Primo Water Corp., provider of multi-gallon purified bottled water and related products, and kitchen electrics and cookware maker Cuisinart have signed a three-year sales, distribution and licensing agreement.
Under terms of the agreement, Cuisinart will market and sell Primo Water’s existing line of sparkling beverage appliances and related consumables in North America, and Primo will supply CO2 cylinders for Cuisinart’s new proprietary line of sparkling-beverage-makers.
Primo Water’s beverage-maker line consists of the Flavorstation and Liberty models, both of which fall under the marketing and sales terms of the new agreement. Beginning this month, Cuisinart will debut its own sparkling-beverage-makers, which will be powered by Primo Water CO2 cylinders and available in Cuisinart’s traditional retail channels, which encompass department and specialty stores, including online segments.
Primo Water will also provide the distribution and refilling of CO2 cylinders for both its own units and Cuisinart-branded sparkling-beverage-makers.
“This strategic alliance is consistent with our decision to refocus on our core businesses and strengths, and we are excited to partner with Cuisinart,” said Billy Prim, chairman and CEO of Primo Water. “Cuisinart has the experience and proficiency to grow and maintain sales in this quickly expanding category. Primo has experience and expertise in managing a retail distribution network, and can support the growth of this new category by supplying the appliances’ key consumable component – the CO2 cylinder.”
The Primo Water/Cuisinart partnership was reached at a time when the sparkling-beverage-maker category is expanding, and offers a significant growth opportunity for both companies. As consumer demand increases, both Primo Water and Cuisinart said they will be poised to provide a wide range of innovative home beverage-making options for a variety of household needs.
“Cuisinart has been successfully building on its diverse product assortment and strong retail presence, and the beverage-maker segment was a natural next step for the company,” said Ron Diamond, president of Conair Corp., Cuisinart’s parent company. “There are many significant reasons that led us to partner with Primo Water in this endeavor, one of the most important being its direct-store-delivery network to major retailers. This offers a clear advantage over other forms of distribution for CO2 cylinders.”
