Dive Brief:
- Spindrift Beverage is selling a majority stake to private equity firm Gryphon Investors, the sparkling water company said in a statement on Tuesday. Financial terms of the deal were not disclosed.
- The beverage maker also announced that former Boston Beer head Dave Burwick will become CEO. He replaces Bill Creelman, Spindrift’s founder and current CEO, who will become chairman.
- The 15-year-old Spindrift has grown rapidly among consumers aiming to lower their sugar consumption while prioritizing products with recognizable ingredients — all without sacrificing the fizzy mouthfeel present in soft drinks.
Dive Insight:
Spindrift entered the sparkling water space in 2010, putting it up against juggernaut LaCroix. Since then, competition has intensified with several brands entering the category, including PepsiCo’s Bubly. Coca-Cola also doubled down with the purchase of Mexican water brand Topo Chico.
But Spindrift has managed to grow quickly behind its low-sugar, low-calorie offerings made with sparkling water and squeezed fruits, such as strawberries, peaches and grapefruit.
The Wall Street Journal noted last month that a sale of Spindrift was expected to value the company at more than $650 million. The publication estimated Spindrift has about $25 million of annual earnings before interest, taxes, depreciation and amortization.
The sale, which is expected to close in the first quarter of 2025, marks a stunning turnaround for Spindrift. Creelman told Food Dive in 2018 that he initially sold his water from his Toyota Prius. At the time, he had a lien on his house, was married with four kids, and found that Spindrift often clogged manufacturing lines when it was produced. More often than not, he was turned down by retailers.
“I’m incredibly proud of what we’ve built at Spindrift over the past 15 years,” Creelman said in a statement announcing the sale. “I’m confident that we will continue to have tremendous success in growing the brand and inspiring consumers to choose beverages that are based on the belief that the best tastes come directly from nature.”
With Burwick, Creelman is giving way to an industry veteran who has been heavily involved in beverages for much of his career and is cognizant of the space and changing consumer preferences.
Burwick joins Spindrift after 35 years of working with global consumer brands. He was previously CEO of Boston Beer, president and CEO of Peet’s Coffee, and North American president for Weight Watchers. He also spent 20 years at PepsiCo in various executive roles.
“Spindrift’s combination of talented professionals, superior products, and loyal customers has created a fantastic brand with a great future,” Burwick said.