Printer Friendly

ESKIMO PIE CORPORATION ANNOUNCES BRAND LICENSE DEVELOPMENTS

 ESKIMO PIE CORPORATION ANNOUNCES BRAND LICENSE DEVELOPMENTS
 RICHMOND, Va., Sept. 1 /PRNewswire/ -- Eskimo Pie Corporation (NASDAQ-NMS: EPIE) announced today that it has executed a new long-term master license agreement with Welch Foods, Inc., effective Jan. 1, 1993. Under the new agreement, which will run for 10 years subject to certain performance and other customary conditions, Eskimo will remain the exclusive licensee in the United States of the Welch's trademark in connection with frozen novelty juice products. Welch products currently marketed and distributed through Eskimo's territorial licensing system include Grape, Raspberry and Strawberry frozen juice bars in the Regular and No Sugar Added varieties, as well as Tropical Blend juice bars. During 1991 and for the first six months of 1992, revenues from the licensing of Welch products accounted for 13.2 percent and 20.0 percent of Eskimo's net sales, respectively.
 Eskimo also announced that it has been advised by Leaf, Inc., the owner of trademark rights to the Heath ice cream bar, that Leaf has determined to terminate its current license agreement with Eskimo. Eskimo's current exclusive license arrangement with Leaf, which commenced in December 1990, will remain in effect on a non-exclusive basis through February, 1993. During 1991 and for the first six months of 1992, revenues from the licensing of the Heath ice cream bar accounted for 10.7 percent and 10.6 percent of Eskimo's net sales, respectively.
 David V. Clark, Chairman of the Board and Chief Executive Officer of Eskimo, said "We are excited by the new agreement we have reached with Welch. Their brand is an important part of Eskimo's product-line and we look forward to the opportunity to expand its place in the market. We feel the long-term nature of this contract underscores Welch's confidence in our ability to represent their brand in the frozen novelty market. The loss of the Heath brand is a disappointment. However, we believe we can utilize the six month phase-out period under our agreement with Leaf to replace much of that business through our other products. Moreover, we believe our overall licensing strategy will make it possible for the Company to make adjustments in its operations to mitigate loss of the Leaf contract."
 Clark said that he does not expect the Leaf development to affect adversely the Company's expectations on net income for 1992. Clark added that, notwithstanding the Leaf termination, he thought analysts' projections for 1993 of approximately $1.40 per share were still within the Company's reach.
 Eskimo markets branded frozen novelties, including its "Eskimo Pie" line of products, through a national network of licensed manufacturers.
 -0- 9/1/92
 /CONTACT: J.L. Cheatham, Eskimo Pie Corporation, 804-287-5359
 (EPIE) CO: Eskimo Pie Corporation; Welch Foods, Inc. ST: Virginia IN: FOD SU:


SB -- CH004 -- 5295 09/01/92 09:35 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 1, 1992
Words:465
Previous Article:ARVIN'S CALSPAN AND SPACE INDUSTRIES FORM NEW SPACE COMPANY
Next Article:XEROX INTERNATIONAL PARTNERS ANNOUNCES NEW PARTNERSHIPS
Topics:


Related Articles
ESKIMO PIE CORPORATION DECLARES SECOND QUARTER DIVIDEND
WILLIAM M. FARISS JR. RETIRES FROM ESKIMO PIE CORPORATION AFTER MORE THAN 42 YEARS OF SERVICE
ESKIMO PIE CORPORATION ANNOUNCES INTENT TO ACQUIRE FROZEN DAIRY DESSERT MANUFACTURER
ESKIMO PIE CORPORATION ACQUIRES SOFT-SERVE YOGURT MANUFACTURER
ESKIMO PIE CORPORATION DECLARES FIRST QUARTER DIVIDEND
ESKIMO PIE CORPORATION AUTHORIZED TO REPURCHASE STOCK
ESKIMO PIE NAMES KIMBERLY P. FERRYMAN AS VICE PRESIDENT
ESKIMO PIE CORPORATION REPORTS FIRST QUARTER RESULTS
Eskimo Pie Corporation Declares Third Quarter Dividend
Eskimo Pie Corporation Declares Fourth Quarter Dividend

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters