USA – American plant-based dairy alternatives producer, Good Karma Foods, has repurchased its majority ownership from recently bankrupt dairy giant, Dean Foods and secured new investment from Valor Siren Ventures (VSV).
Dean Foods had made multiple investments in Good Karma since 2017, ultimately becoming a majority shareholder.
However, the company filed for bankruptcy in November 2019 as it struggled with continuing declines in consumer milk consumption and private label competition.
Good Karma Foods said the situation presented an opportunity for it to buyout Dean Foods interests and refocus on its ‘Inspiring Goodness’ mission with the support of new investors.
“We’re on a mission to inspire goodness and provide plant-based options that are nutritious, surprisingly delicious and creamy, and free of allergens,” said Doug Radi, CEO of Good Karma.
Good Karma is not the only company that has repurchased itself since the majority of Dean’s assets were purchased by Dairy Farmers of America. Original founder of Uncle Matt’s Organic, Matt McLean, acquired the juice brand back in May this year.
Following its buyout, the producer of flaxseed-based milk and yogurt alternatives raised ‘significant’ new capital in a funding round from VSV and existing investor 2x Consumer Products Growth Partners.
VSV is a fund established to act as an innovation engine and market maker in early-stage food, food technology and retail technology.
The partnership with VSV will allow Good Karma to accelerate distribution gains in new and existing channels; innovate in a variety of plant-based categories; and expand brand-building and consumer awareness programs.
“We could not have found a better partner than Valor Siren Ventures to help us bring more plant-based goodness to more places and are honored to be among the mission-driven teams and brands in their portfolio,” said Doug
“We are delighted to welcome Good Karma into our Valor Siren Ventures portfolio as the brand has a demonstrated track record of delivering innovation in categories in need of inspiring plant-based options,” Jonathan Shulkin, VSV fund manager and partner at Valor Equity Partners said.
“Good Karma embodies the exact type of opportunity we’re interested in as we look to bring our mission to life.”
Good Kara will continue to operate as a Boulder-based independent company led by its existing leadership team. Specific terms of the buyout and new round of investment were not disclosed.
Consumers are increasingly looking to plant-based solutions for a variety of reasons, including to address allergen needs, environmental concerns and/or healthy lifestyle reasons.
Retail sales of plant-based foods hit US$5bn in 2019, and grew 11.4% over the previous year, five times more than total food sales growth.
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