SEMCAP Food & Nutrition Invests $68 Million In ALOHA
Growth equity firm SEMCAP Food & Nutrition today announced it has paid $68 million for a “significant” minority stake in plant-based protein brand ALOHA. Company employees and management will retain a significant stake, and the business will continue to operate independently, led by chairman and CEO Brad Charron.
The largely employee-owned and operated certified B Corporation supports Hawaiian communities and uses ethically sourced and organic ingredients to produce its line of plant-based protein bars that is sold online and in 12,000 retail stores nationwide including Whole Foods Market, Sprouts Farmers Market, Wegmans, Kroger and others.
In addition to bars, ALOHA sells plant-based powders and drinks via its website. Two-thirds of the business is direct-to-consumer, said Charron, who held marketing and brand management roles at companies including Chobani and The Nature’s Bounty Co. prior to joining Littleton, Colo.-based ALOHA as “re-founder” in 2017.
“We’ve proven through our success in the natural channel… we’re not small anymore,” Charron told Nosh, noting the company aims to expand its footprint in conventional grocery and multi-outlet retail channels in the near future.
The company grew nearly 500% between 2020 and 2023 while achieving profitability and positive cash flow, Charron said. ALOHA is on track to maintain high double-digit top-line growth this year and beyond.
“Where we’re headed is more of the same – the same operational philosophy, focus and prioritization that has made us successful because we are not complacent,” he said. “This is not the end of the road. We call this a pitstop, not because we necessarily needed to refuel, but because our journey has not ended.”
As part of the deal, SEMCAP Food & Nutrition founders and partners John Haugen and Ryan Newcom, both former leaders at General Mills, will join ALOHA’s board of directors, alongside Paul Kenny, a sales executive with three decades of experience building brands including KIND Snacks and Yasso.
SEMCAP was founded in 2020 by Buck Buckley and Cyrus Vandrevala. The Food & Nutrition platform is led by Haugen, Newcom and Kate Storey. The team invests in and provides operational support to sustainable, high-growth businesses with more than $25 million in revenue and demonstrated market traction.
“Our view on the future of food is nutritionally dense, sustainable,” Newcom told Nosh. “We see consumers gravitating towards modern health and wellness: organic, natural, non-GMO, functional ingredients, clean ingredient deck, minimally processed.”
SEMCAP Food & Nutrition, which previously backed Purely Elizabeth, Good Culture and Kite Hill, typically writes $10-million-to-$30-million checks in category-leading brands that are profitable or have a path to profitability and proof of scale, Newcom said.
ALOHA “is a remarkable brand that has shown tremendous growth from a digital-first standpoint,” he said. “We want ALOHA to be available to consumers irrespective of where they shop.”
ALOHA will remain focused on its existing product categories, Charron said. The brand’s protein bar line features 11 core flavors, ranging from Peanut Butter Chocolate Chip and Chocolate Mint to Lemon Cashew and Vanilla Almond Crunch, in addition to limited-edition offerings such as Maple Sea Salt and Peppermint White Chocolate.
“I love playing in big, fragmented categories because it means that the consumer can try new and different things, and that younger companies like us can come up and win,” Charron said.
