Nestle Waters will also add two directors to Sweet Leaf Tea's board.
According to Christopher, the partnership will transform the company [image-nocss] from a regional brand to one with full national distribution within 24 months. Currently, the company's products are available in about 30% of U.S. markets in natural stores like Whole Foods and grocery chains like Kroger and Safeway. In addition, the partnership will accelerate innovation and fund other growth initiatives.
"We are very enthusiastic about this investment from Nestle Waters and believe we have found in them an ideal partner for growth," said Christopher. "Not only do they have an unrivaled national network of distribution partners, which includes many of our existing partners, but they are as committed as we are to bringing quality and goodness to consumers in the most environmentally conscious way possible. It's an ideal strategic and cultural fit, which is important to us."
Nestle Waters joins Catterton Partners, the nation's leading private equity firm focused exclusively on the consumer industry, as investors in Sweet Leaf Tea. Catterton is the investment company behind Build-a-Bear Workshop, PF Chang's China Bistro, Odwalla and Kettle Foods.
"This investment speaks volumes about our enthusiasm for the exceptional company Sweet Leaf has built, based on the principles of quality and all-natural goodness," said Tim Brown, executive vice president of retail operations, Nestle Waters NA.
Sweet Leaf Tea was founded in 1998 by Christopher, then 25, when he couldn't find a bottle of iced tea that tasted like the delicious, homemade tea his grandmother, who he affectionately refers to as Mimi, used to make for him when he was growing up in Beaumont, Texas. Shortly thereafter, Christopher's childhood friend, David Smith, joined the company and the two began production using pillow cases as tea bags and brewing their homespun tea in 50-gallon crawfish pots. Made from all-natural ingredients, including purified water, pure cane sugar and organic tea leaves, Sweet Leaf Tea is made and brewed based on Clayton's grandmother's recipe and technique.
Today, the company has 10 iced-tea flavors and one lemonade flavor and operates in a beverage market valued at an estimated $3 billion per year. Clayton's grandmother still lives in Beaumont.
"This is a very exciting time in our company's history, and we are delighted to have the opportunity now to bring our award-winning products to more people, in more places, more often." said Christopher. "Mimi is very proud."
Greenwich, Conn.-based Nestle Waters NA distributes bottled water brands including Nestle Pure Life, Ozarka, Poland Spring, Arrowhead, Deer Park, Ice Mountain, Zephyrhills and several imported brands.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.