We are pleased to report the recent developments at our portfolio company, Sunny Delight Beverages Co. (SDBC). On January 31, 2011, SDBC sold its Western European drink business to Orangina Schweppes, a member of the Suntory Group. The proceeds from this sale will enable SDBC to focus its resources on growing its much larger and more diversified North American business.
“The sale of the Western European business and ongoing supply chain investments position Sunny Delight for significant long-term growth by lowering costs, enhancing sustainability and dramatically improving the consumer value proposition,” said Jeff Teschke of J.W. Childs. “The company has always had strong appeal with growing and diverse demographic groups and has had success in developing its business in Wal-Mart and other food retailers, including convenience and dollar stores. However, recent packaging innovations, an important component of the supply chain investments, have demonstrated strong consumer acceptance at Wal-Mart and will only serve to accelerate Sunny D’s growth once they become available to consumers nationally.”
J. W. Childs acquired the Sunny Delight brand in 2004 from Procter & Gamble. SDBC is a leading producer of juice-based drinks in North America, with five plants and over 600 employees. The company is dedicated to helping moms improve the vitality of their families by creating and marketing more wholesome beverages. SDBC brands include Sunny Delight, Elations, Fruit2O, Bossa Nova, Veryfine, Fruit Simple and Crystal Light ready-to-serve beverages. All SDBC plants have achieved zero waste to landfills.
J.W. Childs focuses on investing in the retail and consumer sectors. Since 1995, the firm has invested in more than 40 companies with a total transaction value of over $12 billion. Notable current and historic investments include Bass Pro Shops, Beltone Electronics, Brookstone, CHG Healthcare Services, Esselte, Equinox Fitness, Fitness Quest, Joseph Abboud, Mattress Firm, Meow Mix, NutraSweet, Pinnacle Foods, Sunny Delight and W/S Packaging. Currently, the principals of J.W. Childs are managing JWC Acquisition Corp. (OTCBB: JWCAU), a $125 million blank-check company whose initial public offering was completed in November 2010.