The Larry H. Miller Co. has acquired a majority stake in popular Pleasant Grove-based beverage company Swig from private equity firm Savory Fund. Terms of the transaction were not disclosed other than to say that Savory Fund, Swig founder Nicole Tanner and partners Chase Wardrop and Dylan Roeder will each retain “significant minority stakes in the business.”{mprestriction ids="1,3"}
Swig, a 45-outlet custom drink and treat business that helped popularize the Utah-centric “dirty soda,” was founded by Tanner in 2010 in St. George. Savory Fund purchased the brand in 2018, and in the past two years, it has more than doubled its footprint. A 46th store is scheduled to open before the end of the year and more than 25 corporate locations are scheduled to open in 2023.
“Dirty soda” refers to a fountain drink, commonly a cola, to which other flavored drink syrups, such as root beer or lemonade, are added.
Although the amount of Miller investment was not disclosed, Swig leaders said it will help take the brand to the “next level.”
“It definitely plants a flag that Swig is here and we’re growing in a very aggressive and yet very sound rate and pace,” said newly named CEO Rian McCartan. “We’re at the pace now where we want Swig to be coast-to-coast.”
Swig sees a lot of “white space” in the soda sector, McCartan said, and will continue to add corporate locations over the next four to five years. But much of its growth will come from a new channel: multi-unit franchising, he said. Swig plans to have 300 units pre-sold nationwide by the end of the first quarter of 2023.
“There is no lack of top-line growth in the pipeline,” McCartan said.
McCarten said Swig likes the fit with the Miller group, which it views not only as a funding source but also as a true partner that shares its focus on community and philanthropy.
“They have the same goals that we do, they have the same values that we do,” Tanner said.
“I am proud to invest in Swig, a business founded by a woman whose approach to community-building aligns with ours,” said LHM owner and co-founder Gail Miller in a statement. “Nicole and the team are invested in their leaders and employees, and their values are strongly reflected in their everyday operations.”
“Swig’s founders and team, including the Savory Fund, have done an amazing job building this fast-growing brand,” said Steve Starks, CEO of the LHM Co. “We love Swig’s growth trajectory, best-in-class customer service, strong employee culture and commitment to delivering positive guest experiences. We are excited to welcome the Swig team to the LHM Co. and are excited to help accelerate its national expansion.”
“Since we initially invested over four years ago, Swig has become the undisputed leader in this redefined category of customized beverages.” said Andrew K. Smith, managing partner and co-founder of Savory Fund. “The success has been a result of a tremendous partnership with Nicole, Chase, Dylan, and the Swig and Savory Management teams. We are excited to welcome the Larry H. Miller Co. and look forward to continuing to support Rian McCartan and the rest of the Swig team as they bring this market-defining concept across the country.”
In addition to its financial investment, beginning in 2023, the Larry H. Miller Co. will also begin offering a Swig experience at its LHM Megaplex Theatres, which includes both companies accepting refillable Swig tumblers and Megaplex Theatres mugs at the price of the location providing the refill.
A joint release said philanthropy is a core tenet of both the LHM Co. and Swig, and Tanner will remain the official spokesperson for the company’s foundation, Save The Cups. Tanner is a breast cancer survivor and in 2020 she started Save The Cups as a way to give back, spread awareness and help pay the bills of women fighting the disease. In October, Save The Cups raised $217,000 for women fighting breast cancer, bringing the foundation’s three-year total to more than $550,000.
“I’ve always known Swig is special. I’ve seen its impact not only in the incredible growth but also in the faces of the customers who come through our drive-throughevery day. We have become a part of people’s lives and their hearts,” said Tanner. “Our partnership with Savory transformed Swig’s trajectory. Andrew and Shauna Smith have been vital partners as we’ve scale, and I’m thrilled they will remain a crucial ally as we join forces with the Larry H. Miller Co. It’s an honor to partner with Gail Miller, her family and their impeccable team, and I can’t wait to see what our companies accomplish together.”{/mprestriction}
