PepsiCo Agrees to Acquire Naked Juice Company
The acquisition signals PepsiCo's continued portfolio transformation to growth platforms that address growing consumer health and wellness needs -- such as its North American acquisitions of IZZE Beverages and Stacy's Pita Chips earlier this year.
22/11/06 PepsiCo announced its agreement to acquire Azusa, California-based Naked Juice Company, a leader in the fast-growing super premium juice category, from North Castle Partners, a private equity firm. Terms of the agreement, which is subject to government approval, were not disclosed.
The acquisition signals PepsiCo's continued portfolio transformation to growth platforms that address growing consumer health and wellness needs -- such as its North American acquisitions of IZZE Beverages and Stacy's Pita Chips earlier this year. Brands and products like these -- which are identified with PepsiCo's Smart Spot logo and number about 250 -- have been growing at two and a half times the rate of the rest of the portfolio.
With sales of more than $150 million, Naked Juice Company has a loyal and rapidly growing consumer base, which it reaches primarily through grassroots marketing and sales efforts. Its products include more than 25 all natural, 100 percent chilled juices and juice smoothies made from the best bare-naked fruits, with no added sugars or preservatives. Naked Juice is sold in supermarkets, club stores, health food stores and other specialty stores nationwide.
PepsiCo will continue Naked Juice's successful marketing and innovation approach, while broadening its reach. With access to PepsiCo's sales and distribution capabilities, Naked Juice can better meet the increasing consumer demand for healthy grab-and-go beverages and healthy snack alternatives. Naked Juice will continue to operate in California.
"We're delighted to add Naked Juice to our portfolio, as it strategically fits our stated plans for growth," said Greg Shearson, president of Tropicana Products North America, a unit of PepsiCo. "The company's products are consistent with PepsiCo's overall health and wellness focus and will help accelerate our efforts in providing great tasting fruit and vegetable servings to North American consumers."
In fact, nearly all 25 Naked Juice beverages would qualify for the PepsiCo Smart Spot designation, which was created to help consumers identify PepsiCo products that contribute to a healthier lifestyle.
"Naked Juice's consumers and customers are passionate about this brand. We value that level of loyalty and look forward to building on it to help Naked Juice continue to grow," said Shearson.
Founded in 1983, Naked Juice was first distributed out of a backpack "beach towel-to-beach towel" on Santa Monica Beach and today has grown to produce and ship 6 million bottles every month, nationwide.
"We're excited Naked Juice will be joining PepsiCo, a quality organization with world-class marketing and sales teams that will catapult us to the next level," said Monty Sharma, chief executive officer of Naked Juice Company. "Becoming part of PepsiCo will allow us to expand our distribution and continue to demonstrate our commitment to bring the best all-natural juice and juice smoothies to more consumers. I'm looking forward to PepsiCo growing this business, and to extending the availability and awareness of Naked Juice's exceptional line up of beverages."
"We are proud of the tremendous success the Naked Juice Company has achieved through our partnership with CEO Monty Sharma and the Naked Juice management team," said Lou Marinaccio, a managing director of North Castle Partners. "PepsiCo is a global organization dedicated to health and wellness. That dedication, coupled with extraordinary marketing and sales capabilities, positions Naked Juice beautifully to continue its success in achieving the next stage of growth."
