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Nestlé Waters invests $15.6m in Sweet Leaf Tea
The US subsidiary of the world’s largest food company, Nestlé SA, is reported to be extending its portfolio to include Texas-based Sweet Leaf Tea.
The deal could see Sweet Leaf Tea transformed from a niche player to a mainstream brand in the ready-to-drink tea market, particularly if Nestlé takes up its option of taking over the company in three years at an already agreed price.
Sweet Leaf declined to say what the price would be or what Nestlé’s current stake in the company amounted to, according to news agency Flexnews.
Sweet Leaf founder and chief executive, Clayton Christopher, said the biggest challenge for any independent beverage brand was with procurement and distribution. The deal with Nestlé is intended to help boost distribution and widen the brand’s reach beyond its presence in specialty stores, though it’s already available in national outlets such as Safeway and Kroger.
Nestlé spokeswoman Jane Lazgin said: “It does give us an opportunity to grow and expand our portfolio for healthful, on-the-go beverages.”
Nestlé Waters North America executive, Dan Costello, will become president of Sweet Leaf Tea.
Source: Flexnews
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