Business
Closure of Sirco juice brand
Closure of Sirco juice brand.
About this update from Provexis Plc
[{"type":"text","content":"\n Provexis PLC\n02 July 2007\n\nFor release at 07.00 Monday July 2nd 2007\n\n\n\n\n\n PROVEXIS plc\n ('Provexis' or the 'Company')\n\n CLOSURE OF SIRCO JUICE BRAND\n\n\nProvexis plc (PXS.L), the nutraceutical company that develops\nscientifically-proven functional and medical foods, announces that, further to\nthe preliminary results announcement on 30 May 2007, the Company has undertaken\na strategic review of its Sirco(R) juice brand. In order to facilitate the\nnegotiation of exclusive rights for potential license partners, the Company is\ngoing to cease production and supply of Sirco(R) with immediate effect. Sirco(R)\nis currently distributed in approximately 1,900 major multiple grocers and high\nstreet retailers. There are no financial write-offs related to the closure.\n\n\nProvexis is in the process of repositioning itself as a pure discovery,\ndevelopment and licensing business and this closure is a key part of the\nimplementation phase. The Sirco(R) brand has met its aims in raising awareness\nof the Company's patented, scientifically-proven Fruitflow(R) heart-health\ntechnology with global food and beverage brand owners and has demonstrated\nconsumer demand for the technology, as well as underpinning the implementation\nof its regulatory and health claims strategy.\n\n\nThere are four sectors in which Provexis is seeking major partnerships, namely,\nfood and dairy, juice and juice drinks, products for deep vein thrombosis, and\ndietary supplements and medical products. On 30 March 2007, the Company\nannounced a collaboration with Unilever for certain formats within the food and\ndairy sector.\n\n\nProvexis is currently in discussions with two major global beverage brand owners\nregarding potential license arrangements for Fruitflow(R) in juice and juice\ndrinks and these companies require extensive, exclusive geographical rights,\nwhich the closure of Sirco(R) will facilitate. The Company hopes that these\ndiscussions will reach a satisfactory conclusion in due course.\n\n\nStephen Moon, Chief Executive Officer of Provexis plc, commented:\n\n\n'After examining other possible exit options, it was felt that the long-term\npotential of licensing to a major brand owner would deliver higher shareholder\nvalue. We have carefully planned this step and there are no write-offs\nassociated with it. This completes our programm...