Plant-based strategy: Dean Foods increases investment in flaxseed dairy alternatives brand
04 Jul 2018 --- Dean Foods Company has increased its ownership percentage and taken a majority stake in Good Karma Foods, a US brand known for its flaxseed-based milk and yogurt alternatives. The investment points to Dean Foods' commitment to plant-based foods and beverages at a time when more and more consumers are looking to minimize their consumption of animal-derived products.
“Good Karma is a fast-growing brand that gets us back into the growing plant-based food and beverage category, making it an excellent addition to our portfolio,” says Ralph Scozzafava, CEO of Dean Foods. “Our investment in Good Karma is just one example of how we are executing against one of the major pillars of our strategic plan, to build and buy strong brands.”
Good Karma's plant-based alternatives are free of all major allergens and are said to deliver strong nutritional benefits. Dean Foods touts Good Karma’s products as having a surprisingly neutral flavor and creamy texture, which allows Dean Foods to reach consumers looking for great-tasting alternatives to conventional dairy.
Plant-based dairy alternatives have been trending for a while now. According to Innova Market Insights data, over the past five years, the number of new plant-based dairy alternative drinks launches reported in Europe has grown continuously, with a CAGR (2013-2017) of +19.5 percent.
Between 2013 and 2017, soy continued to be the top ingredient for plant-based dairy alternative drinks, however, the market penetration is decreasing. At the same time, almonds and oats show strong growth over the years, with the CAGR (2013-2017) of +39 percent and +36 percent, respectively. However, interest in different plant-based sources, such as flaxseed, is growing concurrently with the general interest in dairy alternatives and their health benefits.
“We are thrilled about our continued partnership with the Dean Foods team,” says Doug Radi, Good Karma Foods CEO. “We believe this relationship validates that Good Karma is one of the leading and fastest-growing brands to watch in the plant-based category, and we are excited about how this partnership will advance our mission of inspiring goodness by making our plant-based, non-dairy beverages and yogurts more accessible across the US.”
“As majority owners, we look forward to working with Doug and his team to continue their strong momentum and support their growth agenda,” Scozzafava continues.
Good Karma will continue to operate as a Boulder-based independent company led by its existing leadership team. 2x Consumer Products Growth Partners continues to be a material investor and supporter of Good Karma.
