Long Island Iced Tea Corp (NASDAQ: LTEA) is having an overwhelmingly strong day in the market today, and for good reason. The company announced that it has signed multiple distribution agreements, leading to excitement among investors. Below, we’ll talk about the agreements, what we’re seeing from the stock, and what we’ll be watching for with regard to LTEA ahead.
LTEA Signs Multiple Distribution Agreements
As mentioned above, Long Island Iced Tea is having an incredibly strong day in the market today after announcing that it has signed multiple distribution agreements. The distribution agreements were signed with Natur, a European hi-tech health food and beverage company.
The distribution agreements were much like a product trade. Under the terms of the agreements, LTEA will be the exclusive distributor of Natur brand products in both North and South America. On the other hand, Natur will be the exclusive distributor of Long Island Iced Tea brand products in Europe.
In the PR, LTEA said that the first products it will distribute under the Natur brand are the company’s Super Not-From-Concentrate (SNFC) line of juices. These juices are available in 250ml and 750ml bottle sizes. In a statement, Philip Thomas, CEO at LTEA, had the following to offer:
“We are very excited with the opportunity to distribute Natur’s hi-tech, better-for-you brands in North and South America. Its brands are supported by ‘farm-to-shelf’ traceability, and the company has access to outstanding research and development via its shareholder AMC.”
The above statement was followed up by Jan van Olm, CEO at Natur. Here’s what he had to say about the agreements with Long Island Iced Tea:
“Long Island Iced Tea is a great partner for us in the US, having an established and extensive distribution footprint across the Northeast of the US as well as emerging positions in Canada and Latin America. We believe their existing distribution position, underpinned by our effective e-commerce platforms which we will roll out and support in the US, will combine to create exciting growth opportunities. Reciprocal to this, we expect Natur to deliver similar benefits for the Long Island Tea brands in Europe.”
How The Stock Is Reacting To The News
As investors, we know that the news moves the market. This is proving to be the case today for LTEA. After the company made the announcement of the distribution agreements, it started to soar. While the gains on the stock have tapered off a bit since early trading, the stock is holding onto impressive gains. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (11:23), LTEA is trading at $2.12 per share after a gain of $0.37 per share or 21.23% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on LTEA. In particular, we’re interested in watching as the distribution agreements signed today lead to stronger brand awareness on a global scale as well as improved sales and revenue. We’ll also be watching for other potential distribution agreements in other regions around the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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