US: Worldwide Beverage Imports partners with Drinks Americas Holdings

Worldwide Beverage Imports (WBI) has signed a "definitive agreement" to purchase almost half of Drinks Americas Holdings in a deal that will see Drinks Americas handle a raft of WBI's spirit and beer brands.

The two companies announced yesterday (28 June) that they have entered into an agreement, through which WBI will acquire a 49% interest and 125m shares of common stock in Drinks Americas. In return, Drinks Americas will receive the sales and/or import and distribution rights for up to 39 of WBI's spirits and beer products through a series of licensing agreements.

Earlier this month, the two companies said that they had signed a letter of intent for the deal, which Drinks Americas hopes will improve its profitability.

WBI will purchase the stake for US$1.5m in cash. In addition, Federico Cabo, principal operator of Mexican brewer Cerveceria Mexicana and tequila distillery Fabrica de Tequilas Finos, will join the Drinks Americas board. WBI markets and sells Cerveceria Mexicana's beers.

Some of the drinks that Drinks Americas will distribute include Kah Tequila, Agave 99, Ed Hardy Tequila, Mexicali Beer, Chili Beer, Red Pig Ale and Rio Bravo Beer.

"The addition of the products to our portfolio supported by the significant production resources provided by Cerveceria Mexicana and Fabrica de Tequilas Finos changes Drinks Americas' business model, supports rapid growth and expansion, and will enable us to reach profitability," said Drinks Americas' CEO, Patrick Kenny. "We are very happy to have finalised the agreement and begin to focus on the expansion of the company."

Drinks Americas said it will use some of the funds to accelerate its growing Rheingold beer business and for the costs involved in the transaction.