New Ownership for Anchor Brewing, Funky Buddha
By Steve Holtz on Aug. 04, 2017CHICAGO -- Private-equity firms took ownership of three beverage makers across the United States, while a long-time U.S. craft-beer brand was picked up by an international brewer.
The beer, energy-drink, juice and dairy categories all saw drink brands change hands in recent weeks.
Here's a look at who bought whom in an active period of acquisitions and "recapitalization" ...
Sapporo acquires Anchor Brewing
Sapporo Holdings Ltd. has acquired craft-beer company Anchor Brewing Co. Subsidiary the Sapporo Group will take ownership of the company and its craft-beer brand Anchor Steam beginning Aug. 31.
The acquisition comes on the heels of the Sapporo Group introducing its "long-term management vision called Speed 150,” which was designed to set a tone of innovation and development through 2026, the Tokyo-based company's 150th anniversary. Among other things, that plan set a strategy for Sapporo to expand its beer business through the acquisition of a new brand, as well as growing the Sapporo beer brand.
Anchor is a prominent and historic U.S. beer producer founded in 1896 in San Francisco. In 2016, it was the 31th largest brewing company in the United States based on sales volume, according to the Brewers Association.
Borden in private-equity hands
The 160-year-old Borden Dairy Co., a leading fresh-fluid dairy processor, is now owned by a private-equity firm. ACON Investments LLC and its affiliates "recapitalized" Borden as of July 10.
In 2013, Borden, maker of Borden milks, sour cream and cottage cheese, was spun off from a multinational conglomerate into a private company called Laguna Dairy S.A. de C.V. Following the equity recapitalization, Laguna Dairy remains a substantial equity holder in Borden, according to ACON.
Based in Dallas, Borden operates 13 dairy facilities across the United States with more than 500 million gallons of annual milk processing capacity.
"Dairy is a dynamic segment, and Borden is well-positioned to capitalize on a wide range of exciting opportunities," said Adam Kriger, who has served as an ACON consultant and has joined Borden's board effective as of the close of the equity recapitalization. "I look forward to working with ACON and management to formulate strategies, grow the company with new and adjacent products and drive significant value creation."
ACON Investments LLC is a Washington, D.C.-based international private-equity investment firm that manages private-equity funds and special-purpose partnerships that make investments in the United States and Latin America.
Brynwood adds Cold Spring Brewing Co.
Private-equity firm Brynwood Partners VII LP acquired Cold Spring Brewing Co. Inc. from the Lenore family on Aug. 4. Terms and conditions of the transaction were not disclosed.
Located in Cold Spring, Minn., Cold Spring is a beverage manufacturer that produces energy drinks and carbonated flavored waters and brews craft beers. The company primarily manufactures products, both nonalcohol and alcohol beverages and beer, for other companies' proprietary brands and retailers' private labels. Cold Spring also brews beer under its own brand, Third Street Brewhouse, for distribution in Minnesota and Wisconsin.
Founded in 1874, Cold Spring is one of the oldest beverage manufacturing plants in the United States. Today, Cold Spring has more than $60 million in net sales and employs approximately 350 people.
Brynwood Partners, Greenwich, Conn., is an operationally focused private-equity firm that makes control investments in North American-based lower middle market companies in the consumer sector.
Brynwood VII acquired Sunny Delight Beverages Co. from a private equity fund in February 2016 and in May 2017, merged the company into its portfolio company, Harvest Hill.
Private-equity firm picks up King Juice
Private-equity firm Mason Wells acquired King Juice Co. Inc. on Aug. 1. King Juice Co. is the owner of the Calypso beverage brand and a co-manufacturer of other noncarbonated beverages. Mason Wells, along with Calypso President Jeff Outlaw and other members of the management team, acquired the company from the Kezman and Purpero families. Financial terms of the transaction were not disclosed.
The Calypso brand includes Lemonades, Limeades and Teamonades sold through a national distribution network. The Calypso brand products are also distributed internationally in 20 countries.
King Juice, Milwaukee, was established in 1985. Mason Wells is also based in Milwaukee.
Constellation picks up Funky Buddha
Chicago-based Constellation Brands Inc. purchased Funky Buddha Brewery Aug. 10. Funky Buddha is the fastest growing craft brewery in Florida and produces bold craft beers made with high quality ingredients, according to the company.
Funky Buddha Lounge & Brewery was founded in 2010 in Boca Raton, Fla., by husband and wife Ryan and Giani Sentz.
“We chose to partner with Constellation because we saw an alignment in vision and felt they gave us the greatest opportunity for growth and development,” said Ryan Sentz. “Constellation and Funky Buddha share a lot of the same ideals and passion for philanthropy, entrepreneurship and the art of craft beer. At the end of the day, we just really like the people we have met within the organization, each of whom share our dedication to making outstanding beer.”