
uncertainties.  The factors impacting these risks and uncertainties
include, but are not limited to:





o
            our
      ability to diversify our
operations;


o
            our
      ability to implement our business plan of developing a line of flavorings,
      seasonings, and condiments to be sold in local grocery
    stores;


o
            inability
      to raise additional financing for working
  capital;


o
            the
      fact that our accounting policies and methods are fundamental to how we
      report our financial condition and results of operations, and they may
      require management to make estimates about matters that are inherently
      uncertain;


o
            our
      ability to attract key personnel;


o
            our
      ability to operate profitably;


o
            deterioration
      in general or regional economic
conditions;


o
            changes
      in U.S. GAAP or in the legal, regulatory and legislative environments in
      the markets in which we operate;


o
            adverse
      state or federal legislation or regulation that increases the costs of
      compliance, or adverse findings by a regulator with respect to existing
      operations;


o
            inability
      to achieve future sales levels or other operating
  results;


o
            the
      inability of management to effectively implement our strategies and
      business plans;


o
            the
      unavailability of funds for capital expenditures;
  and


o
            other
      risks and uncertainties detailed in this
report.





For
a detailed description of these and other factors that could cause actual
results to differ materially from those expressed in any forward-looking
statement, please see Item 1A. Risk Factors in this document.




8


Item
2.     
Plan of Operation.





References
in the following discussion and throughout this quarterly report to “we”, “our”,
“us”, “Alcantara”, “the Company”, and similar terms refer to Alcantara Brands
Corporation unless otherwise expressly stated or the context otherwise
requires





Business
Development Summary





Alcantara
Brands is a development stage company incorporated in the State of Nevada in
March of 2008. We intend to introduce a new line of food products to the grocery
industry. We are developing a line of flavorings, seasonings, and condiments
designed to make everyday in-home prepared meals taste better. Made with
Peruvian peppers, the Alcantara Brands are intended to transform routine in-home
prepared foods into exciting meals. Our President, Carlos Alcantara, the founder
of Alcantara Brands comes from Callao, Peru, which is the basis for our Peruvian
brand of products being developed by us.





Since
our inception on March 7, 2008 through June 30, 2008, we have not generated any
revenues and have incurred a net loss of $15,284. As of June of 2008, our only
business activity was the formation of our corporate entity and the development
of our business model. We anticipate the commencement of generating revenues in
the next twelve months, of which we can provide no assurance.  The
capital raised in our offering has been budgeted to cover the costs associated
with the offering, travel expenses, working capital, and covering various filing
fees and transfer agent fees.  We believe that our lack of significant
expenses and our ability to commence purchasing and importing products from Peru
will generate revenues sufficient to support the limited costs associated with
our initial ongoing operations for the next twelve months.  There can
be no assurance that the actual expenses incurred will not materially exceed our
estimates or that cash flows from product imports will be adequate to maintain
our business.  As a result, our independent auditors have expressed
substantial doubt about our ability to continue as a going concern in the
independent auditors’ report to the financial statements.





Introduction
to OurProduct
Line





Our
productis
intended to be a line of flavorings, seasonings, and condiments designed to make
everyday in-home prepared meals taste better. Ourproduct
line will leverage the more intense and ethnic flavor trends, with a healthier
option by the fact that their flavor will not require the added baggage of extra
fat, sugar or salt, which are commonly used in other products to generate
flavor.  The productline
is being designed and developed for the North American palate and lifestyle, and
is intended to be introduced into the mainstream food market.  It will
provide an easy, convenient way to bring spice to meals, with a touch of heat.
 The line promises to add sales for retailers, through the introduction of
a new grocery category (seasoning pastes), and distinctive, unique flavors (the
Peruvian peppers) to established condiment categories.  The Company
expects these products will appeal to the fast-growing consumer segments:
consumers who like hot and spicy foods, and those looking for more ethnic
offerings.





