Corby Distilleries Limited and Brick Brewing Co. Limited announced today that they have entered into an agreement whereby Brick purchased from Corby the Canadian rights to the Seagram Coolers brand. The transaction closed upon signing.
Under the agreement, Brick acquired the Canadian rights to the Seagram Coolers brand for a purchase price of $7.3 million, plus the value of inventory on hand. The purchase price was satisfied by a $4.9 million cash payment to Corby and the issuance of a secured promissory note for the remaining balance to be paid over the next four years.
While the Seagram heritage dates back to the late 1800′s, Seagram Coolers was established in the 1980′s, with the launch of Seagram Wildberry Vodka Cooler, the original vodka cooler. Available in all provinces except Quebec, Seagram Coolers is among the top selling spirit-based coolers families in Canada. Following the recent re-launch, the Seagram Coolers family consists of the Wild Berry, Vodka Spritzer, Cream Swirl and Elquila cooler brands.
“Although we were excited by the prospects of the brand’s rejuvenation strategy, we recognized that it would require continued dedication of our resources. This transaction allows Corby to focus on its core portfolio of premium spirits and wines toward its objective of long-term sustainable value growth. We are confident that it will also help Seagram Coolers benefit from increased investment and enhanced strategic portfolio positioning,” noted Patrick O’Driscoll, President and Chief Executive Officer of Corby.
“Seagram Coolers have a strong presence and reputation across Canada and are a valuable addition to Brick, which has demonstrated leadership in co-packing ready to drink coolers since the 1990′s,” said George Croft, President and CEO, Brick Brewing Co. Limited.
“The Seagram Coolers brands complement and expand Brick’s portfolio and will strongly position us for growth in both beer and the cooler category,” added Croft. “As a company we’re now able to satisfy a broader range of customers with a wider range of selection in taste and profile for those discerning drinkers.”
“Brick understands and appreciates what is special about the Seagram Coolers brands” Croft added. “These brands are authentic coolers with a 25 year history of product innovation that we plan to continue at an even greater pace. Seagram Coolers are a tremendous asset and we welcome them to the Brick family. ”
“During the first year of integration, Brick expects Seagram Coolers to utilize less than 10% of excess capacity and contribute approximately $1 million of EBITDA.