WILTON, Conn., June 28, 2011 (GLOBE NEWSWIRE) -- Drinks Americas Holdings, Ltd. (OTCBB:DKAM), a leading developer and marketer of beverage products, announced today that it has entered into a definitive agreement with Worldwide Beverage Imports, LLC, which results in Worldwide Beverage Imports acquiring up to a 49% interest in the Company. Worldwide Beverage will acquire approximately 125,000,000 shares of common stock of the Company in exchange for Drinks Americas receiving the sales and/or importing and distribution rights for specified areas of up to 39 Spirits and Beer products of Worldwide Beverage Imports through a series of licensing agreements between the companies.
In addition to the shares of common stock for the distribution rights to each of the products, the Definitive Agreement calls for Worldwide Beverage Imports, LLC to make a capital contribution in the Company of $1.5 million through cash provided by the sale of Worldwide Beverage products by Drinks or otherwise. Worldwide Beverage Imports will have acquired an interest not to exceed 49% of the Company.
Federico Cabo, Principal Operator of Mexico's third largest brewery, Cerveceria Mexicana, S. de R.L. de C.V., and seventh largest tequila distillery, Fabrica de Tequilas Finos, Richard Cabo, Leonard Moreno, and Federico Cabo, Jr. will join the board of directors of the Company. The members of the Company's current board will also continue as members of the board of the Company. The Company's current management team will enter into employment agreements with the Company for terms of up to five years but no less than three years.
Among the products that Drinks Americas adds to its Importing, Distribution and Sales portfolio are Kah Tequila, Agave 99 and Ed Hardy Tequila. Drinks Americas, which owns the rights to Rheingold Beer, will also sell Mexicali Beer, Chili Beer, Red Pig Ale and Rio Bravo Beer. These brands are currently sold in various U.S. markets and add existing distribution and revenue to Drinks Americas ongoing business.
Worldwide will provide the production resources for each of the products and will extend 90 to 120 days credit to Drinks Americas to secure product inventory to support the business expansion of each of the brands.
Federico Cabo stated, "The combination of the resources of both companies, our brands and our production resources should allow for the rapid growth and expansion of our business. We are very excited about the transaction and the forward plan for the growth of Drinks Americas."
J. Patrick Kenny, CEO of Drinks Americas, stated, "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. We are very happy to have finalized the agreement and begin to focus on the expansion of the Company."
Worldwide Beverage Imports markets products produced by Fabrica de Tequilas Finos, the seventh largest tequila distillery in the world, including Kah Tequila, Agave 99 and Ed Hardy Tequila, and the beer products produced by Cerveceria Mexicana, S. de R.L. de C.V., the third largest brewery in Mexico, including Mexicali Beer, Red Pig Ale, Rio Bravo Beer and Chili Beer. Drinks Americas has recently launched Rheingold Beer and also markets Old Whiskey River Bourbon, Aguila Tequila, Damiana Mexican Liqueur and is an owner of Olifant Vodka. The combined brands are expected to be distributed and marketed in all 50 states with Drinks Americas acting as either importer and distributor or primary sales agent for the combined brands.
For further information, please visit our new websites at www.drinksamericas.com andwww.rheingoldbrewingcompany.com and www.mexicalibeer.com.
The Drinks Americas Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7881
Safe Harbor
Except for the historical information contained herein, the matters set forth in this release, including the description of the company and its product offerings, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the historical volatility and low trading volume of our stock, the risk and uncertainties inherent in the early stages of growth companies, the company's need to raise substantial additional capital to proceed with its business, risks associated with competitors, and other risks detailed from time to time in the company's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.