NIAGARA-ON-THE-LAKE, ON, Aug. 10, 2016 /CNW/ - Diamond Estates Wines & Spirits Inc. ("Diamond Estates" or "the Company") (DWS-TSX Venture) today announced new partnerships with financial service providers Element Fleet Management Inc. ("Element") and Export Development Bank of Canada ("EDC").
Element Fleet Management Inc. to provide fleet leasing and management services
After vetting various providers, Diamond Estates and its sales agency, Kirkwood Diamond Canada ("KDC") have chosen to partner with Element to provide leasing and management services for their automotive fleet needs. Currently, Diamond Estates owns its fleet of delivery vehicles and like KDC, utilize allowances to compensate sales and other personnel for business related use of personal vehicles. The benefits of changing to a fleet of leased company vehicles include:
- a consistent public image;
- ensuring employees have safe, reliable transportation;
- a source of low cost capital;
- leveraging Element's buying power and standardization to reduce operating costs;
- using industry leading data collection and analysis to optimize the program.
The majority of drivers will be transitioned by the end of the fiscal year. The Company has already taken delivery of its first new delivery van under the program for its growing licensee business.
Export Development Bank of Canada provides receivable insurance for export sales
The Company has secured insurance from EDC on sales to its largest export customer. EDC will insure balances up to $500,000, which allows the Company to reduce its credit exposure to an acceptable level while also maintaining the shipment schedule to support the $5.6M in export orders previously announced for this fiscal year.
"These new partnerships provide the company with access to knowledge, capital and networks that will better position Diamond Estates for growth through scalable solutions, best practices and sophisticated tools. We look forward to working with Element to realize the advantages of a fleet program and with EDC to continue to grow our export sales." said Murray Souter, President and CEO of Diamond Estates. "We remain focused on our long-term strategy of growth and profitability driven by key enabling partnerships and operational excellence that we believe will build shareholder value."
About Diamond Estates Wines and Spirits Inc.
Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and a sales agent for over 120 beverage alcohol brands across Canada. The company operates two wineries in the Niagara region of Ontario producing VQA and blended wines under such well-known brand names as 20 Bees, EastDell Estates, Lakeview Cellars, Dois Amigos, Dan Aykroyd, Benchmark and Seasons. Through its partnership, Kirkwood Diamond Canada, the Company is the sales agent for top selling international brands in all regions of the country as well as being a distributor in the western provinces. These recognizable brands include Fat Bastard wines from France, Kaiken wines from Argentina, Charles Wells beers from England, Hpnotiq Liqueur from France, Anciano wines from Spain, Francois Lurton wines from France and Argentina, Blue Nun wines from Germany, coolers and spirits from Independent Distillers in New Zealand, Brick Brewing from Canada, Evan Williams Bourbon from USA, Flor de Cana rum from Nicaragua, Iceberg Vodka from Canada and many others. For further information on the company, please visit the company's SEDAR profile at www.sedar.com.
Diamond Estates Wines & Spirits Inc. common shares trade on the TSX Venture Exchange (symbol: DWS).
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statement
This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diamond Estates Wines and Spirits Inc.to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the economy generally; consumer interest in the services and products of the Company; financing; competition; and anticipated and unanticipated costs. While the Company acknowledges that subsequent events and developments may cause its views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of the Company as of any date subsequent to the date of this press release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Diamond Estates Wines & Spirits Inc.
Image with caption: "Diamond Estates Wines & Spirits (CNW Group/Diamond Estates Wines & Spirits Inc.)". Image available at: http://photos.newswire.ca/images/download/20160810_C5906_PHOTO_EN_750635.jpg
For further information: J. Murray Souter, President & CEO, Diamond Estates Wines & Spirits Inc., [email protected], 905 641 1042 Ext 234; Alan Stratton, CPA, CA, Chief Financial Officer, Diamond Estates Wines and Spirits Inc., [email protected], 905-641-1042 Ext 225