Dunn’s River Brands Sells Controlling Interest in Temple
On July 31, turmeric-based beverage brand Temple announced Natur International Corp., a producer of plant-based food and beverages based in the Netherlands, had acquired a controlling interest in the company. Financial terms of the transaction were not disclosed.
According to a press release, Natur “plans to capitalize on the synergies of Temple’s strong presence in New York and Los Angeles” in addition to other regions. Along with snacks, the company specializes in high-pressure processed fruit and vegetable juices, including CBD-infused products.
“This is an excellent opportunity to participate in the vibrant U.S. health and wellness beverage space by anticipating the opportunity to expand our portfolio with these fine products in the E.U. and Chinese markets,” said Paul Bartley, CEO of Share Natur, in the release. “Our company welcomes the Temple team and the launch of select European and U.S. products as a complement to our portfolio.”
The deal comes slightly over a year after Temple was purchased by Dunn’s River Brands, a New York-based portfolio company formed in partnership with private equity firm Fireman Capital Partners, in April 2018. The company also owns iced tea brands Tradewinds and Sweet Leaf Tea, both of which were purchased from Nestlé Waters North America in 2017.
Founded in 2009 by Daniel Sullivan, Temple (formerly Temple Turmeric) has continuously evolved over the years: initially launched with a line of turmeric-infused ades, the brand has since marketed a variety of turmeric-enhanced beverages including elixirs, apple cider vinegar drinks, shots and even coffees.
Following its acquisition by Dunn’s River Brands, which saw Ian Knowles succeed Sullivan as CEO, the brand showcased new packaging, labels and products aimed at shifting the brand’s identity from turmeric to the broader natural functional space. This included the launch of Temple’s first shelf-stable product — a line of carbonated “vitality supertonics” in 12 oz. slim cans.
AriZona Partners with Dixie Brands for Cannabis Product Line
AriZona Beverages is moving into the cannabis beverage market, announcing in August its signature of a letter of intent for a three-year partnership with cannabis products maker Dixie Brands Inc.
Dixie CEO Chuck Smith told BevNET that the partnership — which can be renewed two times for up to four years at the end of its initial term — is likely to produce a variety of THC-infused products under the AriZona trademark, starting with vape pens and gummies.
Smith said that while AriZona is most known for its beverages, the company decided to focus first on vape pens and gummies in order to “speak to the broad base of consumers in the cannabis industry today.” He noted that gummies are the largest selling infused products in the cannabis market while vapes are the largest selling concentrate product. Cannabis-infused beverage is a growing segment and Dixie has “a great opportunity” to create AriZona branded THC drinks “down the road,” he added.
As part of the agreement, AriZona retains the right to purchase up to $10 million in shares of Dixie Brands through the exercise of warrants valued at $0.59 per share for a term of up to 24 months from signing the partnership.
Founded in 2010, Dixie produces a variety of THC-infused cannabis products, including drinkable elixirs, chocolates, gummies, mints, topicals, tablets and taffy. The company currently distributes products in Canada, California, Colorado, Maryland, Michigan and Nevada; However, the AriZona-branded products are likely to launch exclusively in California and Colorado before expanding to other states approved for legal recreational sales.
According to Smith, AriZona will oversee product promotion, while Dixie will manage manufacturing, formulation, and distribution. He added that AriZona is likely to lend its broader portfolio of brand IPs to the new line; the company owns the Arnold Palmer Half & Half brand, as well as Good Brew and Golden Bear, though there are not yet any established plans to use these brands for the THC line.