Deal Roundup: Verlinvest and JamJar Invest in Tony’s Chocolonely, Cedar’s Foods Executives Acquire brekki

Investment firms and large food producers are seeing promise in better-for-you brands — and putting their dollars behind them.

Verlinvest and JamJar Invest in Tony’s Chocolonely

In a deal announced today, consumer-focused investment company Verlinvest and venture capital (VC) fund JamJar have taken a minority share in Dutch fair-trade chocolate brand Tony’s Chocolonely. Terms of the deal were not disclosed.

Founded in 2005, Tony’s leads the chocolate bar market in the Netherlands, according to the brand. The funds will help grow its international presence and advance its mission of a slave-free chocolate industry. Tony’s entered the US market in 2018.

“It is important that we can continue to grow internationally so that more and more people – farmers, consumers, retailers, big chocolate companies and governments alike – can be involved in our mission,” CEO Henk Jan Beltman said in a release.

The investment will also be used to develop a chocolate factory and educational center, Tony’s Chocolonely Chocolate Circus, in Zaandam, The Netherlands, with the company projecting to host 500,000 annual visitors at the site.

Verlinvest, shareholders of the controlling group of beer company Anheuser-Busch InBev, previously invested in brands such as alternative snack company Popchips and condiment brand Sir Kensington’s. JamJar’s investments include popcorn brand Propercorn — and its founders started better-for-you beverage brand innocent drinks.

“We are delighted to be backing a category-defining innovator and leader in ethical business practices,” Ben Black, principal at Verlinvest, said in a release. “Tony’s Chocolonely is a fun and engaging brand, offering a serious and practical solution to an unfair and unequal supply-chain.”

Cedar’s Foods Executives Acquire brekki

Ready-to-eat overnight oats brand brekki announced last week it has been acquired by several of the executives leading Mediterranean food company Cedar’s Foods.

Brekki, the Australian slang word for “breakfast,” was started in 2017 by Greg Peyser, formerly director of procurement for beverage brand Suja Juice. The brand’s ready-to-eat, chilled oatmeals contain ancient grains, fruit and almond milk, and are currently available in six flavors: Original, Vanilla Cinnamon, Blueberry, Coconut Cacao, Strawberry and Coconut Cardamom. The company saw limited distribution in Southern California over the last few years and most recently entered Costco.

Based in Haverhill, Massachusetts and founded over 155 years ago, Cedar’s Foods hopes to help the brand move into its next phase of growth, increasing its national footprint.

“Our team will be able to tap the Cedar’s Foods’ executive team’s vast experience and expertise to ultimately get oats out of the pantry and put brekki in more households,” Peyser said in a release. “Collectively, we can take brekki to a new level.”

Brekki will operate as a separate venture, but its manufacturing and co-packing will transfer to Cedar’s Foods’ production facilities, while Peyser will become the brand’s director of sales. As part of the copacking shift, brekki will switch to using pasteurization, giving the line a much longer shelf life than it currently carries.

The brand will also launch a new line of cups with fruit on the bottom at Natural Products Expo West next month — and transition to a smaller 5.3 oz cup, closer to most standard yogurt servings.

“Brekki is a great brand in a category that we know will offer us immediate success in all the markets we currently serve,” Chris Gaudette, Cedar’s Foods’ CFO, told NOSH.

Hodo Closes Series B Investment from Renewal Funds

Plant-based food brand Hodo last week announced a Series B investment from VC fund Renewal Funds. The capital will allow the company, which self-produces its line of soy-based items, to expand the production capacity of its Oakland, Calif. facility. The amount of the investment was not disclosed.

The brand’s products, such as Curry Nuggets and Cajun Burgers, launched last month in over 1,200 Publix stores, increasing its footprint to about 6,000 stores. Sold in retailers including Whole Foods, Target and Walmart, the company has doubled its retail footprint since last year with this new pickup. The brand also partners with quick-service food chains Chipotle and sweetgreen, as well as Michelin-starred restaurants Daniel and Single Thread.

“As an active investor in the plant-based category, we’ve tracked Hodo’s brand expansion and momentum closely,” Kate Storey, a partner at Renewal Funds, said in a release. “Hodo’s growth and popularity is rooted in organic ingredients and culinary innovation that sets it apart from the competition and resonates with top chefs and retail consumers alike.”

Stir Foods Acquires Celtrade

Food manufacturer Stir Foods announced last week it had acquired Toronto-based sauce, dressing and condiment manufacturer Celtrade, formerly owned by private equity (PE) firm The Succession Fund.

Based in Orange, California, Stir Foods is owned by PE firm Wind Point Partners — and also produces soups, sauces, dressings, and fresh salsas. According to a release, combining the companies creates a stronger, more diversified platform, and will expand manufacturing and culinary capabilities as well as broaden packaging options.

Celtrade currently operates a 56,000 square-foot facility in Toronto.

“This combination is highly complementary in terms of capabilities that we can bring to our combined customer bases. Further, the financial backing of Wind Point Partners will enable continued investment in new capabilities to drive growth at our Toronto facility,” Celtrade CEO Chris Bouchard said in a release.

Wind Point is currently investing out of Wind Point Partners IX, a fund initiated in 2019, and the firm has approximately $3 billion in assets. It acquired Stir Foods in 2017.

Madhava Foods Acquires JJ’s Sweets Cocomels

Mediterranean food company Madhava Foods, which sells natural sweeteners, disclosed that it had acquired confectionary brand JJ’s Sweets, producer of Cocomels, last week. The deal officially closed in November 2019.

Both based in Boulder, the partnership will help increase distribution and fuel Cocomels’ growth via enhanced sales and marketing resources. The top caramel brand in the natural and specialty channel, according to a release, JJ’s Sweets is known for its line of organic dairy-free coconut milk caramels. JJ Rademaekers founded the brand in 2010 and expanded it nationally in 2017. Moving forward, Rademaekers has joined Madhava’s team — maintaining his role as ‘chief candyman’ — and the brand’s production will continue out of its Boulder facility.

“What we saw in JJ’s Sweets was a passionate, well-run company with like-minded values and an incredible line of Cocomels products,” Colin Sankey, CEO of Madhava Foods, said in a release.

Haven’s Kitchen Receives $2M investment

New York-based Haven’s Kitchen, which produces globally-inspired sauces, announced the close of $2 million in seed funding last month, with investors including manufacturer LiDestri Food and Drink, RXBAR founders Peter Rahal and Jared Smith, and celebrities Gwyneth Paltrow and Rachael Ray.

Founder Alison Cayne also owns a recreational cooking school and café under the Haven’s Kitchen name: the CPG line launched in 2018 as an extension of the school’s mission. Its line of refrigerated sauces are available in five flavors: Herby Chimichurri, Nutty Lemongrass, Zippy Chili Harissa, Gingery Miso and Red Pepper Romesco. The brand will debut new sauces at Natural Products Expo West.

The funding will be used to expand distribution partnerships and scale marketing and sales efforts; the brand is currently sold in 300 stores including Whole Foods, Wegmans and The Fresh Market.

“Haven’s Kitchen has the ingredients to build a great food brand: a deeply rooted mission, a high quality product that screams convenience and genuinely solves a problem, and a team that’s thinking five steps ahead at every turn,” Rahal said in a release. “We are excited to back Alison and the team and help grow the business.”