New Water Capital Partners II LP has recently completed a significant acquisition of Dutch Gold Honey, marking a pivotal moment in the American honey industry landscape. The transaction encompasses not only the main honey production business but also related entities including McLure’s Honey & Maple Products, Gamber Container Company, The Bacon Jug Company, and DGH Logistics. Founded in Lancaster, Pennsylvania in 1946, Dutch Gold Honey has built its reputation over nearly eight decades as the inventor of the iconic squeezable plastic honey bear container that has become a staple in American households. This strategic acquisition positions both companies for substantial growth in the expanding natural sweeteners market, with New Water Capital bringing investment capabilities while preserving Dutch Gold’s legacy and commitment to quality.
A Sweet Legacy: Dutch Gold Honey’s Journey to Industry Leadership
The story of Dutch Gold Honey began in 1946 with Ralph and Luella Gamber’s vision to deliver quality honey to American consumers. Over decades, their small family business transformed into a leading national honey producer while maintaining their commitment to ethical sourcing and premium quality. The company’s breakthrough innovation—the squeezable plastic honey bear container—revolutionized how Americans consume honey, making it more accessible and convenient for everyday use.
Nancy Gamber, President of Dutch Gold Honey, expressed optimism about the acquisition, stating, “For generations, we have been proud to set the standard for the highest quality honey across the country. As we enter our next phase of growth, we are confident that New Water is the right partner for us, as they truly understand our business, our heritage, and our unwavering dedication to delivering a superior product.” This partnership preserves the family values and traditions while providing resources for expansion.
Dutch Gold Honey has become known for more than just their innovative packaging. They’ve established themselves as pioneers in honey production with an unwavering focus on quality and ethical sourcing practices. Nick LaRosa, Vice President at New Water, acknowledged this legacy: “We are excited to announce the acquisition of Dutch Gold, a true pioneer and leader in the American honey industry. For nearly 80 years, the Gamber family has consistently innovated and expanded its product portfolio and customer base, while always focusing on quality and service.”
Diverse Product Portfolio and Integrated Operations
Dutch Gold Honey offers an impressive range of honey varieties catering to different consumer preferences and culinary applications. Their product lineup includes popular varieties like Clover, Orange Blossom, and Wildflower honey, available through both consumer retail channels and foodservice distribution networks. These products serve multiple purposes beyond direct consumption, frequently appearing as ingredients in salad dressings, breakfast cereals, yogurts, and various sauces.
The company’s operations extend beyond just honey production. Through affiliated businesses like Gamber Container Company and The Bacon Jug Company, Dutch Gold provides comprehensive packaging solutions to meet various market needs. Their logistics arm, DGH Logistics, ensures efficient distribution across their supply chain, creating an integrated business ecosystem that covers production to delivery.
Jill Clark, Executive Vice President of Dutch Gold, highlighted the company’s strong team culture: “This is a special milestone for our team members, each of whom bring so much passion to their work. Their commitment has propelled Dutch Gold and positioned the company for success.” This dedication to excellence has helped Dutch Gold develop honey products perfect for desserts and other culinary applications that consumers trust.
The company’s private label services have also become a significant part of their business model, allowing them to partner with retailers and food manufacturers who want to offer quality honey products under their own branding. This flexibility in business operations has contributed to their sustained growth and market adaptability over decades.
Market Trends and Growth Potential Driving the Acquisition
The timing of this acquisition aligns perfectly with significant market growth projections for the honey industry. According to market analysis, the U.S. honey market is expected to expand from $3.1 billion in 2024 to approximately $4.8 billion by 2033, representing a compound annual growth rate (CAGR) of 4.9%. These impressive growth projections highlight the increasing consumer demand for natural sweeteners as alternatives to refined sugar.
Current market dynamics show an interesting gap between domestic production and consumption. In 2022, domestic honey production reached approximately 202,000 tons, while annual consumption was significantly higher at about 450,000 tons. This supply-demand gap creates strategic opportunities for companies that can scale production and distribution effectively.
Consumer preferences are increasingly shifting toward natural, minimally processed food options, including specialty honey varieties like longan honey. The growing interest in organic and raw honey varieties presents particular growth opportunities that New Water Capital aims to capitalize on through this acquisition. Health-conscious consumers are recognizing honey’s benefits as a natural sweetener with nutritional properties beyond just flavor.
Jason Neimark, Partner at New Water, explained their strategic vision: “This transaction underscores the firm’s focus on investing in family- and founder-led businesses with significant growth potential. We look forward to accelerating Dutch Gold’s momentum through additional investments in capacity, operational systems, and organizational resources, as they meet increasing consumer demand for natural sweeteners and honey products.”
New Water Capital’s Strategic Investment Approach
New Water Capital has established itself as an investment firm with a well-defined focus on companies with particular characteristics and growth potential. They typically invest in lower-middle market companies with revenues between $30 million and $300 million, concentrating primarily on consumer products and industrial manufacturing sectors where they can apply their expertise and resources most effectively.
The acquisition of Dutch Gold Honey represents New Water’s sixth investment in the consumer products sector, following a series of strategic investments in companies including Klosterman Baking Company, Trillium Health Care Products, Custom Made Meals, The Perfect Bite Co, and Pegasus Foods. This consistent investment pattern demonstrates their commitment to food production and consumer goods categories where they see sustainable growth opportunities.
New Water’s investment approach typically involves providing not just capital but also operational expertise and strategic guidance to help companies scale effectively. Their focus on family- and founder-led businesses shows their appreciation for established company cultures and the value of preserving heritage while enabling growth. This approach resonates particularly well with companies like Dutch Gold that have deep historical roots and sustainable practices they wish to maintain.
By targeting companies with strong market positions but untapped growth potential, New Water Capital has created a portfolio of complementary businesses that can benefit from shared resources and expertise. This ecosystem approach creates opportunities for cross-pollination of ideas and best practices across their investment portfolio.
Future Horizons: Dutch Gold’s Path Forward
With New Water Capital’s support, Dutch Gold Honey is poised for significant expansion across multiple fronts. The company plans to enhance its production capacity to meet growing demand while maintaining the quality standards that consumers expect. Investments in operational systems will improve efficiency and scalability, enabling Dutch Gold to respond more flexibly to market opportunities and challenges.
Product innovation will likely play a key role in the company’s growth strategy. Beyond their traditional honey offerings, Dutch Gold may explore new flavor profiles, specialty varieties, and honey-infused product lines to capture evolving consumer preferences. The rising interest in functional foods presents opportunities for honey products with targeted health benefits or specialized culinary applications.
The acquisition also positions Dutch Gold to potentially expand its geographic reach, both within the domestic market and potentially internationally. With New Water’s investment in resources and organizational capabilities, the company can explore new distribution channels and retail partnerships to bring their products to more consumers.
Dutch Gold’s commitment to ethical sourcing and quality production, combined with New Water’s strategic investments and growth expertise, creates a powerful foundation for sustainable long-term success. As consumers continue to seek natural alternatives to refined sugar, Dutch Gold Honey—with its trusted brand heritage and new resources—stands ready to meet that demand with premium honey products for generations to come.
For those interested in learning more about Dutch Gold Honey’s products and heritage, you can visit their website at www.dutchgoldhoney.com. For information about New Water Capital and their investment approach, visit www.newwatercap.com. I’m excited to see how this partnership unfolds and the innovations it brings to the natural sweeteners market in the coming years.