Apple Rush Company Acquires Stotland Trucking to Boost Revenue and Vertical Integration

August 2nd, 2024 1:30 PM
By: Newsworthy Staff

Apple Rush Company's acquisition of Stotland Trucking aims to increase revenues by over $10 million in 2025 and enhance vertical integration in the beverage industry. This strategic move combines Apple Rush's beverage production capabilities with Stotland's logistics expertise.

Apple Rush Company Acquires Stotland Trucking to Boost Revenue and Vertical Integration

Apple Rush Company, Inc. has announced its acquisition of Stotland Trucking, LLC, a Texas-based last-mile hauler, in a move expected to significantly boost the company's revenue and strengthen its position in the beverage industry. The acquisition is projected to increase Apple Rush's top-line revenues by over $10 million in 2025, pushing the company's total revenue north of $20 million.

Stotland Trucking, specializing in short-haul logistics, currently generates more than $7 million in revenue and has a pipeline for growth over the next 24 months. This acquisition aligns with Apple Rush's strategy to become a fully vertically integrated holding company, addressing one of the most significant expenses in the beverage industry: freight costs.

Tony Torgerud, CEO of Apple Rush Company, expressed enthusiasm about the acquisition, stating, "We have been implementing our roll-up strategy over the last year and have seen good success in our top-line revenues." Torgerud highlighted that the company's brewing, co-packing, and extraction businesses are set to generate over $10 million in revenue in 2025, with the Stotland acquisition pushing that figure even higher.

The integration of Stotland Trucking into Apple Rush's operations is expected to yield substantial benefits. By utilizing its own delivery system, Apple Rush aims to reduce costs for both the company and its customers. This move is particularly significant in the context of the beverage industry, where logistics play a crucial role in profitability and customer satisfaction.

Derik Stotland, president of Stotland Trucking, commented on the partnership, saying, "We decided based on the options available to us that Tony and the Apple Rush Company would give us both upside on being a partner and an additional hub to grow our system from." Stotland outlined plans to expand operations from Texas to Illinois, creating a regional system that will enhance delivery efficiencies.

The acquisition is part of a broader strategy by Apple Rush to diversify its portfolio and strengthen its market position. The company, known for its Apple Rush brand with over 50 years of presence in the natural beverage industry, has been expanding into various sectors, including organic and natural beverages, and anhydrous hemp oil products.

Apple Rush's profitability outlook for 2025 appears strong, with Torgerud noting margins as high as 200% on their websites and 50% in co-packing. The company plans to produce multiple lines of functional beverages alongside its current craft beer production.

This strategic move by Apple Rush Company reflects the growing trend of vertical integration in the beverage industry, where companies seek to control more aspects of their supply chain to improve efficiency and profitability. By bringing logistics in-house, Apple Rush is positioning itself to better manage costs and potentially offer more competitive pricing in the market.

The acquisition also highlights the importance of last-mile delivery in today's consumer-driven market. With the rise of e-commerce and increasing consumer expectations for fast delivery, companies that can efficiently manage the final leg of product delivery have a significant advantage.

As Apple Rush Company integrates Stotland Trucking into its operations, industry observers will be watching closely to see how this vertical integration impacts the company's performance and its ability to compete in the evolving beverage market. The success of this acquisition could potentially set a precedent for similar moves by other companies in the beverage and consumer goods sectors.

For more information about Apple Rush Company and its brands, interested parties can visit www.aprubrands.com, www.element-brands.com, and www.alkhemicalroots.com.

Source Statement

This news article relied primarily on a press release disributed by News Direct. You can read the source press release here,

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