Dive Brief:
- Private-equity firm L Catterton is purchasing a majority stake in cottage cheese maker Good Culture, the companies said in a statement. Details of the transaction were not disclosed, but Reuters and The Wall Street Journal said the deal values Good Culture at more than $500 million.
- Good Culture, which also makes sour cream and cream cheese, said the investment will allow the dairy manufacturer to boost production capacity and accelerate growth. These initiatives will ensure the brand can respond to increasing demand from retailers and widen the product's accessibility to shoppers.
- Growing consumer interest in protein has provided a significant tailwind for cottage cheese, once viewed as a staple popular with older individuals. Cottage cheese sales rose 20% in U.S. retail for the 52 weeks ended June 15, according to a Circana data cited by CNN, following increases of 17% in 2024 and 2023.
Dive Insight:
Good Culture's decision to sell a majority stake in its operations comes during a hot period of growth for the 11-year-old firm.
During the past three years, Good Culture sales have increased nearly four times, while the broader cottage cheese category has jumped nearly 60% over the same period, according to the company. With sales not expected to slow anytime soon, the deal with L Catterton provides Good Culture with capital to grow its business and further tap into consumer interest for protein-loaded foods.
“Today marks a monumental moment for Good Culture as we embark on this next phase of growth with L Catterton," said Jesse Merrill, co-founder and CEO of Good Culture. “Looking ahead, we're excited to work alongside L Catterton, a proven and well-respected operator in the consumer space, to bring our products to even more consumers nationwide while staying true to our quality, team, and mission.”
L Catterton, which has worked with several consumer brands, is a logical partner for Good Culture due to its consumer insights and industry relationships. L Catterton’s portfolio includes the high-protein, whole-grain food company Kodiak, which it acquired in 2021.
