Little Freddie secures backing from Hillhouse and VMG Partners

Asia-based investment company Hillhouse Capital and private equity firm VMG Partners have jointly invested in British organic baby food maker Little Freddie.

Alongside the deal, Hillhouse and VMG have announced a strategic partnership to co-invest in innovative consumer brands as they aim to expand their global reach. They have allocated up to $100 million towards the initiative.

Founded in 2014 by husband and wife duo Piers Buck and Taslim Ho, Little Freddie’s mission is to make it easier for parents to access organic and nutritious baby food options for their children.

Since the brand’s inception, the business has grown to a roster of products including pouches, cereals, and snacks.

Its range is widely available in China, including in-store at Sam’s Club, as well as online at T-Mall and JD.com. In the UK, its products can be found in-store at Boots, as well as online at Ocado, Amazon and Tree of Life.

The funding will be used, in part, to help drive further expansion in both China and the UK.

This investment marks Hillhouse Capital’s and VMG Partners’ fourth joint investment, and the first made under their new agreement.

Hillhouse founder Lei Zhang said: “We are very pleased that this investment marks the latest step in our expanding cooperation with VMG to help brands leverage innovation to fuel their global expansion.

“Our previous collaborations with VMG on Ancient Nutrition, Solid Gold and Stone Brewing show the tremendous potential of brands that understand the value of offering consumers a truly differentiated experience.”

Mike Mauzé, founding partner and managing director at VMG Partners, said: “We are thrilled to be working closely with Hillhouse Capital to create globally reaching, impactful consumer product companies, building upon the success of our previous collaborations.

“Hillhouse has unparalleled expertise in the Asian market and we are honoured to be working collaboratively with their team in this long-term partnership.”

Hillhouse Capital partner Cao Wei added: “Little Freddie is a high-quality, trusted brand that has tremendous potential in Asia and other parts of the world, as parents have become increasingly savvy about what they feed their children.

“We strongly believe that brands able to identify and meet unique and unmet consumer needs will excel in the new and rapidly changing retail landscape.”