Supreme disposes IP rights of T-Juice to French wholesaler
March 15, 2023
Supreme, which owns several vaping brands including KiK and 88vape, said it has entered into an agreement for the disposal of the intellectual property of T-Juice (including the Red Astaire e-liquid brand) to an associated company of La Vape Professional Distribution, one of France’s largest wholesalers of electronic cigarettes and e-liquids for €4.5 million (£4m).
The Manchester-based manufacturer and distributor of fast-moving consumer products has also entered into a new strategic partnership with LVP under which Supreme retains the exclusive manufacturing rights to T-Juice with minimum €15 million of revenue over five years for Supreme.
The T-Juice brand was originally acquired as part of the Cuts Ice asset deal which completed in August last year where the total value of the intangible assets acquired was £1.4 million.
Supreme said the agreements will enable it to focus on its core manufacturing expertise and margin expansion, while de-risking both European distribution and expansion. Besides, the strategic partnership with LVP will provide future cross-sell opportunities for the wider Supreme portfolio, it added.
“We are delighted to be entering into a long-term partnership with LVP, who are ideally placed to fully capitalise on the strength of the brand across Europe given their extensive and well-established distribution,” Sandy Chadha, chief executive of Supreme, commented.
“These agreements will enable Supreme to do what it does best – to further leverage our manufacturing footprint and maximise our margin potential across our product mix in the near term. Not only does this deliver a significant return on our initial investment, but we have secured a highly lucrative five-year manufacturing agreement, which ensures Supreme remains well positioned to fully capitalise with LVP on their established European market presence and sales footprint.”
Supreme supplies products across five key categories – batteries, lighting, vaping, sports nutrition & wellness, and branded household consumer goods – to over 10,000 retail outlets.
