“We’re thrilled that Odwalla, with its long history of innovation, high levels of brand awareness and reputation for great products, will be our first acquisition,” said Full Sail CEO Alan Kravetz in a statement.
“We look forward to providing consumers with the best tasting, artfully crafted functional beverages and foods to allow them to snack well, feel well and live well,” added Kravetz, who told Reuters he planned to revive Odwalla with a focus on health benefits and a lower sugar positioning, building a direct to consumer business, and expanding the reach of the brand into food and supplements.
Full Sail IP Partners – which launched as a joint venture between Warburg Pincus and brand licensing consultant LMCA in April – told Reuters that the deal does not include production and delivery of Odwalla, which Coca-Cola acquired in 2001 for $181m, but had struggled with in recent years, telling the Wall Street Journal last year: “We couldn’t figure out the cost-effectiveness of it… It really is the result of consumers changing what they want so rapidly.”
Bittersweet moment
Speaking to FoodNavigator-USA last summer, Odwalla co-founder Greg Steltenpohl - who passed away earlier this year – said it was a “bittersweet” moment for him to learn that the brand he started selling from the back of a van in 1980 had been axed.
“There is so much turnover in the beverages space, so 40 years is a pretty long run. I think Coca-Cola did a pretty good job for the first 7-10 years. They more than doubled the business from the acquiring revenue rates, but I think since then it’s been a slow decline.