Canada: Brick Brewing expands agency business through Direct Cellars Beverage

Brick Brewing Co. Limited announced it has significantly enhanced its sales agency business through its affiliate Direct Cellars Beverage Co. (DCB), which has completed three new representation agreements, CNW reported April 10.

The new brands to be represented are expected to add significantly to DCB's sales in the short term, with the potential for significant longer-term growth. DCB's new agreements are with Diamond Estates Wine & Spirits Ltd. of Beamsville, Ontario, Flat Rock Cellars of Jordan, Ontario and Wellington County Brewery of Guelph, Ontario.

Under the agreement with Diamond Estates, DCB will represent Diamond Estates' brands in licensed establishments in Ontario as well as joint venture retail sales projects in select areas of Ontario. Among the portfolio of brands are the wines of Niagara Cellars' Lakeview Cellars, East Dell Estates, as well as imports Kendall-Jackson, Long Flat, Fat Bastard wines and Patron Tequila. "This agreement enables us to leverage Brick's strength in Ontario licensed establishments," said Murray Marshall, President and CEO of Diamond Estates. "By partnering with Brick's sales force, we can ramp up our sales in this segment much more quickly than would otherwise be possible."

The agreement with Flat Rock Cellars is for both the LCBO and licensed establishments in Ontario. Flat Rock's high quality wines have an established and excellent reputation with premium wine drinkers in Ontario and Brick's distribution strength will bring these fine wines to a broader audience. "Direct Cellars' commitment to selling excellence was a natural fit to our unwavering commitment to producing the finest wines in Ontario," said Ed Madronich, President of Flat Rock Cellars.

DCB's agreement with Wellington County Brewery is for LCBO distribution. Wellington's brands, including Trailhead Lager, County Ale and Special Pale Ale, are performing well in the licensee market and DCB's strong position in the LCBO channel is expected to enhance Wellington's share of this important sampling and take-home market for premium craft beers.

"We are really pleased to team up with another Ontario craft brewer," said Mike Stirrup, President of Wellington County Brewery. "Direct Cellars' expertise in this important channel will improve the availability of our brands at the LCBO." "These agreements are part of our ongoing strategy to increase DCB's portfolio of significant brands and to leverage DCB's growing strengths in the licensee and LCBO channels," said Doug Berchtold, President and CEO of Brick Brewing. "The addition of these brands both strengthens our current position in the market and affords increased opportunities for market share expansion."

About Direct Cellars Beverage Co.

Direct Cellars Beverage Co. represents a variety of alcoholic beverages brands to the LCBO and licensed establishments, including Brick, Big Rock and High Falls Brewing, and imported Ukraine brands from Multiculture BEVCO. Brick Brewing Co. Limited acquired a 50% ownership in Direct Cellars in 2005 when the agency represented its brand and Brick is building the agency by attracting a variety of other brands to it.

About Brick Brewing Co. Limited

Brick Brewing Co. Limited is Ontario's largest Canadian-owned and Canadian based publicly-held brewery. The Company is a regional brewer of award winning premium quality beers. The Company, founded by Jim Brickman in 1984, was the first craft brewery to start up in Ontario, and is credited with pioneering the present day craft brewing renaissance in Canada. Brick has complemented its J. R. Brickman Founders' Series and Waterloo Dark premium craft beers with other popular brands such as Laker, Red Cap and Formosa Springs Draft. Brick trades on the TSX under the symbol BRB.

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