Another dairy/plant-based milk deal is happening this year, as the Dean Foods Co., Dallas, announced on May 5 its minority interest stake in smaller independent, Good Karma Foods, Boulder, Colo. Dean also entered into a distribution arrangement with the company. Good Karma produces flaxseed-based milk alternatives including yogurt and beverages.
The partnership with Dean, a leading food and beverage company, will allow Good Karma to more rapidly expand distribution across the U.S., as well as increase investments in brand building and product innovation, according to Dean. Dean says it will take a position in the brand and joins lead investor 2x Consumer Products Growth Partners in support of Good Karma.
“We love Good Karma as a fit for Dean Foods as we focus on diversification both within and beyond dairy,” Ralph Scozzafava, CEO of Dean Foods pointed out. “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."
As part of the agreement, Dean said it will use its sales force to broaden Good Karma's presence in conventional retail channels. “One of the pillars of our strategic plan is to build and buy strong brands," Scozzafava continued, "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.”
Good Karma isn’t just a name, said Good Karma Foods' CEO Doug Radi. "It’s the inspiration for everything we do. 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.”
Good Karma will continue to operate as a Boulder-based independent company, led by its existing leadership. As part of the investment agreement, Dean will lend support to Good Karma’s growth plans in the conventional retail channel through its experienced sales team. Terms of the deal were not disclosed.