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Straight Up Brands, Inc. (STRU) Acquires Wine and Spirits Venture
Three-Year-Old Company Produces and Distributes Branded Wine and Spirits in Conjunction With Major Celebrities
Straight Up Brands, Inc. (PINKSHEETS: STRU) (the "Company") www.straightupbrands.com announced today that it has acquired a majority interest in Straight Up Productions, Inc., a producer of wines and branded spirits in conjunction with hip-hop stars and nationally known celebrities. In anticipation of the closing, the Company recently changed its name to Straight Up Brands and changed it stock symbol to STRU.
As of the closing, wine and spirits industry veterans David McCallen and Vincent Viola, have become the Chief Executive Officer and President of the Company, respectively. Straight Up brings together world-class spirit products and a powerful and innovative marketing strategy with a management team committed to increasing market penetration, increasing gross sales and net profits, and the maximization of shareholder value.
Unlike other celebrity branded products, Straight Up's products are developed with leading vineyards, master blenders and world-class distillers, with an emphasis on the quality of the product first and the celebrity second. Straight Up has the capability to market and distribute its products on a wide scale in the US and internationally through its diverse distribution network, as well as an intense promotional schedule involving each of the celebrities.
Straight Up has acquired and owns five branded products, the first of which is a line of eight wines produced with Lorraine Bracco ("The Sopranos," "Goodfellas") and sold under the Bracco Wines label. Bracco wines (www.braccowines.com) were featured in the season finale of Bravo's "Top Chef." Lorraine Bracco herself judged the finale as the contestants tried to pair five courses with a selection of Bracco Wines. Ms. Bracco will actively promote the wines through events over the next 90 days which include kick-off meetings with our distributors in Illinois and Michigan, and the fall wine events hosted by our distributor Opici in New York and Connecticut.
The Company has distribution contracts with 10 distributors, including Southern Wine and Spirits, Opici and Stoller, who distribute the Company's products in 17 states.
In addition to Bracco Wines, Straight Up owns four other branded beverages: a vodka (Storm) produced with DJ Clue; a Long Island iced tea (Gravity Blue) produced with Magic Juan; a sparkling wine (Black Rose) produced with Foxy Brown and Jay-Z; and a Mojito (MoMo) produced with Ja Rule. The Company anticipates adding to these product lines with additional celebrity endorsements prior to the end of 2006, and continuing through 2007.
All of the artists working in conjunction with Straight Up were intimately involved in the production of their beverage, choosing the ingredients, valor, name, and glass packaging. The resultant beverages are as unique and exciting as the celebrities that made them.
The Company is projecting sales for 2006 of $1,000,000 and gross profits of $400,000. Through increased market penetration, the introduction of additional product lines and product extensions, the Company projects gross sales in 2007 of over $10,000,000.
Pursuant to the terms of the acquisition, the Company will acquire 100% of the outstanding stock in Straight Up Productions in exchange for 15,000,000 newly issued shares of the Company's common stock. As of the closing, there will be 20,000,000 shares of the Company's common stock issued and outstanding.
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Statements about Straight Up Brands, Inc.'s expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. Straight Up's actual results could differ materially from expected results. Straight Up undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this press release, Straight Up will appropriately inform the public.
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