ATLANTA, June 17, 2003 (PRIMEZONE) -- Cinnabon(R) Inc., a subsidiary of AFC Enterprises, Inc. (Nasdaq:AFCEE), announced it has signed a licensing agreement with Lotta Luv LLC to produce Cinnabon lip balms and lip glosses that are expected to be available in "tween"-targeted stores such as Claire's and Limited Too, by late summer. Terms of the agreement were not disclosed.
Lotta Luv has demonstrated success in the licensing of numerous consumer brands in this category, such as Reese's Peanut Butter Cups, Junior Mints, Bubble Yum and Tootsie Roll. In building brand awareness, the current list of customers includes mall retailers, as well as independent and chain drug stores.
"Licensing products is a proven strategy of brand building. Partnering with licensees such as Lotta Luv is an exciting opportunity for Cinnabon," said Chris Elliott, President of Cinnabon.
Cinnabon lip gloss and lip balms are cinnamon scented and flavored cosmetics, modeled after the familiar aroma of Cinnabon bakeries. The custom packaging will feature a lip balm container shaped like a Cinnabon roll with the traditional cream cheese frosting.
"The 'tween'-marketed lip balm category in the US is a $500 million industry, growing at a rate of 7 % annually", said Lotta Luv President, Steph Fogelson. "We are thrilled to be partnering with Cinnabon on this exciting opportunity, and we look forward to introducing all of these great products at the upcoming NACDS show in San Diego!" said Fogelson.
About Cinnabon
Cinnabon is the worldwide leader in the cinnamon roll bakery category. As of May 18, 2003, the company operated and franchised 614 bakeries worldwide. The bakeries are located in 40 states, the District of Columbia, Puerto Rico and 19 other countries. Founded in Seattle, Wash., in 1985, Cinnabon bakeries are traditionally located in high-traffic venues such as shopping malls, airports, train stations and travel plazas. The bakeries typically are located in 500- to 1,500-square-foot areas. Cinnabon bakeries have built a reputation for serving fresh, aromatic, oven-hot cinnamon rolls made with premium Indonesian cinnamon and topped with sweet, rich, cream cheese-based frosting. Cinnabon had system-wide sales of approximately $205.5 million in 2001 and can be found on the World Wide Web at www.cinnabon.com.
About AFC Enterprises
AFC Enterprises, Inc. is the franchisor and operator of 4,131 restaurants, bakeries and cafes as of May 18, 2003, in the United States, Puerto Rico and 32 foreign countries under the brand names Church's Chicken(TM), Popeyes(R) Chicken & Biscuits, Cinnabon(R), Seattle's Best Coffee(R) and Torrefazione Italia(R) Coffee. AFC's primary objective is to be the world's Franchisor of Choice(R) by offering investment opportunities in highly recognizable brands and exceptional franchisee support systems and services. AFC Enterprises had system-wide sales of approximately $2.7 billion in 2002 and can be found on the World Wide Web at http://www.afce.com.