Idaho, March 31 /PRNewswire/ -- Thomas Gillespie, founder and
President of Aqua Vie Beverage Corporation (OTC Bulletin Board: AVBC),
announced today that Aqua Vie has signed a long-term master manufacturing
agreement with Lyons Magnus Bottling (Fresno, Calif.), which completes Phase
II of the company's 1999 financing program and sets the stage for Aqua Vie's
international product launch.
According to the terms of the renewable agreement, which has an initial
three-year term, Lyons Magnus proposes to provide the manufacturing function
to Aqua Vie, to include an exclusive license for bottled Smoothie products
developed by Lyons, as well as cross-marketing arrangements. Aqua Vie product
will be bottled using state-of-the-art manufacturing facilities that
incorporate proprietary, aseptic processing, which is PET-bottle friendly.
Under the cross-marketing arrangements, Lyons will introduce Aqua Vie
proprietary products into its food services distribution system, which
consists of over 1,100 distributors worldwide, following Aqua Vie's retail
advertising and promotional introductions. The worldwide phase-in will be be
strategically coordinated with Aqua Vie's targeted marketing plan and
demographic and geographic consumer demand, during Aqua Vie's domestic launch.
Gillespie indicated that initial shipments under the agreement with Lyons are
anticipated during the second calendar quarter.
As a result of the agreement, Aqua Vie expects to achieve certain domestic
manufacturing efficiencies and cost savings in a number of areas, including
raw material sourcing/purchasing, processing, labeling, quality assurance,
product development, and warehousing. This will allow Aqua Vie to focus its
efforts and resources on the sales, and marketing and retail package design of
its existing products as well as the additional new products currently under
development by Aqua Vie. Lyons' access to volume discounts is expected to
lower manufacturing costs to Aqua Vie, permitting Aqua Vie to devote greater
capital resources to marketing and other activities that directly drive
product sales.
A premium feature of the Lyons manufacturing facility for Aqua Vie is a
state-of-the-art PVC shrink-labeler system for the all-new Aqua Vie labels,
which is now being specially manufactured for installation and operation by
Lyons in mid-May, 1999. This system is similar to shrink labeling systems for
Aqua Vie which are to be installed in production facilities in Valence, France
later this year and a new bottling plant to be constructed in Jeddah, Saudi
Arabia, in cooperation with Aqua Vie's Saudi Arabian distributor.
Aqua Vie will private label and market to the U.S. retail market a new
line of Aqua Vie Smoothies, originally developed by Lyons, and modified and
enhanced by Aqua Vie. Aqua Vie will introduce the new line of all natural,
single-serve Aqua Vie Smoothies(TM) at the F. M. I. Trade Show in Chicago
beginning May 2, 1999.
In exchange for the market access, exclusive license and production
support provided by Lyons, there was also allocated a minority equity interest
in Aqua Vie Preferred Shares. This interest vests over a three-year period
subject to a continuing satisfactory relationship between the two companies,
and was provided as an incentive for Lyons' continued volume pricing,
manufacturing support, cross-marketing, and other strategic support over
entire agreement.
"We are delighted to be working with Lyons Magnus, an industry leader
whose hard-earned reputation is based upon innovation and an uncompromising
commitment to quality, and we look forward to continuing the tradition with an
agreement that can only be a win/win for both companies," said Gillespie.
Aqua Vie Beverage Corporation is North America's foremost developer and
marketer of all natural, lightly flavored, still (non-carbonated) bottled
spring water. The company's low-calorie alternative beverages are bacteria-
free and contain no preservatives. Aqua Vie produces and markets the Hydrator
line of beverages in the United States and Europe. This beverage line is
comprised of seven low-calorie, all-natural beverages that are lightly
flavored and designed to increase one's personal consumption of water,
naturally. The underlying technology also serves as the new delivery system
for Aqua Vies nutritionally fortified E Line(TM); Elixir(TM), Empower(TM), and
Ecstasy(TM), its nutritionally specific line of Aquaceuticals(TM), and Aqua
Vie's non-alcoholic wine and champagne beverages made from spring water. For
further information about Aqua Vie Beverage Corporation, visit the company's
web site at www.aquavie.com.
Lyons Magnus has packing facilities in Fresno, California and Florence,
Kentucky and sells its products in the United States and Asia through a
network of wholesale distributors.
NOTE: Statements contained in this release that are not strictly
historical are forward-looking within the meaning of the safe harbor clause of
the Private Securities Litigation Reform Act of 1995. Editors and investors
are cautioned that such forward-looking statements invoke risk and
uncertainties that may cause the company's actual results to differ materially
from such forward-looking statements. These risks and uncertainties include,
but are not limited to, demand for the company's product both domestically and
abroad, the company's ability to continue to develop its market, general
economic conditions, and other factors that may be more fully described in the
company's literature and any periodic filings with the Securities and Exchange
Commission.
SOURCE Aqua Vie Beverage Corporation
-0- 03/31/99
/CONTACT: Thomas Gillespie, President of Aqua Vie Beverage Corporation,
208-622-7792; or Madeleine Franco of Jordan Richard Assoc., 801-268-8610/
/Web site: jordanric |
