PHOENIX--(BUSINESS WIRE)--Sept. 24, 1996--GumTech International Inc. (NASDAQ:GUMM) Tuesday announced it has reached an exclusive agreement worth a minimum of $800,000 with Elspar Norge a.s. for distribution of GumTech chewing gum products in Norway.
Elspar will purchase $300,000 in these products for the remainder of 1996 and a minimum of $500,000 in 1997. In return GumTech will supply three therapeutic chewing gum products, ChromaTrimO, CitrusSlimO and Jack LaLanne's Ginseng. These products have been approved by the Norwegian health ministry. GumTech will supply more brands as the Norwegian government approves them.
Elspar is a supplier for Norges Gruppen, a chain that reaches major portions of the Norwegian consumer product market through 2,500 outlets and 900 Shell and Esso Food/Express shops. Elspar also acts as a distributor for Daewoo of Korea and Peacock AG and Schneider of Germany.
"This is a significant step forward for GumTech in the international market," said Jerry Kern, president and chief executive officer. "In less than three months we've signed major manufacturing and distribution agreements for Japan and Norway. We believe there's tremendous potential for foreign growth in branded sales and contract manufacturing, and we're pursuing both aggressively."
Kern said GumTech was negotiating with a Swedish company for similar distribution in Sweden and Finland. Two Japanese firms, the Shisei Medicine Company Ltd. of Yokohama and the Toho company of Tokyo, began distributing GumTech products in their country in July.
Kern noted that Elspar has signed Bjorn Dali, a world champion Norwegian cross-country skier, to support a large-scale advertising and marketing campaign. The promotion is scheduled to coincide with a major cross-country skiing competition in Norway in December.
"Cross country skiing is to Norway what baseball is to America," Kern said. "Every Norwegian knows of Bjorn Dali."
GumTech distributes its products to more than 75 percent of the nation's top drugstore chains, including Walgreens, Osco, Thrifty, Sav-on and Payless, where it is steadily increasing sales. The company also enjoys a strong nationwide position in convenience-store chains and health food stores and has entered major supermarket chains.
In addition, GumTech is increasing distribution and further expanding its presence in international markets, including Europe and the Far East.
CONTACT: GumTech International Inc., Phoenix
Jerry Kern, 602/277-0606
or
Financial Relations Board, 310/442-0599
Tom Ekman (analyst contact)
Art Bentley (general information)
Steven Seiler (media contact)
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