Leading Brands ends partnership with Energy Brands

- Last updated on GMT

Related tags: Coffee, Beverages, Drink

Beverage company Leading Brands is to end its distribution
agreement with Energy Brands for Glaceau Vitamin Water and Go-Go
Passion Energy Drink. The company cited strong competition in the
vitamin-enhanced drinks sector as a major reason for ending the
distribution agreement.

Beverage company Leading Brands is to end its distribution agreement with Energy Brands for Glaceau Vitamin Water and Go-Go Passion Energy Drink, reports Dow Jones.

In a news release, Leading Brands said it had also decided to postpone the introduction of PopStraw in its Johnny's Roadside line of lemonades and iced teas, to a new date in spring 2003.

The company said Energy Brands is discontinuing its Go-Go Passion Energy Drink, which was producing "limited sales" for Leading Brands.

Leading Brands also said it was "particularly troubled" by two developments, including the number of vitamin-enhanced drinks being offered by Energy Brands' competitors and Energy Brands' insistence that the company not hire any Energy Brands employees to support its US expansion, according to the report. "These were conditions we were simply not prepared to accept,"​ the company said.

Leading Brands added that its decision to delay the introduction of PopStraw was a result of being "extremely busy" with the launch of its new Trek Optimized Performance Beverages and Pez 100 per cent juice lines. It said that it was continuing its market-by-market rollout and ramp-up of production of Trek and that it remained on track for the launch of Pez 100 per cent juice by the end of this summer.

Related topics: Markets and Trends

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