- Pancake maker Kodiak Truffles is being acquired by personal fairness agency L Catterton for an undisclosed quantity, the companies said in a statement.
- Kodiak has expanded into waffle mixes, frozen waffles, oatmeal, baking mixes and a wide range of snacking merchandise. Its better-for-you choices are at the moment offered in 26,000 retail places, together with Goal, Walmart and Costco.
- The sale comes because the pandemic has elevated shopper demand for more healthy merchandise. On the identical time, individuals are spending extra time at residence making meals, with breakfast among the biggest beneficiaries.
Kodiak started when eight-year-old Joel Clark started promoting his household’s hand-milled flapjack combine door to door from somewhat purple wagon. Right this moment, the fast-growing Kodiak’s income has elevated greater than 50 instances since 2013 when the brand appeared on the tv program Shark Tank.
Whereas little is understood in regards to the firm’s gross sales or how a lot L Catterton is paying to amass its majority stake, it isn’t laborious to see why Kodiak — which has lengthy been rumored has an acquisition goal — was bought.
It is a rapidly rising model that’s benefiting from shopper demand for more healthy meals and the truth that individuals are spending extra time at residence throughout COVID-19. Kodiak additionally has thrived as a result of its merchandise use wholesome substances like entire grains and are loaded with protein.
Kodiak’s current shareholders, together with Dawn Strategic Companions, Trilantic North America and the corporate’s founders and administration staff, will proceed to personal a big minority stake.
L Catterton is not any stranger to purchasing and promoting within the CPG area.
Almost a decade in the past it sold Plum Organics to Campbell Soup. In 2017, it divested Ferrara Candy, the maker of Brach’s, RedHots and Trolli, to Nutella maker Ferrero. And last November, McCormick & Co. purchased hot-sauce maker Cholula from the personal fairness agency for $800 million. Different present and and former investments embrace Kettle Chips, YoCrunch and Candy Leaf Tea.
The personal fairness agency’s earlier expertise in meals was an enormous motive Kodiak selected a sale. “L Catterton shares our imaginative and prescient, and their monitor report of serving to develop iconic CPG manufacturers makes the agency a perfect accomplice for Kodiak as we proceed to propel our enterprise ahead,” mentioned Clark, who at this time serves as CEO.
Kodiak will undoubtedly profit from L Catterton’s skill to faucet into its trade connections to construct manufacturers and enhance gross sales. Different companies and numerous startups are coming into the better-for-you breakfast and snack classes as effectively, so Kodiak, regardless of its status, will face cutthroat competitors going ahead.
Most personal fairness companies purchase manufacturers or corporations with the objective of boosting their worth earlier than ultimately promoting them in a while with a revenue. L Catterton has a vested curiosity in seeing Kodiak succeed so it could possibly achieve financially from its funding. The truth that current buyers of Kodiak, together with its founders and administration staff, plan to retain their stake exhibits they imagine within the long-term prospects of the enterprise and would proceed to profit from any success.
More healthy choices have lengthy been a lovely acquisition goal. Bar maker Kind was purchased by Mars for an estimated price ticket final yr that valued it at greater than $5 billion. In March, Nestlé purchased functional beverage maker Essentia Water. And simply final week, Hershey agreed to buy low-sugar confectionery brand Lily’s as a part of its efforts to extend its portfolio of better-for-you confections.
For meals startups in the appropriate area on the proper time, they’ve the higher hand to be extra selective to find the proper purchaser and price ticket for his or her enterprise. After years of reportedly saying they weren’t open to a sale, Kodiak’s buyers have apparently determined the appropriate time is now.