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Generous Brands, a prominent player in the premium refrigerated beverage sector, has announced its acquisition of Health-Ade Kombucha for approximately $500 million, according to sources familiar with the deal. This acquisition is set to significantly enhance Generous Brands' functional beverage portfolio, bringing its total retail sales close to $1 billion.

The acquisition marks a strategic move for Generous Brands, which already includes well-known brands such as Bolthouse Farms, Evolution Fresh and Sambazon. Health-Ade, founded in 2012 and recognised for its innovative kombucha offerings, has seen impressive growth, with retail sales nearing $250 million annually and distribution across 65,000 outlets in the US.

Steve Cornell, CEO of Generous Brands, highlighted the changing consumer expectations in the beverage industry, stating, “Consumers have entirely redefined the role of beverages...looking for beverages that are also enhanced with healthier ingredients and nutritional benefits.”

This acquisition aligns with Generous Brands’ mission to provide vibrant nutrition through its diverse product range, which spans juices, smoothies and functional beverages.

The kombucha segment has experienced consistent growth, driven by increasing consumer interest in gut health and functional beverages. Health-Ade has positioned itself as a top player in this category, benefiting from a surge in demand for products that offer both taste and health benefits.

The brand’s commitment to using clean, organic ingredients resonates with health-conscious consumers, further solidifying its market position.

Health-Ade's bubbly prebiotic tea comes in a range of flavours, including:

• Classic Original: A balanced blend of black tea with a mild tang.

• Ginger-Lemon: A zesty combination featuring fresh ginger and lemon.

• Pineapple Paradise: A tropical flavour with pineapple juice and hints of coconut.

• Cherry Limeade: A tart and sweet blend reminiscent of classic soda.

• Peach Punch: A sweet and juicy peach profile.

• Crisp Apple: A refreshing apple flavour balancing sweetness with tartness.

• Happiness (Elderflower): A floral and lightly sweet flavour enhanced with elderflower

Chris Lansing, CEO of Health-Ade, added: “This announcement marks a natural evolution in Health-Ade’s journey and an exciting milestone for the premium refrigerated beverage category. Health-Ade and Generous Brands are aligned in their unwavering commitment to delivering exceptional taste while prioritising clean, nutritious ingredients."

He continued: "We are excited and confident that Generous Brands is the right platform to unlock Health-Ade’s full potential and introduce even more people to the power of gut-healthy beverages. We are grateful to our founders who helped pioneer this category, and to First Bev and Manna Tree for their support and partnership to help us grow to where we are today.”

The acquisition is expected to unlock significant growth potential for both brands. Generous Brands plans to leverage its established manufacturing capabilities and distribution networks to enhance Health-Ade’s market reach and operational efficiency.

With this expanded portfolio, Generous Brands aims to accelerate innovation and investment in the functional beverage category, benefiting both consumers and retail partners.

Adam Waglay, co-founder and Co-CEO of Butterfly – Generous Brands' parent company – reiterated the firm’s commitment to the growth of fresh, functional beverages. “Acquiring strong, ‘gutsy’ brands is a key pillar of that vision,” he said, underscoring the strategic importance of the Health-Ade acquisition.