Turning Point Brands Strengthens Distribution Partnership in Canada
LOUISVILLE, Ky.--(BUSINESS WIRE)--Dec 23, 2019--
Turning Point Brands, Inc. (NYSE: TPB), a Kentucky-based industry leading marketer of Other Tobacco Products (OTP) and adult consumer alternatives, announced today it has executed a binding letter of intent with its Canadian partner and distributor of Zig-Zag rolling papers, Imperial Tobacco Company Limited (“ITC”).
The newly executed agreement provides the foundation for accelerated success in the dynamic Canadian marketplace with stronger TPB Zig-Zag rolling paper margins and the ability to complement the traditional Direct-Store-Delivery network of ITC with supplemental distribution in the alternative channels space, including dispensaries, through our recently established partnership with ReCreation Marketing.
“Our long-standing partnership with Imperial Tobacco remains strong and highly collaborative as we jointly work to grow the Zig-Zag brand in the rapidly evolving Canadian marketplace,” said Graham Purdy, Chief Operating Officer. “Over the last two years we have successfully introduced several new Canadian product innovations, including Zig-Zag cones. This contract amendment is an investment in our continued partnership with ITC and affords us new flexibility to leverage ReCreation Marketing’s expertise in achieving alternative channels Zig-Zag distribution. Additionally, the amendment also grants us the ability to introduce a line of Zig-Zag accessories to further strengthen brand equity and build affinity with adult consumers while also yielding stronger TPB margins over the next several years.”
Efforts to expand Zig-Zag’s retail footprint into the alternative channels space, including dispensaries, is expected to begin in the second quarter of 2020. In addition to the Zig-Zag rolling papers expansion initiative, ReCreation Marketing is also readying efforts for a highly innovative new smoking products launch in 2020. TPB paid ITC a $3 million contract amendment fee as part of the agreement.
“Together with both ITC and ReCreation, we intend to ignite new growth momentum on behalf of Zig-Zag in the Canadian marketplace,” said Purdy.
About Turning Point Brands, Inc.
Louisville, Kentucky-based Turning Point Brands, Inc. (NYSE: TPB) is a leading U.S. provider of Other Tobacco Products and adult consumer alternatives. TPB, through its focus brands, generates solid cash flow which it uses to finance acquisitions, increase brand support and strengthen its capital structure. TPB does not sell cigarettes. More information about the company is available at its corporate website, www.turningpointbrands.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as “anticipate,” “believe,” “expect,” “intend,” “plan” and “will” or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release speaks only as of the date hereof. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict these events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to:
View source version on businesswire.com:https://www.businesswire.com/news/home/20191223005103/en/
CONTACT: Robert Lavan, Senior Vice President, CFO
KEYWORD: KENTUCKY UNITED STATES NORTH AMERICA CANADA
INDUSTRY KEYWORD: TOBACCO RETAIL
SOURCE: Turning Point Brands, Inc.
Copyright Business Wire 2019.
PUB: 12/23/2019 08:00 AM/DISC: 12/23/2019 08:01 AM