UK: Nestlé Waters invests in Sweet Leaf Tea

Nestlé Waters North America has invested US$15.6m in the Sweet Leaf Tea Company.

Nestlé made the investment in the Austin-based maker of organic, all-natural iced teas and lemonades with an option to buy the company outright at a later date.

Nestlé Waters North America joins private equity firm Catterton Partners as investors in Sweet Leaf Tea. Nestlé Waters exact stake in the firm was not disclosed.

Dan Costello, a Nestlé Waters North America executive, will relocate to Austin to become president of Sweet Leaf Tea, reporting to company founder and CEO Clayton Christopher. Nestlé Waters will also add two directors to the board of directors.

Sweet Leaf Tea's products are currently available in around 30% of US 'natural' food stores, including Whole Foods and grocery chains such as Kroger and Safeway. 

Christopher said he believes the partnership will "transform" the company from a regional brand to one with "full national distribution" within 24 months and fund other growth initiatives.

"We are very enthusiastic about this investment from Nestlé Waters and believe we have found in them an ideal partner for growth," said Christopher. "Not only do they have an unrivalled national network of distribution partners, which includes many of our existing partners, but they are as committed as we are to bringing quality and goodness to consumers in the most environmentally-conscious way possible."

Nestlé Waters North America joins private equity firm Catterton Partners as investors in Sweet Leaf Tea.

"This investment speaks volumes about our enthusiasm for the exceptional company Sweet Leaf has built, based on the principles of quality and all-natural goodness," said Tim Brown, executive vice president of retail operations, Nestlé Waters North America.