GreenSpace Brands takes sip from organic juice market with takeover of Nothing But Nature

GreenSpace Brands has announced the purchase of Canadian organic juice maker Nothing But Nature for the “total consideration of approximately $8.88m and $9.88m.”

Founded in Canada in 2005, Nothing But Nature owns the Kiju Organic brand, which manufactures organic juice and iced tea products sold throughout Canada and in select US areas. Its key retail customers include Loblaw, Sobeys, and Whole Foods Market.

In fiscal 2016, the juice brand earned a gross revenue of $8.4m and according to the company "has been profitable” while maintaining the focus of providing consumers with sustainable, healthy drinks without compromising quality and taste.

Taking over more organic space with “synergistic” acquisitions

"This acquisition is a perfect example of the type of transaction we wish to do in the Canadian natural and organic food market," says Matthew von Teichman, CEO of GreenSpace.

According to the company’s management team, GreenSpace has set the goal of having 30% of its revenue come from new product launches.

The acquisition of Nothing But Nature and Kiju Organic represents GreenSpace Brands’ first move into the beverage sector and its second acquisition of a private organic company. In September 2015, the firm purchased Love Child, a manufacturer of organic baby food.

“This is a strategic and synergistic acquisition with a shared focus on creating innovative, high quality natural products for children,” Teichman said at the time of the acquisition.

In its annual company presentation, GreenSpace, noted that nearly 5% of all food sold in the US is organic (up from 3% in 2012) and is projected to hit 20% by 2025. Similarly, there has been robust M&A activity in the natural food industry, according to GreenSpace, such as the purchase of WhiteWave Foods by Danone and Pinnacle Foods acquiring Boulder Brands.

"Kiju is one of the best known organic brands in Canada, with strong regional distribution and fantastic products. We believe our team, in particular our sales, marketing and operations groups will be able to have a strong impact on the Kiju business and will be able to assist in growing its revenues and improving its profitability margins,” Teichman said.