Archive for July, 2014

Great Ideas and Passionate People = Success

July 29, 2014

Here’s a great story – the formula is simple….take a great idea and put some passionate people behind it and you can create a booming business. Simple, right?
For Coconut Waters, a Street Fight for Shelf Space
http://nyti.ms/1nHsawd

Today’s Valuations Update

July 23, 2014

fyi, $150 million for a 90% stake in Apple & Eve – trailing revs of $190 million and EBITA of $15.2 million…..values the company at 1x trailing revs…..11x EBITA…..it continues to be a buyers market. Vida Coco – as hot as a brand can be – just sold equity for 2.66x trailing revs.

Lassonde Industries to Acquire Apple & Eve for $150 Million

http://www.bevnet.com/news/2014/lassonde-industries-to-acquire-apple-eve-for-150-million?utm_source=BevNET.com%2C+Inc.+List&utm_campaign=6e88bef443-mailchimp&utm_medium=email&utm_term=0_f63e064108-6e88bef443-168460457

Today’s Valuations

July 14, 2014

Vida Coco, one of the fastest growing brands in the US beverage industry, and the leader in the coconut water category with almost 70% of the market, just sold a 25% equity stake in the company to the Reignwood Group, the Beijing-based parent company of Red Bull China. The agreement with Vida Coco, with trailing revenues of $250 million in 2013, values the company at $665 million – 2.66x trailing revenues. According to Mark Kirban, Co-Founder of Vida Coco, the company’s growth last year was “triple-digit”.

I highlight the above because it shows the state of valuations today vs a few years ago. I think the days of valuations of 7-15x trailing revenues are over. Vida Coco is one of the fastest growing and most attractive brands in the US market.

It certainly seems like a buyers market today.

http://www.bevindustry.com/articles/87658-vita-coco-sells-25-percent-stake-to-reignwood-group-for-665-million