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Diving overview:
- Spindrift Beverage is selling a majority stake to private equity firm Gryphon Investors, the company said in a statement Tuesday. Financial terms of the deal were not disclosed.
- The beverage maker also announced that former Boston Beer chief Dave Burwick will become CEO. He will replace Spindrift’s founder and current CEO, Bill Creelman, as chairman.
- 15-year-old Spindrift has grown rapidly among consumers looking to lower their sugar consumption and prioritize products with standout ingredients while retaining the carbonation present in soft drinks.
Dive Insights:
Spindrift entered the sparkling water space in 2010 to take on the juggernaut LaCroix. Since then, competition has intensified with several brands entering the category, including PepsiCo’s Bubly. Coca-Cola also doubled in size with the acquisition of Mexican bottled water brand Topo Chico.
But Spindrift grew quickly with its low-sugar, low-calorie products made from sparkling water and pressed fruit such as strawberries, peaches and grapefruit.
The Wall Street Journal (WSJ) reported last month that the sale of Spindrift is expected to value the company at more than $650 million. Spindrift has annual earnings before interest, taxes, depreciation and amortization of about $25 million, according to the publication.
The sale, expected to close in the first quarter of 2025, marks a remarkable turnaround for Spindrift. Creelman told Food Dive in a 2018 interview that he initially sold water from his Toyota Prius. At the time, he had a lien on his home, was married with four children, and found himself often clogging up his manufacturing line when Spindrift was in production. Often he was rejected by retail stores.
“I’m very proud of the products we’ve built at Spindrift over the past 15 years,” Creelman said in a statement announcing the sale. “I am confident we will continue to have tremendous success growing the brand and inspiring consumers to choose beverages based on the belief that the best flavors come straight from nature.”
With Burwick, Creelman is giving way to an industry veteran who has been deeply involved in the beverage sector for most of his career and is aware of the space and changing consumer preferences.
Burwick joins Spindrift after 35 years of working with global consumer brands. He was previously CEO of Boston Beer, president and CEO of Peet’s Coffee, and president of North America for Weight Watchers. He also spent 20 years at PepsiCo in various executive positions.
“Spindrift’s combination of talented professionals, great products and loyal customers has created a fantastic brand with a great future,” said Burwick.
