Dive Brief:
- Guatemalan business conglomerate Castillo Hermanos has agreed to purchase SunnyD maker Harvest Hill Beverage Company from its private equity firm owner.
- Brynwood Partners said it would sell Harvest Hill, which also owns Juicy Juice and Little Hug juice, to Castillo Hermanos for an undisclosed amount. Reuters valued the transaction at roughly $1.5 billion.
- Roberto Lara, the CEO of Castillo Hermanos, said in a statement the deal will help the business expand further into the U.S. Castillo Hermanos' portfolio currently includes over 75 brands in 35 countries, in segments from beer to food packaging to real estate.
Dive Insight:
SunnyD, formerly known as Sunny Delight, first hit shelves in 1963, and grew its presence in the 1990s as a kid-friendly, more affordable alternative to juice competitors like Tropicana. The beverage continues to succeed on grocery store shelves, with 7% growth in the year-long period ending last month, according to Circana data cited by The Wall Street Journal.
The brand has since expanded into the alcohol category, with an RTD vodka cocktail launched in 2023. Its purchase alongside other major juice brands shows the packaged juice category remains lucrative.
Harvest Hill Beverage Company was formed in 2014 by private equity firm Brynwood Partners following the purchase of Juicy Juice from Nestlé. Since then, it has consolidated various shelf-stable juice brands under its portfolio. Robert Mortati, the president and CEO of Harvest Hill, said in the press release the purchase will help its products boost their scale in the beverage segment.
For Castillo Hermanos, acquiring household name drinks like SunnyD will diversify both its product ownership as well as the reach of the company. Its portfolio currently includes over 75 brands in 35 countries, in segments from beer to food packaging to real estate.
Lara said in a statement the deal will help the business expand further into the U.S. Harvest Hill operates six manufacturing facilities across the United States, and the production footprint allows Castillo Hermanos to introduce some of its other existing brands into the country without relying on imports and exposing itself to tariff uncertainty.
All of Harvest Hill's 1,000 employees are expected to remain on following the transaction.
“We look forward to working closely with Harvest Hill's experienced leadership team to unlock key growth opportunities, leveraging their manufacturing facilities, distribution network, and understanding of the beverage category in the U.S,” Lara said.
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