©Good Karma Foods
Good Karma Foods, a US producer of plant-based dairy alternatives, has repurchased its majority ownership from Dean Foods and secured new investment from Valor Siren Ventures (VSV).
Since 2017, Dean Foods has made multiple investments in Good Karma and the dairy company became a majority shareholder in 2018, as it was looking to delve more into the dairy-free space.
However, in November 2019, Dean Foods filed for Chapter 11 bankruptcy protection as it struggled with continuing declines in consumer milk consumption and private label competition.
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, Good Karma said it will refocus on its ‘Inspiring Goodness’ mission with the support of new investors. The producer of flaxseed-based milk and yogurt alternatives said it raised ‘significant’ new capital in a funding round from VSV and existing investor 2x Consumer Products Growth Partners.
According to Good Karma, its partnership with VSV will enable it to accelerate its distribution expansion into new and existing channels, innovate in a variety of plant-based categories, as well as grow its brand-building and consumer awareness programmes.
“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 honoured to be among the mission-driven teams and brands in their portfolio,” said Doug Radi, CEO of Good Karma.
Jonathan Shulkin, VSV fund manager and partner at Valor Equity Partners, added: “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.”
Following the transaction, Good Karma will continue to operate as a Colorado-based independent company led by its existing leadership team.
No financial details of the transactions were disclosed.
© FoodBev Media Ltd 2020