Sweeteners Roundup: Local Hive Honey Acquired; Brightland and Runamok Expand Into Honey

In recent years, premium honey makers have moved the natural sweetener from a largely commoditized category to a set filled with notable branded lines that inject some variety — from flower-infused to hot and spicy — into a space known for largely homogeneous flavors. These premium honey offerings have also drawn new consumers into the category who are looking for a natural alternative to artificial sweeteners and cane sugar, while touting ethical sourcing that helps support local beekeepers across the country.

As the set picks up momentum, honey brands are gaining investor interest, while adjacent categories are eyeing the space as a new opportunity for expansion.

Falfurrias Capital Partners Acquires Local Hive Honey

Honey producer Local Hive Honey has been acquired by private equity firm Falfurrias Capital Partners, the company announced today. Terms of the deal — which was the firm’s first transaction of its fifth fund — were not disclosed.

Falfurrias partners Ken Walker and Chip Johnson and advisor Mary-Ann Somers, a former Hershey’s and Coca-Cola executive, will both join the Local Hive board as part of the transaction, though CEO Tony Landretti will remain in his current role. In a press release, Walker said Local Hive was an attractive acquisition for the firm, whose portfolio also includes honey bun maker Carolina Foods and spices and flavorings company Sauer Brands, because of its “highly differentiated approach and a strong management team.”

“This is a fast-growing segment of the honey category that’s perfectly aligned with today’s consumer trends favoring natural products that are sourced locally and responsibly,” Sommers added. “Local Hive is extremely well-positioned to capitalize on these shifts in consumer preference and build increased market share.”

Local Hive offers 23 varieties of honey sourced from local beekeepers from New England to Oregon, deriving flavors and colors unique to each source. The company’s latest launch, debuting earlier this month, is Oregon Blackberry Harvest Reserve, sourced from a single beekeeper in Oregon’s Willamette Valley. Local Hive’s products are currently available in retailers nationwide including Whole Foods, Sprouts, Albertsons/Safeway, Kroger and Walmart, and online through Amazon.

The company has been in business for nearly a century, founded in 1924 as Rice’s Lucky Clover Honey when L.R. Rice began sourcing raw and unfiltered honey from local beekeepers in Greeley, Colorado. In 2013, Landretti, a former Pinnacle Foods executive, joined the company’s board of directors, and by 2017 had been elevated to CEO after the company secured investment from Mission Consumer Capital, Centerfield Capital Partners and Plexus Capital. In 2018, the company was rebranded as Local Hive Honey.

Landretti said the company has been “growing exponentially” over the last few years and that he felt now was the “right time for us to bring in some new support.” The Falfurrias team offers the brand the resources and food industry expertise to enter its next growth phase, he said.

In the near term, this growth includes expanding its distribution footprint, he said, while “staying disciplined on what’s driven [Local Hive’s] success.”

“Clearly there’s going to be opportunity for us to look beyond the current platform to find ways for us to continue to support the American beekeeper by building our portfolio through innovation,” he said. “Maybe there’s the right acquisition that would fit well into our portfolio that would allow us to continue to build out our organization over time.”

Since Landretti joined the company, he said he’s seen the honey category shift from being “fairly commoditized and not top-of-mind,” to a notable draw for consumers.

“I think as shoppers become more aware of alternative sweeteners, [they are] moving away from refined sugar to something that’s more natural,” he said. “What you found is this shift of consumers wanting transparency of food and better-for-you food and discovering the honey category.

Runamok Maple Debuts New Honey Line

Vermont-based brand Runamok Maple is moving beyond its namesake maple syrup and maple-infused mixers and bitters with the debut of an expansive line of honey offerings this month.

The 8-SKU line spans hot and sweet honeys, with flavors including Florida Orange Blossom, Hibiscus Flower, Szechuan Peppercorn and Chipotle Morita, sold on the brand’s website for $9.95 per 9 oz. jar.

Runamok president Curt Alpeter said the line was a “natural extension” for the company given its experience and knowledge of the sweeteners space. Honey also leverages its established marketing and production capabilities and sales channels, according to Alpeter.

“Although there are a lot of honey choices for consumers, we feel there is quite a bit of room for innovation in this category,” he said. “We spent the better part of two years with our beekeeper sourcing and crafting what we think is the highest quality, best tasting honey on the market.”

Alpeter said he expects the line to stand out among other premium honey offerings by offering a wide breadth of offerings and leveraging the brand equity it established with its maple syrup products.

The company partnered with veteran beekeeper Todd Hardie for the line, teaching the brand about the “critical role honeybees play in our agricultural ecosystem, the intricate processes of beekeeping, as well as the importance of keeping honey in its purest forms,” according to the company. Hardie has worked in beekeeping for over 50 years, and is the co-founder of Caledonia Spirits, which also produces its own branded raw honey.

“Not only does honey have some incredible flavors, but, like our beloved maple, it also carries a number of medicinal qualities,” the company said in a statement on its website. “Our passion for quality, innovation and culinary exploration has resulted in [these] new products.”

Brightland Moves Beyond Oil and Vinegar Into Honey

Los Angeles-based direct-to-consumer condiment brand Brightland this month entered the honey set with a duo of products: California Orange Blossom Honey and a Kauai Wildflower Honey.

The company, which sources the honey from third and fourth-generation beekeeping families, sells its products direct-to-consumer on its website for $42 for two 9 oz. jars.

Founded in 2018 by CEO Aishwarya Iyer, Brightland’s portfolio includes premium infused olive oils along with champagne and balsamic vinegars.

Like olive oil, honey is one of the most counterfeited products globally, the company said, often chemically modified or diluted with corn or beet syrup by manufacturers. It’s also put through pasteurization or ultrafiltration, which can affect its health benefits and affect its taste and texture. These processes can push down honey prices, ultimately threatening the livelihood of beekeepers, and was a major impetus for Brightland to enter the category.

“With the introduction of Brightland Honeys, we can further our mission of supporting small, US-based family-run farms, while simultaneously educating consumers about this often fraudulent industry and offer authentic, raw and unfiltered honey that’s intensely-floral, radiantly flavorful and incredibly delicious,” Iyer said.

Iyer was listed among Inc Magazine’s Female Founders 100 list, released today, telling the outlet the company’s “north star is working directly with organic farmers and producers who prioritize sustainability.” She also said the company would be opening its first pop-up retail space in New York City this holiday season.