Marubeni Corporation Enters U.S. Ice Cream Manufacturing With Bubbies Acquisition

Japanese trading and investment company Marubeni Corporation has acquired Phoenix, Ariz.-based Bubbies Ice Cream, marking its entrance into the U.S. ice cream market. Terms of the deal were not disclosed.

As part of the transaction, Bubbies will join Marubeni American Corporation, based in New York City, while continuing operations out of Phoenix, per a press release. Bubbies will leverage Marubeni’s global resources and expertise spanning international supply chains and strong trade relationships to fuel its next phase of growth.

“Marubeni is a global organization with values that align with our own. They possess the perfect mix of resources and expertise needed as we look to accelerate our growth long-term,” said Jeff Stites, CEO of Bubbies, in a statement. “We’re thrilled to […] explore new opportunities to scale nationwide and internationally based on Marubeni’s impressive network of supply and trade partners.”

Founded in 1985 by Keith Robbins, Bubbies Ice Cream produces a portfolio of mochi ice cream – bite-sized ice cream wrapped in a sweetened rice confection – in 20 flavors, including Matcha Green Tea, Triple Chocolate and Ube Purple Yam. The company originated as a scoop shop in HMawaii before expanding into natural, grocery and mass channels and select international regions. It is currently the No. 1 mochi ice cream brand in the natural channel, per SPINS data.

In 2017, Robbins sold the business to Kenex Holdings, a Chicago-based private equity firm focused on agriculture, food and beverage manufacturing. The decision was made, in part, due to growing manufacturing demands that would have required Bubbies to build another U.S. plant.

“It was time to step back and let some other people take it over. I had brought it as far as I thought I could bring it,” Robbins previously told Nosh, noting he decided to sell to Kenex because of its bandwidth and excitement surrounding Bubbies.

Bubbies’ new ownership under Marubeni is expected to propel long-term growth for the frozen novelties producer. Marubeni has “deep experience” investing in and developing food businesses – including Eastern Fish Company, Creekstone Farms Premium Beef and Colombia Grain International – which will help it reach more customers worldwide at scale, per the acquisition announcement.

Lazard served as the exclusive financial advisor and Kilpatrick Townsend & Stockton LLP acted as legal advisor to Bubbies. Spayne Lindsay & Co. LLP acted as financial advisor and Mayer Brown acted as legal advisor to Marubeni Corporation.