9


There
are many important factors having a significant impact on grocery food
categories sales: long-term, perennial trends, such as convenience and health,
as well as more recent growth of more intense flavor options, and
ethnic/regional cuisine. These factors are reflected in the proliferation of
Mexican sauces, which now outsell that ubiquitous American staple, tomato
ketchup, and new trends such as flavored mayonnaises, hot and spicy ketchups and
meat sauces, and similar products. Increased grilling and other healthier food
preparation techniques have also driven recent rapid growth trends for marinades
and dipping sauces. We intend for Supermarkets to use the Company’s high-margin
product line to build up their specialty food offering, differentiating
themselves from mass merchandisers. The product line ofseasoning
pastes do not replace other products, but are used in addition to them,
representing an opportunity for retailers to build category growth.





Peruvian
Culinary Tradition and OurProduct
Background





The
latest trend to hit the U.S. is the fabulous cuisine of Peru, which is reputedly
the best in South America, and one of the top three in the world (with French
and Chinese cuisine). Peruvian cuisine is known not only for its exquisite
taste, but also for its variety and ability to incorporate the influence from
different times and cultures. The culinary history of the Peruvian food dates
back to the Incas and pre-Incas with its maize, potatoes, and spices that later
was influenced by the arrival of the Spanish colonists, and throughout the years
it incorporated the demands of the different migrations and mestizajes. Such groups
included Chinese, European, African, and Japanese immigrants. The mestizajesresulting from
immigration, combined with the diversity of unique ingredients, is a key factor
in making the local cuisine so distinctive.





The
most important seasoning used to prepare meals during Pre-Hispanic times was
what today is known as aji, which even today is
omnipresent in Peruvian food. Ajiis a hot pepper
considered the soul of Peruvian cooking by its chefs. There are dozens of
varieties in Peru. The seven Peruvian peppers used in our product line(i.e., Amarillo, Mirasol, Panca, Red Limo,
Green Limo, Rocoto,and Charapita) are all new to the
market, and are generally unavailable outside of Peru, except in the Company’s
products. Ourproduct
line will blend the diverse ingredients from Peru’s varied climates and
distinctive ecologies, ranging from the dry coastal planes to Andean foothill
valleys to the jungles of the Amazon.





Plan
of Operation





As
mentioned above, Alcantara Brands is developing a line of flavorings,
seasonings, and condiments designed to make everyday in-home prepared meals
taste better. Made with Peruvian peppers, the Alcantara Brands are intended to
transform routine in-home prepared foods into exciting meals.





Satisfaction of
our cash obligations for the next 12 months.Our plan of operation has
provided for us to: (i) develop a business plan, and (ii) establish a line of
products which can be produced in Peru, as soon as practical. We have
accomplished the goal of developing our business plan; however, we are in the
early stages of setting up an operational company capable of providing products
available for sale to the general public. We do not have sufficient cash to
enable us to development significant inventory, which is an integral part of our
operations.





10


Our
plan for satisfying our cash requirements for the next twelve months is through
the funds from our offering, third party financing, and/or traditional bank
financing.  We anticipate sales-generated income during that same
period of time, but do not anticipate generating sufficient amounts of revenues
to meet our working capital requirements. Consequently, we intend to make
appropriate plans to insure sources of additional capital in the future to fund
growth and expansion through additional equity or debt financing or credit
facilities.





Since
inception, we have financed cash flow requirements through the issuance of
common stock for cash and services. As we continue to expand operational
activities, we may continue to experience net negative cash flows from
operations, pending receipt of revenues from our services, and will be required
to obtain additional financing to fund operations through common stock offerings
and debt borrowings, giving consideration to loans and working diligently to
move sales ahead to the extent necessary to provide working
capital.




We
anticipate incurring operating losses over the majority of the next twelve
months. Our lack of operating history makes predictions of future operating
results difficult to ascertain. Our prospects must be considered in light of the
risks, expenses and difficulties frequently encountered by companies in their
early stage of development. Such risks include, but are not limited to, an
evolving and unpredictable business model and the management of growth. To
address these risks we must, among other things, implement and successfully
execute our business and marketing strategy, continue to develop and upgrade
technology and products, respond to competitive developments, and continue to
attract, retain and motivate qualified personnel. There can be no assurance that
we will be successful in addressing such risks, and the failure to do so can
have a material adverse effect on our business prospects, financial condition
and results of operations.




