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August 25, 2020

Good Karma Foods buys back majority stake from bankrupt Dean Foods; attracts new investment

Good Karma Foods, a US plant-based dairy manufacturer, said it has repurchased the majority stake held by the country's bankrupt Dean Foods.

By Dean Best

Good Karma Foods, a US plant-based dairy manufacturer, said it has repurchased the majority stake held by the country’s bankrupt Dean Foods and has also received investment from a venture capital fund.

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The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
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Colorado-based Good Karma did not disclose the size of the holding held by Dean Foods, which filed for bankruptcy in 2019, nor did it provide any financial terms in a statement.

It said 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”, has invested in the company along with 2x Consumer Products Growth Partners, an investor and partner to Good Karma. Details of the investment were also not disclosed, other than to say the portion from Valor was “significant”.

VSV is part of Valor Equity Partners.

“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 programmes,” the statement read. 

Good Karma CEO Doug Radi added: “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.” 

The company explained that Dean Foods had made multiple investments in the business since 2017 to become a majority shareholder: “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,” it said.

Existing management will remain in place at Good Karma.

“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,” said 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.” 

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Free Report
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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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