NORTH PALM BEACH, Fla. -- Bravo! Foods International Corp., a brand development and marketing company that manufactures, promotes and distributes vitamin- fortified flavored milks, said that it has signed an exclusive, 10-year distribution agreement with Coca-Cola Enterprises (CCE), the world's largest marketer, distributor and producer of bottle and can liquid nonalcoholic beverages.
Coca-Cola Enterprises will begin distribution of Bravo!'s Slammers in fourth-quarter 2005 and initially carry eight SKUs, including Bravo!'s Slim Slammers, Pro-Slammers, 3 [image-nocss] Musketeers Slammers, Starburst Slammers and Milky Way Slammers. Bravo!'s Slammers will be distributed nationwide through specific channels including, convenience retail, education, vending and small independent stores.
As part of the agreement, Bravo! will grant CCE 30 million warrants that are exercisable at 36 cents per share. These warrants, if exercised within three years, provide CCE the opportunity to become a minority shareholder in Bravo!, entitling CCE to acquire 10% of Bravo's total authorized shares outstanding at a purchase price of $10.8 million.
Bravo! CEO Roy Warren said, The single serve, flavored milk industry segment has grown considerably over the last several years despite the inherent constraints of traditional chilled dairy distribution systems.
Warren continued, Slammers reinvent traditional milk drinks, providing great tasting, quality milk drinks that can be distributed with limited or no refrigeration. Slammers are packaged with shelf-stable technology that allows for long shelf life and ambient storage. This advancement allows the Slammers brand to become a serious competitor in the multi-billion dollar better-for- you' drink business, which is now the fastest growing segment of the beverage industry. There is no better partner to make this transition for Slammers than CCE.
John R. Alm, president and CEO of Coca-Cola Enterprises, said, Bravo! has a strong lineup of shelf-stable milk products, which we believe will be an excellent addition to our product portfolio. Our new partnership creates the opportunity to combine Bravo's unique brands with the strength of our distribution and selling system.
Slammers are now available at more than 30,000 stores nationwide, including such chains as 7-Eleven, A&P, Associated Grocers, Bi-Lo, Bruno's, C/S Metro, Dutch Farms, Giant Food Stores, Jewel, Mars, Pathmark, Piggly Wiggly, Ralphs, Safeway, Sam's Club, Shaw's, ShopRite, Speedway, SuperTarget, Unified, Waldbaums, Walgreens and White Rose.