As
a result of our cash requirements and our lack of revenues, we anticipate
continuing to issue stock in exchange for loans and/or equity financing, which
may have a substantial dilutive impact on our existing
stockholders.





Going
Concern




The
consolidated financial statements included in this filing have been prepared in
conformity with generally accepted accounting principles that contemplate the
continuance of Alcantara as a going concern. Alcantara may not have a sufficient
amount of cash required to pay all of the costs associated with operating and
marketing of its products. Management intends to use borrowings and security
sales to mitigate the effects of cash flow deficits, however no assurance can be
given that debt or equity financing, if and when required, will be available.
The financial statements do not include any adjustments relating to the
recoverability and classification of recorded assets and classification of
liabilities that might be necessary should Alcantara be unable to continue
existence.





11


Summary of any
product research and development that we will perform for the term of the plan.We do not anticipate performing any significant product research and
development under our plan of operation in the near future. In lieu of product
research and development we anticipate maintaining control over our current line
of products, to assist us in determining the allocation of our limited inventory
dollars.





Expected purchase
or sale of plant and significant equipment.We do not anticipate the
purchase or sale of any plant or significant equipment, as such items are not
required by us at this time or in the next 12 months.





Significant
changes in number of employees.The number of employees required to
operate our business is currently two part time individuals. After we complete
the current offering, have commenced our product development program and word of
mouth advertising, and at the end of the initial 12 month period, our plan of
operation anticipates our requiring additional capital to hire at least one full
time person.





Milestones:





As a result of our being a development
stage company with minimal amounts of equity capital initially available, we
have set our goals in three stages: (1) goals based upon the availability of our
initial funding of $7,500 (achieved); (2) goals based upon our funding of
$55,000 (funding and goals being implemented); and (3) goals based upon or
funding additional equity and or debt in the approximate sum of $100,000 to
$200,000 (currently seeking other financing).





With the infusion of capital
anticipated from the current offering, we are implementing Stage II of our Plan
of Operation. We currently have insufficient capital to commence any significant
inventory development or importation. Although we are currently operational and
we are starting to place orders for the production of our line of food products,
our plan of operation is premised upon having inventory dollars available. We
believe that the inventory dollars allocated in the offering will assist us in
generating revenues. We have suffered start up losses and have a working capital
deficiency which raises substantial concern regarding our ability to continue as
a going concern. We believe that the proceeds of the offering will enable us to
maintain our operations and working capital requirements for at least the next
12 months, without taking into account any internally generated funds from
operations. As of July 2008, we commenced the raise of $55,000 to comply with
our business plan of operations for the next 12 months based on our capital
expenditure requirements.





After
our successfully completed offering, we will require additional funds to
maintain and expand our operations as referenced in our Stage III. These funds
may be raised through equity financing, debt financing, or other sources, which
may result in further dilution in the equity ownership of our shareholders. At
this time we have no earmarked source for these funds. Additionally, there is no
guarantee that we will be able to locate additional funds. In the event we are
unable to locate additional funds, we will be unable to generate revenues
sufficient to operate our business as planned. For example, if we receive less
than $100,000 of the funds earmarked in Stage III, we would be unable to
significantly expand our inventory to levels under Stage III. Alternatively we
may be required to reduce the payments of salary to our President and cover
legal and accounting fees required to continue our operations. There is still no
assurance that, even with the funds from the offering, we will be able to
maintain operations at a level sufficient for an investor to obtain a return on
their investment in our common stock. Further, we may continue to be
unprofitable.





12


Liquidity
and Capital Resources





Cash
will be increasing primarily due to the receipt of funds from this offering to
offset our near term cash equivalents. Since inception, we have financed our
cash flow requirements through issuance of common stock. As we expand our
activities, we may, and most likely will, continue to experience net negative
cash flows from operations, pending receipt of product sales. Additionally we
anticipate obtaining additional financing to fund operations through common
stock offerings, to the extent available, or to obtain additional financing to
the extent necessary to augment our working capital.





