2x Consumer Products Growth Partners Exits FoodState Investment

2x Consumer Products Growth Partners Exits FoodState Investment
Pharmavite, LLC acquires MegaFood® and INNATE RESPONSE™ brands

Chicago, IL – 2x Consumer Products Growth Partners (“2x Partners”) has sold its investment in FoodState, Inc. to Pharmavite, LLC, one of the largest U.S. manufacturers of high-quality vitamins, minerals and dietary supplements under the Nature Made® brand. Terms of the sale were not disclosed.

Based in Derry, NH, FoodState is a leading manufacturer and marketer of whole food nutritional supplements under the MegaFood® and INNATE RESPONSE™ brands sold in the natural grocery and practitioner channels, respectively.

During the 3+ years 2x Partners was invested in FoodState (in partnership with co-investor The Riverside Company), “we helped recruit significant senior management talent largely from our network and partnered actively with the team,” said Andrew Whitman, Managing Partner at 2x Partners. By investing heavily in marketing, sales and manufacturing infrastructure, the Company nearly doubled in size while maintaining very attractive profit margins.

“I will truly miss working with 2x Partners,” said Robert Craven, CEO at FoodState. “They were thoughtful & creative partners. Without their support and industry expertise I am certain we would not have had the success we are now enjoying.”

“We are very proud of what the FoodState team accomplished, how 2x Partners helped contribute to this exponential growth and the strong working partnership we had with the Riverside team,” said Whitman. “Pharmavite is a great strategic fit for the Company, and the acquisition yields a very attractive return to our valued Limited Partners.”

Managing Partner Sharon Kieffer, Industry Venture Partner Bob Burke (FoodState board member) and Vice Presidents Michael Apostal and Kim Anne Starke rounded out the FoodState-related investment & operating team from 2x Partners.

Jones Day (legal) and Imperial Capital (investment bankers) represented Riverside and 2x Partners.

About 2x Consumer Products Growth Partners
2x Consumer Products Growth Partners joins with founders and management in emerging consumer products businesses capable of growing exponentially via an infusion of capital and management expertise. Focus areas include food, beverage, personal care, home care and pet care – particularly in the organic/natural, specialty/gourmet and ethnic sectors. Businesses are primarily within the $2-25 million revenue range. Visit www.2xpartners.com to learn more about 2x Partners and the partner companies including Beanitos bean-based snacks, gDiapers eco-friendly diapers, Orabrush bad breath eliminators and Tasty Bite Indian- and pan-Asian foods.

Innovative Natural Personal Care Company The Seaweed Bath Co. Receives Investment from 2x Consumer Products Growth Partners

HighRes2016LogoThe Seaweed Bath Co.
has received a substantial growth capital investment led by 2x Consumer Products Growth Partners (“2x Partners”).  Sharon Kieffer, Managing Partner at 2x Partners, has joined the company’s board and will work closely with Founder/CEO Adam Grossman to continue to grow The Seaweed Bath Co. Joining the efforts are two Industry Venture Partners at 2x Partners:  Shekhar Mitra (former SVP, Global Corporate Research & Development for Procter & Gamble’s beauty and personal care businesses) and Gil Pritchard (3-time natural products industry CEO with substantial exits including Avalon Natural Products).

Located in Austin, TX, The Seaweed Bath Co. is a rapidly growing innovator in the natural personal care sector. The Company was founded as a result of Adam’s personal journey to find a natural skin solution to his extreme psoriasis. He discovered the detoxifying powers of seaweed to nourish and soothe sensitive and irritated skin. The Seaweed Bath Co. brings these efficacious benefits which seaweed provides to natural hair, skin and bath categories.

For more information, please visit www.seaweedbathco.com.

2x Consumer Products Growth Partners Invests in High Growth Non-Dairy Beverage Brand Good Karma

Good Karma Foods Logo High Res

2x Consumer Products Growth Partners (“2x Partners”) has made a substantial minority investment in Good Karma Foods, Inc. Sharon Kieffer and Kim Anne Starke, Managing Partner and Vice President respectively, led the efforts for 2x Partners. They will partner with Dan LaValley (retiring CEO) and Doug Radi (new CEO) to continue the growth of Good Karma.

Now based in Boulder, CO, Good Karma is among the fastest growing businesses in the non-dairy beverage space. The company’s flagship Good Karma flaxmilk is a highly differentiated non-dairy beverage with a unique nutritional profile and great taste that is closer to dairy cow’s milk than many other options. Good Karma is broadly available in the natural channel and rapidly expanding its distribution into conventional grocery stores.

For more information, please visit www.goodkarmafoods.com.

2x Consumer Products Growth Partners Closes Second Growth Fund Following Success of Debut Fund

2x Consumer Products Growth Partners (“2x Partners”) recently closed its second consumer products-focused growth equity fund. The firm’s second fund received commitments from nearly 90% of the limited partners in its debut fund and were joined by several prominent new investors. Returning and new LPs include:

  • Many current and former consumer products entrepreneurs and executives
  • Institutional investors
  • Large single- or multi-family offices in the US and Latin America
  • 2x Partners’ Industry Venture Partners Mark Baum, Bob Burke, Steve Hill, Shekhar Mitra, Bruce Nierenberg, Gil Pritchard, Don Roland and Tom Simone

Fund II will follow the same investment strategy as the firm’s first fund by partnering with rapidly growing consumer brands in the food, beverage, pet care, personal care and home care categories. Businesses are primarily within the $2-25 million revenue range.

2x Partners delivers superior returns by leveraging the firm’s unique operational expertise, which includes more than 400 years of cross-functional operating experience with industry leading consumer firms such as Kraft, Pepsi, Proctor & Gamble and Clorox, as well as with more than 100 emerging consumer brands. 2x Partners’ investment strategy has proven successful with 5 of its last 6 exits to strategic acquirers. Notable realized investments include MegaFood whole food supplements (acquired by Pharmavite), Orabrush innovative tongue cleaners (acquired by DenTek), Tasty Bite all-natural Indian and Pan-Asian foods (acquired by Kagome) and Wellness all-natural pet food (acquired by Berwind; pre-Fund I).

The 2x Partners team, led by Managing Partners Sharon Kieffer and Andy Whitman, is actively seeking new opportunities to partner with emerging CPG brands of the future. Visit www.2xpartners.com to learn more about 2x Partners and the firm’s partner companies.