Turning Point Brands Increases Equity Stake in ReCreation Marketing, a Leading Canadian Distribution Company
August 10 2021 - 7:30AM
Business Wire
Transaction Prominently Positions Turning Point
Brands to Capitalize on the Strength of the Canadian Recreational
Cannabis Sector
Turning Point Brands, Inc. (“TPB” or the “Company”) (NYSE: TPB),
a manufacturer, marketer and distributor of branded consumer
products, including alternative smoking accessories and consumables
with active ingredients, announced today that it has increased its
equity stake in ReCreation Marketing (“ReCreation”), a Canadian
distribution company, from 50 percent to 65 percent. The
transaction was completed on Friday, July 30, 2021.
ReCreation Marketing is a specialty marketing and distribution
firm focused on building brands in the Canadian smoking
accessories, vaping and alternative products categories. As part of
this transaction, ReCreation will transition its company name to
Turning Point Brands Canada Corporation over the next 90 days.
ReCreation has significantly expanded the reach of Zig-Zag papers,
which now has presence in 75% of the volume-weighted distribution
within the private dispensary channel. As a result of the
ReCreation partnership, TPB expects to continue to expand its
presence in Canada, creating an avenue for its broader portfolio of
products to enter the Canadian market.
“Increasing our stake in ReCreation Marketing was a logical move
as Turning Point Brands continues to invest in the cannabis and
tobacco-related sectors,” said Larry Wexler, CEO, Turning Point
Brands. “Our partners at ReCreation Marketing are significantly
expanding the distribution of our brands while also gaining market
share in Canada, most notably capitalizing on Zig-Zag’s strong
market position in the country. The increased stake and renaming
into Turning Point Brands Canada signify the commitment to our
strategy in Canada. We look forward to continuing to work closely
with this accomplished team to strengthen our prominence in the
market.”
“Turning Point Brands’ robust portfolio of leading brands,
coupled with ReCreation Marketing’s proven ability to support
distribution in traditional and alternative channels, is a natural
expansion of our work together,” added Chris Riddoch, President of
ReCreation Marketing. “This transaction will provide both companies
the opportunity to penetrate the market and to increase our
visibility and accessibility to Canadian retailers and consumers,
alike.”
About Turning Point Brands
Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and
distributor of branded consumer products, including alternative
smoking accessories and consumables with active ingredients,
through its iconic core brands Zig-Zag® and Stoker’s® and its
emerging brands within the NewGen segment. TPB’s products are
available in more than 210,000 retail outlets in North America, in
addition to sites such as www.zigzag.com, www.nu-x.com and
www.solacevapor.com. For the latest news and information about TPB
and its brands, please visit www.turningpointbrands.com.
About ReCreation Marketing
ReCreation is a specialty marketing and distribution firm
focused on building brands in the Canadian smoking, vaping and
alternative products categories. ReCreation’s management has
significant expertise in marketing and distributing tobacco
products throughout Canada, with over 50 years of combined
experience building and managing a portfolio of premium brands.
ReCreation’s management is supported by a team of expert sales
associates who serve up to 30,000 traditional retail outlets and
newly-established cannabis dispensaries across Canada.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements may generally be identified by the use of words such as
"anticipate," "believe," "expect," "intend," "plan" and "will" or,
in each case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters
that are not historical facts. By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future. As a result, these statements are not guarantees of future
performance and actual events may differ materially from those
expressed in or suggested by the forward-looking statements. Any
forward-looking statement made by TPB in this press release, its
reports filed with the Securities and Exchange Commission (the
“SEC”) and other public statements made from time-to-time speak
only as of the date made. New risks and uncertainties come up from
time to time, and it is impossible for TPB to predict or identify
all such events or how they may affect it. TPB has no obligation,
and does not intend, to update any forward-looking statements after
the date hereof, except as required by federal securities laws.
Factors that could cause these differences include, but are not
limited to those included it the company’s Annual reports on Form
10-K, Quarterly Reports on Form 10-Q and other reports filed by the
Company with the SEC. These statements constitute the Company’s
cautionary statements under the Private Securities Litigation
Reform Act of 1995.
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version on businesswire.com: https://www.businesswire.com/news/home/20210810005159/en/
Media Contacts
Turning Point Brands, Inc.: Caitlin Kasunich / Raquel
Cona KCSA Strategic Communications 212.896.1241 / 212.896.1204
ckasunich@kcsa.com / rcona@kcsa.com
Investor Contacts
Turning Point Brands, Inc.: Louie Reformina, Senior Vice
President, CFO Turning Point Brands, Inc. 502.774.9238
ir@tpbi.com
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