NEW YORK, March 30, 2017 /PRNewswire/ -- Castle Brands Inc.
(NYSE MKT: ROX), a developer and international marketer of premium
and super-premium branded spirits, today announced that it has
acquired an additional 20.1% stake in Gosling-Castle Partners Inc.
("GCP"), its strategic global export venture with the Gosling
family.
GCP holds the exclusive long-term export and distribution rights
for Goslings Rum and Goslings Stormy Ginger Beer for all countries
other than Bermuda. The
transaction increases Castle Brands ownership of GCP to 80.1% and
will enable consolidation for tax purposes.
In a related development, Castle Brands announced that GCP's
exclusive export agreement with Gosling's Export (Bermuda) Limited and exclusive distribution
agreement with Castle Brands have been extended through
March 31, 2030, with ten-year renewal
terms thereafter.
"Since Castle Brands joined forces with the Gosling family to
form GCP in 2005, sales of Goslings Rum have grown rapidly in
the United States and
internationally. Sales were approximately 170,000 cases (9L) during
the 12 months ended December 31,
2016. In addition, we have worked together to launch and
grow Goslings Stormy Ginger Beer, used in the trademarked Dark
'n Stormy® cocktail, an important driver of Goslings Rum sales.
Sales of Goslings Stormy Ginger Beer were approximately 1,325,000
cases during the 12 months ended December
31, 2016. We are very glad that we have increased our
ownership of GCP and have extended the terms of our Goslings
agreements," stated Richard J.
Lampen, President and Chief Executive Officer of Castle
Brands.
"The Goslings family has produced Goslings rum in Bermuda for 200 years. Because we realized
that the brand had great potential in the U.S. and internationally,
we initiated sales in the U.S. almost 20 years ago. By joining
together with Castle Brands in 2005, we sharply accelerated that
growth by gaining a very strong sales force, top-tier distributor
relations and substantial infrastructure to support operations. We
are excited to be taking these important steps to expand the
relationship with Castle Brands," said Malcolm Gosling, President and Chief Executive
Officer of GCP.
"We believe that our sales and marketing initiatives will
enhance Goslings Rum sales and that the strong growth of Goslings
Stormy Ginger Beer will expand the consumer base, grow brand
awareness and drive more consumer pull. We look forward to working
even more closely with Malcolm
Gosling and the Gosling family to build the prominence of
the iconic Goslings brands," added John
Glover, Executive Vice President and Chief Operating Officer
of Castle Brands.
About Goslings Rum
Goslings Rum has been blended in Bermuda for over 200 years by Gosling's
Brothers Ltd., the oldest company in Bermuda. Seven
generations of the Gosling's family have built the brand into the
"National Drink of Bermuda".
Goslings Black Seal® Rum, Goslings Gold® Rum
and Goslings Old® Rum are all award-winners. Because of
its rapid growth, Goslings Rum was named a "Hot Prospect" by
Impact Magazine. In addition to the United States, Goslings is now sold in 20
countries globally. Goslings Dark 'n Stormy®
cocktail is one of the few trademarked cocktails in the world and
Goslings Stormy Ginger Beer, launched in 2009 to fuel the growth of
this cocktail, has become the leading Ginger Beer in the
United States.
About Castle Brands
Castle Brands is a developer and international marketer of
premium and super-premium brands including:
Jefferson's®, Jefferson's Presidential
Select™, Jefferson's Reserve®, Jefferson's
Ocean Aged at Sea Bourbon, Jefferson's Wine Finish Collection and
Jefferson's Wood Experiments, Goslings® Rums,
Goslings® Stormy Ginger
Beer, Knappogue Castle Whiskey®,
Clontarf® Irish Whiskey, Pallini® Limoncello,
Boru® Vodka, and Brady's® Irish Cream.
Additional information concerning the Company is available on the
Company's website, www.castlebrandsinc.com.
Forward Looking Statements
This press release includes statements of our expectations,
intentions, plans and beliefs that constitute "forward looking
statements" within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934 and
are intended to come within the safe harbor protection provided by
those sections. These statements, which involve risks and
uncertainties, relate to the discussion of our business strategies
and our expectations concerning future operations, margins, sales,
taxes, new products and brands, potential joint ventures, potential
acquisitions, expenses, profitability, liquidity and capital
resources and to analyses and other information that are based on
forecasts of future results and estimates of amounts not yet
determinable. You can identify these and other forward-looking
statements by the use of such words as "may," "will," "should,"
"expects," "intends," "plans," "anticipates," "believes," "thinks,"
"estimates," "seeks," "predicts," "could," "projects,"
"potential" and other similar terms and phrases, including
references to assumptions. These forward looking statements are
made based on expectations and beliefs concerning future events
affecting us and are subject to uncertainties, risks and factors
relating to our operations and business environments, all of which
are difficult to predict and many of which are beyond our control,
that could cause our actual results to differ materially from those
matters expressed or implied by these forward looking statements.
These risks include our history of losses and expectation of
further losses, our ability to expand our operations in both new
and existing markets, our ability to develop or acquire new brands,
our relationships with distributors, the success of our marketing
activities, the effect of competition in our industry and economic
and political conditions generally, including the current economic
environment and markets. More information about these and other
factors are described under the caption "Risk Factors" in Castle
Brands' Annual Report on Form 10-K for the year ended March 31, 2016, as amended, and other reports we
file with the Securities and Exchange Commission. When
considering these forward looking statements, you should keep in
mind the cautionary statements in this press release and the
reports we file with the Securities and Exchange Commission. New
risks and uncertainties arise from time to time, and we cannot
predict those events or how they may affect us. We assume no
obligation to update any forward looking statements after the date
of this press release as a result of new information, future events
or developments, except as required by the federal securities
laws.
Castle Brands Inc.
Investor Relations, 646-356-0200
info@castlebrandsinc.com
www.castlebrandsinc.com
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SOURCE Castle Brands Inc.