8-K: MDWerks Subsidiary Two Trees Beverages Expands Tim Smith Spirits Licensing to Europe and Beyond

MDWerks' Two Trees Beverages has secured a new 15-year licensing agreement, expanding the distribution of Tim Smith Spirits to include the European Union, the United Kingdom, and several other countries.

Summary

• MDWerks, Inc. announced that its subsidiary, Two Trees Beverages, has entered into a new 15-year licensing agreement with Shine Time, LLC.
• This agreement expands the product licensing territory for Tim Smith Spirits beyond the United States.
• The new territories include all members of the European Union, the United Kingdom, Norway, Switzerland, Iceland, Serbia, Turkey, and Ukraine.
• The collaboration between Tim Smith and Two Trees now extends through 2038.
• The original partnership began in 2013.
• Tim Smith Spirits branded products include Climax Moonshine, Climax Wood Fired Whiskey, and Southern Reserve Bourbon, among others.

Sentiment

Score: 8

Explanation: The document conveys a positive outlook with the expansion of the licensing agreement and the potential for increased sales and brand recognition. The long-term nature of the agreement also adds to the positive sentiment.

Positives

• The new 15-year agreement provides long-term stability for the partnership.
• Expanding into new international markets significantly increases the potential customer base for Tim Smith Spirits.
• Tim Smith's increased involvement in promotional activities should boost brand awareness and sales.
• The existing partnership has been successful since 2013, indicating a strong foundation for future growth.

Risks

• The press release contains forward-looking statements which are subject to risks and uncertainties.
• The company's future performance is not guaranteed and may differ from expectations.
• The company has provided additional information about the risks facing our business in its most recent annual report on Form 10-K, and any subsequent periodic and current reports on Forms 10-Q and 8-K, filed by it with the Securities and Exchange Commission.

Future Outlook

The company intends to work more closely with Tim Smith on promotional activities and has identified product marketing opportunities including strategic product placement, distillery visits, and co-branded events. The company also aims to grow the current spirits portfolios as well as developing successful new brands.

Management Comments

• Steven Laker, CEO of MDWerks, stated that they are thrilled to build on Two Trees' relationship with Tim Smith and expand the product license territory.
• Tim Smith expressed his eagerness to support the Two Trees team in growing the current spirits portfolios and developing new brands.

Industry Context

This announcement reflects a trend in the beverage industry where brands are expanding their reach through strategic partnerships and international distribution agreements. The collaboration with a well-known personality like Tim Smith can provide a competitive edge in the spirits market.

Comparison to Industry Standards

• The 15-year licensing agreement is a long-term commitment, which is common in the beverage industry for established brands.
• Expanding into the European Union and other international markets is a typical strategy for growth, similar to other beverage companies seeking global reach.
• The use of celebrity endorsements and promotional activities is a common marketing tactic in the spirits industry, comparable to other brands that leverage partnerships with well-known figures.

Stakeholder Impact

• Shareholders should view this as a positive development with the potential for increased revenue and profitability.
• Employees of Two Trees Beverages may see increased opportunities for growth and development.
• Customers in the new international markets will have access to Tim Smith Spirits products.
• Suppliers may see increased demand for their products due to the expanded distribution.

Next Steps

• Two Trees will work with Tim Smith on promotional activities.
• The company will focus on strategic product placement across various media.
• The company will organize distillery visits and co-branded events.
• The company will develop new brands.

Key Dates

Keywords

licensing agreement, Tim Smith Spirits, Two Trees Beverages, international expansion, moonshine, spirits, MDWerks, product licensing, European Union, distribution