The current tranche follows Activate’s earlier Rs 27-crore fund-raising in March
An overseas subsidiary of Tata Global Beverages (TGB), formerly Tata Tea Ltd, has acquired a minority stake in US-based Activate, a performance beverage and bottled water firm. TGB declined, despite requests, to specify how much stake or which particular subsidiary.
The move follows a $20 million (or Rs 90 crore) investment in the firm being led by TBG and allied investors. Activate, in a statement, said it had raised over $6 million (or Rs 27 crore) in financing and secured equity commitments for an additional $15 million (or Rs 67.5 crore) as part of the deal.
Besides TGB, experienced beverage investor James Berkeley, allied beverage distributors, as well as existing investors, The Tornate Company and the Eisner family, are part of the consortium leading the investment, it said.
The current tranche follows Activate’s earlier capital raise of $6 million (or Rs 27 crore) in March. This was led by First Beverage Group, Tornate and other investors, the firm said.
“We are thrilled to have found a partner in Tata, that has had a significant presence in the North American market for over 60 years,” said Dan Holland, president, Activate. “The firm will not only benefit from the major investment and overall commitment to the company but also from Tata’s deep expertise in the beverage industry and the solid infrastructure they have built along the way.”
Peter Unsworth, Group CEO of TGB, said, “We have ambitious growth plans and a vision to become the leader in the ‘good for you’ beverage segment. This investment is the latest piece in our strategic journey to reach consumers in different ways and to help deliver sustainable hydration across the world.”
Activate, founded by Anders Eisner and Burke Eiteljorg, says it produces an innovative beverage which utilises the company’s patented cap technology to maximise the freshness of vitamins by keeping these dry until the product is ready to be consumed.For Tata, this is its second bid at getting a grip of the US beverage market, after its failed attempt a few years earlier with Energy Brands, the maker of Glaceau vitamin water.
