MATAWAN, N.J. -- PacificHealth Laboratories Inc. has sold its ready-to-drink sports beverage Accelerade to Mott's Inc., a division of Cadbury Schweppes, London, for $4 million and a portion of future sales, officials from both companies said Thursday, reported the Asbury Park (N.J.) Press.
The agreement allows PacificHealth to continue developing products that include the powder and gel forms of Accelerade and a weight-loss supplement, said Robert Portman, PacificHealth's president and CEO. The deal provides us with significant, immediate benefits, he [image-nocss] told the paper.
Accelerade is made from a mixture of carbohydrates and protein that company officials have touted as more effective than drinks without protein, such as Gatorade. Sports teams, including the New Jersey Nets, have used the product to help their players recover after exercising, but Portman told the paper that the company has not had the financial resources to sell the drink at supermarkets and convenience stores nationwide.
As a result, the company, which started in 1995, has faced financial problems, losing a total of nearly $17 million, according to documents filed with the U.S. Securities & Exchange Commission (SEC).
The brands under Cadbury Schweppes' Mott's include Welch's, Hawaiian Punch and Orange Crush. The deal to buy Accelerade and Endurox R4, another sports drink developed by PacificHealth, gives it access for the first time to the sports drink industry, the report said.
Chris Barnes, a spokesperson for Cadbury Schweppes Americas Beverages, Plano, Texas, told the paperd, We're certainly very excited about this acquisition because it gives us access to patents, technology and trademarks in the growing sports drink nutrition category.
In other beverage news, Minneapolis-based bottler PepsiAmericas Inc. recently purchased Ardea Beverage Co., maker of airforce Nutrisoda. PepsiAmericas will collaborate with Pepsi-Cola North America to market airforce Nutrisoda in select PepsiAmericas markets with the possibility for future expansion.
Ardea, based in Hopkins, Minn., sells a portfolio of nutritionally enhanced, low-calorie, carbonated beverages. The 8-oz. cans of airforce Nutrisoda are sold in a variety of outlets.
The Nutrisoda brand complements our growing portfolio of healthier beverages, providing a unique and fashionable beverage alternative, said Robert C. Pohlad, chairman and CEO of PepsiAmericas. Nutrisoda has tremendous potential in the fast-growing functional beverage category, and it supports our strategy to bring customers relevant and exciting products that fit consumers' lifestyles.
Nutrisoda, which launched in 2003, targets on-the-go consumers who are nutritionally aware. Each of the seven products within the portfolio contains vitamins and minerals formulated to achieve a specific benefit. The products have few or no carbs, sugar, sodium or calories, appealing to health-conscious consumers. Brand offerings include Immune in tangerine and lime flavor, Radiant in pomegranate and black berry, Calm in wild berry and citron, Focus in mango and peach, Flex in black cherry and apple, Energize in mandarin and mint and Slender in pink grapefruit and guava.
We knew we had the right product, but access to a strong selling system was critical to the long-term success of Nutrisoda, said Joe Heron, founder of Ardea. With PepsiAmericas' strong customer relationships, infrastructure, and quality of management, we are excited about the possibilities for Nutrisoda.
Ardea will become a wholly owned subsidiary of PepsiAmericas. Terms of the transaction were not disclosed.
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