CPG private equity firm Next In Natural (NeNa) has acquired Colorado-based kombucha and soda brand Rowdy Mermaid, along with new equity investor Luke Comer, founder of Sapient Stews, the company announced today.
Founded by CEO Jamba Dunn in 2013, Rowdy Mermaid produces a line of canned kombuchas and a functional CSD line, Good Mood Soda, introduced in 2023.
The independent brand began as an out-of-home operation for Dunn, a writer who previously worked as a content designer for Rosetta Stone, and later raised over $3.5 million in financing with a national presence via Whole Foods, H-E-B, Giant and other retail chains.
“With the NeNa partnership, we’re now a team of 40+, spanning critical areas like sales, marketing, operations, and business development,” Dunn wrote in an email to BevNET. “Our priority is to better support our core business partners with our kombucha and soda lines while pushing forward with innovation in the functional beverage space.”
“This acquisition gives us the financial stability and renewed momentum to retain our core team and bring in additional expertise from NeNa to fortify our foundation and drive growth,” he added.
While exact terms of the deal were not disclosed, the acquisition also included an equity investment from Comer, a fellow Colorado-based entrepreneur who is helping the brand to rebuild its business after a difficult period last year that ultimately led to Rowdy Mermaid going off the market for several months.
As part of the deal, NeNa CEO Jeff Lichtenstein has been appointed chairman of Rowdy Mermaid’s board of directors. Prior investor KarpReilly also remains a minority stakeholder in the business.
Dunn and his wife Erin Dunn are the only Rowdy Mermaid team members continuing in their roles as CEO and Customer Growth & Marketing Director, respectively, under the new ownership.
Dunn said the partnership was “contingent” on him and his wife continuing to lead Rowdy Mermaid. However, remaining roles will now mostly be filled by NeNa’s team.
In an email, Lichtenstein said that NeNa was drawn to Rowdy Mermaid by the brand’s “culture (pun intended), ethos and passion of the team” and its focus on using farm-sourced ingredients and efficacy.
“We also really liked how well the product performs at retail along with the consumer love and felt with some of the fresh perspectives NeNa brings and most importantly our team, that Rowdy will continue to evolve and thrive,” Lichtenstein wrote.
Prior to the acquisition, Dunn said that Rowdy Mermaid had reached a “significant inflection point”, noting that the company was battling a “tough time” as “the contraction of the investment world” impacted its growth efforts and posed an existential threat to the business.
But now, Dunn says the acquisition puts Rowdy Mermaid in a “much stronger position.”
“The acquisition by Next in Natural came at just the right time, providing the resources, expertise, fresh perspective and working capital we needed to evolve,” Dunn said. “They utilize their objectivity, experience and team to help us get profitable and strategically scale with the right retail partners.”
Rowdy Mermaid’s beverages are now back in production and the business is rebuilding its distribution with the support of NeNa’s network. Retailers rolling out now include Natural Grocers, The Fresh Market, King Soopers and various independent accounts nationwide, alongside several other chains. Whole Foods Rocky Mountain region stores are also slated to come online this fall.
According to Circana, Rowdy Mermaid’s refrigerated kombucha products grew dollar sales in U.S. retail, MULO and c-store accounts by 11.9% to $1.3 million in the 52-week period ending July 14, 2024. Products classified as kombucha were also up 38.7% to $47,735 in the same period. That data may not reflect all product lines or channels the brand was sold in at the time.
Based in New York, NeNa is a boutique PE firm and brand studio focused on the better-for-you and organic CPG industry, which provides its portfolio brands support and guidance via a shared service model.
In May 2024, NeNa acquired sparkling beverage brand Sound, which had been working on achieving profitability in 2023 when it ran out of inventory and working capital. Through NeNa, that brand was able to establish a “road map” and relaunch brick-and-mortar and online sales, while also working together to develop a new innovation pipeline.
At the time, Lichstenstein told BevNET that the firm looks to acquire brands it believes have a clear path towards profitability.
In February, NeNa bought botanical sparkling water brand Aura Bora, establishing a similar dynamic with founder and CEO Paul Voge remaining with the business while Lichtenstein moved into the chairman role.
While kombucha remains Rowdy Mermaid’s flagship line, Dunn said the company is “equally committed” to growing its Good Mood Soda line and plans to focus on increasing distribution in key regions and strengthening retailer relationships “to reinvigorate our presence in the market.”
“We see this acquisition as a chance not only to grow but to deepen our commitment to creating beverages that are good for both people and the planet,” Dunn said. “We’re excited about what’s ahead.”