Greetings!

Some exciting funding announcements, along with some M&A activity and real estate news.

Let’s get to it.

REAL ESTATE HIGHLIGHTS

Meal kit company Blue Apron finalized its $50 million sale to San Clemente, CA-based FreshRealm, saying it paid off its debt and is planning further layoffs as it becomes an “asset-light” company with the goal of profitability. Under the terms of the transaction, Blue Apron transferred its operational infrastructure to FreshRealm, including fulfillment centers, equipment, know-how, and related personnel. (source: Winsight Grocery Business)

TreeHouse Foods is spending $100 million to purchase a Northlake, Texas, coffee facility and non-direct store delivery coffee business from Farmer Brothers Company. The facility, built in 2017, brings roasting, grinding, flavoring, and blending capabilities to TreeHouse Foods, which will complement its existing single-serve pod and ready-to-drink coffee businesses, the private-label food maker said. KEY INSIGHT: Manufacturing assets have not always been such an important M&A target, but as challenges in the pandemic era have put a squeeze on costs, supplies, and labor, they have become invaluable. Many companies are looking to buy manufacturing facilities to add to their capacity, since building them new can be expensive and take years. (source: Food Dive)

Mediterranean food company Afia Foods has raised $3 million in Series A equity financing, enabling the company to scale its core product line and open a new 23,000-square-foot manufacturing facility and headquarters in Taylor, Texas. "This early investment will be pivotal in supporting our expansion plans," said Yassin Sibai, co-founder and CEO. "We sought strategic partners in our investors who align with our vision. We are excited to work with them on our new phase of growth." (source: Food Business News)

Coca-Cola has selected New York state as its “preferred location” for a new Fairlife production facility costing an estimated $650 million. The 745,000-square-foot facility in Webster, NY, is expected to create up to 250 new jobs. Coca-Cola expects to break ground on the project this fall and have the facility operational by the fourth quarter of 2025. It will be the largest dairy processing plant in the Northeast. (source: Food Dive)

RECENT FUNDING

Oddball, a New York startup, aims to shake up Jell-O, a 126-year-old brand that generated $688 million in sales last year. Oddball markets a line of plant-based jelly snacks, each formulated with a full serving of fruit and no sugar, preservatives, or gelatin. The recipes contain agar, a gelling agent derived from seaweed. Flavors include pink grapefruiCoffee'se berry, and mango coconut. (source: Food Business News)

Chamberlain Coffee Inc., a Beverly Hills-based food and beverage producer created by internet personality Emma Chamberlain, raised $7 million from investors in its Series A fund. The company said that the fund, which was launched in August 2022, was supported by key existing investors, including the Denmark-based venture capital firm Blazar Capital, United Talent Agency, and Chamberlain herself. (source: Los Angeles Business Journal)

Huntington Park, CA’s Better Booch, a canned small-craft kombucha brand, has raised $7.7M in funding, according to a recent SEC filing. The filing indicates that the round comes from forty-three investors. Better Booch was founded by Trey Lockerbie in 2012. (source: LA TechWatch)

Prime Roots, the leading innovator of deli-style meats made from koji mycelium, today announced $30 million in Series B funding from True Ventures, Pangaea Ventures, Prosus Ventures, Top Tier Capital, Diamond Edge Ventures, SOSV/IndieBio, Solasta Ventures, Monde Nissin, Alumni Ventures, Gaingels, Meach Cove Capital, The House Fund, and Hyphen Capital bringing their total funding to approximately $50 million. The fresh funding will enable Prime Roots to scale and expand to deli counters and restaurants nationwide. (source: PR Newswire)

WHAT I’M READING (AND ENJOYING!)

 👶 I enjoyed this interview with Laura Modi, co-founder of the baby formula company Bobbie. After some initial setbacks, Bobbie was able to help families during the formula shortage last year, and the company has flourished since. Always fun to read about a young upstart competing against some of the behemoths in a category and succeeding. (source: Just Food)

🤔 I’ve noticed more no and low alcohol options on the shelves, along with more ads for the category, but had no idea it was growing like this. Some interesting numbers and forecasts from research firm, ISWR:

• No- and low-alcohol category value surpasses $11bn in 2022.

• IWSR data shows no/low-alcohol consumption will increase by a third by 2026, spearheaded by the growth of no-alcohol products.

• No-alcohol beer/cider will contribute nearly 70% of the overall no/low-alcohol growth between 2022 and 2026. (source: IWSR)

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Over and out.

Erik Stiebel
Founder and Vice President
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