Tata Global Beverages Ltd (TGB), the $1.5-billion branded tea giant, has re-entered the vitamin water business by acquiring a minority stake in the US-based beverage and bottled water firm The Rising Beverage Company, owner of the Activate brand.
TGB's UK subsidiary along with former vitamin water investor James Berkeley, a syndicate of beverage distributors and the co-founder of Activate the Eisner family, will invest $21 million in Activate, which will use the funds to widen the distribution and marketing capabilities in the US.
The investment will be in the form of $6 million in cash and another $15 million in equity commitments.
TGB will get a board seat and has the option of raising its stake in the US firm over the next 12 months.
West Hollywood, California-based Activate makes vitamin-enhanced functional beverage in which vitamins are stored in dry powder form in a special container within the lid and is released before consumption.
The beverage, which comes in various fruit flavours is popular among fitness and work out enthusiast, who do not have to pop vitamin pills after a strenuous workout.