Bravo! Foods Signs Multi-Year Manufacturing Agreement With Jasper Products
Parties Agree to Production Volume Commitments
1/4/2006 8:31:05 AM
NORTH PALM BEACH, Fla., Jan 04, 2006 /PRNewswire-FirstCall via COMTEX/ -- Bravo! Foods International Corp. (BRVO), a brand development and marketing company that manufactures, promotes and distributes vitamin- fortified, flavored milks, announced today that it has signed a multi-year distribution agreement with Jasper Products, L.L.C. of Joplin, Missouri, one of only three dairy processors in the United States that has approval of the United States Food and Drug Administration to produce aseptic shelf-stable milk in bottles. Bravo! has contracted with Jasper, which has produced its flavored milks, including Slammers(R), since 2001, for the continued production of Bravo!'s products through September 2010.
Under the terms of the agreement, the parties have agreed to annual volume commitments for the ordering and production of Bravo!'s various lines of shelf-stable, single-serve flavored milk beverages. The scheduled production commitments with Jasper will be realized on a ramp-up basis, commencing in April 2006, with the installation of additional processing equipment at Jasper's Joplin plant. These production commitments will satisfy the agreed upon supply obligation of Bravo! to Coca-Cola Enterprises, Inc. (CCE), under Bravo!'s Master Distribution Agreement with CCE by the summer of 2006.
To secure the production commitments, as well as the right of first refusal for Jasper's additional production capacity going forward, Bravo! has paid a one-time equipment mobilization payment of $2.7 million to Jasper. The agreement incorporates per unit monetary penalties for both unused capacity by Bravo! and any production shortfall by Jasper.
Roy Warren, Bravo!'s Chief Executive Officer, said, "The importance of entering into this agreement with Jasper cannot be overstated. By it, we satisfy our supply obligations under the CCE Master Distribution Agreement and move closer to our long-term production goals." Mr. Warren continued, "Perhaps more important is the continuation of our past relationship with Jasper -- one that has been invaluable to Bravo! in terms of Jasper's support, cooperation and faith in our business." |
