Polar sees sales boost in deal with Nestle
Worcester-based Polar Beverages has partnered with Nestle Waters in a deal that could net the company extra sales of up to $50 million a year by 2020.
Under the distribution agreement, which goes into effect Wednesday, Polar will can and distribute products from Nestle Waters for the Nestea and Poland Spring brands, the Stamford, Conn.-based company announced earlier this week. The alliance will operate under the name Polar Strategic Ventures, which will be run by Jeff Weston of Nestle Waters and cover the eastern United States. The deal could expand annual sales for Polar by $30 to $50 million by 2020, Polar CEO Ralph Crowley Jr. said.
The deal expands and solidifies a relationship Polar already has with Nestle.
“I’ve had a business relationship with Nestle Waters for almost 20 years, so we have distributed products like Sweet Leaf Tea for them... this is just expanding an existing relationship,” Crowley said.
Polar currently co-packages some sparkling water and tea for Nestle Waters, and distributes several products in New England. This new venture will expand Polar’s offerings with Nestea, entering the iced tea market, in which Polar does not have a product, Crowley said.
Manufacturing of Nestle Waters products will begin in Polar’s New York and Georgia plants, but Crowley hope to bring some of that work to Worcester. The initial production volume will be handled by existing facilities and staff, but the plan is to grow and expand the business, Crowley said.
Polar employs about 600 at its Worcester headquarters.
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