Nestlé Waters Acquires Sweet Leaf Tea
Following an initial investment in March 2009, Nestlé Waters North America Inc. (Stamford, Conn.) has agreed to acquire Sweet Leaf Tea Company (Austin), owner of the organic Sweet Leaf and natural Tradewinds beverage brands. The acquisition will expand Nestlé’s beverage portfolio of bottled water to include premium iced teas, lemonades and juice drinks. Sales of the Sweet Leaf and Tradewinds brands combined were more than $53 million in 2010. Sales for Nestlé Waters North America topped $4 billion in 2010. Sweet Leaf Tea Company was founded in 1998, and existing staff will continue in a management role. Nestlé is a Nutrition Capital Network Cornerstone Investor.

Nutrionix Attracts €4 Million in Funding
Nutrionix of France, maker of a salt alternative mineral blend, has closed a second financing round of €4 million with Seventure Partners (Paris), new investor SHAM (Lyon) and business angels. Nutrionix’s flagship product, Ksalt, is targeted at the market for processed foods. Nutrionix secured a first round of funding of €900,000 from Seventure Partners in Spring 2009. Isabelle de Cremoux, who led the deal and is head of Seventure’s Life Sciences Department, said, “For over a year, we have searched throughout Europe to find a technical solution to the problem of sodium reduction in food, which we had previously identified as a major public health issue… In 2009, we made an investment in Nutrionix and the company has made good progress.” SHAM (Hospital Mutual Insurance Company) specializes in medical malpractice liability insurance and risk prevention. Partner Olivier Szymkowiak said his firm “is pleased to invest in a company with an ambitious strategy to target a real public health issue.” Seventure joined Nutrition Capital Network as a Cornerstone Investor in 2011.

Santa Cruz Nutritionals Completes $115 Million Bond Offering
Harmony Foods Corporation (Santa Cruz, Calif.), doing business as Santa Cruz Nutritionals, a portfolio company of Levine Leichtman Capital Partners IV, L.P. (LLCP), has completed a $115 million private bond offering to the institutional market. Santa Cruz will use the proceeds to refinance existing debt, pay a shareholder dividend and pay related fees and expenses. “In the seven months since our acquisition of SCN, we have seen cash flow grow by 50% and have identified additional initiatives to enhance future performance,” said Lauren Leichtman, co-founder and CEO of LLCP. “The financial flexibility offered by the Notes will support SCN’s efforts to capitalize on these opportunities and continue to build value for all of our stakeholders.” Santa Cruz Nutritionals is a leading contract manufacturer of gummy-based nutritional products and dietary supplements.

Thorne Research and Helsinn to Create Cancer Division
Helsinn Group (Lugano, Switzerland), a pharmaceutical company, has completed a minority investment in Thorne Research, Inc. (Sandpoint, Idaho), which makes nutritional supplements for the practitioner channel. The two companies will develop supplements and other products for cancer patients. They will also jointly develop medical information and support services related to cancer care and targeted at healthcare professionals and their patients. “The scope of the deal is to create a dedicated natural products division in cancer supportive care within Thorne Research,” said Giorgio Calderari, general manager of the Helsinn Group. “We expect to introduce innovative nutritional products specific to the oncology market soon.” In its 2010 nutrition industry review, Nutrition Business Journal pegged growth of supplement sales through the practitioner channel at around 10-15%, ahead of the dietary supplement market overall.

DSM Acquires Vitatene Natural Carotenoids
Royal DSM of the Netherlands, a large global producer of nutritional ingredients and premixes for the food and pharmaceutical industries, has signed an agreement with P&R Group of Italy to acquire Vitatene SAU (León, Spain), a producer of natural carotenoids. In 2003, Vitatene set up a dedicated plant to produce carotenoids in 100% vegetable matrix. Its betacarotene and lycopene are derived from a natural fermentation process using Blakeslea trispora, a fungus which synthesizes large quantities of carotenoids. The deal follows the recent completion of DSM’s acquisition of Martek Biosciences Corp., the maker of algae derived omega-3 and omega-6 ingredients for use in infant formula. Also in May, DSM announced that it had tendered its 4.95% stake in Danisco to DuPont. Upon completion DSM said it expects cash proceeds of €222 million and to report a book profit of €140 million before tax. DuPont recently finalized its acquisition of Danisco, a maker of specialty food ingredients and enzymes, in a deal worth more than $6 billion. DSM is an NCN Cornerstone Investor.

Hershey Discloses Details of Mix1 Purchase
The Hershey Company’s minority stake in Tri-US Inc. (Boulder, Colo.), the maker of Mix1 nutritional beverages, is a 49% interest, the company has disclosed in a May 10-Q SEC regulatory filing. Hershey invested $5.8 million in the sports drink company in February 2011. In September 2009, Mix1 received a $6 million capital investment from Highland Consumer Fund. Greg Stroh, one of Mix1’s co-founders, is from the Stroh Brewing Co. family and also co-founded Izze Beverage Co., a natural sparkling fruit juice company acquired by PepsiCo in 2006. The Hershey Company is a Nutrition Capital Network Cornerstone Investor.

Blue Gold Buys Distribution Rights to Energy Drinks
Blue Gold Beverages, Inc. (Houston) has acquired the exclusive distribution agreements for Torino Lamborghini Energy Drinks, Pit Bull energy bars, and all products developed by Epic Nutrition Inc. (Jupiter, Fla.). The assets were purchased from Epic Nutrition Canada in exchange for 5 million restricted common shares. Blue Gold Beverages, headquartered in Montreal, produces private label water and specialty beverages using third party bottling plants across North America. The company recently entered into the polymer recycling business by acquiring TY Recycling, in line with its strategy of becoming environmentally responsible by eliminating its carbon footprint.

SunOpta Divests Mexican Frozen Fruit Assets
SunOpta Inc. (Brampton, Ontario), a global company focused on natural, organic and specialty foods and ingredients, has sold its frozen fruit processing assets in Mexico to Fruvemex Mexicali for $3.15 million. As part of this transaction SunOpta also entered into a strategic raw material supply agreement with Fruvemex. Steve Bromley, president and CEO of SunOpta, commented, "This divestiture is the latest step in our strategy to improve the profitability of our frozen fruit operations and continue to simplify our business model with a focus on our core areas of expertise, plus expand strategic relationships to secure long-term supply.” For fiscal 2010 SunOpta realized revenues of $898.9 million, a year-over-year increase of 9.8%