Bravo! and CCE terminate distribution agreement
July 03, 2007
by FoodBusinessNews.net Staff
NORTH PALM BEACH, FLA. — Bravo! Brands, Inc. and Coca-Cola Enterprises, Inc. have agreed to terminate a mater distribution agreement they entered on Aug. 31, 2005.
"The termination of our agreement with CCE was a joint decision between the two companies that reflects economic returns far below the expectations of both CCE and Bravo!," said Ben Patipa, president of Bravo!. "This termination of the MDA is a key step in our overall plan to restructure the business into an economically viable model through distribution with another national distributor."
In addition, the warrants to purchase 30 million shares of Bravo! common stock originally issued as a part of the agreement were also cancelled.
Bravo! has been facing difficult times recently as the company reported a loss of $29.7 million during the quarter ended March 31. In addition, the company has recently cut executive management, including Roy G. Warren, former president and chief executive officer; Michael Edwards, former chief revenue officer; and Stanley Harris, former chief marketing officer.
Overall, Bravo! has cut more than half its employees since April in efforts to restructure the business and improve financial performance.