New Leaf Brands, which earlier this year announced plans to expand business operations via strategic acquisitions, has purchased Beverage Network of Maryland, a distributor in the Mid-Atlantic market with 20 brands and over 200 SKUs in its portfolio. New Leaf acquired Beverage Network for $2.9 million in cash and stock, and will retain Morris Stodard as its president.
In a statement, David Fuselier, CEO, New Leaf Brands expects the acquisition to “greatly expand sales not only for New Leaf’s own brand, but for brands that we partner with, or acquire, in the future.”
“Beverage Network of Maryland has an extremely strong reach throughout one of America’s largest metropolitan regions,” Fuselier said.
According to New Leaf, Beverage Network currently carries a range of New Age and functional brands including Voss, Xyience Energy drinks and Vernor’s Ginger Ale. The distributor employs eight sales representatives, has nine delivery routes and serves over 2,000 accounts, including Giant Food, the largest grocery chain in the Baltimore/Washington market. Beverage Network projects 2013 sales of more than 550,000 cases totaling approximately $6.0 million in sales.
While remaining at the helm of Beverage Network, Stodard, who once held roles as the director of sales for Joseph Schlitz Brewery and vice president of sales for the Frito Lay division of PepsiCo, will also manage also New Leaf’s distribution operations. He indicated that Beverage Network will look to expand sales of New Leaf juices and teas throughout the Northeast Corridor.
“With the additional support and expertise that New Leaf and its team brings to the table, I am confident that we can expand our geographic area, increase our buying power and better serve our customers,” said Stodard.