Brynwood Partners Signs Agreement to Sell Harvest Hill Beverage to Castillo Hermanos

Brynwood Partners Sells Harvest Hill Beverage Company to Castillo Hermanos

On April 3, 2025, Brynwood Partners made headlines by announcing a definitive agreement to sell its portfolio company, Harvest Hill Beverage Company, to Castillo Hermanos, a well-established multinational business group. The strategic deal marks a pivotal moment in Brynwood's 40-year journey, highlighting the growth and evolution of its brand portfolio.

Understanding Harvest Hill Beverage Company

Founded in 2014, Harvest Hill Beverage Company emerged when Brynwood Partners acquired the well-loved Juicy Juice brand from Nestlé USA. Since then, the company has been on a remarkable trajectory, thanks to a seasoned management team that successfully pinpointed and integrated a string of strategic acquisitions, including American Beverage Corporation, Sunny Delight Beverages, and Nutrament. This strategic growth enabled Harvest Hill to assemble a diverse portfolio encompassing iconic brands like Juicy Juice, SunnyD, and Nutrament, along with emerging adult beverage brands like Daily's and SunnyD Vodka Seltzer.

The company currently operates six manufacturing facilities throughout the United States, delivering its products through extensive distribution channels that penetrate major retail markets. This robust infrastructure is one reason for its appeal to potential buyers.

Castillo Hermanos: A New Chapter

The acquisition by Castillo Hermanos, a family-owned business with roots stretching back to 1886, represents a significant expansion of their U.S. presence. Known for their dedication to quality and sustainability, Castillo is keenly interested in leveraging Harvest Hill's brand strength to bolster its existing operations within the American beverage sector. The partnership with Centerview Capital will further enhance their strategic investment capabilities, promising future growth for Harvest Hill.

Henk Hartong III, Chairman and CEO of Brynwood Partners, shared his mixed emotions regarding the sale, stating, "Although it's a bittersweet moment, we are pleased to pass the torch to a company with such a dignified history in the beverage industry. We firmly believe that Castillo Hermanos will be great stewards of the Harvest Hill brands."

This acquisition not only signifies the largest transactional achievement in Brynwood's history but also showcases Castillo Hermanos’ vibrant portfolio, which spans over 30 countries. Their brands, recognized globally, include Gallo Beer and Raptor Energy Drink.

Impacts of the Sale

For Brynwood Partners, this sale represents the culmination of years of investment and strategic positioning within the consumer market. With $750 million in committed capital raised in 2023 for their latest fund, Brynwood IX, the firm continues to focus on nurturing non-core consumer brands. This move highlights Brynwood's strategy of identifying potential for growth and return on investment, as they look to diversify their portfolio.

Legal representation for Harvest Hill was managed by Holland & Knight LLP, while financial advisory services for Castillo Hermanos were provided by Citi. This collaboration encapsulates Brynwood's commitment not only to its investors but also to the continued legacy of its brands.

As the partnership between Castillo Hermanos and Harvest Hill unfolds, stakeholders and consumers alike will be watching to see how these established brands adapt and grow under new ownership. With a history of innovation and a commitment to quality, the future appears bright for the Harvest Hill Beverage Company.

In summary, this transaction illustrates the dynamic nature of the beverage industry, where acquisitions can lead to revitalized brand perceptions and market expansions. As Brynwood Partners and Castillo Hermanos embark on this journey, it promises to be an exciting chapter filled with potential and opportunity.