Brands Within Reach Names Olaf Zachert as Interim CEO
Olaf Zachert has been named interim CEO of beverage portfolio company Brands Within Reach (BWR) following its $15 million acquisition by Zachert Private Equity in September. Zachert, also the managing director of the German investment firm, will lead the company as it begins a recruitment process to find a permanent CEO.
Speaking with BevNET, Zachert said he sees strong growth potential for BWR and its associated brands, noting that his firm will seek to use the existing infrastructure to energize the business in the U.S.
“If you take a look at the company set up, a lot of energy has gone into, let’s say, non-core elements of the business,” Zachert said. “In all change projects, if you can unleash the potential of the employees into the core business then it’s a no brainer. And that is why we are doing this.”
Zachert said he felt confident that many of the “main brands” in the BWR portfolio could become profitable within a “short time” and said the company also plans to explore other acquisition opportunities in the beverage space.
“We follow a buy and build strategy,” he said. “We don’t plan to invest and sell this business in the next one or two years, we are more long term. We see a really good possibility with this market.”
Zachert replaces BWR founder and former CEO Olivier Sonnois, who was initially reported in September to be staying with the company — a plan that has since changed, according to Zachert. Sonnois previously sold BWR to New Age Beverage Company (now NewAge, Inc.) in 2019 and took a new role as its President of North America. According to LinkedIn, Sonnois has now left NewAge and taken a position as an operating advisor at equity firm Natureza Growth Partners.
About 30 BWR employees will be making the migration to the new ownership structure. As well, former Nestlé Germany CEO Hermann Gottwald has joined the company to oversee brand growth.
Zachert Private Equity purchased BWR this fall from NewAge in a deal that included owned brands Xing Tea, Bucha, Aspen Pure and Coco Libre, as well as U.S. distribution licenses for international brands Nestea, Volvic, evian, Illy, Found, Kusmi Tea and Saint-Geron Sparkling Water. The deal came roughly six months after NewAge announced it would assess its beverage portfolio and may seek to divest underperforming brands. In June, an executive summary deck reviewed by BevNET showed that NewAge was seeking a buyer for “all or a selection” of its brand portfolio.
Though it has now transitioned broadly to a direct selling multi-level marketing business model, NewAge still has some stake in the beverage space, offering Nestea branded powder mixes and drinks through its Noni by NewAge division. The company has also maintained ownership over its DSD network — the largest in the Rocky Mountain region.
Keurig Dr Pepper Announces Leadership Shakeup
Keurig Dr Pepper (KDP) announced last month a shakeup in its executive leadership team, naming several changes to its c-suite, effective November 1.
The changes include the addition of Fernando Cortes as Chief Supply Chain Officer, Ozan Dokmecioglu as CFO and president international, Derek Hopkins as president of cold beverages, Mauricio Leyva as president of coffee and Andrew Spingate as chief marketing and concentrate officer.
“Two and a half years since the launch of Keurig Dr Pepper, with all key metrics delivered at or above our merger thesis, we have the unique opportunity to leverage our deep bench of executive talent to set up our management team for long term success,” said KDP chairman and CEO Bob Gamgort in a press release.
The new appointments come alongside several departures. Chief beverage concentrate officer Jim Trebilcock will retire at the end of 2020 following 33 years with the company. Andrew Loucks, president of Keurig Appliances, will also leave the company at the year’s end.
AlixPartners Names Elizabeth Stephenson as Managing Director
Global consulting firm AlixPartners announced this week that it has named former FIJI Water president Elizabeth Stephenson as manager director.
Stephenson brings with her 20 years of experience in leadership and operations. Prior to FIJI, she served as president of POM Wonderful where, according to a press release, she led “a dramatic turnaround of the business.” She also led mergers and acquisitions at The Wonderful Company, overseeing the merger of container shippers Neptune Pacific Line and the Pacific Direct Line in order to strengthen FIJI Water’s supply chain.
“Elizabeth’s deep expertise in operational transformation, in both growth or turnaround situations, including her experience as a C-suite executive, will be of great value to consumer-oriented companies facing disruption in today’s unprecedented times,” said AlixPartners CEO Simon Freakley in the release. “We are delighted to welcome Elizabeth to AlixPartners; she is an excellent addition to our team.”