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.
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 plantbased 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.»