Sweet Leaf Receives Funds for National Expansion

"AUSTIN, Texas, Apr 02, 2008 (BUSINESS WIRE) -- Sweet Leaf Tea, one of the nation's fastest-growing makers of ready-to-drink iced teas, announced today that it has completed its largest round of funding to date from Catterton Partners, the nation's leading private equity firm in the consumer sector. An early investor in companies including Build-a-Bear, P.F. Chang's China Bistro, Odwalla and Kettle Foods, Catterton Partners has committed $18 million of growth capital to Sweet Leaf Tea.

The investment will be used by Sweet Leaf Tea to increase its marketing efforts and expand its national distribution, which already includes natural stores like Whole Foods and grocery chains like Kroger and Safeway.

"The ready-to-drink tea category is a $2.8 billion industry with the premium segment growing at an annual rate of 25%," said Michael Farello, partner, Catterton Partners, who will join Sweet Leaf Tea's board of directors. "Our assessment shows that Sweet Leaf Tea has the greatest potential for growth of any company in the category. This investment will give Sweet Leaf Tea the resources it needs to achieve an entirely new level of national awareness and sales."

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