KonaRed Corp. in San Clemente will work with L.A. Libations in El Segundo to expand its line of cold brew coffee and other products.
Terms of the agreement weren’t given but could involve an investment and distribution; L.A. Libations was started in 2009 by three former Coca-Cola Co. executives, and the Atlanta-based beverage giant holds a stake in the beverage incubator.
The deal follows a November investment in KonaRed by Venice Brands; terms of that deal weren’t given, but a trade magazine said Venice, launched a year ago by investment bankers and food and beverage executives, haspreviously invested up to $5 million for up to 40% of a company.
KonaRed Chief Executive Kyle Redfield and Venice Brands Chief Executive Greg Willsey worked together at POM Wonderful LLC, the L.A.-based maker of pomegranate juice and other products.
Redfield, previously president of KonaRed, was named chief executive in September when co-founder Shaun Roberts relinquished the role, retaining his position as board chairman.
KonaRed makes ready-to-drink cold brew coffee, dry coffee beans, coffee fruit juices and a nutritional extract, many derived from the fleshy part of the coffee bean known as the cherry, and sells through retailers, including Vons, Kroger, Whole Foods, Costco, Target, and 7-Eleven.
The company traded recently at about 38 cents a share, over-the-counter, for a recent market cap of $8 million.
L.A. Libations has previously backed beverage products, including aloe-based drinks, bone broth makers, and 2-ounce cold-brew coffee energy shots.