New Age Beverages Corporation (NASDAQ: NBEV), the Colorado-based
organic and natural products company, today announced the closing
of the acquisition of Brands Within Reach (BWR), Inc., a New
York-based marketing, sales, and distribution company including the
licensing or distribution rights to some of the world’s leading
beverage brands including Nestea, Illy Ready-to-Drink Coffee,
Volvic and Evian premium waters, and other healthy brands.
KEY HIGHLIGHTS:
- Adds the globally recognized brands of Nestea, Volvic, Illy
and others to New Age
- Significantly increases the North American Sales and
Marketing, Supply Chain, and Distribution footprints to enable the
capture of significant cost and revenue synergies
- Strengthens brand building, sales and distribution expertise
in North America to accelerate growth of the combined New Age and
BWR portfolios
BWR owns key licensing and distribution rights
in the United States for healthy positioned and fast growing
beverages such as Nestea Ready to Drink teas, Volvic Natural Spring
Water, Illy Ready to Drink Coffee in retail channels, Evian Natural
Spring Water in the Natural Channel and Found Sparkling beverages ,
Kusmi Tea, Saint-Géron Sparkling Water and select natural and
organic snacks such as Nature Addicts, Grand-Mere, Lucien Georgelin
and La Mere Poulard.
Consideration for the transaction was $2.5
million which was utilized to eliminate 100% of BWR’s debt, plus a
$500,000 payment to the sellers. We will also issue up to
700,000 restricted shares of New Age common stock which may be
reduced following a final working capital covenant calculation. BWR
will be bringing a portfolio of healthy brands to New Age which is
expected to add greater than $15 million in net revenue on a full
year basis to New Age.
Brent Willis, Chief Executive Officer of New Age
Beverages commented, “We have been extremely busy integrating BWR
and New Age. We have already integrated our sales and
marketing organizations, have brought all our shared services
functions to bear to benefit BWR, and are now harmonizing our
operational footprint and supply chain. The process has gone
extremely smoothly, and we are excited about the potential that the
BWR brands represent in a number of our markets and channels,
beyond just traditional retail.”
The global company will remain headquartered in
Denver, Colorado with major operations in Shanghai, Tokyo, Taipei,
Stockholm, Munich, and Utah. BWR will be fully integrated
into New Age, and a new North American operations location will be
established in New York at BWR’s current offices.
Since announcement of the acquisition on June 2,
2019, New Age’s and BWR’s teams have been working on convergence
including capturing more than $1.5 million in anticipated cost
synergies that will accrue in the areas major distributor
management, integrated warehousing and logistics, scale and
efficiency benefits in transportation, and other areas. We
also expect to achieve more than $10 million in revenue synergies
within the first 18 months by cross selling each other’s brands
into existing key account relationships including Kroger, Costco,
Walmart, 7 Eleven, Circle K, and others; through expansion of BWR’s
portfolio through New Age’s captive direct store distribution in
Colorado and surrounding markets; and via expansion of the BWR
brands into New Age’s e-Commerce system.
About Brands Within Reach
(WWW.BWRGROUP.COM
)Brands Within Reach is a New York-based healthy
products company dedicated to offering healthy innovative drinking
and eating alternatives to consumers. The group operates a
national hybrid distribution platform with marketing, merchandising
and a full set of organizational capabilities and owns the
licensing and distribution rights to worldwide known brands such as
Nestea, Volvic, Evian and Illy Ready-to-Drink Coffee and
others.
About New Age Beverages Corporation
(NASDAQ: NBEV)New Age
Beverages Corporation is a Colorado and Utah-based healthy products
company dedicated to inspiring and educating consumers to "live
healthy." The Company is the only omni-channel company with access
to traditional retail, e-commerce, direct-to-consumer, and medical
channels across 60 countries around the world. New Age is
also the only one-stop-shop of healthy beverages with a portfolio
that includes the brands Tahitian Noni, TeMana, Búcha Live
Kombucha, XingTea, Coco-Libre, Marley, and others. New Age competes
in the growth segments of the >$1 trillion-dollar non-alcoholic
beverage industry and has become one of the 40 largest
non-alcoholic beverage companies, one of the largest healthy
beverage companies, and the fastest growing in the world over the
past three years. The Company's brands are sold across all 50
states within the US and in more than 60 countries internationally
across all channels via a hybrid of direct-to-consumer and
traditional distribution and route-to-market systems.
The Company operates the websites
www.newagebev.com, www.newagebev.us, www.morinda.com,
www.bwrgroup.com, www.mybucha.com, www.xingtea.com,
www.drinkmarley.com, www.nhancedcbd.com, and
www.cocolibre.com.
New Age has exclusively partnered with the world's 5th largest
water charity, WATERisLIFE, to end the world water crisis with the
most innovative technologies available. Donate at WATERisLIFE.com
to help us #EnditToday.
Safe Harbor DisclosureThis
press release contains forward-looking statements that are made
pursuant to the safe harbor provisions within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are any statement reflecting
management's current expectations regarding future results of
operations, economic performance, financial condition and
achievements of the Company including statements regarding New Age
Beverage's expectation to see continued growth, the capturing more
than $1.5 million in anticipated cost synergies that will accrue in
the areas major distributor management, integrated warehousing and
logistics, scale and efficiency benefits in transportation, and
other areas, and the statements that . We also expect to
achieve more than $10 million in revenue synergies within the first
18 months by cross selling each other’s brands into existing key
account relationships including Kroger, Costco, Walmart, 7 Eleven,
Circle K, and others; through expansion of BWR’s portfolio through
New Age’s captive direct store distribution in Colorado and
surrounding markets; and via expansion of the BWR brands into New
Age’s e-Commerce system. The forward-looking statements are
based on the assumption that operating performance and results will
continue in line with historical results. Management believes these
assumptions to be reasonable but there is no assurance that they
will prove to be accurate. Forward-looking statements, specifically
those concerning future performance are subject to certain risks
and uncertainties, and actual results may differ materially. New
Age Beverages competes in a rapidly growing and transforming
industry, and other factors disclosed in the Company's filings with
the Securities and Exchange Commission might affect the Company's
operations. Unless required by applicable law, NBEV undertakes no
obligation to update or revise any forward-looking statements.
For investor inquiries about New Age
Beverages Corporation please contact:
Media:Desiree Rosa MULTIPLY
Tel: 202-292-4566NewAgeBev@wearemultip.ly
Investor Relations Counsel:Cody
Slach, GatewayTel 949-574-3860NBEV@GatewayIR.com
New Age Beverages
Corporation:Gregory A. GouldChief Financial OfficerTel
303-566-3030GGould@NewAgeBev.com
- New Age Beverages Corporation
- New Age Beverages Corporation
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