TSG Consumer Partners Announces Exit From SweetWater Brewing Company
SAN FRANCISCO, CA – November 5, 2020 – TSG Consumer Partners (“TSG”), a leading private equity firm, today announced that it will exit its minority stake in SweetWater Brewing Company (“SweetWater” or the “Company”) in conjunction with the recently announced acquisition of SweetWater by Aphria, Inc. (“Aphria”) (TSX: APHA and Nasdaq: APHA), a leading global cannabis company, in an aggregate transaction valued at approximately $300 million.
Founded in 1997 by Freddy Bensch, SweetWater has broad consumer appeal and has established strong distribution across 27 states plus Washington D.C. and has ample capacity to support distribution efforts into new geographies, with limited capital expenditure. From its state-of-the-art brewery in Atlanta, Georgia, SweetWater produces a balanced variety of year-round and seasonal specialty craft brews, with SweetWater beverages available in approximately 29,000 off-premise retail locations ranging from independent bottle shops to national chains. SweetWater’s significant on-premises business allows consumers to enjoy its varietals in more than 10,000 restaurants and bars.
“The team at TSG has been tremendously helpful as we executed our expansion strategy over the past few years,” said Freddy Bensch, Founder and CEO of SweetWater. “The firm’s consumer and branding expertise, paired with our unique value proposition, has enabled us to deliver an ever-expanding offering of authentic and distinct brands to our loyal and growing customer base. We look forward to entering our next chapter with the solid momentum that TSG has helped us establish.”
“We are proud to have partnered with Freddy Bensch and the entire SweetWater team during this time of significant growth and development for the Company,” said Blythe Jack, Managing Director at TSG. “Since our investment in 2014, SweetWater has accelerated its sales significantly, protected and grown its strong market presence in the Southeast and continued to build its extraordinary community of craft beer fans. SweetWater has established itself as a clear leader in the craft beer movement, and we look forward to watching it continue to thrive in partnership with Aphria.”
“SweetWater’s success reflects the quality and craftsmanship of its award-winning, lip-smacking brews and the broad appeal of its core philosophy ‘Don’t Float the Mainstream’,” said Erik Johnson, Managing Director at TSG. “Over the course of our partnership, SweetWater grew into the 14th largest craft brewer in the U.S. We worked with Freddy and his team to refine the Company’s go-to-market strategy, expand its distribution into 17 new states and identify consumer trends to launch innovative new brews that addressed what the craft beer consumer was looking for.”
The transaction is expected to close before the end of December 2020, subject to customary closing conditions and regulatory approvals.
Ropes & Gray LLP is acting as legal advisor for TSG. Arlington Capital Advisors is acting as financial advisor and Winston Strawn LLP is acting as legal counsel to SweetWater. Jefferies LLC is acting as financial advisor and DLA Piper LLP (U.S.) is acting as legal counsel to Aphria.
About TSG Consumer Partners
TSG Consumer Partners, LLC is a leading private equity firm that partners with founders and management teams to build and accelerate growth for best-in-class consumer-facing businesses. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, fitness, beauty, personal care, household, apparel & accessories, and e-commerce sectors. Representative past and present partner companies include Backcountry, BrewDog, Canyon Bicycles, Duckhorn Wine Company, Dutch Bros, e.l.f. Cosmetics, IT Cosmetics, Planet Fitness, popchips, Power Stop, REVOLVE, Smashbox Cosmetics, Stumptown, thinkThin and vitaminwater. For more information, visit tsgconsumer.com.
About SweetWater Brewing Company
SweetWater Brewing Company was incorporated in 1997 as a limited liability company pursuant to the Delaware General Corporation Law. The principal executive offices of SweetWater Brewing Company are located at Inc. 195 Ottley Drive, Atlanta, Georgia 30324. SweetWater Brewing Company’s website is www.sweetwaterbrew.com.
Freddy Bensch, founder of SweetWater, and his team have established the brewery into one of the largest and distributes bottled, canned and draft premium craft beers under the SweetWater brand.
SweetWater Brewing Company has a state-of-the-art brewery and integrated restaurant and live music venue at its principal offices in Atlanta, Georgia. The 158,000 square foot building is leased, and the lease expires in 2040. Sweetwater obtains the ingredients used in its products and the packaging for its products from a variety of different sources and has not historically had any difficulty in securing an adequate supply of ingredients or packaging for its products. The facility bottling and canning lines are capable of packaging 23.5 million gallons of bottles annually. The facility also has kegging capacity of 1.5 million kegs annually.
SweetWater Brewing Company is not subject to any material legal or regulatory proceedings that could adversely affect the operation of the business.
Contact Information
TSG Consumer Partners
Sard Verbinnen & Co
Dan Goldstein / Julie Rudnick / Kevin Siegel
TSG-SVC@sardverb.com