A NEW brand of energy drinks based in the North-East is set to power its way into the American market after its creators finalised a distribution contract worth nearly £70m a year.

The exclusive three-year agreement, orchestrated by Darlington solicitors Blackett Hart and Pratt (BHP) will see 16 million cans of Velocity a month distributed across the United States and Canada for the Newcastle company, which was launched earlier this year.

Richard Baister, the 23-year-old managing director of TD Associates UK Limited - which created Velocity - is confident similar contracts in Germany and Spain will take Velocity drinks to number two in the world market after Red Bull.

The US deal was drawn up by BHP, which has also negotiated the lease for the company's headquarters at Fenham Hall Studios and dealt with intellectual property issues surrounding the launch of Velocity.

Mr Baister said: "It is a lengthy and complex distribution agreement and BHP was instrumental in putting it together. We're linking into a large, existing distribution network across North America and will supply to our distributors there a minimum order worth £5.6m per month."

Ross Paterson, a business and company law solicitor with Blackett Hart and Pratt, said: "Coming from a legal background Richard realised the importance of ensuring the company was operating from a sound legal footing in all aspects of its business.

"As a result we've provided input at all stages of the company's development from organising trademarks through to the negotiation of distribution agreements."

BHP has also drawn up employment contracts for Velocity's staff.

Mr Baister, who was born in Holland but grew up in Ferryhill, County Durham, was already involved in importing soft drinks when he spotted a gap in the market.

His company first looked into developing the Velocity brand in November 2004. Following the appointment of a sales team, the drink was launched at a celebrity event in central London in June.

He explained: "Other energy drinks are very similar to each other and are available in just one flavour. No-one has tried to vary it. Velocity comes in three flavours to make it more palatable than its competitors and the flavours make great substitutes for conventional mixer drinks."

Velocity is manufactured in Holland and comes in Original, Lemon and Lime and Cranberry flavours.

Crucial to its growth is the marketing campaign, which has included exclusive energy drink sponsorship of the 50 Cents Anger Management Tour in Ireland, Global Gathering, Creamfields, Notting Hill Carnival, Ultimate Street Car and the upcoming MOBO Awards in the UK.

London marketing and PR agency Red Hot has been appointed to co-ordinate a marketing campaign in North America and Europe, central to the brand's growth internationally.