Sierra Nevada Brewing Co. has made a minority funding in Riot Power, a Venice, California-based power drink firm. The California brewery will “initially function an investor,” however will “ultimately produce and bundle Riot Power merchandise” as soon as its CanDo Innovation Heart is up and operating.
Sierra Nevada introduced building of the 85,000 sq. ft. CanDo facility in September. The Chico, California-based manufacturing facility can have a 500,000-barrel annual capability and can be devoted to past beer choices, together with Strainge Beast onerous kombucha and non-alcoholic variations of Sierra Nevada’s present beer choices.
“Like Sierra Nevada pioneered a profitable path for craft beer amongst mainstream audiences, Riot Power is difficult large power drink manufacturers with their better-for-you power drinks,” the businesses wrote in a press launch.
Sierra Nevada was the third-largest craft brewery by quantity in 2021, in accordance with the Brewers Affiliation (BA). The corporate produced greater than 1.1 million barrels of beer in 2021, a -1% decline year-over-year (YoY). 2022 was “comparatively flat and down simply barely from a quantity perspective,” Sierra Nevada VP of gross sales Ellie Preslar instructed Brewbound in September.
The funding in Riot might assist the greater than 40-year-old brewery join with youthful customers who’re “in search of better-for-you recipes,” in accordance with the discharge. Based in 2016, Riot is a “100% plant-powered,” licensed natural power drink firm. Its merchandise include “no added sugar, no synthetic sweeteners and no unrecognizable components.”
“Shoppers are underserved by the massive beverage manufacturers,” Riot founder Laura Jakobsen stated within the launch. “We’re creating a distinct, extra crafted option to be energized with the easier, cleaner components customers are demanding, but present class model leaders aren’t trusted to ship.”
Riot almost doubled its footprint in 2022 and is now out there in additional than 7,000 shops. In January, the corporate expanded distribution nationwide via partnerships with Kroger, Walmart and Costco, and “plans to scale this progress even additional,” in accordance with the discharge.
“Riot Power differentiated itself with the top quality and nice components youthful audiences are in search of,” Sierra CEO and president Jeff White stated within the launch. “For 42 years, we’ve constructed our enterprise on our dedication to high quality. We’re uniquely located to supply a springboard of progress for RIOT Power to be extra aggressive within the house.”
Riot marks Sierra Nevada’s second foray into M&A, albeit a minority stake. In February 2019, the corporate acquired San Francisco-based Sufferfest Beer Firm, a craft brewery whose gluten-reduced choices had been marketed towards athletes and made with components akin to bee pollen and sodium. Nonetheless, by the tip of 2020, Sierra Nevada discontinued the Sufferfest model.
