New York, Sep 22, 2009 - Castle Brands Inc. announced that it has acquired the assets of Betts & Scholl LLC, a premium wine maker formed in 2003 by Master Sommelier Richard Betts and Dennis Scholl.
Pursuant to the transaction, Castle Brands issued to the sellers a total of 7.14 million shares of Castle Brands Common Stock and approximately $1.1 million of cash and notes. Dennis Scholl has joined the Castle Brands Board of Directors, where he will serve as an independent director, and Richard Betts has joined Castle Brands as a Vice President and head of its newly-formed Fine Wine Division.
The Fine Wine Division has been created to market and sell a select portfolio of premium wines from around the world. As part of its fine wine strategy, Castle Brands will seek to recruit and represent the wines of a small number of premium, like-minded brand owners and wineries. The goal is to establish enough high quality wine expressions to provide a reasonable offering to customers but limited in number so each brand receives the attention it deserves. The division will take advantage of Castle Brands' existing infrastructure, including its distribution system.
John Glover, Chief Operating Officer of Castle Brands, said, "We are very excited that Richard and Dennis will be joining Castle Brands and that we will be distributing Betts & Scholl's premier products going forward. Together, Richard and Dennis have forged relationships with growers and winemakers around the world to produce complex, balanced wines true to their terroir. Their collaboration has shown a flair for memorable winemaking, innovation, and creative marketing approaches such as art-as-packaging. Richard is a well-known Master Sommelier and celebrity in wine and food circles and the addition of Richard and Dennis gives instant credibility to Castle Brands' efforts in the wine industry."
Dennis Scholl added, "Betts & Scholl has been a great partnership. We like to call it 'Richard and Dennis' wild ride.' Now we've reached a critical tipping point: either we have to grow internally or seek a strategic partner to help us take our wines to the next level. Castle Brands is the missing link."
Each bottle of Betts & Scholl features the artwork of internationally renowned contemporary artists, a specialty of art collector and entrepreneur Dennis Scholl. Betts & Scholl wines include Grenache, Syrah and Riesling from Australia, Syrah from California, and Hermitage Blanc and Rouge from France.
About Castle Brands Inc.
Castle Brands is an emerging developer and international marketer of premium branded spirits within five categories of the spirits industry: vodka, rum, whiskey, liqueurs and tequila. Castle Brands' portfolio includes, Boru(R) Vodka, Gosling's Rum(R), Pallini(R) LimoncelloTM, RaspicelloTM and PeachcelloTM, Knappogue Castle Whiskey(R), Clontarf(R) Irish Whiskey, Jefferson'sTM, Jefferson's Presidential SelectTM and Jefferson's Reserve(R) Bourbon, Sam Houston(R) Bourbon, Celtic Crossing(R) Liqueur, Brady's(R) Irish Cream and TierrasTM tequila.