NATIONAL HARBOR, Md., Nov. 10, 2015 /PRNewswire/ -- Accel Brands, Inc., a publicly traded, reporting company under the ticker symbol (OTC Pink: ACLP) announced that, in an effort to streamline the Company's business interests, the Company has sold its 70% stake in Village Tea Company Distribution, Inc. ("Village Tea") to Affinity Beverage Group, Inc., a company led by Village Tea senior management. The parties agreed that this decision is in the best interest of the future success of both companies. The Company will now shift all of its energy and efforts toward growing its wine and spirits division, STI Signature Spirits Group, LLC (STI). STI currently owns, operates and manages several spirit brands including Tiny's Tequila and Copa Imperial Tequila. The Company hopes that with its renewed focus, the platform that STI has developed over the past year will enable it to take advantage of the overall growth in the spirits and wine sector by focusing on opportunities in the marketplace to increase the sales and distribution of its existing brands while also identifying new opportunities to add to its brand portfolio. Accel also plans to use its platform to identify complementary acquisition targets in the marketplace that can support STI's efforts and create additional revenue generating opportunities for the Company.
The overall wine and spirit industry has seen consistent growth over the past several years and has seen a tremendous amount of M&A activity over the past few months. According to Impact Databank, the U.S. spirits market is expected to expand once again this year, albeit by a modest 1.3% in volume terms, representing its 20th consecutive annual gain. Most of the spirits market's growth can be attributed to projected solid gains from flavored whiskies, Cognac, Bourbon, Irish whiskey, super-premium Tequila and single malt Scotch whisky.
To enable the Company to move forward in a seamless manner, the Company's Chairman and CEO Gilbert Steedley has agreed to step down (effective Nov. 15th) and will be replaced in both capacities by Mr. Janon Costley, the Co-founder of subsidiary STI who will lead Accel's renewed growth strategy. Mr. Steedley stated, "It has been a pleasure to serve as the CEO of Accel, but as I move onto other endeavors, I am very comfortable in knowing that I am leaving the company in good hands with Mr. Costley, especially as Accel moves full speed ahead in its new direction, and I will remain available to assist the new management team through the transition period over the course of the next several months."
Please stay tuned over the coming weeks for further announcements regarding Accel Brands, Inc. and STI Signature Spirits Group, LLC.
About Accel Brands, Inc:
The new mission of Accel Brands, Inc., is to create a dynamic, vertically integrated, holding company in the spirit, wine and beer sector, through acquisitions, brand development, joint ventures, and exclusive sales and marketing agreements. The Company's planned strategy focuses on small revenue generating companies that have young, niche brands with superior products and high potential for growth in key domestic and international markets.
About STI Signature Spirits Group, Inc:
STI Signature Spirits Group, LLC, is a brand development, management, sales and marketing company founded in 2013 with a primary focuses on the wine and spirit sector. The company currently owns and operates two brands, Tiny's Tequila (www.tinystequila.com) and Copa Imperial Tequila (www.copaimperialtequila.com). The company plans to continue building its platform through strategic partnerships, brand creation and acquisitions in the spirit and wine sector.
About Village Tea:
Village Tea Distribution Company, Inc (www.villageteaco.com) sources high-quality, unique teas with distinct flavor combinations and packages them under its Village Tea Company brand name in a variety of creative and earth-friendly ways. The Village Tea Company brand is currently sold in many major retailers throughout North America. The Company is no longer just about tea, as it is also using its unique positioning in the marketplace to create a distribution platform to introduce other complementary health and wellness lifestyle brands and products.
This release includes forward-looking statements on our current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as "may," "should," "potential," "continue," "expects," "anticipates," "intends," "plans," "believes," "estimates," and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements regarding the contribution of our distribution contracts and our future growth. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. Important factors that could cause actual results to differ materially from those reflected in the forward-looking statements include, among others, an inability to maintain the distribution agreements or for such agreements to generate the anticipated sales and other factors described in our report on Form 10-K for the year ended 10K for the Year ended June 30, 2015 and any other filings with the SEC. The information in this release is provided only as of the date of this release, and we undertake no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Copies of these filings are available at www.sec.gov.
SOURCE Accel Brands, Inc. / STI Signature Spirits Group, Inc.