Celsius Holdings, PepsiCo announce distribution agreement

PepsiCo Inc., Purchase, N.Y., and Celsius Holdings Inc., Boca Raton, Fla., announced a definitive agreement forging a long-term strategic distribution arrangement. The distribution agreement initially transitions Celsius’ current U.S. distribution to PepsiCo’s best-in-class capabilities, the companies note. As part of the transaction, PepsiCo also will make an investment in Celsius in support of its growth agenda and will nominate a director to serve on Celsius’ Board of Directors.

The long-term U.S. distribution agreement is subject to certain exceptions, includes retail and foodservice channels. PepsiCo also will become the preferred distribution partner globally for Celsius.

As part of the transaction, PepsiCo will make a net cash investment of $550 million to Celsius in exchange for convertible preferred stock. Shares underlying the transaction were priced at $75 a share, or approximately 7.33 million shares, which equates to an estimated 8.5% ownership in Celsius on an as-converted basis. The preferred shares are entitled to a 5% annual dividend.

“We are extremely pleased to partner with Celsius and excited about the opportunity for our two organizations to drive growth and innovation in the energy beverage category,” said Kirk Tanner, CEO of PepsiCo Beverages North America, in a statement. “The Celsius brand's growing momentum coupled with the strength of PepsiCo’s portfolio and go-to-market capabilities create a combination we believe will be very compelling and valuable to retailers and consumers. We are looking forward to seeing the impact these two outstanding organizations can make together to more fully capture energy occasions.”

Celsius President, Chairman and CEO, John Fieldly, commented: “I would first like to thank our employees and partners who have helped facilitate our rapid growth. We believe the opportunity to partner with a global best-in-class distributor provides Celsius with significant near-term additional shelf space in both existing retailers as well as new expansion within the independent retailers that represent a significant portion of the U.S. convenience and gas channel where approximately 70% of energy drinks are sold. It also provides a strategic partnership that is expected to accelerate growth for both companies globally. In addition, this partnership will drive efficiencies allowing our teams to consolidate sales, marketing, and distribution efforts with associated cost benefits, which we expect to recognize once the initial transition is completed. We look forward to partnering with PepsiCo and maximizing the opportunities we see ahead for Celsius and our shareholders.”

Cincinnati-based Really Good Boxed Wine announced Amy Troutmiller as chief operating officer. Troutmiller brings experience in each tier of the alcoholic beverage industry, with executive roles in on-premise, import and wholesale, and eCommerce. Her resume includes stints at the Kimpton Hotel Group, The Ritz Carlton, and Five Grapes Distribution, as well as founding Common Fuel Consulting and SWIG Partners. Troutmiller’s hiring coincides with the company’s latest round of fundraising, which offered a crowdfunding allocation with SeedInvest through Aug. 26.

The Alkaline Water Co. Inc., Scottsdale, Ariz., announced that the Alkaline88 3-Liter will be available in one of the Western United States’ best-known convenience store chains. The approximately 600 locations, which were included in the company’s previously announced 8,400 new stores added since the start of the fiscal year, began carrying the product in August in their stores in California, Arizona, Nevada, Washington and Oregon.

Bolthouse Farms finalizes acquisition of Evolution Fresh

Armed Forces Brewing Co., Annapolis, Md., announced that its craft beers now are available in Texas H-E-B stores. Armed Forces Brewing Co.’s Preamble light beer will be sold in 197 Texas H-E-B stores, and 25 H-E-B stores near military bases in Texas also will carry Armed Forces Brewing Co.’s Special Hops IPA and Cat Shot Lager. Armed Forces Brewing Co. beers are distributed statewide in Texas by Dynamo Specialty Distributing.

Flow Beverage Corp., Toronto, announced that it has partnered with Ohi Inc. to offer two-hour, same-day, and next-day delivery for key eCommerce sales in New York, Los Angeles, San Francisco and Chicago. The partnership between Flow and Ohi will help support continued distribution expansion for Flow in key U.S. eCommerce markets through Ohi’s nationwide micro-warehousing network and it will facilitate Flow’s promotional activities such as sampling of other product lines and offering branded merchandise, the companies say.

Bolthouse Farms, Bakersfield, Calif., has closed its acquisition of Evolution Fresh from Starbucks, Seattle. The acquisition includes the brand, business, and employees supporting Evolution Fresh. By uniting the two brands, Bolthouse Farms looks to further accelerate the company’s leadership within the premium juice and refrigerated beverage categories in retail, it says.

Through this acquisition, Bolthouse Farms will expand its beverage offering from nutrient-dense, plant-powered juices and smoothies to include the full lineup of Evolution Fresh’s primarily organic, cold-pressed, premium juices. Starbucks stores in the United States will continue to sell Evolution Fresh products.

“We are thrilled to welcome our colleagues from Evolution Fresh to the Bolthouse Farms family and look forward to working with them to drive the juice and refrigerated beverage categories forward,” said Bill Levisay, president of consumer brands at Bolthouse Farms, in a statement. “As a combined company, we will share our resources, vertically-integrated supply chain, deep knowledge of fresh produce, and passion for ingenuity and innovation. Evolution Fresh produces deliciously fresh, cold-pressed juices that consumers are looking for. Our job now is to support their expertise and bring additional resources to the table to expand the brand’s reach.”

Jeff Dunn, CEO of Bolthouse Farms added: “Bolthouse has been on a rapid growth trajectory in the last few years, and this acquisition is an important step on the company’s growth journey, with more expected to come. This acquisition expands our portfolio in a way that meets the health and nutrition needs of more consumers than ever before.”

Terms of the transaction, which Starbucks and Bolthouse Farms announced on May 24, were not disclosed.

Fetzer Vineyards, Hopland, Calif., announced that it is adopting the operating name of Bonterra Organic Estates, effective immediately. The name Bonterra Organic Estates affirms the company's commitment to regenerative organic farming, responsible business practices and environmental stewardship. The new name applies to the company's corporate identity, as well as its Mendocino County, Calif., vineyard holdings and winery. Bonterra Organic Estates will encompass the company’s California wine brands including Fetzer, 1000 Stories and Bonterra, among others.

Milestone Brands LLC, Austin, Texas, announced that it had added Daniel “Dan” Walker to its leadership team as chief operation officer (COO). As COO, Walker will lead all things “operations” in the United States, Canada and international sales. Walker will support Milestone Brands’ strategic planning as it integrates Victoria Distillers Inc. and Empress 1908 Gin, and improves its agility and speed while developing the company’s international footprint.