Capri-Sun Explores Stake Sale, ACG Closes Fifth Fund 💰

GM and Happy Thursday, folks. Here’s what we’re covering this morning:

• West Lane Capital buys another brand 💄

• Gallo bets on rum and mezcal 🍹

• Lotus Foods raises over $22M 🍚

• Jaimee Lupton launches Being 🔥

• Sipwell packaging refresh 🍷

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Capri-Sun Explores Stake Sale 🏝️

According to Bloomberg, iconic beverage brand Capri-Sun is looking to raise $500M via a minority stake sale. 

Capri-Sun is controlled by Hans-Peter Wild, the German-born Swiss billionaire and son of Rudolf Wild, the chemist and entrepreneur who introduced “Capri-Sonne” to West German consumers in 1969. 

Even though Hans-Peter Wild is technically an heir, he’s the one responsible for turning Capri-Sonne into Capri-Sun, the global beverage phenomenon that sells over 6 billion pouches and generates around $1.4B in annual revenue.

A lawyer by training and a former Managing Director at Diersch & Schröder, Hans-Peter Wild joined the family juice business in 1974. He transformed the company from a parochial West German brand into a global beverage giant through a mix of licensing and clever marketing. 

In the late 70s, Hans-Peter Wild scored Muhammad Ali as a global ambassador for Capri-Sun. In a number of commercials, Muhammad Ali claims that Capri-Sun, like him, is “the greatest of all time.” Once these commercials hit the airwaves, Capri-Sun’s distribution jumped to 23 countries by the end of 1982. By 1991, Capri-Sun was available in 51 countries largely due to licensing. 

Licensing is the reason why Capri-Sun is looking to raise $500M via a minority stake sale. In short, Hans-Peter Wild is hoping to acquire Capri-Sun licenses from food and beverage players like Kraft Heinz and Coca-Cola Europacific Partners. Whether they’re interested in selling, however, is up for debate. 

So what’s Hans-Peter Wild’s endgame at 83 years old? The businessman has already sold a number of suppliers associated with Capri-Sun, but he’s never seemed interested in parting ways with the brand itself. In 2023, he sold Pouch Partners to CCL Industries, and in 2014, he sold Wild Flavors to Archer Midland Daniels for around $3B. 

The most logical answer is that Wild plans to acquire the North America license from Kraft Heinz in order to drive up the valuation of Capri-Sun prior to an exit, or, more likely, to pass on a unified business to his children or a capable successor.

More from Bloomberg here.

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Deals 💰

Mergers & Acquisitions 

• West Lane Capital has acquired Beauty Bakerie, a dessert-themed makeup brand that shuttered in April but will relaunch in the near future. West Lane Capital acquired another beauty brand, Mented Cosmetics, earlier this year. Beauty Independent

• Spirit of Gallo continues to build its portfolio of tomorrow. The third largest spirits player by volume in the U.S. made strategic investments in two brands: Mezcal Derrumbes and Ron del Barrilito. The latter is a Puerto Rican rum brand that was founded in 1880, while the former is a boutique mezcal producer from Jalisco. The Spirits Business

Fundraising

• Alliance Consumer Growth (ACG) closed Fund V with $160M in capital commitments. The consumer-focused growth equity firm has backed Athletic Brewing, Clio Snacks, Harry's, OUAI Haircare, Tata Harper, and a number of other brands. PR Newswire

• Unilever Ventures invested another $4M in ESQA, a vegan cosmetics brand that’s based in Indonesia. The Halal beauty brand was founded in 2016 by Cindy Angelina and Kezia Trihatmanto. Unilever Ventures also led ESQA’s $6M Series A round in 2022. Cosmetics Business

• Palm Republic Rum secured just over $1M in equity funding from undisclosed investors. The North Carolina-based luxury rum brand was founded earlier this year by Brad Parkes. SEC

• Lotus Foods, a leader in regenerative rice cultivation and rice-based noodles, raised $22.5M in funding from Grounded Capital, a San Francisco-based investment firm. Lotus Foods was founded in 1995 and their products retail at Albertsons, Sprouts, Whole Foods Market, and many other stores. PR Newswire

• Bayou Best Foods, a new company in the plant-based seafood space, secured an undisclosed amount of funding from Big Idea Ventures. Bayou Best Foods is utilizing the intellectual property of New Wave Foods which shut down late last year. Just Food

• UK-based healthy snack brand Boundless raised £1.5M in funding to scale its retail presence. The company’s products are vegan, gluten-free, and packed with gut-friendly fiber. The Grocer

What’s New 🤩

Apparel, Cosmetics, and Wellness

• Jaimee Lupton, the founder of haircare juggernaut Monday, launched a new haircare brand called Being. The collection of moisture-rich shampoos, conditioners, and treatments targets a number of different hair types and needs. Being is available exclusively at Walmart. PR Newswire

• Maesa, the beauty incubator behind popular brands like Frenshe and Kristin Ess Hair, opened applications for its Maesa Magic Incubator program. Now in its second year, the initiative is tailored to support underrepresented beauty and wellness founders. Happi 

• Simon Enever, the co-founder and former CEO of Quip, just launched a new consumer venture studio called So&So. Shane Pittson, the former CMO of Quip, is also involved in the project. Twitter

• Popular beauty brand Saie is opening an ice cream parlor pop-up with Cult Beauty in London later this month. The retro pop-up will be open for two days starting on July 20th. The Industry

Food, Beverage, and Alcohol

• Mike’s Hot Honey partnered with Cinemark to bring their products to cinemas across the U.S. Cinemark patrons will now be able to enjoy Mike’s Hot Honey on popcorn and other hot food items. I’m bullish on brands targeting consumers in alternative venues…I tried Undercover Snacks on a United flight and now I’m a pretty regular customer. Business Wire

• Premium canned wine brand Sipwell unveiled a fantastic packaging refresh. Great work from the talented folks over at Bex Brands 👇 Instagram

• Bottled tea brand Joe Tea just launched three canned SKUs and they look terrific. BevNET

• The Finnish Long Drink launched a new variety pack that features their latest flavor — Pineapple. Kinda wild that they’re the fastest growing RTD cocktail brand in the U.S. but it’s a testament to the quality of their product. PR Newswire

• Fancypants Baking Co. just launched a gluten free chocolate chip cookie. Love their packaging. Instagram

• KIND is doubling down on savory flavors like jalapeno, rosemary, mesquite, and paprika with their newest bar flavors. FoodBev

• Italian restaurant group Fiorellino launched a stunning new range of beers. Independent design firm AWP designed the cans. The Dieline

Data 🖥️

• Constellation Brands reported strong Q1 results. The owner of Corona and Modelo saw net sales rise 6% to $2.6B while net income jumped 22% to $877M. Their beer business delivered high single-digit net sales growth while their craft spirits division posted double-digit growth in dollar sales. Yahoo Finance

Distribution News 🚚

• Naturium, the skincare brand that e.l.f. Beauty acquired for $355M last year, launched storewide at Ulta Beauty.

• Aussie suncare brand Naked Sundays also launched at Ulta Beauty.

• Whoa Dough scored distribution at 200 Target stores.

• Afia Foods launched two more SKUs nationwide at Whole Foods Market.