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CORBY DISTILLERIES AND BRICK BREWING ANNOUNCE COMPLETION OF TRANSACTION FOR CANADIAN RIGHTS TO SEAGRAM COOLERS

^{Published on 2011-03-17 13:15:46 - Market Wire}
 

TORONTO, March 16 /CNW/ - Corby Distilleries Limited ("Corby") and Brick Brewing Company (TSX: BRB) announced today that they have entered into an agreement whereby Brick purchased from Corby the Canadian rights to the Seagram Coolers brand.  The transaction closed upon signing. 

Under the agreement, Brick acquired the Canadian rights to the Seagram Coolers brand for a purchase price of $7.3 million, plus the value of inventory on hand. The purchase price was satisfied by a $4.9 million cash payment to Corby and the issuance of a secured promissory note for the remaining balance to be paid over the next four years.

While the Seagram heritage dates back to the late 1800's, Seagram Coolers was established in the 1980's, with the launch of Seagram Wildberry Vodka Cooler, the original vodka cooler.  Available in all provinces except Quebec, Seagram Coolers is among the top selling spirit-based coolers families in Canada.  Following the recent re-launch, the Seagram Coolers family consists of the Wild Berry, Vodka Spritzer, Cream Swirl and Elquila cooler brands.

"Although we were excited by the prospects of the brand's rejuvenation strategy, we recognized that it would require continued dedication of our resources. This transaction allows Corby to focus on its core portfolio of premium spirits and wines toward its objective of long-term sustainable value growth. We are confident that it will also help Seagram Coolers benefit from increased investment and enhanced strategic portfolio positioning," noted Patrick O'Driscoll, President and Chief Executive Officer of Corby.

"Seagram Coolers have a strong presence and reputation across Canada and are a valuable addition to Brick, which has demonstrated leadership in co-packing ready to drink coolers since the 1990's," said George Croft, President and CEO, Brick Brewing Co. Limited.

"The Seagram Coolers brands complement and expand Brick's portfolio and will strongly position us for growth in both beer and the cooler category," added Croft. "As a company we're now able to satisfy a broader range of customers with a wider range of selection in taste and profile for those discerning drinkers."

"Brick understands and appreciates what is special about the Seagram Coolers brands" Croft added. "These brands are authentic coolers with a 25 year history of product innovation that we plan to continue at an even greater pace. Seagram Coolers are a tremendous asset and we welcome them to the Brick family. "

"During the first year of integration, Brick expects Seagram Coolers to utilize less than 10% of excess capacity and contribute approximately $1 million of EBITDA*.  Seagram Coolers are available across Canada and the transaction allows Brick to fast forward other plans for national distribution and sales" said Mr. Croft.  

About Corby
Corby's portfolio of owned-brands includes some of the most renowned brands in Canada, including Wiser's Canadian whiskies, Lamb's rum, Polar Ice vodka and McGuinness liqueurs. Through its affiliation with Pernod Ricard, Corby also represents leading international brands such as ABSOLUT vodka, Chivas Regal, The Glenlivet and Ballantine's Scotch whiskies, Jameson Irish whiskey, Beefeater gin, Malibu rum, Kahlúa liqueur, Mumm champagne, and Jacob's Creek and Wyndham Estate wines.  The existing Voting Class A Common Shares and Non-voting Class B Common Shares of Corby are traded on the Toronto Stock Exchange under the symbols CDL.A and CDL.B.

About Brick Brewing
Brick Brewing Co. Limited is Ontario's largest Canadian-owned and Canadian-based publicly held brewery. Brick Brewing is a regional brewer of award winning premium quality and value beers. Brick Brewing, founded in 1984, was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick Brewing has complemented its Waterloo family of premium craft beers with other popular brands such as Laker, Red Baron, Red Cap and Formosa Springs Draft. Brick trades on the TSX under the symbol BRB. Visit us at [ www.brickbeer.com ]

This press release contains forward-looking statements, including statements concerning possible or assumed future results of Corby's and Brick's operations. Forward-looking statements typically are preceded by, followed by or include the words "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. The forward-looking statements, including statements of volume and EBITDA* are not guarantees of future performance. They involve risks, uncertainties and assumptions and, as such, Corby or Brick's results could differ materially from those anticipated in these forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

*EBITDA is a non-IFRS earnings measure, therefore it does not have any standardized meaning prescribed by International Financial Reporting Standards and may not be similar to measures presented by other companies. EBITDA represents earnings before interest, income taxes, depreciation and amortization. Brick management uses this measurement to evaluate the operating results of Brick. This measure is also important to Brick management since it is used by Brick's lenders to evaluate the ongoing cash generating capability of Brick and therefore the amounts those lenders are willing to lend to Brick. Investors find EBITDA to be useful information because it provides a measure of Brick's operating performance. 

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