Dive Brief:
- mix1 Life, Inc. "has entered into a letter of intent" with Shadow Beverages and Snacks LLC to purchase Shadow Beverage's "No Fear" brand asset, according to a news release.
- The purchase will include "the 'No Fear' beverage license, the operating system, and sales support behind the current distribution network."
- Once distributed mainly through direct store delivery, the No Fear energy drink brand recently achieved an agreement with a national distributor. This acquisition has the potential to expand that distribution further.
Dive Insight:
Both companies see positive developments to come from this acquisition.
George Martinez, president and founder of Shadow Beverages, said in a press release, "The combination of the mix1 and No Fear brands allow us to leverage our selling and operating systems that will expand distribution quickly and effectively to all channels on a national basis."
Parallel to those benefits, Cameron Robb, CEO at mix1, said in the same press release, "The addition of the No Fear brand will generate additional revenue to our company while providing seasoned executives and an operating system which will accelerate our growth with both brands."
The acquisition comes at a crucial time for wholesalers and retailers, as last month, wholesale prices dropped for the fourth month in a row, unexpectedly to many in the two industries. According to Bloomberg, the decline reflects, "cheaper food and a slump in profit margins among wholesalers and retailers." Hopefully for these two companies, this acquisition can allow them to fight back against this trend and maintain, if not increase, their own prices and profit margins.