Five Watt Coffee, Sencha Tea Bar to Merge
Two well-known Minneapolis beverage brands are merging under a new parent entity.
On Wednesday, Five Watt Coffee and Sencha Tea Bar announced that they’re combining to become part of a newly formed company called Amplified Experiences.
Both brands – and their existing footprints – will survive the merger. Five Watt and Sencha operate four stores each, and little is expected to change as a result of the merger, said Lee Carter, who will serve as CEO of Amplified Experiences.
“On the shop level, things will look and feel very similar,” he said in an interview on Wednesday. But Carter is planning for minor changes to the menus of each, largely driven by each brand’s expertise.
A news release issued Wednesday said the merger “will usher in the next wave of growth and innovation in the local tea and coffee market with new size and scale that will amplify each and every one of our customer’s experiences through industry-leading customer service, drink creation, talent development, and ingredient sourcing.”
Carter said the deal officially closed on Monday. He and Sencha Tea Bar’s co-owner Brian Friese bought out Carter’s Five Watt partners at their request. Now, Friese will become CFO of Amplified Experience, while Holly Gale, who also had ownership in Sencha prior to the merger, will become COO.
Financial details of the transaction weren’t disclosed.
Other deals may be on the horizon. “We’re very interested in growing both brands individually,” Carter said. “We’re also interested in expanding our portfolio through other strategic acquisitions,” most likely in the beverage space.
The deal doesn’t involve Big Watt Beverage Co., a separate entity that produces coffee for Five Watt from a facility in New Richmond, Wisconsin. “Big Watt is separate of Five Watt and Amplified Experiences,” Carter said, though all share some common individual owners.
Five Watt did have a coffee shop at Big Watt’s Wisconsin facility for a few months, but ultimately decided to close it down. Big Watt shares the New Richmond plant with Lift Bridge Brewing Co.
Carter founded Five Watt with Caleb Garn in 2014. The Sencha Tea Bar brand, meanwhile, emerged after Friese purchased what was then known as the Tea Garden, also in 2014.