Satori Capital has made a minority in investment in R. Torre & Company, the maker and distributor of Torani-branded flavor systems.
Torani systems are used to flavor coffee drinks, sodas, and teas and the company has more than 150 flavors including amaretto, butterscotch, cheesecake, chocolate, French vanilla, strawberry, and peppermint. Torani currently holds a 90% market share in the coffee syrup industry after averaging growth of 20% year-over-year for the last 30 years.
Torani also produces dessert sauces, smoothie bases, frozen beverage mixes, and sugar-free syrups. The company is credited with popularizing Italian soda in the United States as well as creating the first flavored latte in the 1980s.
Torani was founded in 1925 by Rinaldo and Ezilda Torre. In 1957, the Torre’s son-in-law, Harry Lucheta, took over the business and oversaw Torani’s growth from a small local San Francisco business to an international brand. Today, the company continues under family ownership by Paul Lucheta and Lisa Lucheta, grandchildren of the founders. In March 2020, Torani completed construction of a new 330,000 square foot manufacturing and headquarters facility near San Francisco in San Leandro, California.
Torani has been led by CEO Melanie Dulbecco – the first CEO from outside the Torre family – since 1991. Just recently, Torani began the process of launching an employee stock ownership plan.
“We could not have found a more perfectly aligned partner than Satori to help us launch into our next 100 years,” said Ms. Dulbecco. “They share our values, they are passionate about social impact, and they bring significant strategic and operational expertise that will help us continue on our amazing growth trajectory.”
Dallas-headquartered Satori Capital invests in US-based companies that have $5 million to $25 million of EBITDA. Sectors of interest include business services; consumer products; e-commerce; financial services; food and beverages; industrial automation; software and technology; and specialty manufacturing.
“Torani has a rich history of developing new products, and we believe that the company’s spirit of innovation will continue to drive future growth,” said Sunny Vanderbeck, a co-founder of Satori. “Torani’s core belief – that businesses can and should create more opportunities for people – resonates deeply with our values, and we are delighted and proud to be partnering with a company that has such beloved products, such a vibrant and positive culture, and such potential for limitless success.”
Private Equity Professional has covered a number of other investments by Satori, including its acquisitions of SunTree Snack Foods and Ranger Wireless Solutions, and its investment in Longhorn Health Solutions.
© 2022 Private Equity Professional | February 1, 2022
