VANCOUVER, BC / ACCESSWIRE / December 18, 2014 / First Growth Holdings Ltd. ("First Growth" or the "Company") (TSX-V: FGH) is pleased to announce that its wholly owned subsidiary, WineOnline Alberta Ltd. (WineOnline), and First Growth have purchased Royal Liquor Merchants' downtown Calgary retail liquor store, located near the City's core on 4th St. S.W. The store will be rebranded WineOnline.ca, establishing a strong presence in Alberta.
"We have been evaluating opportunities that fit with our overall growth strategy in Alberta for several months now, and I am happy to report that we have now found a great business in a great location." said Paul Guedes, President of First Growth. "The acquisition of this Royal Liquor Merchants store, located in the downtown core, not only allows First Growth to expand the WineOnline.ca platform in Alberta but will contribute substantially to the revenue of WineOnline in Canada."
Having operated at this location since 1994 when the Alberta Government first privatized the store, Royal Liquor Merchants has established a strong customer base within the downtown community. "Through this purchase WineOnline will acquire an established in-store and thriving office delivery business that dovetails perfectly with WineOnline's strategy, the addition of this business not only represents a near doubling of revenue in Canada but also a strong market entry accelerant" says WineOnline Co-Founder and General Manager Aaron Bick. "I'm excited to have a ready audience to introduce our selection of unique and wonderful wines to."
Alberta is Canada's 4th largest wine market by sales, and is growing at a steady, sustainable pace. Wine sales in Alberta grew by 26% during the 5-year period to 2013 when they reached nearly $495 Million.1 While the wine market in Calgary is competitive and established, WineOnline.ca looks forward to building on the success of the existing store by offering a unique selection of wines that previously haven't been available in the province, a superior online wine experience, and incredible customer service.
This acquisition, along with the recently announced Third Party Operator status granted to WineOnline Silva Bay Services Ltd. to operate the Silva Bay Liquor Store in British Columbia, means that First Growth, through its wholly owned subsidiaries, are now selling wine directly to consumers in 3 of the 4 largest provincial markets: Ontario, British Columbia and Alberta. WineOnline is also operating as an agent in Quebec listing select products to the SAQ (Societe des alcools du Quebec).
In addition, subject to regulatory approval, the Company will pay a finder's fee in accordance with the rules and regulations of the TSX Venture Exchange.
1 http://www.aglc.gov.ab.ca/pdf/annual_reports/2013_aglc_annual_report.pdf
About First Growth
First Growth is a Canadian-based company that identifies and develops strong brands in the Canadian and international markets. Strong brands have a global reach in today's modern world with the rapid adoption of social media and advancements in technology. First Growth recognizes the potential for certain brands to penetrate international markets and will be focused on developing each one of its brands to its fullest potential.
WineOnline is the first brand that First Growth will develop. WineOnline, through its website WineOnline.ca, allows customers to shop for great unique wines that are not readily available in most stores, and have the wine delivered to your home or office. The direct-to-customer online wine business in Canada is far behind first world peer countries. First Growth views this as an enormous opportunity for the WineOnline.ca to establish itself as the industry leader.
Leveraging the relationships that WineOnline has established with some of the best wineries around the world, First Growth plans to import some of those brands into China, one of the fastest growing wine markets in the world. This emerging market is still in the infancy stage with massive potential for exponential growth. First Growth's team has intimate knowledge of the wine market in China that will assist in our rapid entry into the wine market.
First Growth will be evaluating and exploring other brands that have international opportunities for growth and investing in them in order to create increased shareholder value.
ON BEHALF OF FIRST GROWTH HOLDINGS LTD.:
"J. Paul Guedes"
J. Paul Guedes
President
FOR MORE INFORMATION, PLEASE CONTACT:
Corporate Communications
Tel: 604.688.9588
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a) completion of the proposed transactions; (b) the entry into and the closing of the Definitive Agreement; and (c) the establishment of the joint venture. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the willingness of the parties to close the transactions, the approval of the transactions by the respective company boards, shareholders (if applicable) and regulatory authorities, satisfactory results of the due diligence investigations and current economic conditions. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Due to conditions precedent to closing, and the risk that these conditions precedent will not be satisfied, the Company can offer no assurance that it will complete the proposed transactions enter into the Definitive Agreement. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.
SOURCE: First Growth Holdings Ltd.