We
anticipate that we will incur operating losses in the next twelve months. Our
lack of operating history, of approximately only a couple of months, makes
predictions of future operating results difficult to ascertain.  Our
prospects must be considered in light of the risks, expenses and difficulties
frequently encountered by companies in their early stage of development,
particularly companies in new and rapidly evolving markets. Such risks for us
include, but are not limited to, an evolving and unpredictable business model
and the management of growth. To address these risks, we must, among other
things, obtain a customer base, implement and successfully execute our business
and marketing strategy, continually develop our line of food products, respond
to competitive developments, and attract, retain and motivate qualified
personnel. There can be no assurance that we will be successful in addressing
such risks, and the failure to do so can have a material adverse effect on our
business prospects, financial condition and results of operations.





Off-Balance
Sheet Arrangements





We
do not have any off-balance sheet arrangements that have or are reasonably
likely to have a current or future effect on our financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources that is material to
investors.





Critical
Accounting Policies and Estimates





The
preparation of our consolidated financial statements in conformity with
accounting principles generally accepted in the United States requires us to
make estimates and judgments that affect our reported assets, liabilities,
revenues, and expenses, and the disclosure of contingent assets and liabilities.
We base our estimates and judgments on historical experience and on various
other assumptions we believe to be reasonable under the circumstances. Future
events, however, may differ markedly from our current expectations and
assumptions.





13


Recent
Accounting Pronouncements





In
March 2008, the FASB issued SFAS No. 161, "Disclosures about Derivative
Instruments and Hedging Activities", an amendment of SFAS No. 133. SFAS 161
applies to all derivative instruments and non-derivative instruments that are
designated and qualify as hedging instruments pursuant to paragraphs 37 and 42
of SFAS 133 and related hedged items accounted for under SFAS 133. SFAS 161
requires entities to provide greater transparency through additional disclosures
about how and why an entity uses derivative instruments, how derivative
instruments and related hedged items are accounted for under SFAS 133 and its
related interpretations, and how derivative instruments and related hedged items
affect an entity's financial position, results of operations, and cash flows.
SFAS 161 is effective as of the beginning of an entity's first fiscal year that
begins after November 15, 2008. The Company does not expect that the adoption of
SFAS 161 will have a material impact on its financial condition or results of
operation.





Item
3.     
Quantitative and Qualitative Disclosure About Market Risk





This item in not applicable as we are
currently considered a smaller reporting company.





Item
4T.   Controls and
Procedures





Evaluation
of Disclosure Controls and Procedures





We
maintain disclosure controls and procedures designed to ensure that information
required to be disclosed in reports filed under the Securities Exchange Act of
1934, as amended, is recorded, processed, summarized and reported within the
specified time periods.  As of the end of the period covered by this
report, Carlos Alcantara, our President and Principal Accounting Officer
evaluated the effectiveness of our disclosure controls and procedures pursuant
to Exchange Act Rule 13a-15. Based on the evaluation, which disclosed no
significant deficiencies or material weaknesses, Mr. Alcantara, our President
and Principal Accounting Officer concluded that our disclosure controls and
procedures are effective in timely alerting him to material information required
to be included in our periodic SEC filings.





Changes
in Internal Control Over Financial Reporting





There
were no changes in our internal control over financial reporting that occurred
during our most recent fiscal quarter that have materially affected, or
reasonably likely to materially affect, our internal control over financial
reporting.





PART
II--OTHER INFORMATION





Item
1.               Legal
Proceedings.





From
time to time, we may become involved in various lawsuits and legal proceedings
which arise in the ordinary course of business. However, litigation is subject
to inherent uncertainties, and an adverse result in these or other matters may
arise from time to time that may harm our business. We are not presently a party
to any material litigation, nor to the knowledge of management is any litigation
threatened against us, which may materially affect us.





