“This has been a goal for a number of years,” says CEO and majority share owner Ken Baker, “and I’m glad the plan has now become reality. Making the employees part owners is a big benefit to our customers, as well as the employees.”
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NewAge Industries established its ESOP – Employee Stock Ownership Plan – in January 2006 as a way to ensure the company’s continuation. The existence of the ESOP adds a new facet to the company’s culture, namely the pride of ownership, while it discourages a possible buyout from a competitor or other business. The ESOP is another feature of the company’s retirement benefits that include a pension plan and optional 401(k) plan.
Since the inception of the ESOP, NewAge has continued to grow and prosper. Demand for its high purity products, marketed under the AdvantaPure name, has experienced tremendous growth, and its standard products have also seen a substantial increase in sales. This success and the satisfaction of employee ownership has a real and beneficial effect on the morale, attitude, and future retirement of NewAge Industries’ employee-owners.
NewAge Industries built its solid reputation by providing a high level of customer support and service, along with superior products, and the AdvantaPure division is well on its way to a similar standing. The establishment of the ESOP lets employees expand upon that by allowing them to take true ownership of their positions. Baker says “When a customer calls, they can speak with an owner. The employees’ jobs are part of an investment in their future, and that’s reflected in their communications with customers and suppliers, and with each other, now more than ever.”
Another customer benefit resulting from the ESOP is that it sets up a succession plan for the organization. Many of today’s large, multi-national corporations become larger by acquiring small companies. Plants are often closed, and production is moved offshore. The knowledge and talent of those employees is lost as they find jobs in other industries. Baker wanted to avoid that possibility and, at the same time, help secure a future for NewAge, AdvantaPure, and its employees.
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ESOP ESTABLISHED IN '06
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Team members become employee/owners
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In January 2006, NewAge Industries CEO Ken Baker sold 30% of the company to the employees through an ESOP (Employee Stock Ownership Plan.) The photo above was taken to commemorate the event.
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First Year ESOP Celebration Dinner
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| In April 2007 we celebrated the announcement of our first year share price announcement with a company wide dinner. Spouses and significant others were invited to join in and included tours of the facilities.
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October is Employee Stock Ownership Month
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| NewAge Industries observed Employee Stock Ownership Month by rewarding its employee-owners with lunches, treats, raffles, and gifts. The ESOP Association, a non-profit organization of which NewAge Industries is a member, designates October as Employee Stock Ownership Month.
All 74 employee-owners received a candy-filled mug.
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