PRMW~ This one looks good and has news that its up on too.UP 50% and this could hurt SODA-Primo Water and Cuisinart Sign Agreement to Market Sparkling Beverage Appliances and Consumables
Nov 5, 2012 8:00:00 AM
2012 GlobeNewswire, Inc.
WINSTON-SALEM, N.C., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Primo Water Corporation (Nasdaq:PRMW), a leading provider of multi-gallon purified bottled water and related products, and Cuisinart, a dominant force in the kitchen electrics and cookware industries, announced today that the companies have signed a three-year sales, distribution and licensing agreement. Under the terms of the agreement, Cuisinart will market and sell Primo Water's existing line of sparkling beverage appliances and related consumables in North America, and Primo will supply CO2 cylinders for Cuisinart's new proprietary line of sparkling beverage makers.
Primo Water's beverage maker line consists of the Flavorstation and Liberty models, both of which fall under the marketing and sales terms of the new agreement. Beginning this month, Cuisinart will debut its own sparkling beverage makers, which will be powered by Primo Water CO2 cylinders and available in Cuisinart's traditional retail channels, which encompass department and specialty stores (including online segments). Additionally, Primo Water will provide the distribution and refilling of CO2 cylinders for both its own units and Cuisinart branded sparkling beverage makers.
"This strategic alliance is consistent with our decision to re-focus on our core businesses and strengths, and we are excited to partner with Cuisinart, a leader in kitchen appliances, cookware and other housewares markets," said Billy Prim, Chairman and CEO of Primo Water. "Cuisinart has the experience and proficiency to grow and maintain sales in this quickly expanding category. Primo has experience and expertise in managing a retail distribution network and can support the growth of this new category by supplying the appliances' key consumable component – the CO2 cylinder."
"Cuisinart has been successfully building on its diverse product assortment and strong retail presence, and the beverage maker segment was a natural next step for the company," said Ron Diamond, President of Conair Corporation, Cuisinart's parent company. "There are many significant reasons that led us to partner with Primo Water in this endeavor, one of the most important being its direct-store-delivery network to major retailers. This offers a clear advantage over other forms of distribution for CO2 cylinders."
The Primo Water/Cuisinart partnership was reached at a time when the sparkling beverage maker category is expanding, and offers a significant growth opportunity for both companies. As consumer demand increases, both Primo Water and Cuisinart will be poised to provide a wide range of innovative home beverage-making options for a variety of household needs.
