Good Karma Foods, a leading producer of plant-based milk and dairy alternatives, today announced it has repurchased majority ownership held by Dean Foods, as well as secured significant new investment from Valor Siren Ventures (VSV), 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. 2x Consumer Products Growth Partners, an existing investor and partner to Good Karma, also participated in the round.
Dean Foods had made multiple investments in Good Karma since 2017, ultimately becoming a majority shareholder. However, after struggling with shifting consumer preferences and private label competition, Dean Foods filed for bankruptcy in November 2019. This unique situation presented an opportunity for Good Karma 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. "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."
Families 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 $5 billion in 2019 and grew 11.4% over the previous year, five times more than total food sales growth. Good Karma's plant-based alternatives are free of all major allergens, deliver strong nutritional benefits and have a surprisingly neutral flavor and creamy texture, giving the company's offerings compelling points of differentiation in increasingly competitive categories.
"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," shared Jonathan Shulkin, VSV fund manager and partner at Valor Equity Partners. "Good Karma embodies the exact type of opportunity we're interested in as we look to bring our mission to life."
Good Karma 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.
Source: Good Karma Foods