We were told by our source months ago that Suja was selling out and should have listened, but we had no actual confirmation until today. The reason we heard it in the first place was Health Nut News was writing how the prices of the juice had gone from 12 dollars or so a drink to 4 dollars. Our source told us that’s because they had to lower them to prove they could sell lots of juice to Coca Cola. Looks like it all worked out and another independent organic company bites the dust as big business buys them out (PS I never really liked their juice anyway)
The Suja Sellout
Read on:
Coca-Cola Co (N:KO) is nearing a deal to buy a minority stake in the U.S. organic juice company Suja Life LLC, people familiar with the matter said on Friday, as the soft drinks giant to try and identify the next big hit with consumers.
Carbonated drinks have been hit by slow growth in recent years as consumer sentiment shifts toward healthier drinks. Coca-Cola is an investment would value Suja, a start-up that counts Hollywood celebrities like investors, at around $ 300 million, the sources said.
The deal, which gives Coca-Cola the opportunity to buy the rest of the Suja in three years, would strengthen the Atlanta-based company is cold-pressed juices and better position to compete against PepsiCo Inc (N:PEP) Naked Juice brands. It would be Coca-Cola and other investments in the sector, after the purchase of Odwalla in 2001.
The sources, who asked not to be identified because the investment is not yet public. Representatives of Coca-Cola and Suja not respond to a request for comment.
Based in San Diego, Suja makes juices and smoothies under the cold tap to kill harmful bacteria and preserve the nutrients and taste. It sells its drinks by SujaJuice.com, Amazon.com Inc (O:AMZN) and in health food stores and national retail chains.
Suja was founded in 2012 by entrepreneurs Annie Lawless, Eric Ethan, Jeff Church, and James Brennan. Its investors have Alliance Consumer Growth Partners and Evolution Media Partners, as well as actors such as Leonardo DiCaprio, Jared Leto and Sofia Vergara.
Coca-Cola has created a company and new brands division in 2007 to find and invest in growth opportunities. They have invested in companies like Honest Tea and Zico Coconut Water.
Similar to the venture-capital-style offerings include Starbucks Corp (O:SBUX) $30 million purchase of the juice company Evolution Fresh in 2011, and the White Wave Food Co’s (N:WWAV) investments in the juice brand Daily Green earlier in the year.
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