|Ralph Scozzafava, c.e.o. of Dean Foods
"We love Good Karma as a fit for Dean Foods as we focus on diversification both within and beyond dairy," said Ralph Scozzafava, chief executive officer of Dean Foods. "This opportunity with Good Karma is a way for us to build a platform for a larger plant-based portfolio. The management team has deep category expertise, the brand is a disruptor in the plant-based, non-dairy space, and we believe we can support its growth."
The investment and distribution agreement will allow Good Karma to expand more quickly in the U.S. as well as help company management increase investments in brand building and product development, according to Dean Foods. Dean Foods joins 2X Consumer Products Growth Partners as investors in Good Karma Foods. Terms of Dean Foods’ investment were not announced.
"Good Karma isn't just our name; it's the inspiration for everything we do," said Doug Radi, chief executive officer of Good Karma Foods. "This partnership validates that Good Karma has become one of the leading and fastest-growing brands to watch in the plant-based category. We are excited about how this partnership will give us the opportunity to advance our mission of inspiring goodness by making our flax-based non-dairy beverages and yogurts more accessible across the U.S."
Dean Foods said as part of the investment agreement it will utilize its sales force to expand Good Karma’s presence in conventional retail channels.
“One of the pillars of our strategic plan is to build and buy strong brands, and Good Karma embodies the exact type of opportunity we're interested in as we look to add leading and high potential brands in adjacent growing categories such as plant-based beverages," Mr. Scozzafava said.
The investment by Dean Foods marks its return to the plant-based beverage business. In 2013, the company spun off WhiteWave Foods Co., which was later acquired by Danone S.A. Prior to the spin-off, the combined Dean and WhiteWave business manufactured and marketed such dairy-based products as International Delight and Horizon as well as such plant-based brands as Silk.