Daily Newsletter

13 November 2023

Daily Newsletter

13 November 2023

Sunny Sky Products snaps up foodservice drinks group Bevolution

The all-US deal sees Sunny Sky, which supplies dispensed drinks to foodservice and c-stores, expand its product portfolio.

Dean Best

Sunny Sky Products has acquired fellow US drinks supplier Bevolution Group from private-equity firm Highlander Partners.

Financial terms were not disclosed. The deal sees Houston-based Sunny Sky, which supplies dispensed drinks to foodservice and c-stores, expand its product portfolio. Sunny Sky itself is owned by private-equity firm TJC.

Bevolution, based in Chicago, sells drinks including cocktail mixes, juices, teas and lemonades to customers including bars, restaurants and coffee shops, as well as clients in the education and healthcare parts of the foodservice sector.

“This acquisition is highly strategic for Sunny Sky, adding well-respected brands including Dr. Smoothie and Tropics, further enhancing our existing product portfolio with clean label and preservative-free offerings and adding new manufacturing capabilities including hot fill,” Sunny Sky president Matt Maimone said.

The Bevolution business takes in three factories – one in Chicago, as well as others in Frostproof in Florida and in Fullerton in California.

Highlander Partners started building Bevolution when it acquired Juice Tyme in 2013. It made three acquisitions in subsequent years to add to that initial deal – Lemon-X and Tropics Mixology in 2015, plus Dr Smoothie a year later.

“This platform was built through an active M&A strategy and having closed more than thirty transactions in the food and beverage category in recent years, Highlander continues to actively pursue high-quality businesses in this sector as new platforms and add-ons for its current portfolio companies,” Highlander president and CEO Jeff Hull said.

Flavored alcoholic beverages forecasted to register the fastest growth within the alcoholic beverages packaging industry

The global alcoholic beverages packaging industry has grown to 445.4 billion units in 2022, with volumes forecasted to grow at a CAGR of ~2% by 2027. The Asia-Pacific represented the largest region in 2022, followed by the Americas. Glass was the most used pack material globally, followed by rigid metal and rigid plastics. Volume-wise, the industry was led by the beer & cider sector in 2022, while the flavored alcoholic beverages sector is forecast to register the fastest growth at a CAGR of 6.1% during 2022–27, followed by spirits and wine.

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