INSIGHT REPORT CALENDAR

NEWSLETTER

Like this article?

Sign up to our free newsletter

Private equity firm Smedvig Capital backs new UK beverage venture

Smedvig Capital, a London-based private equity firm active in development capital for growth businesses has led an investment of GBP4m in Suso Drinks, a new entrant in the UK’s GBP2bn carb

Smedvig Capital, a London-based private equity firm active in development capital for growth businesses has led an investment of GBP4m in Suso Drinks, a new entrant in the UK’s GBP2bn carbonated drinks market that is launching a new product targeted at the youth and young adult market.

Suso is a carbonated 100 per cent fruit juice that qualifies as one of the government’s five healthy foods a day and is free from additives. The management team, led by chairman Harry Drnec, comprises soft drink veterans and individuals with a track record of identifying new markets and developing strong brands.

The firm has appointed as its chief executive a senior executive from one of the largest global soft drinks producers, to be announced shortly. Its chief operating officer is Andrew King, the former head of PJ Smoothies, now part of Pepsico.

Carbonated drinks, though hugely popular in the UK, particularly among young people, have come under increasing pressure over their less healthy characteristics, in parallel with been exponential growth in healthier juices and smoothies market. Up to now, no established brand has offered a 100 per cent fruit juice with carbonation for the UK’s youth market.

Suso has combined the benefits of pure fruit juice with no added sugar, sweeteners, preservatives or colouring, with all the sparkle of a fizzy drink, and the firm believes it is well positioned to exploit the shift in consumption to fruit and healthy drinks.

‘It is clear that a huge opportunity exists with the combination of the refreshing properties of carbonated drinks with the healthy characteristics of fruit juice,’ says Smedvig Capital chief executive Johnny Hewett.

‘At least as exciting for us is that it is rare that there is the opportunity to back quite such an accomplished team. Between them their experience of building brands and launching new drinks is probably unprecedented within the industry.’

Drnec, who founded the firm with Graeme Dignan in 2005, says: ‘We believe Suso is ideally placed for today’s youth audience and answers a clear brand and product need with an exceptionally well thought through emotional and functional package. I am also pleased with the team we have assembled to drive it forward.’

Smedvig Capital has helped grow over 30 businesses since its establishment in 1996, including Itis Holdings, a provider of traffic information that has gone public, Lovejuice, a UK juice bar chain, and Streetcar, a car club. Smedvig’s direct investments are usually in UK businesses, from development capital through to small buyouts, with equity commitment of between GBP2m and GBP10m.

Like this article? Sign up to our free newsletter

FEATURED

Tech Stocks

MOST RECENT

FURTHER READING