CORSIE GROUP PLC
DISTRIBUTION AGREEMENT SIGNED
The Board of Corsie Group plc ("Corsie" or the "Company"), the AIM listed
specialist in the assembly and sale of products and services to the leisure
market, is pleased to update shareholders on an exclusive distribution
agreement for the U.K. and Ireland signed with TeaTech, a U.S. based company.
Highlights
* New subsidiary Green Tea Zero Ltd. (GTZ) formed;
* Corsie takes 76% controlling interest in new subsidiary;
* Exclusive distribution for U.K. and Ireland territories until 31 December
2010;
* Product's health benefits include zero calories, no artificial flavours,
colours or preservatives, and a high concentration of anti-oxidants; and
* Product endorsed by film star Jackie Chan.
A new subsidiary of Corsie (Green Tea Zero Ltd.) has been incorporated as part
of a Joint Venture to handle the distribution agreement. Corsie has been
working closely with SMGB Holdings Ltd, the importers, marketers, distributors
and agents of novel worldwide products, to secure this new agreement. SMGB
Holdings Ltd has subscribed for 24% of the equity in Green Tea Zero Ltd (`GTZ
Ltd' or `the new subsidiary'). The new subsidiary will be managed and operated
from the Corsie head office, and will be funded from existing resources on a
76%-24% basis. The shareholders have also agreed an exit mechanism in the form
of a Put and Call option. This allows either party to exercise at an agreed
price on the third anniversary of GTZ Ltd incorporation.
Green Tea Zero Ltd will market and distribute Jackie Chan Green Tea - a range
of green teas endorsed by film star Jackie Chan with zero calories, no
artificial flavours, colours or preservatives, and a higher concentration of
anti-oxidants than traditional green teas.
Negotiations have already been opened with major high street food retail
chains, and the Board is hopeful that positive outcomes will soon be reached.
In the U.S. market, TeaTech quickly gained distribution to over 15,000 retail
outlets through natural food retailers, specialty food stores, select gourmet
stores, drug chains and via the company's website. TeaTech are confident that
Green Tea Zero Ltd will be able to achieve comparable success in the U.K. and
Ireland.
Announcing the agreement, Richard Corsie, Chief Executive of Corsie, said: "We
are delighted to add Jackie Chan Green Tea to our portfolio. The board's
strategy to increase revenue through selective distribution agreements still
remains a key focus. Distribution agreements capable of delivering substantial
growth and profit improvement are an excellent cost effective way to improve
revenue streams."
Wade Xiong, CEO and co-founder of TeaTech, said: "The convenience of our fresh
Instant Green Tea Beverage Mixes in no way sacrificesquality or health
benefits. We believe Jackie Chan's exclusive endorsement will boost TeaTech's
growth and will help develop the U.K. and Ireland market for Green Tea Zero Ltd
as it has done in the U.S. We look forward to working with the Corsie Group who
hasan excellent reputation within the health market."
Enquiries:
Corsie Group plc Tel: 01620 828940
Richard Corsie MBE, Chief Executive
www.corsiegroup.com
City Financial Associates Limited Tel: 020 7090 7800
James Caithie
Bishopsgate Communications Ltd Tel: 020 7562 3350
Dominic Barretto
Jenni Herbert
About Corsie Group plc
Corsie is a provider of products to the worldwide leisure market. Its business
operates in the UK and has customers in a number of geographical markets
including Europe, Canada, Hong Kong, Malaysia, Australia and New Zealand. The
business was founded by Richard Corsie in 1997 after he retired from the sport
of bowls and following the buyout of Douglas Kenn Limited and Worth Sports
Limited.
The Corsie Group is involved in the assembly and sale of products and services
to the leisure market. The Group consists of four operating divisions. Within
each division, the Group is focused on achieving growth both organically, and
through selective acquisition of companies or businesses in the leisure market.
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