NewAge, Inc. Forms Manufacturing Partnership With Taiwan-Based TCI
July 12 2021 - 6:00AM
NewAge, Inc. (Nasdaq: NBEV), the Colorado-based
organic and healthy products company intending to become the
world’s leading social selling and distribution company, today
announced that it has formed a manufacturing partnership with and
agreed to sell its US manufacturing operations to Taiwan-based TCI
Co., Ltd.
Taiwan stock exchange listed TCI was founded in
1980, and has grown to almost $300 million in annual revenue with
more than 1,150 employees worldwide. TCI is one of the preeminent
manufacturers of functional drinks, skincare, nutritional
supplements and other healthy products with manufacturing and
biotech operations in Taiwan, PRC, Japan, Netherlands and now the
US, with exports to more than 50 countries worldwide. TCI is also a
leader in research and development with an extensive
bio-diversified portfolio with over 200 patents, and was recently
recognized by the Financial Times as one of Asia’s fastest-growing
companies.
As part of the memorandum of understanding,
NewAge will sell its US manufacturing operations and US office
based in American Fork, Utah to TCI. TCI will be providing a
combination of $3.5 million in cash and a share of revenues over
the next five years as consideration, and is expected to take over
production over the next 90 days. NewAge will continue to produce
its Tahitian Noni® Juice extractions in its own processing facility
in Tahiti, where the company sources almost 90% of all the Noni
produced in the region farm to bottle.
Vincent Lin, Chief Executive Officer for TCI
commented, “TCI has been one of the fastest-growing companies in
Asia over the past five years, and we see this partnership with
NewAge as a further accelerant for us. We are incredibly excited to
be working with NewAge, that has been one of the fastest-growing
CPG companies worldwide. Their more than 400,000 brand partners and
direct-to-consumer system is an emerging competitive advantage for
them. We expect to enable them even more by focusing on what we do
best with our world-class manufacturing, our integrated bioscience,
and the leverage of our extensive patent and product development
pipeline.”
The new partnership is expected to produce
significant benefits for both TCI and NewAge. NewAge will focus on
its core competencies of commercializing its portfolio of health
brands direct to consumers, utilizing its team of exclusive brand
partners enable with the leading social selling technologies and
platforms available worldwide. In addition to focus, NewAge expects
to enjoy reduced costs of goods sold leveraging TCI’s manufacturing
expertise and will benefit from significantly reduced headcount and
SG&A expense. NewAge will also receive the one-time benefit of
the sale of the manufacturing operations, and receive the upside
from the revenue sharing over the next five years. TCI will benefit
via expanding its operations and customer base in the US,
immediately gain an additional revenue base, and long-term will
benefit via partnering with NewAge to bring to market its pipeline
of breakthrough new products through NewAge’s global network. The
partnership is subject to negotiation and execution of customary
definitive agreements in accordance with the memorandum of
understanding.
Phil Lewis, SVP of Operations for NewAge
commented, “This is a great deal for both TCI and NewAge, and we
expect this to be just the beginning of a long-term very successful
partnership. TCI brings incredible technology and manufacturing
expertise to the venture enabling NewAge to focus on leveraging its
sales and marketing capabilities and global distribution network.
The opportunity for NewAge to both reduce costs and lower SG&A
will have a direct impact on our bottom line in 2021, and the
efficiency and quality improvements from working with a company
like TCI, initially in the US and then in other markets around the
world, will have long-term strategic benefits.”
About TCI Co., Ltd.TCI CO.,
LTD. is located in Taipei City, Taiwan, was founded in 1980, and
has grown to almost $300 million in annual revenue with more than
1,150 employees. TCI’s operations span 15 different companies in
their corporate family with major manufacturing and research
centers in key markets around the world. TCI develops and
produces high-performance healthy food, functional beverages and
skin care products sold in more than 54 countries, and is a leading
bio-tech company and developer of the Integrated Bioscience Design
concept. More information about TCI can be found at the company
website at www.tci-bio.com.About NewAge,
Inc.NewAge is a purpose-driven firm intending to become
the world’s leading social selling and distribution company.
Colorado-based NewAge commercializes a portfolio of organic and
healthy products worldwide through primarily a direct
route-to-market system. The company competes in three major
category platforms including health and wellness, inner and outer
beauty, and nutritional performance and weight management — leading
a network of more than 400,000 exclusive independent distributors
and Brand Partners around the world.
The company operates the websites NewAge.com,
NoniNewAge.com, ARIIX.com, MaVie.com, TheLIMUCompany.com
and Zennoa.com 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, and
financial condition. 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 & Public
Relations:Mindy EardleyDirector, Public and Investor
RelationsTel:
1-801-573-4818Mindy_Eardley@newage.com
NewAge Investor RelationsBPC Financial
Marketing800 816 7361ir@bpcfinancialmarketing.com
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