In September 2004, two investment companies—Norwest Equity Partners of Minneapolis and M2P Capital of Denver— purchased Denver-based Deep Rock Water, a supplier of spring water to homes and offices. That same month, the “new” Deep Rock acquired a similar company that’s an icon of Minneapolis industry—Glenwood Inglewood Water. Deep Rock viewed Glenwood Inglewood as a strong regional brand with a solid distribution network. In March 2006, Deep Rock hired a new CEO, J. Ronald Frump, who has big plans for Glenwood Inglewood and the other two spring-water companies that make up Deep Rock.
The Minneapolis company’s roots go back to 1884, when William Fruen settled near Bassett Creek at the western edge of the city. Fruen found pure, spring-fed water emanating from underneath blue clay on his property. Unable to convince the City of Minneapolis to connect his spring to its water pipes, Fruen decided to go retail, and a business was born.
While Deep Rock is headquartered in Denver, Glenwood Inglewood’s water still comes from the same Minneapolis spring, located just off Glenwood Avenue. What’s more, its new CEO has Minnesota connections. For several years, Frump ran brands such as Freschetta pizza, Larry’s potatoes, and Mrs. Smith’s pies for the Schwan Food Company’s Consumer Brands North America division in Bloomington.
“I was brought in by the owners of Deep Rock because the structure and the leadership of the company wasn’t taking them where they wanted to go,” says Frump, who is determined to double Deep Rock’s $40 million annual business over the next four years. (Glenwood Inglewood represents about 25 percent of the Denver company’s total sales.) To get there, he has been focusing on the basics, spending around $4 million to upgrade the company’s infrastructure. “We’ve been performing long overdue maintenance, all the while replacing and upgrading production,” he said.
In combined home- and office-delivery and retail sales, Glenwood is number two in the Twin Cities market, trailing Premium Waters, another Minneapolis company. Glenwood Inglewood water is sold in Iowa, Wisconsin, and the Dakotas as well as in Minnesota. But Frump doesn’t see Glenwood’s expansion centering on the five-gallon blue plastic jugs found in offices and homes. Instead, he’s focusing on bottled water, where he sees growth opportunities in Deep Rock’s existing Minneapolis, Denver, and Omaha markets. Options that Frump is exploring include the production of flavored, vitamin-enhanced, and mineral waters. In addition, he’s looking at acquiring other water companies that have a high-quality water source and a strong presence in their current markets.
