ATLANTA -- Coca-Cola North America hopes to gain traction in the sparkling-water category with its acquisition of Topo Chico premium sparkling mineral water. In a deal announced Oct. 2, Coca-Cola's Venturing & Emerging Brands (VEB) unit will bring Topo Chico into its portfolio "to nurture its storied history and century-old brand values," and bring the brand to more people across the United States.
Arca Continental, Coke’s second-largest bottling partner in Latin America, has bottled and distributed Topo Chico for the last 30 years.
Here's a look at the deal and two other recent acquisitions in the packaged-beverage world ...
"As we accelerate our evolution to a total beverage company, we’re investing in brands that are on trend. Topo Chico is a fast-growing brand with a lot of passion behind it and growth runway ahead," said Matt Hughes, vice president of emerging brands, incubation for Coca-Cola. "The premium, imported sparkling water category is growing double digits, and Topo Chico has proven itself in a significant market—Texas—where it’s leading the category.”
Topo Chico will continue to be imported from the Cerro del Topo Chico mountain in northern Mexico, the company said, where it has been bottled exclusively since 1895. It’s currently sold in northern Mexico and in 35 states across the U.S., with approximately 70% of its U.S. sales coming from Texas.
“Our goal now is to extend its reach while preserving its heritage,” Hughes said.
Switzerland-based Nestle announced Sept. 14 that it has acquired a majority stake in Blue Bottle Coffee, a high-end specialty coffee roaster and retailer based in Oakland, Calif.
The company operates coffee shops in major U.S. cities and in Japan. The total number of Blue Bottle Coffee shops is expected to reach 55 by the end of 2017, up from 29 at the end of last year. Blue Bottle Coffee has also launched super-premium ready-to-drink and roast and ground products, sold online and in the retail market.
Blue Bottle Coffee will continue to operate as a stand-alone entity, while having full access to Nestle’s capabilities in coffee and its strong global consumer reach. Nestle said the acquisition offers opportunities to grow in the ready-to-drink coffee market.
Nestle is the world’s largest coffee producer, with brands including Nescafe and Nespresso. Nescafe is the world’s leading coffee brand, available in more than 180 countries, with nearly 5,500 cups consumed every second. Nespresso has more than 600 boutiques and about 465,000 daily visits to its e-commerce platforms.
Denver-based New Age Beverages Corp. acquired both Maverick Brands LLC and the Marley Beverage Co. in the second quarter of 2017.
Maverick Brands' flagship beverage is Coco Libre coconut water, a needed addition to New Age Beverages' portfolio, according to the company. "The acquisition fills an important gap to complete the company's functional beverages portfolio, brings in a top five and the No. 1 multiserve brand in the category, and provides an excellent organic coconut water source for some of the company's planned new products," the company said.
The Marley Beverage deal includes brands in ready-to-drink coffee and relaxation drinks and teas, including One Drop, Marley Yerba Mate and Mellow Mood. "The line complements the existing New Age healthy functional beverage line and fills an important role in the company's portfolio," New Age Beverages said.
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