14


Item
1A.   Risk
Factors





We
are a development stage company organized in March 2008 and have recently
commenced operations, which makes an evaluation of us extremely difficult. At
this stage of our business operations, even with our good faith efforts, we may
never become profitable or generate any significant amount of revenues, thus
potential investors have a high probability of losing their
investment.





We
were incorporated in March of 2008 as a Nevada corporation. As a result of our
start-up operations we have; (i) generated no revenues, (ii) accumulated
deficits of $15,284 for the period ended June 30, 2008, and (iii) we have
incurred losses of $15,284 from our inception through the period ended June 30,
2008.  We have been focused on organizational and start-up activities,
business plan development, and commenced development of our food products since
we incorporated. Although we have commenced the development of our food product
lines, there is nothing at this time on which to base an assumption that our
business operations will prove to be successful or that we will ever be able to
operate profitably. Our future operating results will depend on many factors,
including our ability to raise adequate working capital, demand for our
products, the level of our competition and our ability to attract and maintain
key management and employees.





Our
auditor’s have substantial doubt about our ability to continue as a going
concern.  Additionally, our auditor’s report reflects that the ability
of Alcantara Brands to continue as a going concern is dependent upon its ability
to raise additional capital from the sale of common stock and, ultimately, the
achievement of significant operating revenues.





Our
financial statements have been prepared on a going concern basis, which
contemplates the realization of assets and the satisfaction of liabilities in
the normal course of business. Our auditor’s report reflects that the ability of
Alcantara Brands to continue as a going concern is dependent upon its ability to
raise additional capital from the sale of common stock and, ultimately, the
achievement of significant operating revenues. If we are unable to continue as a
going concern, you will lose your investment.  We will be required to
seek additional capital to fund future growth and expansion. No assurance can be
given that such financing will be available or, if available, that it will be on
commercially favorable terms. Moreover, favorable financing may be dilutive to
investors.





We
will require additional financing in order to implement our business plan. In
the event we are unable to acquire additional financing, we may not be able to
implement our business plan resulting in a loss of revenues and ultimately the
loss of your investment.





Due
to our very recent start-up nature, we will have to incur the costs of product
development, import expenses, advertising, in addition to hiring new employees
and commencing additional marketing activities for product sales and
distribution. To fully implement our business plan we will require substantial
additional funding. The recently filed offering, if successful, will only enable
us to commence our product development, and will assist us in further developing
our initial business operations, including the enhancement of product lines;
however, the capital will not be sufficient to allow us to expand our business
meaningfully. Additionally, since the net offering proceeds have been earmarked
for advertising expenses, travel, accounting, legal, some website development
fees, and minimal working capital, we will not be capitalized sufficiently to
hire or pay employees.





15


Following
the offering we will need to raise additional funds to expand our operations. We
plan to raise additional funds through private placements, registered offerings,
debt financing or other sources to maintain and expand our operations. Adequate
funds for this purpose on terms favorable to us may not be available, and if
available, on terms significantly more adverse to us than are manageable.
Without new funding, we may be only partially successful or completely
unsuccessful in implementing our business plan, and our stockholders may lose
part or all of their investment.





We
are significantly dependent on our two officers and directors, who have limited
experience. The loss or unavailability to Alcantara Brands of Mr. and Mrs.
Alcantara’s services would have an adverse effect on our business, operations
and prospects in that we may not be able to obtain new management under the same
financial arrangements.





Our
business plan is significantly dependent upon the abilities and continued
participation of Carlos T. Alcantara, our President. It would be difficult to
replace Mr. Alcantara at such an early stage of development of Alcantara Brands.
The loss by or unavailability to Alcantara Brands of Mr. Alcantara’s services
would have an adverse effect on our business, operations and prospects, in that
our inability to replace Mr. Alcantara could result in the loss of one’s
investment.  Additionally, our business plan is significantly
dependent upon the abilities and continued participation of Shanda Alcantara,
which the loss or unavailability of Mrs. Alcantar could materially impact our
business operations.





