Entertainment Arts Research Inc. (EARI Beverage Group), a diversified beverage and media group, announced today it has acquired Original New York Seltzer LLC and its production arm, LA Bottle Works Inc., for an undisclosed sum.
Founded in 1981, Original New York Seltzer produces a line of mid-calorie craft sodas made with cane sugar and no artificial coloring and packaged in 10 oz. glass bottles. The original company ceased production in 1994, but was revived in 2015 after entrepreneur Ryan Marsh rediscovered the original recipe and packaging instructions when he purchased the production facility that had produced the drink decades earlier.
Positioned today as a nostalgic throwback brand with the slogan “Just like you remember…” Original New York Seltzer is sold in over 10,000 retail and foodservice accounts across North America with a network of 168 wholesale distributors in the U.S. and Canada, according to the company.
In a press release, EARI called the acquisition its largest to date, noting that New York Seltzer LLC and LA Bottle Works have combined revenue of $50 million over the last three years.
Through LA Bottle Works, EARI will also control California-based cocktail mixer brand Cock ‘n Bull, which makes a line of mixers including tonic water, ginger beer, club soda, bitter lemon and bitter orange varieties. According to EARI, the bottling plant “has sufficient capacity to double the current production output and offers turnkey consulting for formulation, packaging, labeling, branding, and marketing from concept to consumer.”
Based in North Carolina, EARI was founded in 1999 as a real estate rental company called Property Investors Ventures, Inc. and rebranded to its current name in 2009 when it shifted focus to video game design and distribution.
In 2021, beverage industry veteran Bernard Rubin joined EARI as President and CEO. According to LinkedIn, Rubin previously served as Vice President of New Age Beverages Corporation from 2017 to 2018 and has also held executive positions at Kole Life Foods and Cocolife.
Shortly after joining EARI, Rubin formed the EARI Beverage Group and began building out a portfolio through the acquisition brands including functional drink line Nature’s Fury, craft beer maker Bell City Brewing and NEO Superwater, as well ascraft spirits producers White Rhino Vodka, Elemental Spirits and Lake Tahoe Distilling. The company also owns streaming platform Foody TV.
EARI is traded on OTC Markets and Rubin said in the release that the New York Seltzer business now brings the company to “well over” $20 million in annual revenue, which will aid EARI in its goal to list on the Nasdaq.
“We now have a strong base to become a serious contender in the craft beverage industry and will continue to execute the business plan,” Rubin said in a statement. “With additional acquisitions and by utilizing the shared cross functional resources and expertise within the group, there is a huge opportunity to achieve greater efficiencies and inhouse innovation. Subsidiaries within the group will benefit from economies of scale, production control and reciprocal distribution expansion on the West and East Coasts.”
Last week, EARI announced it had acquired Massachusetts-based Blossom Botanical Water, which has generated around $4 million in gross sales since it was founded in 2012, according to a release. Blossom founder and CEO Steve Fortuna will remain with the company. Rubin noted that EARI’s first priority is to “test new variants and more environmentally friendly packaging” for the brand.
In an annual shareholder update and letter in April, Rubin said EARI brought in nearly $1.3 million in revenue in 2021, up from zero revenue the year before. The company exceeded its revenue expectations by 20%.
“Now, as we move forward, our focus will be on connecting directly with consumers, using our own media streaming channels and building our e-commerce platform to market and sell our products, over and above our current channels,” Rubin wrote in the letter. “While we face many challenges, such as the global supply chain difficulties combined with higher-than-expected inflation rates, our team is well prepared. We are in the process of reviewing pricing and developing smarter procurement. Plans are well underway to becoming PCAOB audited to move up a tier on OTC, and ultimately make our way to Nasdaq. We are working closely with several advisors and investment banking firms to assist us with this process.”