- D’s Naturals said private equity investor 2x Consumer Products Growth Partners and 301 INC, the new business development and venturing unit of General Mills, have invested in the business, according to a company release.
- The company, which makes low sugar plant-based No Cow protein bars and the low sugar protein-infused nut butters, Fluffbutter, will use the money for its next stage of growth. The amount of the investment was not announced.
- Since being founded in 2015 by 18-year-old Daniel Katz, the company has increased $10 million in revenue and gained national distribution in over 10,000 retail locations.
Although the dollar amount was not released by D’s Naturals, analysts believe the investment made by General Mills was substantial and should help the 2-year-old company expand its business.
The philosophy of D’s Naturals is to create low sugar, plant-based products that fuel an active lifestyle and offer more options to people living with dietary restrictions or choosing to eat more plant-based foods.
With more people showing an interest in plant-based products, and food experts saying protein-enhanced items have become one of the biggest food crazes of the past year, it only makes sense for a food manufacturing giant like General Mills looking for new avenues of growth to want to be a part of it.
Acquisitions or investments from major manufacturers such as General Mills, McCormick and Campbell Soup reflect how companies are looking to address consumer demands that may be more difficult or costly to pursue on their own.
As consumers turn to healthier foods, General Mills is looking to overhaul some of its product line. Last July, the company committed to overhauling 60% of its existing yogurt portfolio by July 2017 in an effort to offer healthier ingredients by adding Greek yogurt offerings and fast-growing subcategories like yogurt smoothies. General Mills also is exploring healthier options in its cereals and other products.