There
can be no assurance that we would be able to locate or employ personnel to
replace Mr. or Mrs. Alcantara, should either of their services be discontinued.
In the event that we are unable to locate or employ personnel to replace either
Mr. or Mrs. Alcantara, then we may be required to cease pursuing our business
opportunity.





Mr.
Alcantara has no experience in running a public company. The lack of experience
in operating a public company could impact our return on investment, if
any.





As a result of our reliance on Mr.
Alcantara, and his lack of experience in operating a public company, our
investors are at risk in losing their entire investment. Mr. Alcantara intends
to hire personnel in the future, when sufficiently capitalized, who may have the
experience required to manage our company; however, such management is not
anticipated until the occurrence of future financing. Since the recently filed
offering will not sufficiently capitalize our company, future offerings will be
necessary to satisfy capital needs. Until such future offering occurs, and until
such management is in place, we are reliant upon Mr. Alcantara to make the
appropriate management decisions.








16





Mr.
Alcantara may become involved with other businesses and there can be no
assurance that he will continue to provide services to us. Mr. Alcantara’s
limited time devotion to Alcantara Brands could have the effect on our
operations of preventing us from being a successful business operation, which
ultimately could cause a loss of your investment.





As
compared to many other public companies, we do not have the depth of managerial
or technical personnel. Mr. Alcantara is currently involved in other businesses,
which have not, and are not expected in the future to interfere with Mr.
Alcantara’s ability to work on behalf of our company. Mr. Alcantara may in the
future be involved with other businesses and there can be no assurance that he
will continue to provide services to us. Mr. Alcantara will devote only a
portion of his time to our activities.





Because
of competitive pressures from competitors with more resources, Alcantara Brands
may fail to implement its business model profitably.





The business of developing food product
lines is highly fragmented and extremely competitive. There are numerous
competitors offering similar products. The market for customers is intensely
competitive and such competition is expected to continue to increase. There are
no substantial barriers to entry in this market and we believe that our ability
to compete depends upon many factors within and beyond our control, including
the timing and market acceptance of food products developed by us, our
competitors, and their advisors.





Many
of our existing and potential competitors have longer operating histories in the
food markets, greater name recognition, larger customer bases, established
product lines, and significantly greater financial, technical and marketing
resources than we do. As a result, they will be able to respond more quickly to
new or emerging advertising techniques, and changes in customer demands, or to
devote greater resources to the development, promotion and marketing of their
products than we can. Such competitors are able to undertake more extensive
marketing campaigns for their products, adopt more aggressive pricing policies
and make more attractive offers to potential store outlets, and strategic
distribution partners.





Risks
Relating To Our Common Stock





There
is no current public market for our common stock; therefore you may be unable to
sell your securities at any time, for any reason, and at any price, resulting in
a loss of your investment.





As
of the date of this filing, there is no public market for our common stock.
Although we plan, in the future, to contact an authorized OTC Bulletin Board
market maker for sponsorship of our securities on the Over-the-Counter Bulletin
Board, there can be no assurance that our attempt to do so will be successful.
Furthermore, if our securities are not quoted on the OTC Bulletin Board, or
elsewhere, there can be no assurance that a market will develop for the common
stock or that a market in the common stock will be maintained. As a result of
the foregoing, investors may be unable to liquidate their investment for any
reason. We have not originated contact with a market maker at this time, and do
not plan on doing so until completion of this offering.




17


Because
our common stock is deemed a low-priced “Penny” stock, an investment in our
common stock should be considered high risk and subject to marketability
restrictions.





Since
our common stock is a penny stock, as defined in Rule 3a51-1 under the
Securities Exchange Act, it will be more difficult for investors to liquidate
their investment even if and when a market develops for the common stock. Until
the trading price of the common stock rises above $5.00 per share, if ever,
trading in the common stock is subject to the penny stock rules of the
Securities Exchange Act specified in rules 15g-1 through 15g-10. Those rules
require broker-dealers, before effecting transactions in any penny stock,
to:





·
            Deliver
      to the customer, and obtain a written receipt for, a disclosure
      document;


·
            Disclose
      certain price information about the
stock;


·
            Disclose
      the amount of compensation received by the broker-dealer or any associated
      person of the broker-dealer;


·
            Send
      monthly statements to customers with market and price information about
      the penny stock; and


·
            In
      some circumstances, approve the purchaser’s account under certain
      standards and deliver written statements to the customer with information
      specified in the rules.





