Drinks Americas Takes Rheingold
Drinks Americas Holdings Ltd. announced it had entered into a letter of intent with Rheingold Brewing Company Inc. for the purchase of Rheingold Beer. Upon completion of the transaction, Drinks Americas will become the exclusive producer and marketer of Rheingold Beer, famous in New York since 1883. The transaction is subject to definitive documentation and certain consents. Assuming all closing conditions are met, Drinks expects to close the transaction within the next 30 days.
Patrick Kenny, CEO of Drinks, stated, "Drinks' business plan is to bring to market brands that have the benefit of association with icons. The Rheingold trademark and brand is considered a New York icon, known and enjoyed throughout the market. Rheingold fits well into our distribution network, since many of our non-alcoholic distribution partners are beer wholesalers. Rheingold will benefit in a number of ways from the synergy which comes from being a brand within Drinks as opposed to an independent company. Drinks will benefit from the prestige of the Rheingold brand and from a quality product being added to its sales and distribution system. We are also excited about the prospect that Norm Snyder, the current chief operating officer of Rheingold and SOBE veteran, will be joining Drinks' management team."
Norm Snyder, the president of Rheingold, stated, "The board members and shareholders of Rheingold feel that the opportunity to be a part of the overall Drinks Americas business model increases our chance to add value and build a strong Rheingold brand in both the metro New York market and, over time, grow to an expanded market base."