Tea companies to merge - http://www.dailycamera.com/business/ci_18100193
Third Street Chai and Cooper Tea to operate under DrinkWorks umbrella
By Alicia Wallace Camera Business Writer
Posted: 05/19/2011 10:44:28 PM MDT
Third Street Chai and Cooper Tea Co., two Boulder County-based makers of concentrated beverages, have agreed to merge operations, company officials announced Thursday.
As a result of the transaction, both companies and their brands will operate independently under the DrinkWorks trade name, officials said. The financial terms of the agreement were not disclosed.
Officials said the merger is intended to leverage the manufacturing capabilities and distribution reach of both Boulder-based Third Street, a supplier of chai and lemonade concentrates under the Third Street and Pixie Mate brands, and Louisville-based Cooper Tea, which makes iced tea concentrates.
The merger evolved out of a September 2010 joint venture between the two firms under which they launched a line of co-branded iced tea concentrates, said Barry Cooper, founder and chief executive officer of Cooper Tea.
"When we put together that joint marketing venture with the iced tea, it was almost a natural progression," he said. "It sort of emerged and we found ourselves kind of simpatico."
Both specialized in concentrated tea beverages and commitments to organic and sustainable products, but had different distribution areas and specialties, Cooper said. While Cooper distributes primarily to the food service and convenience store channel, Third Street plays in the retail realm, he said.
In addition, Third Street has expertise in the manufacturing and production side, while Cooper`s expertise is in global sourcing and research and development, he said.
"One of the tremendous assets that we bring to the party is a really, really strong (research and development) background," he said, noting his past roles with Celestial Seasonings and Lipton. "We have some really good stuff in the hopper."
Both companies will continue to operate in their respective locales, their employees and their brands, said John Simmons, president and founder of Third Street.
"Where it makes sense to realize synergies, we`ll do so," he said, giving Cooper`s connections to global tea estates as an example. "... For me, personally, it`s a great learning experience to take part in those relationships and essentially to connect our consumers more directly to the tea estates and the farmers we work with around the world."
Third Street, which recently was a recipient of a Local Producer Loan from Whole Foods, has ramped up its production capabilities to meet increasing demand, Simmons said. Further manufacturing, work force and infrastructure investments could be made as a result of the merger, he added.
Simmons and Cooper both said that their work forces could grow as a result of the merger. Third Street has 22 employees and Cooper has 18 employees.
Contact Camera Business Writer Alicia Wallace at 303-473-1332 or wallacea@dailycamera.com.
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