Wessanen to divest American Beverage Corp.
June 26, 2012
by Eric Schroeder
AMSTERDAM, THE NETHERLANDS — Royal Wessanen n.v., a multinational food company with a focus on organic, has started the divestment process of its U.S. subsidiary American Beverage Corp. (ABC).
Headquartered in Verona, Pa., ABC is a multi-million dollar manufacturer and marketer of ready-to-drink cocktails, non-alcoholic cocktail mixers and fruit drinks. The company’s brands include Daily’s Cocktails and Mixers, Little Hug Fruit Barrels, Big Hug, Big Burst and Guzzler and are nationally distributed in grocery, drug, mass merchandisers, warehouse clubs and liquor stores. The company also sells Daily’s Cocktails and Mixer products through food service distributors to bars and restaurants.
Wessanen said the divestment of ABC is “in line with our strategy to focus on organic food in Europe with the clear vision to make our organic brands most desired in Europe, we previously labeled ABC as non-core.”
Wessanen said the divestment is expected to be completed in the fourth quarter, and ABC will be reported as “discontinued operations” as of the second quarter 2012. Proceeds from the sale are expected to be used to further grow European activities, both autonomously and via add-on acquisitions, while maintaining a conservative capital structure.