NewAge Expands Operations To Brazil
October 09 2020 - 8:00AM
NewAge, Inc.
(Nasdaq:
NBEV), the Colorado-based omni-channel
social selling and distribution company, with a network of
independent business owners across 75 countries worldwide when
combined with ARIIX, today announced that it has expanded
operations to Brazil, one of the six largest direct selling markets
in the world.
NewAge and ARIIX announced their plans to merge
on July 20, 2020, which will create a combined company with pro
forma revenues of more than $500 million with operations worldwide
and access to both developed and developing markets in key areas of
the world. Since the announcement, the company has been working on
identifying and capturing synergies as part of the transaction and
completing the audit of ARIIX’s financial statements to enable
closing of the transaction. In addition to cost synergies of more
than $20 million, NewAge also identified revenue synergies from
cross-sales of brands and providing access for respective leaders
to each other’s markets. The Brazil expansion is a realization of
one of those revenue synergies.
Brazil is one of the six largest markets
globally in direct selling. Industry-wide, the market totals over
3.8 million independent representatives with annual sales of
approximately $10 billion. NewAge established operations and its
office in Sao Paulo in the second quarter and is now expanding
operations to take advantage of the burgeoning opportunity there.
ARIIX has recently commenced operations in Brazil.
“The building of the Brazil market is yet
another important step in our strategy to bring our products and
brands through our omni-channel strategy to emerging markets around
the globe,” said Brent Willis, Chief Executive Officer of NewAge.
“Everything we have done with our Brazil expansion has been very
local and very Brazilian, which is a must to be successful.
Providing access to the market opportunity there for all our reps
from all our partner companies is a great benefit for them, and a
great growth opportunity for us.”
Fred Cooper, CEO of ARIIX commented, “Expansion
to NewAge’s global market footprint was one of the great
opportunities that we wanted to provide for our reps, and I am
excited to see it happening so quickly. With all of the momentum
that ARIIX is experiencing, coupled with the excitement of the
announcement, we are drawing increased interest to join the NewAge
ARIIX platform following the merger. Over the next several months,
we will continue to locally register additional brands and products
in Brazil and other Latin American market strongholds. Our ability
to now ship products locally, direct to consumers, well positions
us to be able to capitalize on the potential of this growing
market.”
About
NewAge, Inc.
(NASDAQ: NBEV)
NewAge is a Colorado-based organic and healthy products company
dedicated to inspiring and educating consumers to “Live Healthy.”
The Company is an omni-channel distribution company with access to
traditional retail, e-commerce, direct-to-consumer, and medical
channels across more than 75 countries worldwide when combined with
ARIIX. NewAge markets a portfolio of differentiated healthy
functional brands in three category platforms including Health
& Wellness, Healthy Appearance, and Nutritional Performance.
The Company operates the websites newage.com, noninewage.com, and a
number of other individual brand websites.
Safe Harbor DisclosureThis
press release contains forward-looking statements that are made
under 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 expectations
regarding future results of operations, economic performance,
financial condition, the acquisition of ARIIX, statements about the
benefit of the ARIIX transaction, and the extent and duration of
COVID-19 on its business. 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 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. NewAge
competes in a rapidly growing and transforming industry, and risk
factors, including those disclosed in the company's filings with
the Securities and Exchange Commission, might affect the Company’s
operations. Unless required by applicable law, the Company
undertakes no obligation to update or revise any forward-looking
statements.
For investor inquiries about
NewAge please contact:
NewAge Investor
Relations:Riley TimmerVice President, Investor
RelationsTel: 1-801-870-8685Riley_Timmer@NewAge.com
Investor Relations Counsel:John
Mills/Scott Van WinkleICR – Strategic Communications and
AdvisoryTel: 1-646-277-1254/1-617-956-6736newage@icrinc.com
NewAge,
Inc.:Gregory A. GouldChief Financial
OfficerTel: 1-303-566-3030Greg_Gould@NewAge.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/bf2a765a-edd1-46d6-a4ca-9ba821136131
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