HOUSTON -- Dispensed-beverage manufacturer Sunny Sky Products has acquired DWS Inc. The move aims to give Sunny Sky Products an edge in the growing hot-dispensed category, according to the company.
DWS Inc., South Burlington, Vt., boasts a line of hot dispensed beverages including Hershey- and Cinnabon-branded flavors. Its assets also include frozen and iced product offerings.
“We are excited to welcome the customers and employees of DWS to the Sunny Sky Products team. With its strong sales in the hot-dispensed category, DWS Inc. is a perfect strategic fit to the existing Sunny Sky Products portfolio,” said W. Ashley Edens, president and CEO Sunny Sky Products. “DWS’ solid position in the hot-dispensed segment, coupled with Sunny Sky Products’ expertise in frozen and cold dispensed, presents a fantastic growth opportunity.
"Both companies share similar visions to be best in class with our people, products and customer service, and we are confident this acquisition will strengthen our presence as a leading manufacturer of dispensed beverages for the c-store industry.”
Last year, hot dispensed drinks came out on top of the beverage category in terms of sales and gross-profit dollars per stores per month, according to NACS State of the Industry Report of 2016 Data.
Some restaurants are slashing their food menus to stand out as a leader in hot dispensed. Earlier this year, Dunkin Donuts rolled out a beverage-first prototype. The store offers customizable coffee blends and a tap system featuring eight cold-prep drinks.
Houston-based Sunny Sky Products distributes its cold dispensed, hot dispensed and frozen beverages, as well as beverage enhancers, to more than 20 countries. The brand’s product portfolio includes brands such as Hershey’s Freeze, Jolly Rancher Slush, Pure Craft Beverages, El Nino Aguas Frescas and Original Slushie Co.