5 Beverage Brands Changing Hands
By Steve Holtz on Jun. 23, 2017CHICAGO -- Beverage manufacturers in both the alcohol and nonalcohol end of the business are finding acquisitions quick ways to grow their businesses and freshen up their drink portfolios.
Here are five deals that went down recently …
1. Dean Foods buys Uncle Matt’s Organic
Dean Foods Co. announced June 22 that it acquired Uncle Matt’s Organic, a leading organic juice company. Uncle Matt's Organic will continue operating the business out of its offices in Clermont, Fla., as a subsidiary of Dean Foods.
Uncle Matt's Organic is the nation's oldest organic juice company, according to the company, offering a range of products including probiotic-infused juices and fruit-infused waters.
Founded by Matt McLean, the real-life uncle to 10 nieces and nephews, Uncle Matt's Organic “is committed to producing the highest quality juices, using only premium, 100% organically grown fruit that is free from GMOs, synthetic fertilizers and pesticides,” the company said.
2. Brynwood closes on Sunny Delight deal
Brynwood Partners VII LP completed the merger of Sunny Delight Beverages Co. into Harvest Hill Beverage Co. on May 22.
Stamford, Conn.-based Harvest Hill is now one of the nation's leading independent beverage companies with more than $800 million in gross sales, seven manufacturing facilities with a national footprint and a portfolio of iconic brands, including Juicy Juice, SunnyD, Little Hug, Daily's and Nutrament.
In conjunction with the merger, Harvest Hill has announced a new executive team. Effective April 4, John LeBoutillier was named president and chief executive officer of Harvest Hill.
"John joins us with over 25 years of experience in the food and consumer products industries having worked at Kraft and Unilever and, most recently, serving as the president of Unilever Canada,” said Hendrik J. Hartong III, chairman and CEO of Brynwood Partners. “John brings significant beverage and consumer products experience to Harvest Hill. We have confidence in John as a key leader in the overall integration and growth of the company."
3. Wicked Weed joins A-B’s The High End
Asheville, N.C.-based craft beer maker Wicked Weed Brewing is joining The High End, Anheuser-Busch’s business unit focused on craft and import brands.
Wicked Weed, founded in Asheville in 2012 by Walt and Luke Dickinson and Ryan, Rick and Denise Guthy, has created more than 500 beers since it opened almost five years ago.
“This is an exciting time for the entire brewing team,” said co-founder Walt Dickinson. “Our ability to create a wide range of really well-executed beers that are focused on creativity, quality and drinkability is what makes Wicked Weed great. We have chosen to partner with The High End to position ourselves to make Wicked Weed what we imagined it could be when we first sat at a craft beer bar and talked about opening a brewery.”
Anheuser-Busch's partnership with Wicked Weed is subject to regulatory approval. Terms of the agreement were not disclosed.
4. Constellation acquires Schrader Cellars
Alcohol drinks giant Constellation Brands, Chicago, has purchased Napa Valley winery Schrader Cellars, according to a report in Wine Spectator. The deal gives Constellation one of the elite names in Napa Cabernet, known for its Beckstoffer To Kalon Vineyard cuvée and several other notable bottlings.
The deal includes the brand and long-term contracts with multiple vineyards.
For Constellation, one of the world's largest winery owners and owner of beer brands Corona and Modelo, the deal is the latest in a series focused on premium wines. In 2015, it bought Pinot Noir brand Meiomi for $315 million. A year later it bought red-blend brand The Prisoner for $285 milllion.
5. E. & J. Gallo acquires Stagecoach Vineyard
E. & J. Gallo Winery has purchased Stagecoach Vineyard, a Napa Valley vineyard with a reputation for exceptional wine grapes. Located in the Pritchard Hill Region and the Atlas Peak appellation, Stagecoach Vineyard encompasses numerous soil depths, soil types and microclimates that are ideal for premier grape growing, according to the company.
"Owner Dr. Jan Krupp is a meticulous grape grower and an innovator in the wine community,” said Roger Nabedian, senior vice president and general manager of Gallo's Premium Wine Division, Modesto, Calif. “We are thrilled to continue working with Jan to produce the finest luxury fruit for Napa Valley's most esteemed winemakers.”
The 1,300-acre Stagecoach Vineyard sells grapes to more than 90 wineries, ranging from small boutique wineries to large-scale wine companies. More than 30 wineries bear the Stagecoach name on their label.