#United States #Stamford #beverage industry #Harvest Hill #Castillo Hermanos

Castillo Hermanos Expands Its U.S. Beverage Business

In a significant move aimed at bolstering its presence in the U.S. beverage sector, Castillo Hermanos has announced its decision to acquire Harvest Hill Beverage Company, a prominent player in the industry known for brands such as SunnyD®, Juicy Juice®, and Little HUG®. This acquisition, formalized in a definitive agreement with Brynwood Partners, marks a pivotal step for the multinational group, originally founded in 1886.

Strengthening a Legacy of Taste and Quality

With over 139 years of operational expertise, Castillo Hermanos has successfully built a diverse portfolio that touches various segments, from alcoholic beverages to packaged foods. The company is recognized for its successful Gallo Beer—even referred to as Famosa Beer in the U.S.—as well as Del Frutal and Raptor Energy Drink. This acquisition will not only enhance Castillo's existing operations but also introduce new brands into the dynamic U.S. market.

Juan Monge Calderón, Chairman of Castillo Hermanos, expressed enthusiasm about the acquisition, citing it as a milestone in the company's journey. He noted, "This acquisition marks a key moment in our strategy to establish global brands that drive continual growth and enhance our leadership in the market."

A New Era for Harvest Hill

Harvest Hill, based in Stamford, Connecticut, was formed to revitalize iconic juice brands like Juicy Juice®, which holds the title of the largest 100% juice brand aimed at children. Since its inception, the company has expanded through strategic acquisitions, adding brands like Little HUG® and Daily's Cocktails® to its portfolio.

Robert Mortati, President and CEO of Harvest Hill, welcomed the partnership, stating, "Our strategic visions align closely, rooted in respect, quality, and consumer-centric innovation. This partnership with Castillo Hermanos allows us to scale our operations while enhancing our brand presence."

Expanding Market Reach

The U.S. beverage landscape is ripe with opportunities, especially within the juice segment, where both companies are committed to meeting diverse consumer needs. Castillo's partnership with Centerview Capital, which has invested significantly in this acquisition, further positions the company to capitalize on numerous growth channels.

With a combined workforce of over 21,000 employees post-acquisition, the two companies are set to leverage their strengths—Harvest Hill’s established distribution and manufacturing networks combined with Castillo's vast array of beverage brands. This synergy is expected to lower production costs and facilitate market entry for new beverage lines from Castillo's Maravilla business unit.

A Commitment to People

Both companies recognize the value of talent in driving business success. The integration will see the retention of all Harvest Hill employees, ensuring continuity in operations and fostering a culture of collaboration and shared growth.

As Castillo Hermanos sets its sights on expanding its U.S. market presence, the acquisition of Harvest Hill emerges not only as a strategic business decision but as an opportunity to bring beloved beverage brands to a wider audience. With the transaction pending regulatory approval, both corporations are eager to begin this new chapter in their shared journey towards innovation and quality in the beverage industry.

Conclusion

Castillo Hermanos' acquisition of Harvest Hill Beverage Company is poised to reshape the U.S. beverage landscape, combining historic brands with a modern approach to distribution and consumer engagement. As the companies work together to expand their reach, consumers can look forward to an even more exciting array of products hitting the shelves in the near future.