Hicksville beverage maker Long Island Iced Tea Corp. has agreed to acquire rights to a juice brand processed from Thai aloe vera plants, the company announced Friday.
The company said in a news release that it is buying brand and trademark rights to ALO Juice from Wilnah International LLC, based in Fort Lee, New Jersey, for 5,000 shares of common stock. The deal is expected to close in the first quarter of 2017.
Shares of Long Island Iced Tea Friday closed up 1 percent to $4.96 on the Nasdaq Capital Market.
In a telephone interview, chief executive Philip Thomas said the company’s iced tea products would benefit by piggybacking on ALO’s strong distribution network in Florida, while ALO would gain broader distribution in the company’s home Northeast market.
“They have great synergies,” he said.
In the news release, Long Island Iced Tea cited academic papers to back up assertions that aloe juice “helps to balance metabolism and supports normal circulation and blood pressure.”
Thomas described ALO as a “functional beverage,” a category that he said is gaining increasing consumer acceptance.
The deal is the first brand acquisition in the 5-year history of Long Island Iced Tea.
ALO Juice exports aloe vera plants harvested in Thailand to South Korea, where they are processed and made into juice in flavors including original, mango, pomegranate, pineapple and raspberry.