US-based Dean Foods is considering whether to raise its stake in plant-based milk alternative manufacturer Good Karma Foods.
Dean Foods took an undisclosed minority share in the Boulder, Colorado-based firm in May 2017, and chief executive Ralph Scozzafava said the company is now debating whether to take a majority shareholding, according to a Bloomberg report.
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Good Karma Foods makes milk and yogurt from flaxseed. The company was set up in 1996 by Loren Wallis, and in 2014 secured financial backing from private-equity firm 2x Consumer Products Growth Partners. 2x Partners remains a “lead investor”, Dean Foods said when it took a stake in the firm last May.
After Texas-based Dean Foods reported a 49% drop in annual profits in February, Scozzafava outlined a three-point strategy to drive the listed business forward, including an “enterprise-wide cost productivity plan”, along with investments in the company’s “core capabilities”.
The strategy included “building and buying strong brands with innovative new products”.
Speaking of the new Good Karma stake plan under consideration, Scozzafava said in an interview with the news agency: “It’s a really, really cool brand, and it’s growing – it grew pretty dramatically last year. Over the next few months, we’ll make that decision.”
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By GlobalDataDoug Radi, who became Good Karma’s chief executive in 2014, said in an e-mailed statement sent to Bloomberg: “We believe Dean Foods’ continued interest and partnership in Good Karma Foods validates we are one of the leading and fastest-growing brands to watch in the plant-based category.”
