Nestle Waters North America Invests $15.6 Million in Sweat Leaf Tea with Option to Buy the Company
"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, Nestlé Waters North America.
26/03/09 Sweet Leaf Tea Company, one of the nation’s fastest-growing makers of natural, organic beverages, has fetched a pail of water.
The Austin-based maker of organic, all-natural, home-style iced teas, lemonades and other natural beverages, announced that Nestlé Waters North America, Inc. has made a $15.6 million investment in Sweet Leaf Tea Company.
In addition, the company announced that Dan Costello, a Nestlé Waters North America executive will relocate to Austin, to become president of Sweet Leaf Tea, reporting to company founder and chief executive officer, Clayton Christopher. Nestlé Waters will also add two directors to Sweet Leaf Tea’s Board of Directors.
According to Christopher, the partnership will transform the company from a regional brand to one with full national distribution within 24 months. Currently, the company’s products are available in about 30% of US 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 Nestlé 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.”
The number-one bottled water company in the US, Nestlé Waters North America 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, Nestlé Waters North America.
Sweet Leaf Tea was founded in 1998 by Clayton 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. The company has 10 classic 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.”
