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Bossa Nova Beverage Group

You did a great job―your perseverance was unbelievable! Mighty fine work, Greif & Co. You’re superstars!

Alton Johnson

CEO & Founder

Bossa Nova Beverage Group, Inc.

Bossa Nova

Bossa Nova Beverage Group, Inc. (“Bossa Nova”) was an early stage marketer and manufacturer of super premium functional fruit beverages. The Company created a new category of beverages with its launch of the world’s first pure açai juice products with antioxidant levels higher than pomegranate or blueberry juice. Bossa Nova’s beverages were sold in natural foods markets such as Whole Foods Market, Inc. as well as conventional grocers. With its strong initial product launch, the company was in need of growth equity capital. Greif & Co. was able to generate interest from both venture capital firms and strategic partners.

Bossa Nova

Greif & Co. ascertained that The Coca-Cola Company (NYSE:KO) (“Coke) was one of the most logical investors for the Company. The notably unhealthy carbonated soft drink segment of the beverage industry had been experiencing sales declines and the beverage industry was trending toward functional, healthy offerings. Coke indicated that it was exploring products in this category. To increase competitive tension, Greif & Co. highlighted that PepsiCo Inc. (NYSE: PEP) (“PepsiCo”) had recently announced purchased Izze Beverage Co., a manufacturer of all-natural sparkling fruit juices, for a premium valuation. Greif & Co. emphasized that an investment in Bossa Nova would allow Coke to have an equity interest in the company with the highest antioxidant juice commercially available and would allow Coke to keep pace with its arch nemesis, PepsiCo.

Bossa Nova

Coke ultimately submitted an offer that valued Bossa Nova at a significantly higher pre-money valuation than other prospective investors (minimizing dilution to existing shareholders)―Greif & Co. generated a stock price per share from Coke that was multiples above that of the next highest prospective investor. In addition, Greif & Co. negotiated joint development and exclusive distribution agreements with Coke’s wholly-owned subsidiary, Odwalla, Inc. This multi-faceted strategic partnership enabled Bossa Nova to sell all of its products through Odwalla, which would, for the first time in its history, put non-Odwalla products on its delivery trucks for distribution to all of its channels, many of which―convenience stores, foodservice, commissaries―were not previously penetrated by Bossa Nova.

 

Coke purchased a 23% interest in Bossa Nova, the first time in its more than 125-year history that the firm had ever made a minority equity investment in a company.  Instead of valuing Bossa Nova at a discount for illiquidity and lack of control, Greif & Co. was able to get Coke to pay a 50% premium to Coke’s (the No. 1 consumer brand in the world) own valuation multiple.

Related References

  • You did a great job―your perseverance was unbelievable! Mighty fine work, Greif & Co. You’re superstars!

    Alton Johnson

    CEO & Founder

    Bossa Nova Beverage Group, Inc.

  • “The result you produced was a HUGE win for us. We’re very, very grateful for your participation. You were terrific.”

    David Link

    Managing Director

    Greenmont Capital Partners

  • “This is a homerun―it’s a great deal!”

    Barney Feinblum

    Member, Board of Directors

    Bossa Nova Beverage Group, Inc.

  • “This was not an easy transaction. I appreciate the leadership Greif & Co. provided to get us through to a successful closing. You guys were both ‘owl’ and ‘bulldog’ on this deal, and that’s a good thing―it took both to make it happen. You were terrific on all fronts―it was a first class job.”

    Gray D. Lindsey

    Senior Vice President, Business Development

    Coca-Cola North America

  • I have the utmost respect and gratitude for your tenacity on this deal. Thank you for not giving up on us. This was not going to happen―you pulled it out from nothing. You have mastered the art of deal making. Having worked on deals with many investment banking firms, I know very few who have the deft skills required to connect equally with seasoned Fortune 100 senior management teams as well as young entrepreneurs embarking on their first transaction. This takes strong, discerning leadership―something few investment firms consistently deliver. We experienced this amazing care equally from our initial, very small financing rounds to our final successful sale of the company to Sunny Delight Beverages Company. Greif & Co. went above and beyond our expectations. It was a miracle, absolutely a miracle.

    Candace Crawford

    Former Chief Financial Officer

    Bossa Nova Beverage Group, Inc.

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