Flavoured milk specialist Bravo! Brands has announced that it has come to a mutual agreement with Coca-Cola Enterprises (CCE) to terminate its Master Distribution Agreement with the bottler, saying that returns from the link-up had been "far below expectations" for both companies.

Bravo! said terminating the agreement, which dates back to August 2005 and was scheduled to last for ten years, would allow it to finalise negotiations with a new national distributor.

"The termination of our agreement with CCE was a joint decision between the two companies that reflects economic returns far below the expectations of both CCE and Bravo!," said Bravo! president Ben Patipa "This termination of the MDA is a key step in our overall plan to restructure the business into an economically viable model through distribution with another national distributor."

Bravo! has also announced that, as part of the termination agreement, the warrants to purchase 30m shares of Bravo!'s common stock which were issued as part the original deal with CCE have been cancelled, and that no termination or cancellation fees will be paid by either party.