Consequently,
the penny stock rules may restrict the ability or willingness of broker-dealers
to sell the common stock and may affect the ability of holders to sell their
common stock in the secondary market and the price at which such holders can
sell any such securities. These additional procedures could also limit our
ability to raise additional capital in the future.





Our
internal controls may be inadequate, which could cause our financial reporting
to be unreliable and lead to misinformation being disseminated to the
public.





Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting. As defined in Exchange Act Rule 13a-15(f),
internal control over financial reporting is a process designed by, or under the
supervision of, the principal executive and principal financial officer and
effected by the board of directors, management and other personnel, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles and includes those policies and
procedures that: (i) pertain to the maintenance of records that in reasonable
detail accurately and fairly reflect the transactions and dispositions of the
assets of Alcantara Brands; (ii) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and
expenditures of Alcantara Brands are being made only in accordance with
authorizations of management and directors of Alcantara Brands, and (iii)
provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of Alcantara Brands’s assets that
could have a material effect on the financial statements.





18


We
have two individuals performing the functions of all officers and directors. Mr.
Alcantara, our president, has developed our internal control procedures and is
responsible for monitoring and ensuring compliance with those procedures. As a
result, our internal controls may be inadequate or ineffective, which could
cause our financial reporting to be unreliable and lead to misinformation being
disseminated to the public. Investors relying upon this misinformation may make
an uninformed investment decision.





Item
2.     
Unregistered Sales of Equity Securities and Use of Proceeds.





We
have no recent sales of unregistered securities; however in July of 2008, we
commenced selling 550,000 shares of our common stock for a total purchase price
of $55,000.  The 550,000 shares were registered in a Registration
Statement on Form S-1 (declared effective by the SEC on April 21, 2008) and are
based upon an all or nothing best efforts offering. We anticipate completion of
the offering during August of 2008. As a result of the offering being an all or
nothing offering, we are not able to utilize any of the proceeds until all
subscriptions are received and approved by us.





Issuer
Purchases of Equity Securities





We did not repurchase any of our equity
securities from the time of our inception on March 7, 2008 through the period
ended June 30, 2008.





Item
3.               Defaults
Upon Senior Securities.





None.





Item
4.               Submission
of Matters to a Vote of Security Holders.





We did not submit any matters to a vote
of our security holders from the time of our inception through the period ended
June 30, 2008.





Item
5.               Other
Information.





None.





Item
6.               Exhibits.





Incorporated
      by referenceExhibit
                Number
              Exhibit
      Description
              Filed
                herewith
              Form
              Period
                ending
              Exhibit
              Filing
      date3(i)(a)
              Articles
      of Incorporation of Alcantara Brands Corporation
              
              SB-2
              
              3(i)(a)
              3/19/083(ii)(a)
              Bylaws
      of Alcantara Brands Corporation
              
              SB-2
              
              3(ii)(a)
              3/19/084
              Instrument
      defining the rights of security holders:
                (a)           Articles
      of Incorporation
                (b)           Bylaws
                (c)           Stock
      Certificate Specimen
              
              SB-2
              
              
              3/19/0810.1
              Subscription
      Agreement
              
              SB-2
              
              10.1
              3/19/0831
              Certification
      pursuant to Section 302 of the Sarbanes-Oxley Act
              X32
              Certification
      pursuant to Section 906 of the Sarbanes-Oxley Act
              X


19


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.








ALCANTARA
BRANDS CORPORATION


(Registrant)











By: /s/ Carlos Alcantara


Carlos
Alcantara, President


(On
behalf of the registrant and as


principal
financial officer)





Date:
August 13, 2008








20