AEI launched VRAI, US’s first and only USDA organic premium hard seltzer in Singapore

·Moving into the growing popular trend in Asia for Ready-To-Drink alcoholic beverages

·Group aspires to transform into the top rung in Asia as it builds up a portfolio of alcoholic beverage brands under its wings

Singapore – 1 February 2021, AEI Corporation Ltd. (the “Group”) is pleased to announce that its subsidiary’s Ascent Bridge (Singapore) Pte Ltd held the VRAI Asia Grand Launch on 29 January 2021.

VRAI is the first and only United States Department of Agriculture (“USDA”) certified 5.5% organic premium hard seltzer in the United States, the first and only vodka-based organic alcoholic beverage. Its unique taste is created by adding organic natural flavors to a blend of high-quality liquor, as organic ingredients are especially popular with today’s health-conscious consumers.

In recent years, the revolutionary Asian Ready-To-Drink (“RTD”) alcoholic beverage industry has been gaining strong popularity especially among Gen Z, millennials, and women, and has been identified as a new trend of beverage that would replace mainstream beer. Its growth momentum is largely fueled by the region's rising demand for healthier premium alcoholic cocktails over cheaper alternatives.

The hard seltzer beverage offers a promising outlook with potential upside to be tapped on. According to Jefferies’ analysis [worldwide/US] sales of hard seltzer are expected to double to $3.5 billion in 2020 and reach $6.5 billion by 2024. In 2019, [worldwide/US] hard seltzer sales grew significantly by 226.4%, while total beer sales only achieved a growth of less than 1%.

With their relatively low calorie, low sugar, and low carbohydrate content, the drink’s organic ingredients, and its unique seltzer taste, as well as the convenience of drinking from a can and its cost-effective price, Vrai is expected to become a major force in the market and gain significant market share in a relatively new product category by leveraging on their first-mover advantage in the Asian markets. By tapping on this, the Group is planning to launch Vrai in Asia markets where Singapore will be the first stop, followed by China, Hong Kong, and Vietnam.

Separately, the Group has been reviewing potential diversification projects to enhance the Group’s growth and profitability due to challenging operating conditions in its existing aluminum extrusion business in recent years. Subject to Shareholders’ approval, the acquisition of MTBL Global Pte Ltd (“MTBL”) presents an opportunity for the Group to acquire a business with a global distribution right (excluding mainland China) of a highly valuable liquor brand.

MTBL is involved in the distribution of alcoholic and non-alcoholic beverages and liquor, and investment holding, owning the exclusive distributor rights to market and sell Moutai Bulao 125ml liquor products worldwide (except in mainland China) for the period ending 31 December 2027 (“Distribution Rights”). The Distribution Rights include Hong Kong, Macau, and Taiwan. Moutai Bulao liquor is a single product launched on the market produced by Guizhou Moutai Winery (Group) Health Wine Co., Ltd. ("GZMT”), a wholly-owned subsidiary of the Moutai group in Guizhou, China. 

About AEI Corporation Ltd. Established in 1983, AEI Corporation is a specialist manufacturer of high-quality precision aluminum extrusion products and precision metal components for a diverse range of high technology and value-added industries. With a reputable track record and a name synonymous with quality, AEI is a leading industry player in the Asia Pacific region for materials development. Today, it is the sole aluminum extruder with cutting-edge technology production facilities in Singapore. Its operations span across diverse industries in Singapore, China, Malaysia.