HumanCo Acquires Plant-Based ‘Pioneer’ Coconut Bliss

Plant-based ice cream is a rising category segment and HumanCo wants to take a scoop. The holding company announced today that it had acquired the majority of plant-based ice cream company Coconut Bliss.

Exact terms of the deal were not disclosed but CEO Jason Karp said that Kim Gibson Clark, CEO of Coconut Bliss, will remain on with the brand, focusing largely on production and innovation.

Founded in 2005, Coconut Bliss is one of the “pioneers” of the plant-based dessert space, Karp said. The brand’s products, which are organic, gluten-free and made with sustainable ingredients and packaging, are currently sold in 5,000 retailers, with the company reporting revenues in the “eight figures” Karp added. The company has not previously taken investment, he said.

HumanCo acquired plant-based cheese brand Monty’s earlier this year and sought to expand its assets into plant-based desserts, Karp said. He was introduced to Coconut Bliss’s owners, the Gibson family, in late 2019, and though the family was not looking to exit at the time, the two soon decided to partner. HumanCo’s model is to use a shared services model between portfolio companies, such as with finance or HR, in order to streamline operations and create efficiencies.

“We believe plant-based is a great tailwind and we think people’s desire to indulge without feeling guilty is a persistent tailwind and…Coconut Bliss, when we looked at it, was definitely the one doing things right,” Karp said. “[The Gibsons] really felt like there were a lot of synergies between what we bring to the table and what they had and that got all of us excited.”

Moving forward, HumanCo plans to roll out a rebrand for the company in 2021 and work with the Coconut Bliss team to adjust any product formulations to meet HumanCo criteria — such as being free-from refined sugars and grains. Karp added that consumers may see some upcoming collaborations between Coconut Bliss and another business he partially owns, Hu Kitchen, which produces chocolate chips and bars, among other products.

The Gibson family will retain ownership of Oregon-based Lochmead Farms and Lochmead Dairy, a dairy farm and the facility which produces Coconut Bliss, respectively.

Karp said that the brand’s strong ties to its production facility was part of the reason HumanCo wanted to partner with the brand. With the family retaining a minority ownership of Coconut Bliss, there’s more alignment between the two entities to produce the best product.

“You never fully get the quality control and ability to make it exactly as you want when you don’t own the production,” Karp said. “What’s allowed [Coconut Bliss] to be so pure and continue with their mission of using the cleanest ingredients, is because they produce it too.”

While increasing retail distribution will be a focus, Karp added, HumanCo will also help Coconut Bliss expand its direct-to-consumer sales as well foodservice distribution — the latter of which is largely confined to West Coast outlets. Still, the product alone gives HumanCo a solid base to work with.

“I do think it’s the current best plant-based ice cream out there,” Karp said. “And together we can make it even better and make it much broader.”