Supreme PLC is expanding its reach into the drinks market with its £15m acquisition of Clearly Drinks

Supreme, a diversified consumer goods company, has acquired the trading and assets of Clearly Drinks, a producer of canned and bottled spring water and soft drinks, for £15 million.

The acquisition expands Supreme’s product portfolio, taking the company’s annual non-vaping sales to over £100 million – or £250 million including the vaping division.

Clearly Drinks, based in Sunderland, UK, supplies around 70 customers across the country, including major UK retailers such as Waitrose, Aldi, Tesco, Sainsbury’s and Farm Foods.

The company’s portfolio includes still and carbonated spring waters, energy drinks, vitamin drinks, juices, coffee-based drinks and mixers and tonics under brands such as Perfectly Clear, Northumbria Spring and Revolution Waves.

Sandy Chadha, Supreme CEO, said: “We are delighted to welcome the Clearly Drinks team to the Supreme family. Their high-quality products and strong brand fit perfectly into our diversification and development strategy. We look forward to supporting this team and expanding the brand’s presence across the UK retail space.”

This acquisition will provide Supreme with an established operational presence, including a 150,000-square-foot site with three natural spring water wells providing access to 300 million liters of fresh spring water.

The facility also includes a new, fully automated can production line that can produce 350 million canned beverages annually.

For the year ended 31 December 2023, Clearly Drinks reported (unaudited) revenues of £22.4 million and adjusted EBITDA of £3.0 million, with further growth expected for the year ending 31 December 2024.

With the acquisition, Supreme sees opportunities to leverage its vertically integrated distribution platform and extend the Clearly Drinks brand to its established customer base of supermarkets, discount stores and online retailers.

Supreme also plans to explore the possibility of developing additional products under its own brand or licensing under well-recognized brands, repeating its success in the battery and lighting categories.

The acquisition will further support Supreme’s efforts to expand its Sports Nutrition & Wellness division by facilitating the production of wellness and energy drinks.

“Clearly Drinks’ operating footprint is poised to benefit from Supreme’s vertically integrated distribution platform, which will enable the enlarged group to further develop its sales, marketing and product innovation capabilities,” the company said in a statement.

The acquisition of Clearly Drinks is consistent with Supreme’s strategy to diversify its consumer goods portfolio beyond its core vaping business. The company’s product range currently includes batteries, lighting, sports nutrition, wellness and branded household products.