Wisconsin-based holding company New Berlin Beverage Co. announced this week that it has acquired sparkling tea brand Minna, providing the startup with a capital infusion to support its manufacturing and retail expansion.
New Berlin was formed this year by its CEO Anshu Dua, who is also the CEO of Minna, and a team of private investors with the intent to acquire Minna and eventually partner with or acquire other small beverage companies. Terms of the deal were not disclosed.
Founded in 2019 by Ryan Fortwendel, New York-based Minna produces a variety of canned sparkling teas available in cherry cacao green tea, lime hibiscus rooibos tea, orange mango black tea, peach yuzu green tea, and pineapple passion fruit green tea varieties.
Dua, who previously co-founded Indian street snack brand The Chaat Company, joined Minna as CEO in May 2021 following the exit of CEO Dyanna Salcedo. He came into the company amid supply shortages and rising costs, but New Berlin, he said, is now providing Minna with a cash investment that will allow it to increase hiring and will also open doors for the brand to work with new manufacturing partners.
“One of the areas I recognized was that raising capital – which is increasingly difficult during this time period, especially for smaller brands – wasn’t enough,” Dua said. “We had to think out of the box to allow Minna to really achieve its potential, and I was fortunate enough to put together a group of private investors who also have investments and relationships in beverage contract manufacturing, aluminum can manufacturing and warehousing capabilities. They were willing to set up New Berlin Beverage, acquire Minna, and then essentially leverage their other relationships and investments to put together a unique structure for New Berlin.”
The acquisition comes as Minna has expanded its retail partnership with Whole Foods, which carries the brand nationwide, adding a fifth SKU. The products are also available on Amazon and distributed in various regional retail accounts through UNFI. With last year’s pricing and supply issues now under control, Dua said he intends to prioritize the Whole Foods business before trying to expand Minna’s footprint elsewhere.
“My focus, with such a great customer that we have in Whole Foods and those consumers, is to make sure we execute well there,” he said. “With this new opportunity and acquisition and the benefits that it brings, I really want to bring that benefit to a retailer like Whole Foods and grow the business there.”
According to Dua, Fortwendel has left Minna as a full-time team member but is still in communication with the company. Over the next six months, the company will look to hire full time sales, marketing and social media manager positions. Through New Berlin, Dua added that Minna will also work with third party operations and logistics partners.
Minna previously raised money from direct-to-consumer ecommerce platform company Iris Nova in 2019, but Dua said the companies no longer work together.
Beyond Minna, Dua said he intends to build out a larger portfolio of beverage brands under New Berlin through partnerships and acquisitions. Through the company’s access to packaging suppliers and co-packers, Dua believes New Berlin can provide opportunities for struggling startups to navigate an increasingly difficult marketplace.
“I think there’s a number of great brands out there with great founders and some good liquid,” he said. “But, you know, there are companies out there that may struggle, especially during this unprecedented economic period, to survive or to raise capital. And I think that opens up an opportunity for a discussion around those particular brands, to see if there’s a way that we can help.”