News Roundup: VGFC Considers Sale or Merger; HumanCo Invests In True Food

The Very Good Food Company Considers Merger or Acquisition

Following a year of financial struggles that nearly led to the business’ closure, The Very Good Food Company (VGFC) announced it is exploring strategic alternatives including a possible acquisition or merger. VGFC is the parent company to plant-based food brands including The Very Good Butcher and The Very Good Cheese Company.

While it is still evaluating its options, the company said it is considering selling both the entire business or parts of its assets in order to maximize value for its shareholders.

The news comes three months after the publicly traded company secured $6.5 million in a private placement round. Those funds were used for “general working capital purposes” which were necessary to keep its doors open, said VGFC’s management team during a call with investors in May. At the time, interim co-CEO Matthew Hall also laid out a three-pronged strategy to stabilize, right-size and optimize the business.

Now that the business has financial means to push forward, VGFC is evaluating its long term plan. Canaccord Genuity Corp. will serve as its financial advisor during this process, however, the company affirmed that it is only exploring its options at the moment.

“There can be no assurance that the strategic review process will result in any strategic alternative, or any assurance as to its outcome or timing,” the company said in a press release. “Very Good has not set a timetable for completion of the review process and does not intend to disclose developments related to the process unless and until it executes a definitive agreement with respect thereto, or it otherwise determines that further disclosure is appropriate or required.”

HumanCo Invests In True Food Kitchen

Venture firm HumanCo has co-led a $100 million round into restaurant chain True Food Kitchen, marking the firm’s first foray out of CPG. Manna Tree co-led the round, which was supported by existing investor Centerbridge Partners. The 42-unit restaurant brand said it will use the new capital to expand its footprint, including launching smaller format locations.

Operating in 17 states, True Food Kitchen is a better-for-you restaurant and lifestyle brand that has previously secured investment from individuals including Oprah Winfrey, Lion Capital, Dr. Andrew Weil and Howard Schultz. Founded by Weil in 2008, True Food Kitchen features a menu guided by “the principles of Dr. Andrew Weil’s anti-inflammatory food pyramid.”

HumanCo founder and CEO Jason Karp is no stranger to the restaurant industry, co-founding New York City-based Hu Kitchen. While the two restaurants ultimately shuttered during the pandemic, they served as the inspiration for Hu Products, a line of snacks ultimately acquired by Mondelēz in 2021. Karp founded HumanCo in 2019 and since the firm has acquired Coconut Bliss and Against the Grain while incubating pizza bite brand Snow Days

“True Food Kitchen is in a category of its own, with a mission perfectly aligned with HumanCo to help people live a healthier life through epic food experiences,” said Karp in a press release. “It’s an amazing, uniquely mission-driven brand that’s authentic, accessible and unwavering at a time when a lot of health and wellness is not. While many companies are engineering man-made and synthetic products, True Food Kitchen looks to nature and farms for all of its food.”

FINN Partners Acquires Rachel Kay Public Relations

Global marketing and communications firm, FINN Partners, announced this week it has acquired CPG-focused agency Rachel Kay Public Relations (RKPR) to enhance its West Coast operations. RKPR founder and CEO Rachel Kay, who is based in the firm’s San Diego office, will join FINN as a managing partner and serve on the agency’s Global Consumer Practice leadership team.

“Building on the momentum of our rapidly growing Global Consumer Practice, [RKPR] adds deep packaged food and beverage expertise spanning established leaders to disruptive food and beverage innovators,” said Peter Finn, Founding Managing Partner and CEO, FINN Partners. “With the addition of RKPR, our Global Consumer Practice will have annual fees of almost $25 million, adding it to the ranks of the largest FINN Partners practices along with health, tech and travel.”

RKPR’s 19-person team will also join FINN along with its clients including Simple Mills, NotCo, Koe Organic Kombucha, Forager Project, Brazi Bites, Elmhurst 1925, Country Archer Provisions, Bubbies Ice Cream, Catalina Crunch and Tofurky. FINN’s CPG client roster includes brands such as Bolthouse Farms, Filippo Berio, Jack Daniel’s, and more.

“My focus will be to ignite the firm’s presence in the consumable goods space and expand our offering to help clients navigate the current market volatility in pricing, supply chain, and consumer buying habits at retail and direct-to-consumer,” said Kay in a press release. “By joining forces, we are uniquely positioned to lead the way as a trusted partner for both new and established CPG brands.”

The Plant Based Food Association Launches Sister Nonprofit

The Plant Based Food Institute (PBFI) launched this week as the sister nonprofit organization to the Plant Based Food Association (PBFA). The new entity will reportedly focus on influencing government policies relative to the industry and agricultural practices in order to support a shift toward a regenerative plant-based food system.

To help enable this shift, PBFI is launching its domestic sourcing initiative which aims to connect armers, processors, ingredient suppliers and manufacturers. The Institute also seeks to increase the accessibility of plant-based foods in institutional foodservice settings like schools and hospitals.

Plant Based Food Association CEO, Rachel Dreskin, will also serve as PBFI’s CEO. PBFI’s board includes CPG executives Jamie Athos, CEO, The Tofurky Company; and Matt Dunaj, CFO and VP of operations at Follow Your Heart, among other experts in the plant-based food space.

Acosta Report Finds Consumers Split Between In Store and Online Grocery

According to a new report by sales and marketing firm Acosta, U.S. consumers continue to split their grocery shopping between in-store and online. The report, which was previewed this week, found that nearly half of U.S. consumers buy groceries online at least occasionally and, 60% of those consumers say they plan to continue.

“[This is] compelling the need for retailers to provide more personalized and enhanced experiences around value, convenience, and food discovery in order to increase their share of omnichannel shoppers,” said John Carroll, chief growth officer at Acosta, in a press release. “Since most online grocery consumers shop the same retailers online and in-store, the brands and retailers that offer strong online and in-store shopping solutions are best positioned to win by nurturing even deeper consumer loyalty. And as wallets tighten due to inflation and shoppers do more pre-shop planning online, an omnichannel focus becomes even more critical.”