China deal to help Newcastle’s NOVELTEA boost global growth
North East-based NOVELTEA has signed a new deal to bring its alcoholic tea blends to China.
The company secured an agreement with FEAST Holdings GMBH, the Asian investment and distribution company, at it looks to boost global sales by tapping into the lucrative Chinese market.
NOVELTEA was founded in 2016 by former Newcastle University graduates Vincent Efferoth and Lukas Passia.
The distribution deal will give FEAST an equity stake in the business – a move which, according to NOVELTEA, indicates the distributor’s desire to help it succeed globally.
The export announcement follows the launch of NOVELTEA’s third brew, The Tale of Oolong, which blends Chinese Oolong tea and Scotch whisky.
The firm’s other teas are The Tale of Earl Grey and The Tale of Tangier.
Founders Vincent and Lukas recently featured on BBC2 show Dragons’ Den, where they turned down investment offers from three Dragons after declining to give away a 30% stake.
But just days after filming, the pair managed to raise £342k for 9% of the business, valuing NOVELTEA at £3.8m.
Vincent said: “We’re delighted to strike this innovative distribution deal with FEAST, supported by forward-thinking legal advice from Muckle LLP. We’re always looking for new partners that share our love of creativity and tea, and this deal is symptomatic of how we do business.
“NOVELTEA’s products have huge global sales potential and we have ambitious plans to extend our range and grow our overseas market.”
He continued: “With a creative, confident team and a passion for doing business differently, we are teaming up with a distributor who has the drive, expertise and connections to help extend our networks, boost sales and increase profits.”
FEAST director Janis Vougioukas said: “We’re thrilled to team up with NOVELTEA and to sign up to this mutually beneficial distribution deal.
“We have great connections in China and other parts of Asia so we’re confident that we will be able to help deliver strong sales and increased turnover for everyone involved.”
Legal work for the distribution deal was completed by associate Amy Wanless and solicitor Tom Justice from North East law firm Muckle LLP.
Amy commented: “We have been working with NOVELTEA from early on in their journey, initially supporting them through our Mi Business legal services package, which is designed to help small and startup business grow.
“What truly makes this a standout deal is that FEAST will receive an equity stake in NOVELTEA, and now both businesses are working to develop the brand’s global appeal and increase share value, benefitting all investors who have so far supported the company’s rapid growth.”
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