Castanea Partners Completes Sale of Fuze to Coca-Cola

Newton, MA – March 21, 2007 - Castanea Partners announced today the completion of the sale of Fuze Beverage to The Coca-Cola Company. Fuze, a market leader in brand innovation, develops and markets vitamin infused juice drinks and teas to consumers seeking healthier beverage alternatives. Castanea initially invested in Fuze in early 2004.

Fuze was founded in 2001 by Lance Collins, an entrepreneur with an impressive track record of beverage innovation. Since Castanea’s investment, Fuze has enjoyed rapid growth and developed a nationally recognized brand in the highly competitive new age beverage category. In addition to its flagship Fuze brand, the company’s extensive portfolio includes a successful line of energy drinks and the recently launched organic WaterPlus. 

Commenting on the completion of the transaction, Brian Knez, a Managing Partner at Castanea, said, “Lance and his team have done an outstanding job building the Fuze brand through creative grassroots marketing, improved distribution, and continuous product innovation.”

During Castanea’s tenure with the company, Fuze launched a continuous stream of new products, greatly expanding its presence across retail channels, and built a nationwide network of distribution. Since Castanea’s investment in Fuze, the company’s sales volume has more than tripled.

Lance Collins, Fuze Founder and CEO, commented, “Castanea joined us at a critical time in our development and really contributed to our success. They understood our industry and repeatedly rolled-up their sleeves to help us tackle important issues. We were looking for a value-added partner and they certainly delivered.”

About Castanea Partners
Founded in 2001, Castanea Partners is a private equity firm that invests in small to middle market companies in publishing, education, training, consumer brands and specialty retail.
The firm has extensive operating and private equity investment experience in these sectors and, working closely with management, seeks to optimize business performance and realize attractive returns. Castanea is currently investing from its second fund, a $207 million fund that targets companies with enterprise values between $25 million and $125 million. For more information on Castanea Partners, please visit www.castaneapartners.com.

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