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A&W BRANDS, INC. ANNOUNCES LICENSING AGREEMENT WITH TETLEY, INC. FOR READY-TO-DRINK ICED TEA

A&W BRANDS, INC. ANNOUNCES LICENSING AGREEMENT WITH TETLEY, INC. FOR
 READY-TO-DRINK ICED TEA
 JACKSONVILLE, Fla., Feb. 18 /PRNewswire/ -- M.L. Lowenkron, chairman and chief executive officer of A&W Brands, Inc. (NASDAQ: SODA) today announced that the company has reached an agreement in principle with Tetley, Inc. giving A&W the exclusive U.S. manufacturing and distribution rights to all ready-to-drink iced tea products bearing the Tetley trademark.
 "This is an outstanding opportunity for A&W," declared Lowenkron, "as it will enable us to enter the rapidly growing ready-to-drink iced tea business with Tetley, an established and admired trademark. The agreement combines a highly recognized brand with a distribution system that can rapidly and effectively reach all major U.S. markets."
 Henry McInerney, president and chief executive officer of Tetley, Inc. said, "Ready-to-drink tea is one of the fastest growing segments of the beverage industry. This agreement will merge the marketing and distribution strengths of A&W with the specialized product development depth and experience of Tetley. We are solidly positioned to meet the strong and expanding consumer demand for high quality ready-to-drink teas and related beverages."
 Lowenkron added, "Tetley will provide the tea concentrate and A&W will market, sell, distribute and manufacture the end consumer products sold under the Tetley trademark. The products will include Tetley's existing ready-to-drink tea business and, most important, will also include Tetley's new product, an all natural, real brewed ready-to-drink tea which will be sold in 16-ounce bottles and 11.5-ounce cans. We believe this real brewed tea product has superior taste characteristics compared to existing tea brands. In 1992, the all natural category of ready-to-drink tea is expected to double in growth."
 "We are confident," continued Lowenkron, "that A&W will successfully market the superior tasting ready-to-drink tea products of Tetley, especially in the exciting all natural segment. This agreement fits perfectly with our strategy of marketing only the highest quality branded products. And, as our investment approach is for long term growth, we expect minimal profit contribution in our first full year of operations under this agreement."
 The two chief executives said in a joint statement that the agreement is intended to be a continuing relationship with the goal to develop a solid and successful business through the efficient utilization of each other's particular strengths. Tetley, Inc. is part of the Foods Division of Allied Lyons, a British conglomerate which owns Hiram Walker, Baskin Robbins and Dunkin Donuts. Tetley's U.S. products include retail and food service teas under the Tetley trademark, as well as several coffee brands.
 A&W Brands, Inc., headquartered in White Plains, N.Y., markets nine soft drinks in five flavor categories. The brands include A&W Root Beer, diet A&W Root Beer, A&W Cream Soda, diet A&W Cream Soda, Squirt, Diet Squirt, Vernors, diet Vernors and Country Time Lemonade in ready- to-drink form.
 -0- 2/18/92
 /CONTACT: Ernest J. Cavallo of A&W Brands, 914-397-1700/
 (SODA) CO: A&W Brands, Inc.; Tetley, Inc. ST: New York, Florida IN: FOD SU: LIC


KD -- NY079 -- 9989 02/18/92 13:33 EST
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Date:Feb 18, 1992
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