DENVER, CO--(Marketwired - Apr 3, 2017) - New Age Beverages Corporation (NASDAQ: NBEV), the Colorado-based company that markets the brands XingTea®, XingEnergy®, Aspen Pure® PH and Aspen Pure® Probiotic Water, Búcha® Live Kombucha, Marley One Drop® Coffee, and Marley Mellow Mood® Relaxation Drinks, today announced the acquisition of Maverick Brands, LLC and its flagship coconut water beverages line Coco-Libre®. The acquisition fills an important gap to complete the Company's functional beverages portfolio, brings in a top 5 and the number one multi-serve brand in the category, and provides an excellent organic coconut water source for some of the Company's planned new products.
New Age Beverages Corporation successfully completed a $17.5 million financing and up-listing to the NASDAQ Capital Market Exchange in February. One of the major drivers of growth that the company shared with investors was the potential addition of new brands/companies to act as an accelerant and solidify the Company's position as a leader in healthy functional beverages. The acquisition of Coco-Libre® is a reflection of New Ages's strategy taking hold, provides a tremendous value creation and instantly accretive opportunity for shareholders, provides an important organic coconut water sourcing platform for some of New Age's planned new products, and brings a leading brand into the New Age brand portfolio.
The transaction includes a combination of cash and shares of common stock in New Age Beverages in return for 100% of the assets and interests of Maverick Brands, LLC and their portfolio of products within the Coco-Libre® franchise. Specific terms of the deal were not disclosed, with the final closing of the transaction subject to certain closing conditions.
Maverick Brands CEO Candace Crawford, commented, "This evolution provides Coco-Libre® with the necessary resources to fund and scale the next phase of growth. We couldn't be more excited for Coco-Libre® to join the New Age Beverages family." Crawford, who previously led the sale of ZICO Beverages to The Coca-Cola Company, joined Maverick Brands in February 2015 with a mandate to expand distribution and category innovation. In that time, she oversaw a brand and packaging relaunch, formulation and launch of the category's first sparkling line, launch of the award-winning Protein line, and growth of the business to become a leader in the category. Crawford continued, "Coco-Libre® is now well positioned to build on its momentum through the New Age Beverage's supply chain, manufacturing and national DSD network, and we believe Coco-Libre® will thrive in the New Age system."
THE NEW AGE BEVERAGES CORPORATION
With the addition of Coco-Libre®, New Age will now compete in the following growth segments with organic or all natural, no preservative, no high fructose corn syrup, no GMOs, healthier beverages including:
- RTD Tea - XingTea®
- Kombucha - Búcha® Live Kombucha
- Functional Waters - Aspen Pure® PH, Aspen Pure® Probiotic
- Energy Drinks - XingEnergy®
- RTD Coffee - Marley One Drop®
- Relaxation Drinks - Marley Mellow Mood®
- Coconut Water - Coco Libre®
Each of the brands have unique competitive points of difference in their respective segments, bound under the New Age umbrella as healthier alternatives with superior functional benefits for consumers.
As part of the combination, the team has identified more than $5 million in cost and revenue synergies to be gained over the next 12 months. A convergence committee has been established that has already begun work on identified areas of savings and growth. In the cost synergy area, the group will realize more than $3 million in immediate savings in operating expenses and infrastructure convergence.
Brent Willis, Chief Executive Officer for New Age Beverages and a former senior executive with AB InBev and The Coca-Cola Company commented, "Candace and the Maverick Brands organization did an incredible job in building Coco-Libre® to a top five and the number one multi-serve brand in the category. They led the category with innovation and built a truly differentiated brand in the space. Now with New Age's resources, infrastructure and capabilities, we expect to help Coco-Libre® grow to its full potential."
About New Age Beverages Corporation (NASDAQ: NBEV)
New Age Beverages Corporation is a Colorado-based, leading all-natural tea and healthy functional beverage company that was founded in 2003. The Company competes in the fast growing healthy functional beverage segments including Ready to Drink (RTD) Tea, RTD Coffee, Kombucha, Energy Drinks, Relaxation Drinks, Coconut Waters and Functional Waters with the brands XingTea®, Marley One Drop®, Búcha® Live Kombucha, XingEnergy®, Marley Mellow Mood®, Coco-Libre®, and Aspen Pure® PH and Aspen Pure® Probiotic Water. The Company's brands are sold across all 50 states within the US and in more than 10 countries internationally across all channels via direct and store door distribution systems. The company operates the websites www.newagebev.us, www.mybucha.com, www.xingtea.com, www.aspenpure.com, www.drinkmarley.com, and www.cocolibre.com
Safe Harbor Disclosure
This 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 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, New Age Beverages undertakes no obligation to update or revise any forward-looking statements.