The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

LA-based private equity firm Butterfly has announced the division of its portfolio company Bolthouse Farms into two separate entities: Bolthouse Fresh Foods and Generous Brands. This move aims to accelerate value creation and growth within each specialised sector, with Bolthouse Fresh Foods focusing on premium fresh carrot production and Generous Brands specialising in fresh beverages and salad dressings. Bolthouse Fresh Foods, inheriting the century-old legacy of Bolthouse Farms, will continue its role as a supplier of fresh carrots to retailers across North America, with an annual sale of nearly 700 million pounds. Meanwhile, Generous Brands will encompass the premium fresh beverage and salad dressing businesses of Bolthouse Farms and Evolution Fresh. The acquisition of Bolthouse Farms from Campbell Soup Company in 2019 marked a significant milestone for Butterfly. Since, Butterfly has implemented strategic initiatives that have fueled a remarkable growth rate exceeding 30%, re-establishing Bolthouse Farms as a preferred partner for produce departments across North America. Moreover, the acquisition of Evolution Fresh from Starbucks in 2022 further fortified Bolthouse Farms' beverage portfolio, uniting two brands with complementary product offerings and consumer bases. The separation of Bolthouse Farms into distinct entities is facilitated through separate debt recapitalisations of each business, empowering Bolthouse Fresh Foods and Generous Brands to operate as two independent companies with tailored strategies and leadership teams. This move is expected to drive accelerated growth by providing increased flexibility for investment in capabilities and acquisitions. Adam Waglay, co-founder and co-CEO of Butterfly, said: “We’re incredibly excited to announce the separation of Bolthouse Farms into two distinct industry-leading platforms, which will further propel the growth of these businesses and their ability to outperform for customers throughout the world”. He continued: “This separation was always part of our investment thesis, and we have recruited best-in-class leadership teams which are strategically aligned to each business so that Bolthouse Fresh Foods can focus on delivering high quality, fresh produce with excellent service and Generous Brands can become a strong, consumer-centric business with superior fresh beverage brands”. Jeff Dunn, Butterfly's operating partner, has been promoted to executive chairman of both companies. Joining him are two food industry executives appointed as CEOs of the respective entities: Timothy Escamilla, former president of Dole Fresh Vegetables, as CEO of Bolthouse Fresh Foods, and Steve Cornell, former president of Fresh, Beverages and Desserts at The Kraft Heinz Company, as CEO of Generous Brands. Escamilla commented: “Bolthouse Fresh Foods remains dedicated to nourishing people’s lives by providing high-quality, nutrient-dense products that continue to thrive in today’s dynamic marketplace”. Dunn added: “Generous Brands is an exciting consumer-centric platform, with iconic and fresh beverage brands. This transaction will enable Generous Brands to meet the needs of more consumers through more innovation, new investments in our business, and acquiring complementary brands to take our platform to its full potential.” The debt recapitalisations were led by Bank of America and American AgCredit, with legal advisory provided by Kirkland & Ellis.