Castanea Partners announced today that it has made a minority investment in The Townshend Group, the parent company of Brew Dr. Kombucha.
The Townshend Group (TTG) was founded in 2006 by Matt Thomas, the Company’s CEO, and consists of three operating businesses: Brew Dr. Kombucha, Townshend’s Tea Company, and Thomas & Sons Distillery. Brew Dr. Kombucha produces a line of 100% raw, organic kombucha in a variety of flavors distributed in stores in the U.S. and Canada, including New Seasons, Whole Foods, Costco, Kroger, Safeway, Trader Joe’s, and Target. Townshend’s Tea Company is a tea retailer with 9 locations in Oregon, Montana, and Utah. Thomas & Sons Distillery is a distillery that utilizes the alcohol byproduct from the kombucha fermentation process to produce craft spirits.
“In Brew Dr. and TTG we saw an opportunity to invest in a high-quality, authentic kombucha brand that addresses increasing consumer interest in personal health and well-being. The Brew Dr. team has done a tremendous job translating Matt’s love for high-quality tea into great kombucha and we’re delighted to partner with them to help continue building on the strong foundation for success already in place,” said Tom First, Operating Partner at Castanea.
“At a time when Brew Dr. is gaining significant momentum, we’re excited to be able to work alongside the Castanea team and leverage their distinct experience in building beverage brands,” said Matt Thomas. “Their outstanding track record in the beverage category will provide valuable insights on brand building and distribution expansion. I’m excited to have their help as we make Brew Dr. Kombucha available to more people across the country.”
Terms of the transaction were not disclosed.
Castanea is a private equity firm that works in partnership with founders and management teams of innovative passion brands to grow their businesses through a combination of capital investment and operating expertise. We are focused on select consumer verticals including beauty, food and beverage, multi-unit services, and enthusiast lifestyle. We typically invest between $15 to $150 million of equity in minority or majority transactions. Our team of talented operating executives offers critical expertise in key verticals and functional areas, and provides our partner companies with strategic and tactical support. Castanea has more than $1 billion in assets under management and is currently investing from a $735 million fourth fund. For more information about Castanea Partners read our story.