Drinks America Partners With Interscope Geffen A&M
June 26, 2007 at 12:03 PM (PT)
DRINKS AMERICAS HOLDINGS has entered into a partnership agreement with INTERSCOPE GEFFEN A&M, part of UNIVERSAL MUSIC GROUP. It marks the first time a record label has partnered directly with a beverage company for an equity stake in new products jointly developed.
As part of the agreement, the 50/50 partnership will seek to identify, develop, commercialize and market jointly owned alcoholic and non-alcoholic beverage products in collaboration with INTERSCOPE GEFFEN A&M artists. INTERSCOPE GEFFEN A&M will work to sign and negotiate with selected artists and to assist in the marketing and promotion of the new beverages. Additionally, INTERSCOPE GEFFEN A&M has agreed to assist in marketing and promoting DRINKS AMERICAS' current portfolio of products, including DONALD TRUMP's TRUMP SUPER PREMIUM VODKA and WILLIE NELSON's OLD WHISKEY RIVER BOURBON.
DRINKS AMERICAS Pres./CEO J. PATRICK KENNY stated, "Our new partnership with INTERSCOPE GEFFEN A&M is very exciting and a major milestone for both companies and industries, as we leverage this marketing innovation with the multi-billion dollar music industry. It has already been an extraordinary experience working with JIMMY IOVINE, STEVE BERMAN and DAVID COHEN, the senior management team of INTERSCOPE. They are clearly leaders in their industry and share our vision of the convergence of consumer products, media and entertainment with clarity. There is a large opportunity here for both companies to generate substantial incremental revenue and profits and create valuable assets for both companies. DRINKS AMERICAS and INTERSCOPE GEFFEN A&M are focused on creating and growing these large and valuable assets in the form of exciting, viable, and high-end premium beverage brands to be marketed on a worldwide basis. One only needs to take note of the huge purchase prices recently paid by large beverage companies for new, icon associated and proven brands to see the tremendous potential in the products to be developed through our venture with INTERSCOPE GEFFEN A&M."