[source: East Imperial]
East Imperial (EISB ), producer of ultra-premium beverages, announced the appointment of The Lion Brewery as its US bottling partner. Under the terms of the agreement, The Lion Brewery will bottle East Imperial's entire range, including Grapefruit Tonic, Mombasa Ginger Beer, and Yuzu Lemonade.
Bottling is expected to start in early 2023.
The Lion Brewery, based in Wilkes-Barre, PA, was founded in 1905 and is well-established and experienced in working with leading brands in the US soft drink industry. Its bottling facility is strategically located to offer favourable freight rates to East Imperials' key markets across the US.
Today's announcement follows East Imperial's distribution agreement with Republic National Distributing Company (RNDC), one of the largest distributors in the US, signed earlier this year. East Imperial's products are now available to on-trade and off-trade markets across 11 US states.
Tony Burt, Founder and CEO of East Imperial, commented:
"We're delighted to be announcing our partnership with The Lion Brewery. We have big ambitions for growth in the US and local bottling will offer us the chance to do this while benefiting from significant margin and logistical advantages.
I am pleased that we have found a bottling partner who shares our high standards in sourcing and bottling the best quality ingredients to make the best possible product for our discerning clientele. I am incredibly excited about the US opportunity for ultra-premium mixers, and now with local bottling and national distribution in place, East Imperial is well positioned to capitalise on this, and reach new customers across the country."
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This is a milestone contract for East Imperial as it consolidates its US business. The US is the fastest growing market for premium beverages and mixers, and a key market for East Imperial, representing 32% of its sales in 1H22. The agreement with The Lion Brewery will significantly speed up East Imperial's expansion in the US in 2023, while also improving operational efficiency and margin.
Specifically, utilising a US-based bottling partner will enable East Imperial to benefit from significant logistical savings and reduce capex involved in expanding within the US. It will also provide East Imperial with flexibility to react to the needs of the US market and scale up quickly to match growing demand. This will all align with East Imperial's margin improvement programme over the next year.
Indeed, East Imperial is already an established player in the US luxury beverage market, with existing clients including the Peninsula hotels in Beverley Hills and Chicago, Faena Hotel in Miami Beach, and Mondrian South Beach in Miami. The company saw a 132% increase in US year-on-year revenues in 1H22, and the partnership with The Lion Brewery, a veteran in the US bottling industry, will only accelerate that growth further. Markets agree, sending EISB shares up 20% in London this morning.
Earlier this year, East Imperial signed a distribution agreement with Republic National Distributing Company (RNDC), one of the largest distributors in the US. East Imperial's products are now available to on-trade and off-trade markets across 11 US states, and the company will soon be expanding into more states as part of its next phase of US expansion.
Beyond the US, East Imperial signed a long-term distribution contract with Wen Hua Hang Wine Spirits Company (WHI), one of the largest distributors in China. WHI will supply East Imperial's entire range across the Chinese Mainland and Macau. APAC is still the most important region for East Imperial, contributing 60% of sales in 2022.
Looking ahead, prospects for East Imperial remain strong with on-premise and off-premise business steadily growing in the US and APAC, and even better trading expected in the traditionally stronger 2H.
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