Winston-Salem, N.C. - November 2012
FOR IMMEDIATE RELEASE
Contact: Mary M. Rodgers or Mark Castaneda
Cuisinart Primo Water Corp.
Phone: (203) 975-4609 Phone: (336) 331-4047
Primo Water and Cuisinart Sign Agreement to Market Sparkling Beverage Appliances and Consumables
Winston-Salem, N.C., November 5, 2012 — Primo Water Corporation (NASDAQ: PRMW), a leading provider of multi-gallon purified bottled water and related products, and Cuisinart, a dominant force in the kitchen electrics and cookware industries, announced today that the companies have signed a three-year sales, distribution and licensing agreement. Under the terms of the agreement, Cuisinart will market and sell Primo Water’s existing line of sparkling beverage appliances and related consumables in North America, and Primo will supply CO2 cylinders for Cuisinart’s new proprietary line of sparkling beverage makers.
Primo Water’s beverage maker line consists of the Flavorstation and Liberty models, both of which fall under the marketing and sales terms of the new agreement. Beginning this month, Cuisinart will debut its own sparkling beverage makers, which will be powered by Primo Water CO2 cylinders and available in Cuisinart’s traditional retail channels, which encompass department and specialty stores (including online segments). Additionally, Primo Water will provide the distribution and refilling of CO2 cylinders for both its own units and Cuisinart branded sparkling beverage makers.
“This strategic alliance is consistent with our decision to re-focus on our core businesses and strengths, and we are excited to partner with Cuisinart, a leader in kitchen appliances, cookware and other housewares markets,” said Billy Prim, Chairman and CEO of Primo Water. “Cuisinart has the experience and proficiency to grow and maintain sales in this quickly expanding category. Primo has experience and expertise in managing a retail distribution network and can support the growth of this new category by supplying the appliances’ key consumable component – the CO2 cylinder.”
“Cuisinart has been successfully building on its diverse product assortment and strong retail presence, and the beverage maker segment was a natural next step for the company,” said Ron Diamond, President of Conair Corporation, Cuisinart’s parent company. “There are many significant reasons that led us to partner with Primo Water in this endeavor, one of the most important being its direct-store-delivery network to major retailers. This offers a clear advantage over other forms of distribution for CO2 cylinders.”
The Primo Water/Cuisinart partnership was reached at a time when the sparkling beverage maker category is expanding, and offers a significant growth opportunity for both companies. As consumer demand increases, both Primo Water and Cuisinart will be poised to provide a wide range of innovative home beverage-making options for a variety of household needs.
Cuisinart, universally known for introducing the food processor in America, is a leader in culinary appliances, professional quality cookware and kitchen accessories. The company’s cutting edge reputation can be seen on numerous fronts, from industry-first products and design awards to sponsorships of culinary events and TV cooking shows. Cuisinart manufactures a full range of products under the tagline, “Savor the Good Life®.” These products include cookware, countertop cooking appliances, blenders, stand mixers and coffeemakers, as well as food processors, toasters and toaster ovens, ice cream makers, kitchen gadgets and flatware. Cuisinart has the following websites: www.cuisinart.com, www.cuisinart.com/baby and www.cuisinartcleanwater.com, and social media sites: www.facebook.com/cuisinart, www.twitter.com/cuisinart and www.twitter.com/cuisinartpr. The company also has a new iPhone, iPad and Android app, Cuisinart’s KitchenSync http://www.cuisinart.com/recipes/kitchensync.html.
About Primo Water Corporation:
Primo Water Corporation is a leading provider of multi-gallon purified bottled water, self-serve filtered drinking water, water dispensers and CO2 cylinders sold through major retailers throughout the United States and Canada. Primo’s purified water and appliances can be found at over 20,000 retailers across North America including, Walmart (NYSE: WMT), Lowes Home Improvement (NYSE: LHI), Kmart (NASDAQ: SHLD), Kroger (NYSE: KO), H.E. Butt and many others. Learn more about Primo Water at www.primowater.com
Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the applicable securities laws and regulations. Generally, these statements can be identified by the use of words such as "anticipate," "believe," "could," "estimate," "expect," "feel," "forecast," "intend," "may," "plan," "potential," "project," "should," "would,” “will,” and similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those stated here. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the failure of Primo Water’s new agreement with Conair Corporation (described in this news release) to generate anticipated sales, earnings or other benefits, the loss of major retail customers of Primo Water or the reduction in volume or change in timing of purchases by major retail customers, lower than anticipated consumer and retailer acceptance of Primo Water’s products and services, changes in Primo Water's relationships with its independent bottlers, distributors and suppliers, the entry of a competitor with greater resources into the marketplace and competition and other business conditions in the water and water dispenser industry in general, Primo Water’s experiencing product liability, or sales returns associated with a product quality or safety issue, the loss of key Primo Water personnel, changes in the regulatory framework governing Primo Water’s business, Primo Water’s inability to efficiently and effectively integrate acquired businesses with its historical businesses, Primo Water’s inability to efficiently expand operations and capacity to meet growth, Primo Water’s inability to develop, introduce and produce new product offerings (including the Flavorstation line of appliances) within the anticipated timeframe or at all, as well as other risks described more fully in Primo Water's Annual Report on Form 10-K filed with the Securities and Exchange Commission and its subsequent filings under the Securities Exchange Act of 1934. Forward-looking statements reflect management's analysis as of the date of this press release. Primo Water does not undertake to revise these statements to reflect subsequent developments, except as required by applicable law.