First Growth unit to launch Silva Bay wine Web store
2014-12-04 10:08 ET - News Release
Mr. Paul Guedes reports
WINEONLINE ESTABLISHES PRESENCE IN BRITISH COLUMBIA
First Growth Holdings Ltd. and its wholly owned subsidiary, WineOnline Silva Bay Services Ltd., have entered into an operating agreement with Silva Bay Pub, Restaurant & Liquor Store Ltd. Subsequently, the parties expect that the WineOnline website will launch in British Columbia in early 2015, providing B.C. wine lovers access to its unique portfolio of wines, incredible on-line wine experience and great door-to-door customer service.
"Establishing the WineOnline website in B.C. is an exciting milestone for our team," said Paul Guedes, president of First Growth. "WineOnline is making significant progress in becoming a national e-commerce wine site addressing the majority of the wine customers of Canada."
Under the agreement, WineOnline Silva Bay receives the sole and exclusive right to operate the Silva Bay liquor store and launch the on-line operations in B.C., and is entitled to full profits and bears full responsibility for the on-line operations. In consideration, the owner shall receive a cash consideration payable in tranches over a one-year period, 200,000 common shares of First Growth and a performance fee based on operations.
The recent approval from the B.C. Liquor Control and Licensing Branch on its application to become the third party operator of the Silva Bay liquor store allows WineOnline Silva Bay to operate both the store and its e-commerce website in the province.
B.C. ranks the third in wine sales across Canada, with residents buying just under $1-billion worth of wine in 2013-14 ($962,664,000). Wine sales have increased approximately 16 per cent, or $136-million, over the last five years, indicating a strong and vibrant sector. Traditionally, almost all wine sales in the province have been through bricks and mortar stores, as the on-line wine retail sector in B.C. is still in its infancy and Canadian on-line wine sales are lagging behind other regions globally.
WineOnline Silva Bay intends to change this by providing wine lovers in B.C., and across Canada, with its unique selection of wonderful wines that typically cannot be found elsewhere in the province, great customer experience, and home or office delivery that has been developed through a decade of on-line wine sales in Ontario.
"For years, our friends in B.C. have been asking us to bring to them the same incredible on-line wine experience we have curated here Ontario. We are very excited to finally be able to do so, and with the launch of our new website in B.C. in early 2015, we are looking forward to becoming a major part of the province's wine community," stated Aaron Bick, co-founder and general manager of WineOnline Silva Bay.
Finder's fees may be paid by the company or WineOnline Silva Bay, as applicable, in connection with the agreement in accordance with the rules of the TSX Venture Exchange. |
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