Advantage Solutions Inc. (NASDAQ: ADV), a leading business solutions provider to consumer goods manufacturers and retailers, and L.A. Libations, a leading consumer packaged goods innovator, incubator and accelerator, today announced they have signed a letter of intent to form a joint venture that will bring the full power of Advantage’s suite of services on a national scale to emerging consumer packaged goods and beverage brands.
The proposed joint venture, which is intended to be called Relentless Advantage, would combine Advantage’s industry-leading scale, insights, talent and retail industry expertise with L.A. Libations’ expansive relationships with entrepreneurs and product innovators, connectivity with retailers and track record building and scaling emerging brands.
Under the terms of the proposed partnership, L.A. Libations’ retail solutions subsidiary, Relentless Trade Solutions, would combine its West Coast retail coverage with Advantage’s nationwide retail business, which covers retailers of all sizes across the U.S., to expand services for emerging brands across the country.
Under the joint venture, Advantage – which works with more than 3,500 CPG companies across 250,000 North American retail outlets – will enable L.A. Libations-affiliated brands to expand nationally with greater speed and gain distribution and shelf space in major retailers outside of Relentless’ existing service footprint. L.A. Libations will provide Advantage with a pipeline of innovative, new growth-stage brands. Combined, the new venture will offer early-stage brands and entrepreneurs a bespoke suite of national retail support services.
The new organization would service ascendant brands such as natural soda brand Poppi; Michelle Obama’s PLEZi Nutrition, a line of kid-focused beverages with lower sugar content; Nixie Sparkling Water; and Abbot’s, a line of plant-based protein products.
“With so much of the growth in the CPG industry coming from innovation, insurgent brands are in high demand, and they face incredible challenges to scale with speed,” said Dave Peacock, CEO of Advantage Solutions. “Combining L.A. Libations’ and Relentless Trade Services’ robust pipeline with our talent, scale and reach would ensure that brands not only earn distribution in retailers around the country but have a seamless route to shelf and into shoppers’ baskets.”
Danny Stepper, co-founder and CEO of L.A. Libations, said the proposed partnership would help solve emerging brands’ biggest hurdle as they attempt to scale: “That last mile from a retailer’s backroom to the shelf is a massive pain point for the industry, and brands are constantly asking for us to help. Partnering with Advantage, a long-recognized leader in the retail space, would be the absolute best fit to ensure we can help emerging brands get in front of consumers faster, maximize sales and get the best return on their investment,” he said.
For Advantage, the potential partnership will further strengthen its connectivity and deep relationships with leading retailers and provide its existing retailer clients with better access to L.A. Libations’ product innovation pipeline. That would hasten the availability of new products to shelf for retailers hungry for leading-edge innovations.
For L.A. Libations, the proposed joint venture will offer a faster, more reliable route to market nationwide with support in each store, ensuring its partners’ products are on shelf, in coolers and on displays. L.A. Libations also would gain access to Advantage’s full suite of services, including its supply chain, headquarters sales and industry-leading sampling and demonstration capabilities.
Both companies continue to progress toward an agreement, which the parties expect will be complete in the coming months.
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