KIND Founder Backs Cult Yogurt Brand Ellenos

Ellenos, a fast-growing premium yogurt brand, announced today an $18 million investment by Equilibra Partners Management, the family office of KIND founder Daniel Lubetzky.

Ellenos was founded in 2013 as a yogurt bar in Seattle., The company evolved into a packaged line, and it’s now sold in over 29 states. In 2018 the company closed $18 million from CPG-focused investment firm Monogram Capital, which resulted in the hiring of CEO John Tucker, who has led brands including Farmhouse Culture, Dave’s Killer Bread and So Delicious Dairy Free.

The money will be used to hire new staff, further build out the company’s two-year old production facility and extend the brand’s reach into other markets, Tucker said. While Ellenos has a presence in over half the country, adding distribution in 20 states alone in 2019, the distribution is scattered with the bulk of its presence on the West Coast and in Texas.

“We’ve built this tremendous cult following here in the Seattle area, but we want to take this national.” Tucker said. “We’re looking to invest in the brand and get it into [consumers’] mouths in key markets around the country. We’re very confident that in the process of doing that, we’re going to see high conversion rates.”Lubetzky has picked up his own investment pace since stepping down as CEO of KIND in 2019. Late last year he appeared on television show Shark Tank, making an investment in frozen meal company Tahdah! Foods. Formed in 2018, Equilibra takes minority stakes in packaged food and beverage companies, with a bent towards those that are impact driven. Other investments listed on the family office’s site include Justin’s, KRAVE, gimMe snacks, and Chapul.

Ellenos, Tucker said, has many similarities to KIND and the team believes Lubetsky will be of particular assistance as the brand focuses on scaling and emphasizing its message of simple, clean ingredients. Ellenos, like KIND, has clear packaging that lets the consumer see exactly what they are buying.

“We feel like we have a clear pathway forward and we feel confident in our strategy,” Tucker said. “[But Daniel] is helping us to refine those things. Everything from strategic direction to tactical executions. He brings a great deal of experience, knowledge and wisdom to the table.”

Tucker and co-founder Con Apostolopoulos told NOSH that one thing the brand is very comfortable with is maintaining its premium price point, comparing the brand to that of Ben & Jerry’s or Haagen Daaz in the ice cream set. The company also has no plants to enter the plant-based dairy set, seeing enough white space with its current product lineup.

Despite Greek yogurt losing share over the past year, Tucker and Apostolopoulos believe by creating an indulgent product line the company has more legs — serving as either a snack, meal or dessert. Retailers, Tucker said, have responded in kind, placing the product not just in the yogurt set but also with grab and go deli options or in produce with cut fruit.

“I believe Ellenos yogurt creates a whole new occasion to be eaten as a snack, as a dessert, from morning to night…It’s the first true super premium yogurt,” Tucker said. “We’re just taking the category to another level, and that’s what’s most exciting to me. So is the time right? I’d say it’s as right as anything else when you have lightning in a bottle.”