NewAge Inc (fka NBEVQ) (NBEVQ)

[treit2002]

This acquisition is small. NBEV is not acquiring Illy brands or any other. That is a ridiculous interpretation.


It is acquiring Brands Within Reach, which has licensing and distribution rights to Illy Ready to Drink Coffee (not all Illy products) and a lot of other companies' brands. We don't know how extensive these rights are, nor what incremental revenue is being added. In any case, it is basically an addition to New Age's distribution business and does add diversity and strength, as well as a breadth to New Age's "omni-channel" approach, as they can add their own products to existing new distribution over time (presumably).

I imagine there will be a filing shortly explaining the terms.

If it does indeed "add to (NBEV's) bottom line profitability." it is a good thing. Even if it isn't accretive immediately, it's probably still a modest positive, because likely there are cost and revenue synergies to be worked into the combined distribution, as they say.

It's a good thing. But it feels to me that when NBEV issues press releases that are easily misinterpreted (albeit by overly optimistic retail investors), it fosters more selling than buying because it winds up promoting a pump image, something the company no longer needs to do. It is similar to announcing national distribution at Walmart without saying the number of stores or SKUs or projected path.