NewAge, Inc. announced that it has expanded operations to Brazil, one of the six largest direct selling markets in the world.
NewAge and ARIIX announced their plans to merge on July 20, 2020, which will create a combined company with pro forma revenues of more than $500 million with operations worldwide and access to both developed and developing markets in key areas of the world. Since the announcement, the company has been working on identifying and capturing synergies as part of the transaction and completing the audit of ARIIX’s financial statements to enable closing of the transaction. In addition to cost synergies of more than $20 million, NewAge also identified revenue synergies from cross-sales of brands and providing access for respective leaders to each other’s markets. The Brazil expansion is a realization of one of those revenue synergies.
NewAge established operations and its office in Sao Paulo in the second quarter and is now expanding operations to take advantage of the burgeoning opportunity there. ARIIX has recently commenced operations in Brazil.
“The building of the Brazil market is yet another important step in our strategy to bring our products and brands through our omni-channel strategy to emerging markets around the globe,” said Brent Willis, chief executive officer of NewAge. “Everything we have done with our Brazil expansion has been very local and very Brazilian, which is a must to be successful. Providing access to the market opportunity there for all our reps from all our partner companies is a great benefit for them, and a great growth opportunity for us.”
Fred Cooper, CEO of ARIIX commented, “Expansion to NewAge’s global market footprint was one of the great opportunities that we wanted to provide for our reps, and I am excited to see it happening so quickly. With all of the momentum that ARIIX is experiencing, coupled with the excitement of the announcement, we are drawing increased interest to join the NewAge ARIIX platform following the merger. Over the next several months, we will continue to locally register additional brands and products in Brazil and other Latin American market strongholds. Our ability to now ship products locally, direct to consumers, well positions us to be able to capitalize on the potential of this growing market.”