Healthy, Active & Sustainable Living

PepsiCo Acquires Sherbrooke Capital Portfolio Company

Sherbrooke Capital Health and Wellness, L.P. has announced that leading beverage marketer PepsiCo has acquired one of its portfolio companies, IZZE Beverage Company, a Boulder, Colorado-based maker of all-natural, sparkling fruit juices, for an undisclosed sum.

Founded in 2002, IZZE has rapidly become one of the most exciting new brands in the better-for-you beverage market. Its great tasting drinks and iconic brand personality have set IZZE apart, and have resulted in strong sales growth and a dedicated consumer following.

IZZE is now sold in Starbucks throughout the United States and Canada, as well as nationally in SuperTarget and Cost Plus World Market stores. It is also sold in Costco clubs, regular Target stores, Safeway, Whole Foods Markets, Wild Oats Markets, grocery stores, delis, and casual and fine dining restaurants across the United States, Canada, the Caribbean and South Pacific.

Since leading a $6.0 million financing of the company in December 2004, Sherbrooke Capital has taken an active role in helping IZZE drive for success.

Sherbrooke Capital continues to prove itself a leading investor in the Health and Wellness market. With Pepsi’s acquisition of IZZE, and the 2004 sale of Oregon Chai to Kerry Foods, Sherbrooke has demonstrated success in the area of healthy consumables. “Sherbrooke leveraged its in-depth knowledge of the healthy beverage market to help grow IZZE and position it for exit with an appropriate strategic partner in the Health and Wellness market,” said John Giannuzzi, Managing General Partner for Sherbrooke Capital. “We believe that Pepsi is just such a partner for IZZE. Its deep penetration and marketing breadth will allow IZZE to achieve a level of consumer awareness previously unavailable to the company.”

“Though we’ll be run independently, there are immediate benefits to becoming part of PepsiCo,” said IZZE co-founder and CEO Todd Woloson. “Its sheer scale, along with its world-class marketing and sales teams, will create opportunities that I never would have thought possible four years ago. I’m looking forward to working with PepsiCo to grow this business.” According to PepsiCo, IZZE will continue to operate as a separate unit, and its current distribution system will remain unchanged.

About Sherbrooke Capital Health and Wellness, L.P.

Sherbrooke Capital, based in Newton Lower Falls, Massachusetts, invests in privately-held product, technology and service companies within the rapidly-growing Health and Wellness industry. The company’s primary investment focus of healthy consumables encompasses functional foods and beverages, nutritional ingredient businesses, active lifestyle, and animal care and nutrition companies, and also includes healthcare services/education companies, food safety, and delivery systems companies. Sherbrooke investments include Immaculate Baking, Outside The Classroom, Vetcentric, Boathouse Sports and Transmedics.

About IZZE Beverage Company

The IZZE Beverage Company was founded in 2002 by two friends who set out to create a distinctive natural beverage while contributing to a higher purpose. The IZZE Project Reach program supports and creates education-based development for farm workers and their families in the communities where IZZE buys its fruit. For more information, visit www.IZZE.com.

About Pepsi-Cola North America

Purchase, N.Y.-based Pepsi-Cola North America (www.pepsi.com) is the refreshment beverage unit of PepsiCo, Inc., in the United States and Canada. Its U.S. brands include Pepsi, Diet Pepsi, Jazz, Pepsi ONE, Wild Cherry Pepsi, Pepsi Twist, Pepsi Vanilla, Mountain Dew, Diet Mountain Dew, Mountain Dew Code Red, Mountain Dew LiveWire, Sierra Mist, Sierra Mist Free, Mug, Tropicana Twister Soda, Aquafina, Aquafina FlavorSplash, Aquafina Sparkling, Quaker Milk Chillers, Dole single-serve juices, Tropicana Juice Drinks and SoBe. The company also makes and markets North America’s best-selling ready-to-drink iced teas and coffees, respectively, via joint ventures with Lipton and Starbucks.

 

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