Reed’s, Jones Soda look to merge businesses
LOS ANGELES Two beverage makers have signed a letter of intent to merge their businesses.
Reed’s and Jones Soda announced said the proposed merger would combine the two, with Reed’s as the surviving company. In a joint statement, the companies said the merger would “provide the two companies with the opportunity to realize the potential benefits of increased size and scale, as well as cost efficiencies in several aspects of the combined business, including administration, operations, and customer interface.”
The non-binding provisions of the LOI contemplate a merger transaction in which Reed’s would acquire Jones Soda for a combination of cash and Reed’s common stock. The transaction also would be subject to approval of the shareholders of both Jones Soda and Reed’s.
Chris Reed, founder, chairman and CEO of Reed’s stated, “We have watched Jones for years and have been impressed with its innovative marketing programs, strong brand recognition, and loyal customer following. I am confident that our portfolio of brands will benefit from Jones Soda’s marketing savvy as well as its organization’s deep mainstream distribution relationships. At the same time, we believe our strong infrastructure and operational capabilities will help drive important efficiencies through Jones Soda’s supply chain. With minimal customer and demographic overlap between our combined brands, we believe this transaction also provides us with compelling merchandising and growth opportunities in the years ahead.”
In related news, Jones Soda CEO Joth Ricci will be stepping down effective April 2, in order to pursue other business opportunities.
“I have truly enjoyed my time at Jones Soda and I’m pleased with the work our team has done to improve many aspects of our business. Unfortunately, due to the current market conditions, it has taken longer than anticipated to produce the necessary top line results to effectively return to profitability and stem our cash burn. However, I remain confident in the strength of the Jones Soda brand and believe the proposed merger with Reed’s provides Jones Soda an improved platform from which to capitalize on its future prospects and is in the best interests of its shareholders.”
Drank rolls into Tennessee
HOUSTON Drank has made its way to The Volunteer State.
Innovative Beverage Group announced it has inked a deal with two Tennessee-based beverage distributors, Clark Distributing and Central Distributors, to sell Drank, the ultimate relaxation beverage.
“Joining forces with two prestigious beverage distributors such as Central and Clark provides Drank with even more credibility in Tennessee,” said Peter Bianchi, CEO of Innovative Beverage Group. “By partnering with them, we have the opportunity to line our product on store shelves alongside other household name products, further solidifying Drank’s place in pop culture conversations and consumers’ refrigerators.
Ghirardelli launches sweepstakes
SAN FRANCISCO Ghirardelli chocolate has kicked off its Million Moments of Timeless Pleasure sweepstakes, which invites consumers to share their favorite “Ghirardelli moment” for a chance to win a trip or one of thousands of chocolate prizes.
Select moments will be broadcasted at New York’s Times Square streamed live via an interactive Web site, Ghirardelli said. Now through Oct. 31, customers can enter their moment at www.ghirardellimoments.com and automatically be entered to win a trip to one of four world famous squares –– New York’s Times Square, Ghirardelli Square in San Francisco, St. Marks Square in Venice or Trafalgar Square in London. In addition to the free trip, customers also will be entered to win thousands of instant chocolate prizes, including bags of Ghirardelli Square chocolates and Ghirardelli gift baskets. One lucky person will win free chocolate for a year. Customers can enter a moment each day for even more chances to win.
The Everyday Squares stand-up bags, which contain 4.69 oz. to 5.32 oz. of chocolate, retail for approximately $3.69 and are sold at Walgreens, CVS/pharmacy, Rite Aid and other major retailers across the country.