Food and Beverage

Milestone Payments Help Manufacturer Grow Production Capacity While Remaining Liquid

Fast Facts

Industry

Food and Beverage

Organization

Chameleon Beverage Company, Los Angeles, CA

Client Since

2018

Equipment Financed

Blow molding machine, automated filling and packaging system, labeling machine, air conveyor system, leasehold improvements, installation costs

Financing Structure

Multiple $1 buyout leases and milestone payment financing

Industry Specific Fact

Chameleon Beverage manufactures plastic and aluminum water bottles in more than 25 different shapes and sizes

Industry

Food and Beverage

Organization

Chameleon Beverage Company, Los Angeles, CA

Equipment Financed

Blow molding machine, automated filling and packaging system, labeling machine, air conveyor system, leasehold improvements, installation costs

My name is James Zellerbach and I'm the CFO of Chameleon Beverage. We're primarily an advertising agency that happens to put an ad on a water bottle. The role that City National plays for us is fairly unique in terms of the relationship that we've been able to garner with them. But where I distinguish those relationships with City National and First American is how it melded and tailored itself and listened to our needs and laid out a plan for us to kind of execute on those needs as well. I really appreciate the relationship between First American and Chameleon and City National Bank and the collaboration that we have together, working together as a team, making it seamless, making it easy for the clients to work with us. First American has helped us achieve our goals by allowing us to grow rapidly. A lot of the equipment we were purchasing had long lead times. I think that's a big part, really sitting down, having a conversation with the client about what type of structure is going to make the most sense. Is the equipment going to require milestone payments before it's ready to deliver and be installed? So we were able to spread those payments out ahead of project completion so that the client's cash flow wasn't impacted. Having a dedicated project manager like Stephanie was one of the largest parts of the success of this project and this relationship. Stephanie's role for us is super important because from my perspective, I see her as an extension of our finance side. My favorite part of being a project manager is getting to know the clients and their businesses. What are they hoping that their business is gonna look like five years, ten years from now, and how we can help them achieve that goal. We're more apt to do business with people that we like than those that we don't, and I've adopted that as my own philosophy. So for me, I can get a loan from anybody, but I can't get the relationship and that interaction that I have with our CNB reps or the folks over at First American. It's great to walk around and have James point out specifically what we helped with. And of course, continuing to talk about growing more and wanting to continue to grow the relationship with both City National and First American.

Funding Rapid Growth Without Straining Cash Flow

Chameleon Beverage Company, a Southern California–based private label water bottle manufacturer, has spent more than 30 years helping clients turn water bottles into marketing opportunities, building a reputation for high-quality products and fast turnaround times. As demand for their services increased, Chameleon Beverage needed larger, more sophisticated equipment to maximize output within its existing facility footprint.

To support rapid growth while maintaining the speed and quality for which they had become known, the company planned to acquire new production and automation technology. This type of equipment often has 3–12-month lead times and requires milestone payments before delivery and installation, which ties up cash flow for several months and limits the ability to take advantage of other investment opportunities as they arise.

"First American has helped us achieve our goals by allowing us to grow rapidly."

- Morgan Reed, President, Chameleon Beverage Company

"It's more transactional with other banks. With City National and First American, they sort of personalized the business plan for us and they gave us a really clear path based on the information that I shared with them."

- James Zellerbach, CFO, Chameleon Beverage Company

Aligning Equipment Financing with Business Objectives

Through their relationship with City National Bank, Chameleon Beverage was introduced to First American Equipment Finance, City National’s subsidiary, to complement their banking solutions and help fund ongoing equipment investments.

First American’s consultative approach aligned well with the collaborative and transparent relationship Chameleon Beverage was seeking. Before each project, the team regrouped to discuss Chameleon Beverage's long-term equipment roadmap, operational requirements, and cash flow priorities. These conversations helped shape their customized financing plans, including milestone payment financing throughout the manufacturing and installation process to preserve working capital and support continued growth.

Chameleon Beverage’s dedicated First American project manager coordinated quick documentation turnaround, managed timely milestone payment remittance to vendors, and provided regular updates, supporting on-schedule equipment delivery and an efficient experience for their lean finance team.

Funding Rapid Growth Without Straining Cash Flow

"First American has helped us achieve our goals by allowing us to grow rapidly."

– Morgan Reed, President, Chameleon Beverage Company

Aligning Equipment Financing with Business Objectives

Through their relationship with City National Bank, Chameleon was introduced to First American Equipment Finance, City National’s subsidiary, to complement their banking solutions and help fund ongoing equipment investments.

"It's more transactional with other banks. With City National and First American, they sort of personalized the business plan for us and they gave us a really clear path based on the information that I shared with them."

- James Zellerbach, CFO, Chameleon Beverage Company

A Long-Term Financing Relationship Streamlines Ongoing Projects

Chameleon Beverage was looking for more than a one-time lending transaction; they wanted a long-term relationship with an organization who believed in their vision and was invested in their success.

Since 2018, Chameleon Beverage has worked with First American to finance four expansion projects, supporting their ability to leverage new technology, scale operations, and maintain financial flexibility. First American’s responsive service and collaborative approach have helped Chameleon Beverage move quickly on capital projects, bring new capabilities online faster, and continue expanding production capacity to meet growing demand.

“Our relationships with First American and CNB continue to flourish. We are incredibly happy and satisfied with both the commercial offerings as well as the personal relationships we've built with your team.”

- James Zellerbach, CFO, Chameleon Beverage Company

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Financing for What's Next

From capital projects to equipment purchases, learn how First American can help fund your organization's needs.

Leasing & Financing

Case Studies

Milestone Payments Help Manufacturer Grow Production Capacity While Remaining Liquid

Fast Facts

Industry

Organization

Client Since

Equipment Financed

Financing Structure

Industry Specific Fact

Industry

Organization

Equipment Financed

Funding Rapid Growth Without Straining Cash Flow

"First American has helped us achieve our goals by allowing us to grow rapidly."

"It's more transactional with other banks. With City National and First American, they sort of personalized the business plan for us and they gave us a really clear path based on the information that I shared with them."

Aligning Equipment Financing with Business Objectives

Funding Rapid Growth Without Straining Cash Flow

"First American has helped us achieve our goals by allowing us to grow rapidly."

Aligning Equipment Financing with Business Objectives

"It's more transactional with other banks. With City National and First American, they sort of personalized the business plan for us and they gave us a really clear path based on the information that I shared with them."

A Long-Term Financing Relationship Streamlines Ongoing Projects

“Our relationships with First American and CNB continue to flourish. We are incredibly happy and satisfied with both the commercial offerings as well as the personal relationships we've built with your team.”

Other Relevant Case Studies

A Sweet Deal: Legendary Candy Manufacturer Expands Production Line

Flexible Financing for a Complex, Phased Modernization

Manufacturer Invests in Mission-Critical Equipment with a Lease Line

Financing for What's Next