Six major U.S. beverage equipment makers are merging to form Lotus Beverage Alliance, designed as an end-to-end services provider for craft drinks.
The new company, created via a merger led by Ronin Equity Partners, is formed from the combination of Alpha Brewing Operations, GW Kent, Twin Monkeys, Stout Tanks and Kettles, Brewmation and Automated Extractions; all founders from the original six brands are staying on in leadership positions and no layoffs were made as part of the process, according to Lotus.
The $100 million deal is meant to establish Lotus as a comprehensive beverage solutions company, with capability to support production for cold brew coffee, RTD cocktails, cannabinoid-infused drinks and sake beverages, in addition to craft beer, wine, cider and spirits. The entity will supply 1,500 products and services including canning systems, automation and control systems, turn-key brewhouse construction, packaging, thermal processes, tanks and sanitation equipment. Lotus also offers a financing program for startups with approval in 24 hours.
Speaking to BevNET earlier this week, Lotus CEO John Ansbro noted that the combined company has deep roots in the craft beer industry but is actively exploring ways to grow its overall customer share in the post-pandemic market.
“It’s one thing to be an equipment hardware supplier who provides (customers) with the production equipment. But what we’re also doing now is looking at the consumables business so that we remain in touch with the end customer,” he said. “We see an opportunity to improve customer share with our installed base but then there’s also the leading edge customers who need brewing as part of their process in new types of businesses.”
Led by Ansbro, a longtime senior executive at equipment makers including Alfa Laval, Johnson Controls and the GEA Group, Lotus’ leadership team also includes Ronin Managing Partner and co-founder Jesse Yao as CFO, with Ronin VP Jack Burke and associate Elliott Rogasik also taking senior level positions.
The company’s logistic hub is in Michigan, with nationwide coverage provided via operations in Oregon, Colorado, Nebraska and New York. E-commerce is a major focus for the company, representing almost one-third of all company sales, or around 30,000 orders per year, according to Ansbro.
Lotus isn’t done growing yet, either. Ansbro said the company identified around “50 potential acquisitions,” and is currently screening “eight to nine.” He credited Ronin for creating a “very detailed process” to find candidates that could join the Alliance. According to a press release, the firm has nearly $35 million in pre-arranged financing to fund acquisitions for Lotus in the Americas, Europe and Asia. The group has also implemented an equity incentive program for all employees in collaboration with Ownership Works.
New York-based Ronin specializes in control equity investments, having executed similar simultaneous acquisitions in other consumer categories including premium cheese and refrigerated in-store display systems.
“We are thrilled at the prospect of uniting a fragmented craft beverage supply landscape through a remarkable alliance of industry partners,” said Yao. “By embedding Ronin executives in the back office, our corporate partners can concentrate more fully on expanding their product range and increasing sales.” Managers and founders from the six merged companies form the bulk of senior management at Lotus.