Shares of Castle Brands Inc. ROX jumped 13.24% today to $1.54 per share after the company announced that it increased their ownership in Gosling-Castle Partners Inc. (GCP) by another 20.1%.
Gosling-Castle holds the exclusive long-term rights to export and distribute Gosling Rum and Gosling Stormy Ginger Beer for all countries other than Bermuda. Castle Brands owns 80.1% of GCP after the transaction, and extended its export and distribution agreement through March 2030, with ten-year renewal terms after that.
“We look forward to working even more closely with Malcolm Gosling and the Gosling family to build the prominence of the iconic Goslings brands,” said John Glover, Executive Vice President of Castle Brands.
Castle Brands is a New York-based company that develops, markets, imports, and sells alcohol products in the U.S. and internationally. The company’s stock has been on the rise since it agreed to supply Gosling products to all Wal-Mart WMT locationsin the U.S. The stock increased 52% since the deal was announced on Feb. 27, 2017, from $0.73 per share to $1.54 per share.
While these deals significantly benefit Castle Brands, the company’s place in the market stays the same. More work still needs to be done before Castle Brands can compete with giants in the industry like Anheuser-Busch InBev BUD, Molson Coors Brewing TAP, Brown-Forman Corporation BF.B and Boston Beer SAM, which consume the majority of the market share.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Brown Forman Corporation (BF.B): Free Stock Analysis Report
Molson Coors Brewing Company (TAP): Free Stock Analysis Report
Anheuser-Busch Inbev SA (BUD): Free Stock Analysis Report
Castle Brands, Inc. (ROX): Free Stock Analysis Report
Boston Beer Company, Inc. (The) (SAM): Free Stock Analysis Report
Wal-Mart Stores, Inc. (WMT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research