NewAge Expands Operations To Brazil
DENVER, Oct. 09, 2020 (GLOBE NEWSWIRE) -- NewAge, Inc. (Nasdaq: NBEV), the Colorado-based omni-channel social selling and distribution company, with a network of independent business owners across 75 countries worldwide when combined with ARIIX, today announced that it has expanded operations to Brazil, one of the six largest direct selling markets in the world.
NewAge and ARIIX announced their plans to merge on July 20, 2020, which will create a combined company with pro forma revenues of more than $500 million with operations worldwide and access to both developed and developing markets in key areas of the world. Since the announcement, the company has been working on identifying and capturing synergies as part of the transaction and completing the audit of ARIIX's financial statements to enable closing of the transaction. In addition to cost synergies of more than $20 million, NewAge also identified revenue synergies from cross-sales of brands and providing access for respective leaders to each other's markets. The Brazil expansion is a realization of one of those revenue synergies.
Brazil is one of the six largest markets globally in direct selling. Industry-wide, the market totals over 3.8 million independent representatives with annual sales of approximately $10 billion. NewAge established operations and its office in Sao Paulo in the second quarter and is now expanding operations to take advantage of the burgeoning opportunity there. ARIIX has recently commenced operations in Brazil.
"The building of the Brazil market is yet another important step in our strategy to bring our products and brands through our omni-channel strategy to emerging markets around the globe," said Brent Willis, Chief Executive Officer of NewAge. "Everything we have done with our Brazil expansion has been very local and very Brazilian, which is a must to be successful. Providing access to the market opportunity there for all our reps from all our partner companies is a great benefit for them, and a great growth opportunity for us."
Fred Cooper, CEO of ARIIX commented, "Expansion to NewAge's global market footprint was one of the great opportunities that we wanted to provide for our reps, and I am excited to see it happening so quickly. With all of the momentum that ARIIX is experiencing, coupled with the excitement of the announcement, we are drawing increased interest to join the NewAge ARIIX platform following the merger. Over the next several months, we will continue to locally register additional brands and products in Brazil and other Latin American market strongholds. Our ability to now ship products locally, direct to consumers, well positions us to be able to capitalize on the potential of this growing market."
About NewAge, Inc. (NASDAQ: NBEV)
NewAge is a Colorado-based organic and healthy products company dedicated to inspiring and educating consumers to "Live Healthy." The Company is an omni-channel distribution company with access to traditional retail, e-commerce, direct-to-consumer, and medical channels across more than 75 countries worldwide when combined with ARIIX. NewAge markets a portfolio of differentiated healthy functional brands in three category platforms including Health & Wellness, Healthy Appearance, and Nutritional Performance. The Company operates the websites newage.com, noninewage.com, and a number of other individual brand websites.
Safe Harbor Disclosure
This press release contains forward-looking statements that are made under 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 expectations regarding future results of operations, economic performance, financial condition, the acquisition of ARIIX, statements about the benefit of the ARIIX transaction, and the extent and duration of COVID-19 on its business. 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 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. NewAge competes in a rapidly growing and transforming industry, and risk factors, including those disclosed in the company's filings with the Securities and Exchange Commission, might affect the Company's operations. Unless required by applicable law, the Company undertakes no obligation to update or revise any forward-looking statements.
For investor inquiries about NewAge please contact:
NewAge Investor Relations:
Vice President, Investor Relations
Investor Relations Counsel:
John Mills/Scott Van Winkle
ICR – Strategic Communications and Advisory
Gregory A. Gould
Chief Financial Officer
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bf2a765a-edd1-46d6-a4ca-9ba821136131